SSHB 62: "An Act relating to certain licenses and applications for licenses for persons who are not in substantial compliance with orders, judgments, or payment schedules for child support; and providing for an effective date."
00SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 62 01 "An Act relating to certain licenses and applications for licenses for persons who 02 are not in substantial compliance with orders, judgments, or payment schedules 03 for child support; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 25.27 is amended by adding new sections to read: 06 Sec. 25.27.244. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 07 OCCUPATIONAL LICENSE. (a) The agency shall compile and maintain a list of 08 obligors who are not in substantial compliance with a support order. The list must 09 include the names, social security numbers, dates of birth, and last known addresses 10 of the obligors. The list shall be updated by the agency on a monthly basis. 11 (b) The agency shall, on a monthly basis, provide a copy of the list to each 12 licensing entity through a computer-readable magnetic medium. A licensing entity 13 subject to this section shall implement procedures to accept and process the list. 14 Notwithstanding any other law to the contrary, a licensing entity may not issue or
01 renew a license for a person on the list except as provided in this section. 02 (c) Promptly after receiving an application from an applicant and before 03 issuing or renewing a license, a licensing entity shall determine whether the applicant 04 is on the most recent list provided by the agency. If the applicant is on the list, the 05 licensing entity shall immediately serve notice under (e) or (f) of this section of the 06 licensing entity's intent to withhold issuance or renewal of the license. The notice 07 shall be considered given when delivered personally to the obligor or deposited in the 08 U.S. mail addressed to the applicant's last known mailing address on file with the 09 licensing entity. 10 (d) Except as provided for commercial fishing licenses under (e) of this 11 section, a licensing entity shall issue a temporary license valid for a period of 150 days 12 to an applicant whose name is on the list if the applicant is otherwise eligible for a 13 license. The temporary license may not be extended. Only one temporary license may 14 be issued during a regular license term and its validity shall coincide with the first 150 15 days of that license term. A license for the full or remainder of the license term may 16 be issued or renewed only upon compliance with this section. If a license or 17 application is denied under this section, funds paid by the applicant or licensee may 18 not be refunded by the licensing entity. 19 (e) If the Department of Fish and Game receives an application under 20 AS 16.05.480 for issuance or renewal of a commercial fishing license, other than a 21 crewmember fishing license, from an applicant whose name is on the list, the 22 Department of Fish and Game shall issue the license if the applicant otherwise 23 qualifies for it. Along with the license, the Department of Fish and Game shall send 24 to the applicant a notice that the license will not be reissued or renewed the next time 25 it is applied for if the applicant's name is on the list at the time of the subsequent 26 application unless the Department of Fish and Game receives a release from the 27 agency. 28 (f) Notices for use under (c) and (e) of this section, as applicable, shall be 29 developed by each licensing entity under guidelines provided by the agency and are 30 subject to approval by the agency. The notice must include the address and telephone 31 number of the agency and shall emphasize the necessity of obtaining a release from
01 the agency as a condition for the issuance or renewal of a license. The notice must 02 inform an applicant whose license is governed by (d) of this section that the licensing 03 entity shall issue a temporary license for 150 calendar days under (d) of this section 04 if the applicant is otherwise eligible and that, upon expiration of that time period, the 05 license will be denied unless the licensing entity has received a release from the 06 agency. The notice must also inform the applicant that, if a license or application is 07 denied under this section, funds paid by the applicant will not be refunded by the 08 licensing entity. The agency shall also develop a form that the applicant may use to 09 request a review by the agency. A copy of this form shall be included with each 10 notice sent under (c) or (e) of this section. 11 (g) The agency shall establish review procedures consistent with this section 12 to allow an applicant to have the underlying arrearage and relevant defenses 13 investigated, to provide an applicant information on the process of obtaining a 14 modification of a support order, or to provide an applicant assistance in the 15 establishment of a payment schedule on arrearages if the circumstances warrant. 16 (h) If the applicant wishes to challenge being included on the list, the applicant 17 shall submit to the agency a written request for review within 30 days after receiving 18 the notice under (c) or (e) of this section by using the form developed under (f) of this 19 section. Within 30 days after receiving a written request for review, the agency shall 20 inform the applicant in writing of the agency's findings. The agency shall immediately 21 send a release to the appropriate licensing entity and the applicant if any of the 22 following conditions is met: 23 (1) the applicant is found to be in substantial compliance with each 24 support order applicable to the applicant or has negotiated an agreement with the 25 agency for a payment schedule on arrearages and is in substantial compliance with the 26 negotiated agreement; if the applicant fails to be in substantial compliance with an 27 agreement negotiated under this paragraph, the agency shall send to the appropriate 28 licensing entity a revocation of any release previously sent to the entity for that 29 applicant; 30 (2) the applicant has submitted a timely request for review to the 31 agency, but the agency will be unable to complete the review and send notice of
01 findings to the applicant in sufficient time for the applicant to file a timely request for 02 judicial relief within the 150-day period during which the applicant's temporary license 03 is valid under (d) of this section or before the subsequent licensing period under (e) 04 of this section; this paragraph applies only if the delay in completing the review 05 process is not the result of the applicant's failure to act in a reasonable, timely, and 06 diligent manner upon receiving notice from the licensing entity that the applicant's 07 name is on the list; 08 (3) the applicant has, within 30 days after receiving the agency's 09 findings following a request for review under (2) of this subsection, filed and served 10 a request for judicial relief under this section, but a resolution of that relief will not 11 be made within the 150-day period of the temporary license under (d) of this section 12 or before the subsequent licensing period under (e) of this section; this paragraph 13 applies only if the delay in completing the judicial relief process is not the result of 14 the applicant's failure to act in a reasonable, timely, and diligent manner upon 15 receiving the agency's notice of findings; or 16 (4) the applicant has obtained a judicial finding of substantial 17 compliance. 18 (i) An applicant is required to act with diligence in responding to notices from 19 the licensing entity and the agency with the recognition that the temporary license 20 granted under (d) of this section will lapse after 150 days or that a subsequent license 21 will not be issued under (e) of this section and that the agency and, where appropriate, 22 the court must have time to act within that 150-day period or before the subsequent 23 license is needed, as applicable. An applicant's delay in acting, without good cause, 24 that directly results in the inability of the agency to complete a review of the 25 applicant's request or the court to hear the request for judicial relief within the required 26 period does not constitute the diligence required under this section that would justify 27 the issuance of a release. 28 (j) Except as otherwise provided in this section, the agency may not issue a 29 release if the applicant is not in substantial compliance with the order for support or 30 is not in substantial compliance with an agreement negotiated under (h)(1) of this 31 section. The agency shall notify the applicant in writing that the applicant may request
01 any or all of the following: (1) judicial relief from the agency's decision not to issue 02 a release or the agency's decision to revoke a release under (h)(1) of this section; (2) 03 a judicial determination of substantial compliance; (3) a modification of the support 04 order. The notice must also contain the name and address of the court in which the 05 applicant may file the request for relief and inform the applicant that the applicant's 06 name shall remain on the list if the applicant does not request judicial relief within 30 07 days after receiving the notice. The applicant shall comply with all statutes and rules 08 of court implementing this section. This section does not limit an applicant's authority 09 under other law to request an order to show cause or notice of motion to modify a 10 support order or to fix a payment schedule on arrearages accruing under a support 11 order or to obtain a court finding of substantial compliance with a support order. 12 (k) A request for judicial relief from the agency's decision must state the 13 grounds on which relief is requested and the judicial action shall be limited to those 14 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 15 governed by court rules adopted to implement this section. Unless otherwise provided 16 by court rule, the court shall hold an evidentiary hearing within 20 calendar days of 17 the filing of service on the opposing party. The court's decision shall be limited to a 18 determination of each of the following issues: 19 (1) whether there is a support order or a payment schedule on 20 arrearages; 21 (2) whether the petitioner is the obligor covered by the support order; 22 and 23 (3) whether the obligor is in substantial compliance with the support 24 order or payment schedule. 25 (l) If the court finds that the obligor is in substantial compliance with the 26 support order or payment schedule, the agency shall immediately send a release under 27 (h) of this section to the appropriate licensing entity and the applicant. 28 (m) When the obligor is in substantial compliance with a support order or 29 payment schedule, the agency shall mail to the applicant and the appropriate licensing 30 entity a release stating that the applicant is in substantial compliance. The receipt of 31 a release shall serve to notify the applicant and the licensing entity that, for the
01 purposes of this section, the applicant is in substantial compliance with the support 02 order or payment schedule unless the agency, under (a) of this section, certifies 03 subsequent to the issuance of a release that the applicant is once again not in 04 substantial compliance with a support order or payment schedule. 05 (n) The agency may enter into interagency agreements with the state agencies 06 that have responsibility for the administration of licensing entities as necessary to 07 implement this section to the extent that it is cost effective to implement the 08 interagency agreements. The agreements shall provide for the receipt by the other 09 state agencies and licensing entities of federal funds to cover that portion of costs 10 allowable in federal law and regulation and incurred by the state agencies and licensing 11 entities in implementing this section. 12 (o) Notwithstanding any other provision of law, the licensing entities subject 13 to this section may levy a surcharge on a fee collected to cover the costs of 14 implementing and administering this section. 15 (p) The process described in (h) of this section is the sole administrative 16 remedy for contesting the issuance to the applicant of a temporary license or the denial 17 of a license under this section. The procedures specified in AS 44.62.330 - 44.62.630 18 (Administrative Procedure Act) do not apply to the denial or failure to issue or renew 19 a license under this section. 20 (q) The agency and licensing entities, as appropriate, shall adopt regulations 21 necessary to implement this section. 22 (r) In this section, 23 (1) "applicant" means a person applying for issuance or renewal of a 24 license; 25 (2) "license" 26 (A) means, except as provided in (B) of this paragraph, a 27 license, certificate, permit, registration, or other authorization that, at the time 28 of issuance, will be valid for more than 150 days that may be acquired from 29 a state agency to perform an occupation, including the following: 30 (i) license relating to boxing or wrestling under 31 AS 05.10;
01 (ii) authorization to perform an occupation regulated 02 under AS 08; 03 (iii) teacher certificate under AS 14.20; 04 (iv) commercial fishing license under AS 16.05.480, 05 except for a crewmember fishing license; 06 (v) entry permit or interim use permit under AS 16.43; 07 (vi) authorization under AS 18.08 to perform emergency 08 medical services; 09 (vii) asbestos worker certification under AS 18.31; 10 (viii) boiler operator's license under AS 18.60.395; 11 (ix) certificate of fitness under AS 18.62; 12 (x) hazardous painting certification under AS 18.63; 13 (xi) security guard license under AS 18.65.400 - 14 18.65.490; 15 (xii) license relating to insurance under AS 21.27; 16 (xiii) employment agency permit under AS 23.15.330 - 17 23.15.520; 18 (xiv) registration as a broker-dealer, agent, or investment 19 adviser under AS 45.55.030; 20 (xv) certification as a pesticide applicator under 21 AS 46.03.320; 22 (xvi) certification as a storage tank worker or contractor 23 under AS 46.03.375; and 24 (xvii) certification as a water and wastewater works 25 operator under AS 46.30; 26 (B) does not include 27 (i) a vessel license issued under AS 16.05.490 or 28 16.05.530; 29 (ii) a license issued under AS 47.35; 30 (iii) a business license issued under AS 43.70; or 31 (iv) a driver's license issued under AS 28.15;
01 (3) "licensee" means a person holding a license or applying to renew 02 a license; 03 (4) "licensing entity" means the state agency that issues or renews a 04 license; in the case of a license issued or renewed by the Department of Commerce 05 and Economic Development after an applicant's qualifications are determined by 06 another agency, "licensing entity" means the department; 07 (5) "list" means the list of obligors compiled and maintained under (a) 08 of this section; 09 (6) "substantial compliance with a support order or payment schedule" 10 means that, with respect to a support order or a negotiated payment schedule under (h) 11 of this section, the obligor has no more than $2,500 past due and has cumulatively 12 paid an amount equal to or greater than the amount due for one month during the past 13 12 months. 14 Sec. 25.27.246. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S 15 DRIVER'S LICENSE. (a) The agency shall compile and maintain a list of obligors 16 who have a driver's license and are not in substantial compliance with a support order. 17 The list must include the names, social security numbers, dates of birth, and last 18 known addresses of the obligors. The list shall be updated by the agency on a monthly 19 basis. 20 (b) The agency shall serve notice under (d) of this section to each person on 21 the list that the person's driver's license will be suspended in 150 days, and will not 22 be reissued or renewed the next time it is applied for if the person's name is on the 23 list at the time of the subsequent application, unless the licensee receives a release 24 from the agency. The notice shall be considered given when delivered personally to 25 the obligor or deposited in the U.S. mail addressed to the obligor's last known mailing 26 address on file with the agency. 27 (c) If the licensee fails to obtain a release during the 150-day period following 28 notice under (b) and (d) of this section, the agency shall notify the department that the 29 licensee's driver's license should be suspended and further renewals or applications 30 should be denied until the agency sends the department a release for the licensee. 31 Upon receiving the agency's notice under this subsection, the department shall suspend
01 the licensee's driver's license and may not issue or renew a driver's license for the 02 licensee until the department receives a release to do so from the agency. If a license 03 or application is suspended or denied under this section, funds paid by the applicant 04 or licensee may not be refunded by the department. 05 (d) The notice under (b) of this section must include the address and telephone 06 number of the agency and shall emphasize the necessity of obtaining a release from 07 the agency as a condition for avoiding suspension or denial of the person's driver's 08 license. The notice must also inform the licensee that, if a license or application is 09 suspended or denied under this section, funds paid by the licensee will not be refunded 10 by the department. The agency shall also develop a form that the licensee may use 11 to request a review by the agency. A copy of this form shall be included with each 12 notice sent under (b) of this section. 13 (e) The agency shall establish review procedures consistent with this section 14 to allow a licensee to have the underlying arrearage and relevant defenses investigated, 15 to provide a licensee with information on the process of obtaining a modification of 16 a support order, or to provide a licensee with assistance in the establishment of a 17 payment schedule on arrearages if the circumstances warrant. 18 (f) If a licensee wishes to challenge being included on the list, the licensee 19 shall submit to the agency a written request for review within 30 days after the notice 20 under (b) of this section was personally delivered or postmarked by using the form 21 developed under (d) of this section. Within 30 days after receiving a written request 22 for review, the agency shall inform the licensee in writing of the agency's findings. 23 The agency shall immediately send a release to the department and the licensee if any 24 of the following conditions is met: 25 (1) the licensee is found to be in substantial compliance with each 26 support order applicable to the licensee or has negotiated an agreement with the agency 27 for a payment schedule on arrearages and is in substantial compliance with the 28 negotiated agreement; if the licensee fails to be in substantial compliance with an 29 agreement negotiated under this paragraph, the agency shall send to the department a 30 revocation of any release previously sent to the entity for that licensee; 31 (2) the licensee has submitted a timely request for review to the
01 agency, but the agency will be unable to complete the review and send notice of 02 findings to the licensee in sufficient time for the licensee to file a timely request for 03 judicial relief within the 150-day period before the licensee's license will be suspended 04 under (c) of this section; this paragraph applies only if the delay in completing the 05 review process is not the result of the licensee's failure to act in a reasonable, timely, 06 and diligent manner upon receiving notice from the agency that the licensee's driver's 07 license will be suspended in 150 days; 08 (3) the licensee has, within 30 days after receiving the agency's 09 findings following a request for review under (2) of this subsection, filed and served 10 a request for judicial relief under this section, but a resolution of that relief will not 11 be made within the 150-day period before license suspension under (c) of this section; 12 this paragraph applies only if the delay in completing the judicial relief process is not 13 the result of the licensee's failure to act in a reasonable, timely, and diligent manner 14 upon receiving the agency's notice of findings; or 15 (4) the licensee has obtained a judicial finding of substantial 16 compliance. 17 (g) A licensee is required to act with diligence in responding to notices from 18 the agency with the recognition that the person's driver's license will be suspended 19 after 150 days or that a subsequent license will not be issued and that the agency and, 20 where appropriate, the court must have time to act within that 150-day period or before 21 the subsequent license is needed, as applicable. A licensee's delay in acting, without 22 good cause, that directly results in the inability of the agency to complete a review of 23 the licensee's request or the court to hear the request for judicial relief within the 24 required period does not constitute the diligence required under this section that would 25 justify the issuance of a release. 26 (h) Except as otherwise provided in this section, the agency may not issue a 27 release if the applicant is not in substantial compliance with the order for support or 28 is not in substantial compliance with an agreement negotiated under (f)(1) of this 29 section. The agency shall notify the licensee in writing that the licensee may request 30 any or all of the following: (1) judicial relief from the agency's decision not to issue 31 a release or the agency's decision to revoke a release under (f)(1) of this section; (2)
01 a judicial determination of substantial compliance; (3) a modification of the support 02 order. The notice must also contain the name and address of the court in which the 03 licensee may file the request for relief and inform the licensee that the licensee's name 04 shall remain on the list if the licensee does not request judicial relief within 30 days 05 after receiving the notice. The licensee shall comply with all statutes and rules of 06 court implementing this section. This section does not limit a licensee's authority 07 under other law to request an order to show cause or notice of motion to modify a 08 support order or to fix a payment schedule on arrearages accruing under a support 09 order or to obtain a court finding of substantial compliance with a support order. 10 (i) A request for judicial relief from the agency's decision must state the 11 grounds on which relief is requested and the judicial action shall be limited to those 12 stated grounds. Judicial relief under this subsection is not an appeal, and shall be 13 governed by court rules adopted to implement this section. Unless otherwise provided 14 by court rule, the court shall hold an evidentiary hearing within 20 calendar days of 15 the filing of service on the opposing party. The court's decision shall be limited to a 16 determination of each of the following issues: 17 (1) whether there is a support order or a payment schedule on 18 arrearages; 19 (2) whether the petitioner is the obligor covered by the support order; 20 and 21 (3) whether the obligor is in substantial compliance with the support 22 order or payment schedule. 23 (j) If the court finds that the obligor is in substantial compliance with the 24 support order or payment schedule, the agency shall immediately send a release under 25 (f) of this section to the department and the licensee. 26 (k) When the obligor is in substantial compliance with a support order or 27 payment schedule, the agency shall mail to the applicant and the department a release 28 stating that the licensee is in substantial compliance. The receipt of a release shall 29 serve to notify the licensee and the department that, for the purposes of this section, 30 the applicant is in substantial compliance with the support order or payment schedule 31 unless the agency, under (a) of this section, certifies subsequent to the issuance of a
01 release that the licensee is once again not in substantial compliance with a support 02 order or payment schedule. 03 (l) Notwithstanding any other provision of law, the department may levy a 04 surcharge on a fee collected under AS 28.15 to cover the costs of implementing and 05 administering this section. 06 (m) The process described in (f) of this section is the sole administrative 07 remedy for contesting the suspension or the denial of a driver's license under this 08 section. The procedures specified in AS 28 or AS 44.62.330 - 44.62.630 09 (Administrative Procedure Act) do not apply to the suspension or failure to issue or 10 renew a license under this section. 11 (n) The agency and department, as appropriate, shall adopt regulations 12 necessary to implement this section. 13 (o) In this section, 14 (1) "department" means the Department of Public Safety; 15 (2) "driver's license" or "license" means a driver's license, as defined 16 in AS 28.40.100; 17 (3) "licensee" means a person holding or requesting a driver's license; 18 (4) "list" means the list of obligors compiled and maintained under (a) 19 of this section; 20 (5) "substantial compliance with a support order or payment schedule" 21 means that, with respect to a support order or a negotiated payment schedule under (f) 22 of this section, the obligor has no more than $2,500 past due and has cumulatively 23 paid an amount equal to or greater than the amount due for one month during the past 24 12 months. 25 * Sec. 2. REPORT. (a) In furtherance of the public policy of increasing child support 26 enforcement and collections, on or before January 1, 1998, the child support enforcement 27 agency shall make a report to the legislature and the governor based on data collected by the 28 licensing entities and the agency in a format prescribed by the agency. The report must 29 contain 30 (1) the number of delinquent obligors on the lists maintained by the agency 31 under AS 25.27.244 - 25.27.246;
01 (2) the number of delinquent obligors who also were applicants or licensees 02 subject to AS 25.27.244 - 25.27.246; 03 (3) the number of new licenses and renewals that were delayed or denied and 04 temporary licenses issued subject to AS 25.27.244 and the number of new licenses and 05 renewals granted following receipt by licensing entities of releases under AS 25.27.244 by 06 July 1, 1997; 07 (4) the number of licenses under AS 28.15 that were suspended under 08 AS 25.27.246 and the number of licenses under AS 28.15 that were reinstated following 09 receipt by the Department of Public Safety of releases under AS 25.27.246 by July 1, 1997; 10 and 11 (5) the costs incurred in the implementation and enforcement of AS 25.27.244 12 - 25.27.246. 13 (b) A licensing entity receiving an inquiry from the agency under (a) of this section 14 shall cooperate with the agency. When queried as to the licensed status of an applicant who 15 has had a license denied or suspended under AS 25.27.244 or 25.27.246 or has been granted 16 a temporary license under AS 25.27.244, the licensing entity shall respond only that the 17 license was denied or suspended or that the temporary license was issued. 18 * Sec. 3. This Act takes effect January 1, 1996.