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HCS CSSB 190(STA): "An Act relating to income withholding and other methods of enforcement for orders of support; relating to medical support orders; amending Alaska Rule of Civil Procedure 90.3(d); and providing for an effective date."

00HOUSE CS FOR CS FOR SENATE BILL NO. 190(STA) 01 "An Act relating to income withholding and other methods of enforcement for 02 orders of support; relating to medical support orders; amending Alaska Rule of 03 Civil Procedure 90.3(d); and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 25.27.020(a) is amended to read: 06  (a) The agency shall 07  (1) seek enforcement of child support orders of the superior courts of 08 the state in other jurisdictions and shall obtain, enforce, and administer the orders in 09 this state; 10  (2) adopt regulations to carry out the purposes of this chapter, including 11 regulations that establish 12  (A) schedules for determining the amount an obligor is liable 13 to contribute toward the support of an obligee under this chapter and under 42 14 U.S.C. 651 - 669 (Title IV-D, Social Security Act);

01  (B) procedures for hearings conducted under AS 25.27.170; and 02  (C) subject to AS 25.27.025 and to federal law, a uniform rate 03 of interest on arrearages of support that shall be charged the obligor upon 04 notice if child support payments are 10 or more days overdue or if payment is 05 made by a check backed by insufficient funds; however, an obligor may not be 06 charged interest on late payment of a child support obligation, other than a 07 payment on arrearages, if the obligor is 08  (i) employed and income is being withheld from the 09 obligor's wages under an income withholding order; 10  (ii) receiving unemployment compensation and child 11 support obligations are being withheld from the obligor's unemployment 12 payments under AS 23.20.401; or 13  (iii) receiving compensation for disabilities under 14 AS 23.30 and child support obligations are being withheld from the 15 obligor's compensation payments; 16  (3) administer and enforce AS 25.25 (Uniform Reciprocal Enforcement 17 of Support Act); 18  (4) establish, enforce, and administer child support obligations 19 administratively under this chapter; 20  (5) administer the state plan required under 42 U.S.C. 651 - 669 (Title 21 IV-D, Social Security Act) as amended; 22  (6) disburse support payments collected by the agency to the obligee, 23 together with interest charged under (2)(C) of this subsection; 24  (7) establish and enforce administratively under this chapter, or through 25 the superior courts of the state, child support orders from other jurisdictions pertaining 26 to obligors within the state; 27  (8) enforce and administer spousal support orders if a spousal support 28 obligation has been established with respect to the spouse and if the support obligation 29 established with respect to the child of that spouse is also being administered; and 30  (9) obtain a medical support order as part of a child support order if 31 health care coverage is available to the obligor at a reasonable cost; the agency shall

01 consider whether adequate health care is available to the child through the Indian 02 Health Service or other insurance coverage before it orders an obligor to provide 03 health care coverage through insurance or other means. 04 * Sec. 2. AS 25.27.060(c) is amended to read: 05  (c) In a court proceeding where the support of a minor child is at issue, the 06 court may order either or both parents to pay the amount necessary for support, 07 maintenance, nurture, and education of the child. The court shall issue a medical 08 support order as part of a child support order if health care coverage is available to the 09 obligor at a reasonable cost. The court shall consider whether the child is eligible 10 for services through the Indian Health Service or other insurance coverage before 11 ordering the obligor to provide health care coverage through insurance or other 12 means. Upon a showing of good cause the court may order the parents required to 13 pay support to give reasonable security for payments. 14 * Sec. 3. AS 25.27.062(a) is amended to read: 15  (a) A judgment, court order, or order of the agency under this chapter 16 providing for support must contain an income withholding order. Except as provided 17 in (m) of this section, the income withholding order must provide for immediate 18 income withholding if the support order is 19  (1) being enforced by the agency and was issued or modified on or 20 after the effective date of this Act; or 21  (2) not being enforced by the agency and was issued on or after the 22 effective date of this Act [AN INCOME WITHHOLDING ORDER UNDER THIS 23 SECTION MAY NOT BE ENFORCED UNLESS THE OBLIGOR HAD NOTICE OF 24 THE ORDER WHEN IT WAS MADE OR AN APPLICATION FOR THE ORDER 25 WAS SERVED ON THE OBLIGOR IN THE MANNER PROVIDED FOR SERVICE 26 OF A SUMMONS UNDER RULE 4, ALASKA RULES OF CIVIL PROCEDURE]. 27 * Sec. 4. AS 25.27.062(b) is amended to read: 28  (b) An income withholding order must direct the obligor, the obligor's 29 employer, future employer, and any person, political subdivision, or department of the 30 state to withhold money due or to be due the obligor and pay the money to the agency, 31 in an amount determined under (i) of this section. A court that issues a support

01 order on or after the effective date of this Act shall send a copy of the order to 02 the agency. 03 * Sec. 5. AS 25.27.062(c) is repealed and reenacted to read: 04  (c) Income withholding under a support order that does not require immediate 05 withholding may be initiated under AS 25.27.150 if the support order is being enforced 06 by the agency, or under (d) of this section if the support order is not being enforced 07 by the agency, if 08  (1) the obligor requests withholding; 09  (2) the payments that the obligor has failed to make within 30 days of 10 the monthly due date specified in the support order are equal to or greater than the 11 support payable for one month; or 12  (3) the obligee requests withholding and 13  (A) the agency approves the request because all or part of the 14 monthly payment of the obligor has been more than 10 days overdue more than 15 one time in the preceding 12 months or there is reason to believe that the 16 obligor might withdraw assets to avoid payment of support; in this paragraph, 17 "10 days overdue" means occurring 10 days after the monthly due date 18 specified in a support order; or 19  (B) the court approves the request for good cause. 20 * Sec. 6. AS 25.27.062(d) is repealed and reenacted to read: 21  (d) Income withholding under a support order that does not require immediate 22 income withholding and that is not being enforced by the agency may be initiated by 23 filing a motion with the court and complying with applicable court rules. The court 24 shall order the beginning of income withholding under this subsection if the court finds 25 that any of the grounds in (c)(1), (c)(2), or (c)(3)(B) of this section is satisfied. It is 26 not a defense to a motion based on (c)(2) of this section that less than one full month's 27 payment is past due by 30 days if at least one full month's payment was past due by 28 30 days on the date the motion was filed. Notice to the obligor of income withholding 29 ordered under this subsection must be given in a manner that complies with court 30 rules. In this subsection, "past due by 30 days" means unpaid 30 days after the 31 monthly due date specified in the support order.

01 * Sec. 7. AS 25.27.062(e) is amended to read: 02  (e) The [OBLIGEE OR PERSON OR PUBLIC] agency or the person who 03 obtains an [THAT REQUESTED THE] income withholding order under this chapter 04 shall immediately send a copy of the income withholding order, a copy of the relevant 05 provisions of AS 25.27.260 and this section, and an explanation of the effect of the 06 statutes [BY CERTIFIED MAIL] to persons who may owe money to an obligor. 07 These items may be sent by first class mail or certified mail, return receipt 08 requested, or they may be served personally by a process server. An income 09 withholding order made under this chapter [SECTION] is binding upon a person, 10 employer, political subdivision, or department of the state immediately upon receipt 11 of a copy of the income withholding order. An employer shall begin withholding the 12 specified amount from the employee's wages (1) 14 working days after the mailing 13 date on the order [NOTICE] of withholding or 14 working days after the date on 14 which the order was personally served, whichever is applicable, or (2) on the first 15 day of the next pay period, if earlier. The amount withheld shall be sent to the agency 16 within 10 working days after the date the employee is paid. An employer may, 17 for each payment made under an order, deduct $5 from other wages or salary 18 owed to the obligor. 19 * Sec. 8. AS 25.27.062(f) is amended to read: 20  (f) An employer may not discharge, discipline, or refuse to employ an obligor 21 on the basis of an income withholding order issued under this chapter [SECTION]. 22 If an employer discharges, disciplines, or refuses to employ an obligor because of an 23 income withholding obligation, the court, after notice and hearing, may order 24 reinstatement or restitution to the obligor, or both. A person who violates this 25 subsection or a regulation adopted to implement it, is liable for a civil penalty of not 26 more than $1,000. 27 * Sec. 9. AS 25.27.062(g) is amended to read: 28  (g) An income withholding order under this chapter [SECTION] has priority 29 over all other attachments, executions, garnishments, or other legal process brought 30 under state law against the same property unless otherwise ordered by the court. An 31 income withholding order is not limited to the wages of an obligor but may include

01 all money owed to the obligor not otherwise exempt by law. Exemptions under 02 AS 09.38 do not apply to income withholdings under this chapter [SECTION]. 03 * Sec. 10. AS 25.27.062(h) is amended to read: 04  (h) The court may order payment of all court costs that resulted from an 05 income withholding proceeding under this chapter [SECTION]. 06 * Sec. 11. AS 25.27.062(k) is repealed and reenacted to read: 07  (k) An employer who is withholding income of an obligor under an order that 08 provides that the withheld income shall be paid to the agency shall notify the agency 09 promptly when the obligor gives or receives notice of termination of employment and 10 provide to the agency the obligor's last known home address and the name and address 11 of the obligor's new employer, if known. The employer shall keep a record of the 12 order to withhold income from the obligor for three years after the employer notifies 13 the agency that the obligor has terminated employment. If, within that three-year 14 period, the obligor is reemployed by the former employer, the employer shall 15 immediately implement the order against the obligor's earnings unless the employer 16 has received notice from the agency that the order is no longer applicable to the 17 obligor. If the obligor is reemployed by the former employer after that three-year 18 period, the employer is not required to implement a withholding order against the 19 obligor's earnings until the employer receives a new order to withhold the obligor's 20 income under this chapter. 21 * Sec. 12. AS 25.27.062(l) is repealed and reenacted to read: 22  (l) Unless modified or terminated by the agency or the court, an order to 23 withhold income under this chapter remains in effect, except as provided in (k) of this 24 section, until the support order is satisfied. The agency or court may not terminate or 25 modify an income withholding order solely on the ground that the obligor has paid all 26 arrearages. Upon satisfaction of a support order, if the order is 27  (1) being enforced by the agency, the agency shall, within 15 working 28 days, notify all persons served by the agency with the income withholding order that 29 withholding is no longer required; if the agency receives money from an obligor under 30 an income withholding order after the underlying support order has been satisfied and 31 the agency was enforcing the support order at the time it became satisfied, the agency

01 shall immediately return the overpayment to the obligor; if the agency fails to return 02 an overpayment as required under this paragraph, the state is liable to the obligor for 03 the amount of the overpayment, plus interest at the rate imposed under AS 43.05.225, 04 and a person to whom the agency erroneously disbursed the overpayment is liable to 05 the state for the amount disbursed, plus interest at the rate imposed under 06 AS 43.05.225; 07  (2) not being enforced by the agency, the obligor shall file a motion 08 in court requesting termination of the withholding order and serve the motion on the 09 obligee; the court shall enter an order terminating the withholding order if the court 10 determines that the support order has been satisfied; the obligor may deliver a copy 11 of the termination order to persons who were served with the income withholding 12 order; when a termination order is entered, the obligee shall, upon request of the 13 obligor, notify the obligor of all persons who have been served with the income 14 withholding order by the obligee. 15 * Sec. 13. AS 25.27.062 is amended by adding new subsections to read: 16  (m) An income withholding order described in (a)(1) - (2) of this section is 17 not subject to immediate withholding if the support order is 18  (1) being enforced by the agency and the obligor agrees to keep the 19 agency informed of the obligor's current employer and the availability of employment-related health insurance 20 coverage for the children covered by the support order until 21 the support order is satisfied and 22  (A) the agency has entered into its record a written agreement 23 between the obligor and the obligee that provides for an alternative 24 arrangement and income withholding has not been terminated previously and 25 subsequently initiated; the agency must also be a party to an agreement under 26 this paragraph if support has been assigned to the state; or 27  (B) the obligor or obligee demonstrates and the agency, in 28 compliance with applicable federal law, finds good cause not to require 29 immediate income withholding because it would not be in the best interests of 30 the child and, in a case involving the modification of a support order, the 31 obligor has made voluntary support payments under a court or agency order

01 and has not been in arrears in an amount equal to the support payable for one 02 month; in this paragraph, "in arrears" means failing to make a support payment 03 within 30 days of the monthly due date specified in the order; 04  (2) not being enforced by the agency and the obligor agrees to keep the 05 obligee informed of the obligor's current employer and the availability of employment- 06 related health insurance coverage for the children covered by the support order until 07 the support order is satisfied and 08  (A) the court finds that (i) a written agreement exists between 09 the obligor and the obligee that provides for an alternative arrangement and (ii) 10 income withholding has not been terminated previously and subsequently 11 initiated; the agency must also be a party to an agreement under this paragraph 12 if support has been assigned to the state; or 13  (B) the obligor or obligee demonstrates, and the court, in 14 compliance with applicable federal law, finds good cause not to require 15 immediate income withholding because it would not be in the best interests of 16 the child and, in a case involving the modification of a support order, the 17 obligor has made voluntary support payments under a court or agency order 18 and has not been in arrears in an amount equal to the support payable for one 19 month; in this paragraph, "in arrears" means failing to make a support payment 20 within 30 days of the monthly due date specified in the order; or 21  (3) an order that involves an obligor who is receiving social security 22 or other disability compensation that includes regular payments to the children who are 23 the subjects of the support order, except to the extent that the payments to the children 24 do not equal the child support due each month. 25  (n) In calculating the amount of child support to be withheld under an income 26 withholding order, the agency shall give credit to the obligor for the cost to the obligor 27 of medical and dental insurance for the children and educational payments for the 28 children to the extent that the insurance coverage and educational payments are 29 required in the applicable child support order and are actually paid for by the obligor. 30 * Sec. 14. AS 25.27.100 is amended to read: 31  Sec. 25.27.100. ALL PERSONS MAY USE AGENCY; FEES FOR

01 SERVICES. The agency shall provide aid to any person due child support under the 02 laws of this state upon application. Subject to (b) of this section, the [THE] agency 03 may, by regulation, impose a fee for services provided under this chapter. 04 * Sec. 15. AS 25.27.100 is amended by adding a new subsection to read: 05  (b) To the extent allowed under federal law, for each payment made by the 06 agency to a custodian from money sent to the agency under an income withholding 07 order issued under this chapter, the agency shall impose a fee of $5 on the custodian. 08 To the extent allowed under federal law, the agency shall subtract this fee from the 09 money it receives under the income withholding order before disbursing the balance 10 of the money to the custodian. 11 * Sec. 16. AS 25.27.140(b) is amended to read: 12  (b) If a support order has been entered, the agency may enforce the support 13 order utilizing the procedures prescribed in AS 25.27.062, 25.27.150, [AS 25.27.150] 14 and 25.27.230 - 25.27.270. 15 * Sec. 17. AS 25.27.150 is repealed and reenacted to read: 16  Sec. 25.27.150. INITIATED INCOME WITHHOLDING; REQUIRED 17 NOTICE AND HEARING. (a) In order to initiate income withholding for a support 18 order being enforced by the agency for which immediate income withholding is not 19 required under AS 25.27.062(a), the agency shall serve a notice of its intent to initiate 20 income withholding on the obligor. Notice under this subsection shall be served upon 21 the obligor by certified mail to the obligor's last known address, and service is 22 complete when the notice is properly addressed, certified, and mailed. 23  (b) The notice must state the amount of the overdue support that is owed, if 24 any, and the amount of income that will be withheld. 25  (c) The notice shall inform the obligor that the income withholding order will 26 take effect 15 days after the date on which the notice is served unless the obligor 27 requests a hearing within 15 days after the notice is served. If the obligor requests a 28 hearing, an income withholding order may not take effect until the conclusion of the 29 hearing. 30  (d) If the obligor requests a hearing, it shall be conducted under the 31 department's regulations for informal conferences and shall be held within 15 days of

01 the date of the request. The hearing may only be held to determine if there is a 02 mistake of fact that makes the income withholding order improper because the amount 03 of current or overdue support is incorrect, the identity of the obligor is inaccurate, or, 04 for initiated withholding based on AS 25.27.062(c)(3)(A), the alleged facts regarding 05 overdue payments or potential withdrawal of assets are incorrect. The order is not 06 subject to any other legal defenses. It is not a defense to an income withholding order 07 issued under AS 25.27.062(c)(2) that less than one full month's payment is past due 08 if at least one full month's payment was past due on the date notice was served under 09 this section. 10  (e) The appeals officer shall inform the obligor, either at the hearing or within 11 15 days after the hearing, whether or not the withholding will occur and of the date 12 on which it is to commence. 13  (f) If the appeals officer determines that withholding will occur, the obligor 14 may request a formal hearing, as provided in the department's regulations. The 15 income withholding order shall be issued and withholding shall begin under the 16 procedures in AS 25.27.062, whether or not the obligor requests a formal hearing, 17 unless the obligor posts security or a bond in the amount that would have been 18 withheld pending the outcome of a formal hearing. 19 * Sec. 18. AS 25.27.160(b) is amended to read: 20  (b) The notice and finding of financial responsibility served under (a) of this 21 section must state 22  (1) the sum or periodic payments for which the alleged obligor is found 23 to be responsible, calculated by taking into consideration the need of the alleged 24 obligee, the alleged obligor's liability to the state under AS 25.27.120 [AS 25.27.130] 25 if any, and the duty of support under the law; 26  (2) the name of the alleged obligee and the obligee's custodian; 27  (3) that the alleged obligor may appear and show cause in a hearing 28 held by the agency why the finding is incorrect, should not be finally ordered, and 29 should be modified or rescinded, because 30  (A) no duty of support is owed; or 31  (B) the amount of support found to be owed is incorrect;

01  (4) that if the person served with the notice and finding of financial 02 responsibility does not request a hearing within 30 days, the property and income of 03 the person will be subject to execution under AS 25.27.062 and 25.27.230 - 25.27.270 04 [IN ACCORDANCE WITH AS 25.27.230 - 25.27.270] in the amounts stated in the 05 finding without further notice or hearing. 06 * Sec. 19. AS 25.27.170(b) is amended to read: 07  (b) If a request for a formal hearing under (a) of this section is made, the 08 execution under AS 25.27.062 and 25.27.230 - 25.27.270 may not [AS 25.27.230 - 09 25.27.270 SHALL] be stayed unless the obligor posts security or a bond in the 10 amount of child support that would have been due under the finding of financial 11 responsibility pending the decision on the hearing [, OR THE DECISION OF A 12 COURT, IF APPEALED]. If no request for a hearing is made, the finding of 13 responsibility is final at the expiration of the 30-day period. 14 * Sec. 20. AS 25.27.170(d) is amended to read: 15  (d) The hearing officer shall determine the amount of periodic payments 16 necessary to satisfy the past, present, and future liability of the alleged obligor under 17 AS 25.27.120 [AS 25.27.130], if any, and under any duty of support imposable under 18 the law. The amount of periodic payments determined under this subsection is not 19 limited by the amount of any public assistance payment made to or for the benefit of 20 the child. 21 * Sec. 21. AS 25.27.170(f) is amended to read: 22  (f) If the alleged obligor requesting the hearing fails to appear at the hearing, 23 the hearing officer shall enter a decision declaring the property and income of the 24 alleged obligor subject to execution under AS 25.27.062 and 25.27.230 - 25.27.270 25 [IN ACCORDANCE WITH AS 25.27.230 - 25.27.270] in the amounts stated in the 26 notice and finding of financial responsibility. 27 * Sec. 22. AS 25.27.180(b) is amended to read: 28  (b) Liability to the state under AS 25.27.120 [AS 25.27.130] is limited to the 29 amount for which the obligor is found to be responsible under (a) of this section. 30 * Sec. 23. AS 25.27.230(a) is amended to read: 31  (a) At the expiration of 30 days from either (1) the date of distribution of an

01 income withholding order under AS 25.27.062 [SERVICE OF NOTICE UNDER 02 AS 25.27.150], or (2) the date of service of a notice and finding of financial 03 responsibility under AS 25.27.160, the agency may assert a lien upon the real or 04 personal property of the obligor, in the amount of the obligor's liability. 05 * Sec. 24. AS 25.27.230(c) is amended to read: 06  (c) The lien shall attach to all real and personal property of the obligor and be 07 effective on the date of recording of the lien with the recorder of the recording district 08 in which the property attached is located. A lien against earnings shall attach and be 09 effective upon filing with the recorder of the recording district in which the employer 10 does business or maintains an office or agent for the purpose of doing business. A 11 lien filed at the offices of the Commercial Fisheries Entry Commission in Juneau 12 against a limited entry permit issued under AS 16.43 is considered to have been 13 filed against the permit in all recording districts in which the permit holder uses 14 the permit. 15 * Sec. 25. AS 25.27.250(a) is amended to read: 16  (a) At the expiration of either (1) 15 [30] days from the date of service of an 17 income withholding order under AS 25.27.062 or notice under AS 25.27.150, or (2) 18 30 days from the date of service of a notice and finding of financial responsibility 19 under AS 25.27.160, the agency may issue to any person, political subdivision, or 20 department of the state an order to withhold and deliver property. 21 * Sec. 26. AS 25.27.250(b) is amended to read: 22  (b) All real or personal property belonging to the obligor is subject to an order 23 to withhold and deliver, including, but not limited to, earnings that are due, owing, or 24 belonging to the debtor. In calculating the amount to be withheld and delivered 25 under an order issued under this section, the agency shall give credit to the 26 obligor for the cost to the obligor of medical and dental insurance for the children 27 and educational payments for the children to the extent that the insurance 28 coverage and educational payments are required in the applicable child support 29 order and are actually paid for by the obligor. 30 * Sec. 27. AS 25.27.250(f) is amended to read: 31  (f) If a person, political subdivision, or department of the state upon whom

01 service of an order to withhold and deliver has been made possesses property due, 02 owing, or belonging to the obligor, that person, subdivision, or department shall 03 withhold the property immediately upon receipt of the order and shall deliver the 04 property to the agency [UPON DEMAND] after the expiration of the 14-day period 05 from the date of service of the order or expiration of the period specified in 06 AS 25.27.062(e), whichever is earlier. The agency shall hold property delivered 07 under this subsection in trust for application against the liability of the obligor under 08 AS 25.27.062, 25.27.120, or 25.27.160 [AS 25.27.130] or for return, without interest, 09 depending on final determination of liability or nonliability under this chapter. The 10 agency may accept a good and sufficient bond to secure payment of past, present, 11 and future support conditioned upon final determination of liability in lieu of 12 requiring delivery [DELIVERING] of property under this subsection. 13 * Sec. 28. AS 25.27.250 is amended by adding a new subsection to read: 14  (j) A person, political subdivision, or department that fails to comply with an 15 order to withhold and deliver served under this subsection is subject to penalties under 16 AS 25.27.260. A person, political subdivision, or department may, for each payment 17 made under an order to withhold and deliver, deduct $5 from other wages or salary 18 owed to the obligor. 19 * Sec. 29. AS 25.27.255(a) is amended to read: 20  (a) The agency shall pay to the obligee all money recovered by the agency 21 from the obligor under an income withholding order except for court costs and money 22 assigned to the agency under AS 25.27.120 - 25.27.130. However, if there is more 23 than one income withholding order under this chapter against an obligor, the 24 agency shall allocate amounts available for withholding in a manner that gives 25 priority to current support up to the limits imposed under 15 U.S.C. 1673(b) 26 (sec. 303(b), Consumer Credit Protection Act). Notwithstanding the priority given 27 to current support, the agency shall establish procedures for allocation of support 28 among obligees so that in no case will the allocation result in a withholding order 29 for one obligee not being implemented. 30 * Sec. 30. AS 25.27.260 is amended to read: 31  Sec. 25.27.260. CIVIL LIABILITY UPON FAILURE TO COMPLY WITH

01 AN ORDER OR LIEN. If a [ANY] person, political subdivision, or department of the 02 state (1) fails to make an answer to an order to withhold and deliver within the time 03 prescribed in AS 25.27.250; (2) fails or refuses to deliver property in accordance with 04 an order issued under AS 25.27.250; (3) pays over, releases, sells, transfers, or conveys 05 real property subject to a lien recorded under AS 25.27.230 to or for the benefit of the 06 obligor or any other person; (4) fails or refuses to surrender upon demand property 07 attached; or (5) intentionally fails or refuses to honor an assignment of wages or an 08 income withholding order under AS 25.27.062 that was served [PRESENTED] by the 09 agency through personal service by a process server or through certified mail, 10 return receipt requested, the person, political subdivision, or department of the state 11 is liable to the agency in an amount equal to 100 percent of the amount constituting 12 the basis of the lien, order to withhold and deliver, attachment, or withholding of 13 wages or income, together with costs, interest, and reasonable attorney fees. 14 * Sec. 31. AS 25.27.260 is amended by adding a new subsection to read: 15  (b) A person, political subdivision, or department of the state that intentionally 16 fails or refuses to honor a properly served income withholding order under 17 AS 25.27.062 that is not being enforced by the agency is liable to the obligee in an 18 amount equal to 100 percent of the amount ordered to be withheld together with costs, 19 interest, and reasonable attorney fees. 20 * Sec. 32. AS 33.30.131(b) is amended to read: 21  (b) Unless alternative arrangements are expressly approved by the 22 commissioner, when a prisoner is employed outside a correctional facility as part of 23 a prerelease or short-duration furlough program, or as part of serving time in a 24 correctional restitution center under AS 33.30.151 - 33.30.181, the earnings of the 25 prisoner shall be delivered to the commissioner. If an employer transmits the earnings 26 to the commissioner, the employer has no liability to the prisoner for the earnings. The 27 commissioner shall disburse the earnings of the prisoner, in an order determined 28 appropriate, under procedures adopted by the commissioner to 29  (1) pay for the room, board, and personal expenses of the prisoner in 30 an amount or at a rate determined by the commissioner; 31  (2) pay any restitution or fine ordered by the sentencing court;

01  (3) reimburse the state for an award made for violent crimes 02 compensation under AS 18.67 arising out of the criminal conduct of the prisoner; 03  (4) pay a civil judgment arising out of the criminal conduct of the 04 prisoner; and 05  (5) support the dependents of the prisoner, and to provide child support 06 payments as required by AS 25.27 [AS 25.27.062]. 07 * Sec. 33. Alaska Rule of Civil Procedure 90.3(d) is amended to read: 08  (d) HEALTH INSURANCE - CREDITS. The court shall address coverage of 09 the children's health care needs and require health insurance if insurance is available 10 to either parent at a reasonable cost. The court shall consider whether the children 11 are eligible for services through the Indian Health Service or other insurance 12 coverage before ordering the obligor to provide health care coverage through 13 insurance or other means. In calculating a child support award, credit will be given 14 for medical and dental insurance, or educational payments for the children which are 15 required by the court or administrative order and actually paid. 16 * Sec. 34. AS 25.27.255(b), 25.27.255(c), and secs. 2 and 5, ch. 75, SLA 1991, are 17 repealed. 18 * Sec. 35. TRANSITIONAL PROVISION. (a) Notwithstanding other provisions of this 19 Act, in the case of a support order issued by a court on or after January 1, 1994, and before 20 the effective date of this Act, the court shall, upon filing of a motion by an obligee who is the 21 subject of the support order, issue an immediate income withholding order for support, 22 regardless of whether support payments are in arrears, unless 23 (1) a written agreement exists between the obligor and the obligee that 24 provides for an alternative arrangement; 25 (2) the obligor demonstrates, and the court finds, that there is good cause not 26 to require immediate income withholding; or 27 (3) the support order is being enforced by the child support enforcement 28 agency. 29 (b) An immediate income withholding order issued under this section is governed by 30 AS 25.27, as amended by this Act, and shall be treated as an immediate income withholding 31 order issued under AS 25.27.062(a).

01 * Sec. 36. This Act takes effect on the 10th day after the date it becomes law under 02 AS 01.10.070(a).