SB 322: "An Act relating to the Alaska children's dividend fund; and providing for an effective date."
00SENATE BILL NO. 322 01 "An Act relating to the Alaska children's dividend fund; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.23.005(c) is amended to read: 05 (c) A parent, guardian, or other authorized representative may claim a 06 permanent fund dividend on behalf of an unemancipated minor or on behalf of a 07 disabled or an incompetent individual who is eligible for a dividend [TO RECEIVE 08 A PAYMENT] under this section. Notwithstanding (a)(2) - (4) of this section, a minor 09 is eligible for a dividend if, during the two calendar years immediately preceding the 10 current dividend year, the minor was born to or adopted by an individual who is 11 eligible for a dividend for the current dividend year. 12 * Sec. 2. AS 43.23.005 is amended by adding a new subsection to read: 13 (h) A parent, guardian, or other authorized representative who is authorized to 14 claim a dividend on behalf of an unemancipated minor under (c) of this section may
01 elect to defer payment of the dividend and have the dividend deposited into the Alaska 02 children's dividend fund (AS 43.23.150) and held in trust for the minor. 03 * Sec. 3. AS 43.23.015(b) is amended to read: 04 (b) The department shall prescribe and furnish an application form for claiming 05 a permanent fund dividend. The form must allow an election to defer payment of 06 the dividend under AS 43.23.005(h). The application must include notice of the 07 penalties provided for under AS 43.23.035 and contain a statement of eligibility and 08 a certification of residency. 09 * Sec. 4. AS 43.23.035(a) is amended to read: 10 (a) In addition to any criminal penalties imposed by state law, if an individual 11 is convicted of a crime in connection with a false statement made in a certification 12 required under AS 43.23.015, and the conviction is not reversed, that individual forfeits 13 all permanent fund dividends paid to the individual or to the Alaska children's 14 dividend fund and held in trust for that individual, together with any income 15 from the money held in trust, and is not eligible for a future permanent fund 16 dividend. 17 * Sec. 5. AS 43.23.035(b) is amended to read: 18 (b) If the commissioner determines that a permanent fund dividend should not 19 have been claimed by or paid to an individual or to the Alaska children's dividend 20 fund and held in trust for that individual , the commissioner may use all collection 21 procedures or remedies available for collection of taxes under this title to recover the 22 payment of a permanent fund dividend that was improperly made. A notice of an 23 improperly paid dividend must be sent to the individual within 24 (1) three years after the improper payment is sent; or 25 (2) six years after the improper payment is sent if the commissioner 26 determines that the individual exercised gross negligence or recklessly disregarded a 27 material fact in connection with a false statement made in an application. 28 * Sec. 6. AS 43.23.055 is amended to read: 29 Sec. 43.23.055. Duties of the department. The department shall 30 (1) annually pay permanent fund dividends from the dividend fund to 31 individuals and to the Alaska children's dividend fund ;
01 (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 02 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 03 and time limits for claiming a permanent fund dividend; the department shall determine 04 the number of eligible applicants by October 1 of the year for which the dividend is 05 declared and pay the dividends by December 31 of that year; 06 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 07 that establish procedures and time limits for an individual upon emancipation or upon 08 reaching majority to apply for permanent fund dividends not received during minority 09 because the parent, guardian, or other authorized representative did not apply on behalf 10 of the individual; 11 (4) assist residents of the state, particularly in rural areas, who , because 12 of language, disability, or inaccessibility to public transportation , need assistance to 13 establish eligibility , [AND] to apply for permanent fund dividends , and to determine 14 whether to elect to defer payment of dividends under AS 43.23.005(h) ; 15 (5) use a list of individuals ineligible for a dividend under 16 AS 43.23.005(d) provided annually by the Department of Corrections and the 17 Department of Public Safety to determine the number and identity of those individuals; 18 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 19 (7) adopt regulations that establish procedures for the parent, guardian, 20 or other authorized representative of a disabled individual to apply for prior year 21 permanent fund dividends not received by the disabled individual because no 22 application was submitted on behalf of the individual; 23 (8) adopt regulations that establish procedures for an individual to apply 24 to have a dividend warrant reissued if it is returned to the department as undeliverable 25 or it is not paid within two years of the date of its issuance; however, the department 26 may not establish a time limit within which an application to have a warrant reissued 27 must be filed; 28 (9) provide any information, upon request, contained in permanent fund 29 dividend records to the child support enforcement agency created in AS 25.27.010, or 30 the child support enforcement agency of another state, for child support purposes 31 authorized under law; if the information is contained in an electronic data base, the
01 department shall provide the requesting agency with either 02 (A) access to the data base; or 03 (B) a copy of the information in the data base and a statement 04 certifying its contents. 05 * Sec. 7. AS 43.23.065(a) is amended to read: 06 (a) Except as provided in (b) of this section, 45 percent of the annual 07 permanent fund dividend payable to an individual is exempt from levy, execution, 08 garnishment, attachment, or any other remedy for the collection of debt. This 09 exemption applies to an eligible individual's permanent fund dividend both before and 10 after payment is made to the individual or to the Alaska children's dividend fund 11 and held in trust for that individual . No other exemption applies to a dividend. 12 Notwithstanding other laws, a writ of execution upon a dividend that has not been 13 delivered to the debtor may be served on the commissioner by certified mail, return 14 receipt requested. Upon receipt of a writ by certified mail, return receipt requested, the 15 commissioner shall deliver that portion of the dividend executed upon to the court 16 along with the case name and number. 17 * Sec. 8. AS 43.23.075 is amended to read: 18 Sec. 43.23.075. Eligibility for public assistance. (a) In determining the 19 eligibility of an individual under a public assistance program administered by the 20 Department of Health and Social Services in which eligibility for assistance is based 21 on financial need, the Department of Health and Social Services may not consider a 22 permanent fund dividend or money held in the Alaska children's dividend fund as 23 income or resources received by the recipient of public assistance or by a member of 24 the recipient's household unless required to do so by federal law or regulation. The 25 Department of Health and Social Services shall notify all recipients of public assistance 26 of the effects of receiving a permanent fund dividend. 27 (b) An individual who is denied medical assistance under 42 U.S.C. 1396 - 28 1396p (Social Security Act, Title XIX) solely because of money held in the Alaska 29 children's dividend fund or the receipt of a permanent fund dividend by the 30 individual or by a member of the individual's household is eligible for state-funded 31 medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance program).
01 The individual is entitled to receive, for a period not to exceed four months, the same 02 level of medical assistance as the individual would have received under 42 U.S.C. 03 1396 - 1396p (Social Security Act, Title XIX) had there been no permanent fund 04 dividend program. 05 (c) An individual who is denied assistance solely because money held in the 06 Alaska children's dividend fund or permanent fund dividends received by the 07 individual or by a member of the individual's household are counted as income or 08 resources under federal law or regulation is eligible for cash assistance under 09 AS 47.25.120 - 47.25.300 (general relief assistance program). Notwithstanding the limit 10 in AS 47.25.130, the individual is entitled to receive, for a period not to exceed four 11 months, the same amount as the individual would have received under other public 12 assistance programs had there been no permanent fund dividend program. 13 * Sec. 9. AS 43.23.085 is amended to read: 14 Sec. 43.23.085. Eligibility for state programs. A program administered by 15 the state or any of its instrumentalities or municipalities, the eligibility for which is 16 based on financial need, may not consider a permanent fund dividend or money held 17 in the Alaska children's dividend fund as income or resources unless required to do 18 so by federal law or regulation. 19 * Sec. 10. AS 43.23 is amended by adding new sections to read: 20 Article 2. Alaska Children's Dividend Fund. 21 Sec. 43.23.150. Alaska children's dividend fund. (a) The Alaska children's 22 dividend fund is established as a separate trust fund in the state treasury and is an asset 23 of the state. The Alaska children's dividend fund consists of 24 (1) money transferred from the dividend fund under AS 43.23.005(h) 25 and held in trust for individuals; and 26 (2) income earned on the money in the Alaska children's dividend fund. 27 (b) Money in the Alaska children's dividend fund shall be invested by the 28 commissioner of revenue under AS 37.10.070. Investment income and losses shall be 29 allocated equitably among all beneficiaries. A quarterly statement of the balance held 30 in trust for an individual shall be provided to the individual or, if the individual is 31 under 18 years of age and unemancipated, to the individual's parent, legal guardian,
01 or other authorized representative. 02 (c) An amount sufficient to administer AS 43.23.150 - 43.23.180 may be 03 annually appropriated from the Alaska children's dividend fund. Appropriations shall 04 be allocated equitably among all beneficiaries. 05 Sec. 43.23.160. Requested disbursements. (a) When an individual is 06 emancipated or is 18 years of age or older, the individual may request disbursement 07 from the Alaska children's dividend fund of all or part of the money held in trust for 08 that individual. The parent, legal guardian, or other authorized representative of an 09 unemancipated individual under 18 years of age may request disbursement of all or 10 part of the money held in trust for the minor only for costs of 11 (1) postsecondary education or vocational training for the individual; 12 (2) medical treatment for the individual necessitated by a serious illness 13 or medical condition; or 14 (3) caring for the individual if the individual has a long-term or 15 permanent disability. 16 (b) Except in cases of medical emergency, disbursements may be made under 17 this section only on June 1 and December 1. 18 Sec. 43.23.170. Mandatory disbursements. (a) The entire balance held in 19 trust in the Alaska children's dividend fund for an individual shall be disbursed to that 20 individual 21 (1) if the individual is at least 21 years of age and did not satisfactorily 22 complete at least 24 credit hours in a postsecondary education or vocational training 23 program during the last 12-month period; or 24 (2) when the individual reaches the age of 25. 25 Sec. 43.23.180. Regulations. The commissioner of revenue may adopt 26 regulations under AS 44.62 (Administrative Procedure Act) to carry out the provisions 27 of AS 43.23.150 - 43.23.180. 28 * Sec. 11. This Act takes effect January 1, 1999.