Legislature(1997 - 1998)
05/07/1997 05:16 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
7 May 1997
5:16 p.m.
TAPES
SFC-97, #147, Side 1 (000 - 592)
147, Side 2 (592 - 303)
CALL TO ORDER
Senator Bert Sharp, Co-chairman, convened the meeting at
approximately 5:16 p.m.
PRESENT
In addition to Co-chairman Sharp, Senators Pearce, Phillips,
Donley, Parnell and Adams were present when the meeting
convened. Senator Torgerson arrived shortly thereafter.
ALSO ATTENDING: Glenda Straube, Director, Division of
Child Support Enforcement, Department of Revenue; Jim
Nordlund, Director, Central Office, Division of Public
Assistance, Department of Health and Social Services; Dan
Branch, Assistant Attorney General, Human Services Section,
Civil Division Juneau, Department of Law; Mitch Gravo,
lobbyist; aides to committee members and other legislators.
via teleconference: Greg Wolfe, Vice Presdient, Anchorage,
Economic Development Corporation; Steve Lauper, Esq., AIDEA.
SUMMARY INFORMATION
Co-chair Sharp convened the evening meeting and called SB
159.
CS FOR SENATE BILL NO. 159(L&C)
"An Act relating to the new business incentive
program."
Greg Wolfe, Vice President, Anchorage Economic Development
Corporation testified via teleconference from Anchorage. He
explained the bill presently before the committee. The
expansion and diversification would provide year-round
employment. It was designed to help Alaskans compete in the
market. Senator Pearce asked the packet from AEDC be
passed out.
Senator Adams commented on the business incentive grant for
five years. He wanted to know who was responsible for
repayment of monies if business ceases before five years.
Mr. Wolfe responded saying that the loan or grant would be
decided by AIDEA and they would be responsible for
collection otherwise. Senator Adams also noted that the
bill did not note a minimum or maximum amount on the loan.
Mr. Wolfe reviewed briefly the standards for eligibility and
noted the limits were stated in the bill. When the bill is
completely put together the limits will be clearly known.
Co-chair Sharp said there was no supporting statement from
AIDEA as to whether they agreed with this bill or not. Mr.
Wolfe said that AIDEA was aware and supported the bill.
Steve Lauper, Esq., counsel for AIDEA testified via
teleconference from Anchorage. He said there had been some
concerns with the operation but that it had been corrected
in the new CS which they supported.
Senator Parnell referred to page two of the AEDC statement
and commented on the feasibility study. Senator Adams asked
whether fifty percent of the business cost could be
recovered or not. Mr. Lauper assured that everything was
done with reimbursement in mind. He said this bill was a
vehicle in which to attract established businesses to
Alaska. Senator Pearce asked if it would also attract
business to state property. Mr. Wolfe said not necessarily.
They would try to look at all conditions. The bill would
help tilt in favour of Alaska.
Mitch Gravo, lobbyist, was invited to join the committee.
He referred to a letter from the Anchorage mayor. In
response to Senator Parnell's question, Mr. Wolfe further
noted the letter from the Anchorage mayor. He said it was a
matter of logistics and operations. Criteria was being
established.
Noting the absence of Co-chair Sharp, Co-chair Pearce set
aside SB 159. She then called SB 154.
CS FOR SENATE BILL NO. 154(HES)
"An Act relating to paternity determination and child
support; relating to reporting of and access to financial
or other information for child support purposes; making
changes to laws relating to occupational, recreational,
or other licenses, permits, certificates, or other
authorizations issued by the state to facilitate
administration of child support laws; relating to the
interest rate on judgments or decrees for child support;
relating to immunity from civil liability for good faith
compliance with reporting or other requirements for child
support purposes; relating to voiding fraudulent transfers
and to penalties for noncompliance with orders for child
support purposes; amending Rules 4, 5, 35, 52, 58,
60(b), 78, 90.1, and 90.3, Alaska Rules of Civil Procedure;
amending Rule 901, Alaska Rules of Evidence; amending
Rules 3 and 5, Alaska Bar Association Rules; repealing
the effective date of sec. 45, ch. 107, SLA 1996; and
providing for an effective date."
Glenda Straube, Child Support Enforcement was invited to
join the committee. She explained the HES version of the
bill before the committee. It included changes in federal
mandates applicable for all states.
Jim Nordlund, Division of Public Assistance was invited to
join the committee. He said this bill, if passed into law
would result in penalties for violators. With reference to
the impact on the agency, he said it would be difficult if
federal funds were lost due to non-compliance. The
Department of Health and Social Services supported the bill.
Ms. Straube explained the bill section by section. She
specifically referred to new hire reporting and said all
employers must report new or re-hires within twenty days.
Senator Parnell asked about section 76 on page 29, line 27.
Ms. Straube said she did not know who would make the
determinations. She noted that crew member fishing licenses
were added in to the bill. Social security numbers must be
on all documents and shared with all child support agencies.
However, the information was only to be used for child
support purposes.
Senator Phillips asked about the right to privacy with
regards to the social security number and would this be a
violation of one's constitutional rights.
Dan Branch, Assistant Attorney General, Department of Law
was invited to join the committee. He said the social
security number was protected by federal law. He would look
up and provide the necessary information to the committee
with regards to use of the social security number. Senator
Phillips had noted that one does not have to list their
social security number on documents any more.
Ms. Straube continued explaining the bill. She said once
established, paternity could not be rescinded after sixty
days without court process. Punitive fathers could request
blood tests and the Division would provide these tests. She
further said all agencies must provide employment records as
applicable because there could be multiple cases involving
the same party. A state agency or a court order could
require a participant to be employed. She cited cases where
individuals were appropriately employed and now paying child
support payments. The State of Alaska also respects liens
from other states. The department recognized use of first
class mail after all diligent methods had been exhausted to
notify the individual regarding child support. There was no
statute of limitations on reporting arrears to the credit
bureau. Further not mandated but included in the bill was:
1. one rate of interest for the child support debt (see
section 12 and 13, judgments and decrees); 2. the child
support order would be corrected if based on fraudulent
information.
Senator Torgerson asked about section 13 (AS 25.27.025).
Ms. Straube indicated she would provide requested
information after research. Under section 111 she said no
could withhold employment if it was known the perspective
employee owed child support. It should be clearly known the
individual is responsible for the child whether a court
order for child support is received or not.
There was miscellaneous discussion between Senator Parnell
and Ms. Straube regarding enforcement of child support. She
did indicate that the department could not override a court
order. Further under section 111, (5), everything would
automatically conform according to federal mandate.
Senator Torgerson asked if passage of this bill was urgent
and Ms. Straube indicated that it was.
Co-chair Sharp held the bill in committee and advised that
he would bring it up again on tomorrow morning's calendar.
ADJOURNMENT
Co-chair Sharp adjourned the session at 6:32 p.m. until
tomorrow morning.
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