CS FOR SENATE BILL NO. 145(FIN)                                                                                               
                                                                                                                                
     "An Act relating to benefits for public assistance                                                                         
     programs administered by the Department of Health and                                                                      
     Social Services; and providing for an effective date."                                                                     
                                                                                                                                
10:23:10 AM                                                                                                                   
                                                                                                                                
SEAN  O'BRIEN,  DIRECTOR,  DIVISION  OF  PUBLIC  ASSISTANCE,                                                                    
DEPARTMENT   OF  HEALTH   AND   SOCIAL  SERVICES,   provided                                                                    
information about  the bill. He  stated that the  bill would                                                                    
extend  the   ability  for  the   division  to   collect  on                                                                    
overpayments   through   Permanent   Fund   Dividend   (PFD)                                                                    
garnishment. He  shared that the bill  was initiated because                                                                    
of  the  child  care  assistance block  grant  changes  that                                                                    
required   more   aggressive   attempts   to   collect   the                                                                    
overpayments. He stated that there  was a recognition of the                                                                    
opportunity  to  see that  the  PFD  garnishment option  was                                                                    
available  for all  of the  division's  programs. He  stated                                                                    
that  the  bill  allowed  for the  ability  to  utilize  the                                                                    
garnishment  option,  to provide  that  the  funds would  be                                                                    
returned.  He stressed  that without  the garnishment  tool,                                                                    
general funds  would be  used. He  remarked that  the fiscal                                                                    
note allowed  for collection of  the PFD  garnishment funds,                                                                    
and allow for the receipt of the funds to the division.                                                                         
                                                                                                                                
Representative Wilson  wondered if  there was  $500,000 that                                                                    
had not yet been collected.                                                                                                     
                                                                                                                                
Mr.  O'Brien replied  that $500,000  was  established as  an                                                                    
estimate of how much was needed  to allow for receipt of PFD                                                                    
remittance.  He stated  that there  was no  plan to  ask for                                                                    
general funds.                                                                                                                  
                                                                                                                                
Representative Wilson queried the outstanding balance.                                                                          
                                                                                                                                
Mr.  O'Brien  replied  that   the  division  had  calculated                                                                    
approximately $331,578 in overpayments  in state fiscal year                                                                    
2015, which were in various stages of repayment.                                                                                
                                                                                                                                
Representative  Wilson   wondered  if  the   bill  addressed                                                                    
providers, those who received the benefit, or both.                                                                             
                                                                                                                                
Mr. O'Brien  answered that the bill  addressed providers who                                                                    
were  receiving child  care assistance  funds  on behalf  of                                                                    
parents;  and child  care grants  paid to  license providers                                                                    
for specific purposes.                                                                                                          
                                                                                                                                
Representative Kawasaki wondered whether  there was an order                                                                    
in which PFD garnishments operate.                                                                                              
                                                                                                                                
Mr. O'Brien replied  in the affirmative. He  stated that the                                                                    
bill would fall into 9th in  the order. He stressed that the                                                                    
bill depended  on the demands  on PFD garnishment  that were                                                                    
ranked at a higher level.                                                                                                       
                                                                                                                                
Co-Chair Thompson CLOSED public testimony.                                                                                      
                                                                                                                                
Mr. O'Brien appreciated the committee's support.                                                                                
                                                                                                                                
Co-Chair Neuman addressed the fiscal notes.                                                                                     
                                                                                                                                
Co-Chair  Neuman  MOVED  to  REPORT  CSSB  145(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  145(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation and with  one previously published zero                                                                    
fiscal note: FN2 (REV); and  one previously published fiscal                                                                    
impact note: FN3 (DHS).                                                                                                         
                                                                                                                                
Co-Chair Thompson  discussed the schedule for  the following                                                                    
meeting.