00                       CS FOR SENATE BILL NO. 265(FIN)                                                                   
01 "An Act relating to the payment of permanent fund dividends to certain individuals                                      
02 required to register as sex offenders or child kidnappers; relating to execution upon                                   
03 permanent fund dividends by civilian process servers using electronic procedures;                                       
04 amending Rule 89, Alaska Rules of Civil Procedure; and providing for an effective                                       
05 date."                                                                                                                  
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1. AS 43.23 is amended by adding a new section to read:                                                  
08            Sec. 43.23.021. Delayed payment of certain dividends. (a) Notwithstanding                                  
09       other provisions regarding the payment of permanent fund dividends, if an individual                              
10       is required to register as a sex offender or child kidnapper under AS 12.63 and has not                           
11       registered or has not completed the required periodic verifications or notices required                           
12       under AS 12.63, payment of the dividend for that individual shall be delayed.                                     
13            (b)  If payment of a dividend is delayed, the department shall notify the                                    
01       individual in writing of the delayed payment status, explain the requirements of this                             
02       section, and request proof of registration and compliance with the verifications and                              
03       notices required under AS 12.63. The dividend may not be paid unless, within one                                  
04       year after the notification, the department determines that the individual has registered                         
05       and is in compliance with the verifications and notices required under AS 12.63.                                  
06            (c)  Notwithstanding other provisions, a permanent fund dividend that has not                                
07       become payable to an individual under this section is not subject to levy, execution,                             
08       garnishment, attachment, or any other remedy for the collection of debt until that                                
09       dividend becomes payable or is paid to the individual.                                                            
10            (d)  If an individual for whom payment of a permanent fund dividend has been                                 
11       delayed but remains payable under (b) of this section dies before the dividend is paid                            
12       or payable, the department shall pay the dividend to a personal representative of the                             
13       individual's estate.                                                                                              
14            (e)  The department shall include notice with the dividend application form of                               
15       the requirements of (a) and (b) of this section.                                                                  
16    * Sec. 2. AS 43.23.025(a) is amended to read:                                                                      
17            (a)  By October 1 of each year, the commissioner shall determine the value of                                
18       each permanent fund dividend for that year by                                                                     
19                 (1)  determining the total amount available for dividend payments,                                      
20       which equals                                                                                                      
21                      (A)  the amount of income of the Alaska permanent fund                                             
22            transferred to the dividend fund under AS 37.13.145(b) during the current year;                              
23                      (B)  plus the unexpended and unobligated balances of prior                                         
24            fiscal year appropriations that lapse into the dividend fund under                                           
25            AS 43.23.045(d);                                                                                             
26                      (C)  less the amount necessary to pay prior year dividends from                                    
27            the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and                              
28            43.23.055(3) and (7) [UNDER AS 43.23.055(3) AND (7)];                                                    
29                      (D)  less the amount necessary to pay dividends from the                                           
30            dividend fund due to eligible applicants who, as determined by the department,                               
31            filed for a previous year's dividend by the filing deadline but who were not                                 
01            included in a previous year's dividend computation;                                                          
02                      (E)  less appropriations from the dividend fund during the                                         
03            current year, including amounts to pay costs of administering the dividend                                   
04            program and the hold harmless provisions of AS 43.23.075;                                                    
05                 (2)  determining the number of individuals eligible to receive a                                        
06       dividend payment for the current year and the number of estates and successors                                    
07       eligible to receive a dividend payment for the current year under AS 43.23.005(h); and                            
08                 (3)  dividing the amount determined under (1) of this subsection by the                                 
09       amount determined under (2) of this subsection.                                                                   
10    * Sec. 3. AS 43.23.065(a) is amended to read:                                                                      
11            (a)  Except as provided in (b) of this section, 20 percent of the annual                                     
12       permanent fund dividend payable to an individual is exempt from levy, execution,                                  
13       garnishment, attachment, or any other remedy for the collection of debt. No other                                 
14       exemption applies to a dividend. Notwithstanding other laws, a writ of execution upon                             
15       a dividend that has not been delivered to the debtor may be served on the                                         
16       commissioner by                                                                                                   
17                 (1)  certified mail, return receipt requested; or                                               
18                 (2)  a civilian process server licensed by the commissioner of public                               
19       safety using electronic execution procedures, as provided under regulations                                   
20       adopted by the department [. UPON RECEIPT OF A WRIT BY CERTIFIED                                              
21       MAIL, RETURN RECEIPT REQUESTED, THE COMMISSIONER SHALL                                                            
22       DELIVER THAT PORTION OF THE DIVIDEND EXECUTED UPON TO THE                                                         
23       COURT ALONG WITH THE CASE NAME AND NUMBER].                                                                       
24    * Sec. 4. AS 43.23.065(d) is amended to read:                                                                      
25            (d)  An assignment of or levy, execution, garnishment, attachment, or other                                  
26       remedy for the collection of debt applied to a dividend for a year may not be accepted                            
27       by the department before April 1 of that same year. AS 09.38.080(c) and 09.38.085 do                              
28       not apply to a levy on a permanent fund dividend. Upon receipt of a writ of                                   
29       execution under (a) of this section or another court order, the commissioner shall                            
30       deliver to the court that portion of the dividend executed upon along with the                                
31       case name and number. [THE DEPARTMENT SHALL INCLUDE THE CASE                                                  
01       NUMBER WITH A DIVIDEND OR PORTION OF A DIVIDEND TRANSMITTED                                                       
02       TO THE COURT IN RESPONSE TO A WRIT OF EXECUTION OR OTHER                                                          
03       COURT ORDER.] At the time payment is made to the court, the department shall                                      
04       send to the individual at the address provided in the individual's dividend application                           
05       and to the court that issued the writ or order a notice that contains                                             
06                 (1)  notification that all or part of the individual's dividend has been                                
07       seized under a writ of execution or court order;                                                                  
08                 (2)  the name and address of the court that issued the writ or order;                                   
09                 (3)  the case number for which the writ or order was issued;                                            
10                 (4)  the amount seized under the writ or order; and                                                     
11                 (5)  notification that the individual has 30 days from the date the notice                              
12       is mailed in which to file with the court an objection to the seizure if a mistake has                            
13       been made.                                                                                                        
14    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to                          
15 read:                                                                                                                   
16       INDIRECT COURT RULE AMENDMENT. The provisions of secs. 3 and 4 of this                                            
17 Act have the effect of changing Rule 89, Alaska Rules of Civil Procedure, by allowing a                                 
18 civilian process server licensed by the commissioner of public safety to execute upon an                                
19 Alaska Permanent Fund dividend by electronic means in accordance with regulations adopted                               
20 by the Department of Revenue.                                                                                           
21    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
22 read:                                                                                                                   
23       CONDITIONAL EFFECT. The amendments to AS 43.23.065 made by secs. 3 and 4                                          
24 of this Act take effect only if sec. 5 of this Act receives the two-thirds majority vote of each                        
25 house required by art. IV, sec. 15, Constitution of the State of Alaska.                                                
26    * Sec. 7. Sections 1 and 2 of this Act take effect January 1, 2009.                                                
27    * Sec. 8. If, under sec. 6 of this Act, secs. 3 and 4 of this Act take effect, they take effect                    
28 January 1, 2009.