HB 337: "An Act relating to claims against permanent fund dividends to pay certain amounts owed to state agencies and to fees for processing claims against and assignments of permanent fund dividends; and providing for an effective date."
00HOUSE BILL NO. 337 01 "An Act relating to claims against permanent fund dividends to pay certain 02 amounts owed to state agencies and to fees for processing claims against and 03 assignments of permanent fund dividends; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.23 is amended by adding a new section to read: 06 Sec. 43.23.072. Claims for amounts owed to certain state agencies. (a) The 07 procedures in this section are available for use by a state agency for claims to pay for 08 amounts owed to a state agency, except for those covered by AS 43.23.066 - 09 43.23.068. 10 (b) AS 09.38 does not apply to permanent fund dividends taken by a state 11 agency for a claim for payment for money owed to the state agency by an individual 12 under state law. Notwithstanding AS 09.35, execution on a dividend claimed for that 13 payment is accomplished by delivering a certified claim to the Department of Revenue 14 containing the following information:
01 (1) the name and social security number of the individual whose 02 dividend is being claimed; if the state agency does not have access to the individual's 03 social security number for this purpose, the state agency may supply other 04 identification information authorized under regulations to make a claim under 05 AS 43.23.065; 06 (2) the amount the individual owes on the claim for payment; 07 (3) a statement that 08 (A) the state agency making the claim has notified the 09 individual that future permanent fund dividends of the individual will be taken 10 to satisfy the claim for payment; 11 (B) the individual was notified of the right to request a hearing 12 and allowed at least 30 days after the date of the notice described in (A) of this 13 paragraph to request the state agency making the claim for payment to hold a 14 hearing on the claim; 15 (C) the claim for payment has not been contested, or, if 16 contested, the issue has been resolved in favor of the state agency making the 17 claim; and 18 (D) if the claim for payment has been contested and resolved 19 in favor of the state agency making the claim, no appeal is pending, the time 20 limit for filing an appeal has expired, or the appeal has been resolved in favor 21 of the state agency making the claim. 22 (c) Before submitting a claim for payment under this section, the state agency 23 making the claim shall notify the individual if a permanent fund dividend is claimed 24 under (b) of this section. The notice shall be sent to the address provided in the 25 individual's permanent fund dividend application and must provide the following 26 information: 27 (1) the amount of the claim for payment; 28 (2) notice that the permanent fund dividend, or that a portion of the 29 permanent fund dividend that does not exceed the amount of the claim for payment, 30 shall be paid to the state agency making the claim in accordance with priorities 31 established in state law;
01 (3) notification that the individual has a right to request a hearing and 02 has a specific time after the date that the notice is mailed in which to file with the 03 state agency making the claim any objection to paying the claim from the individual's 04 permanent fund dividend. 05 (d) Except as provided in (e) of this section, AS 44.62.330 - 44.62.630 apply 06 to a hearing requested by an individual under (c) of this section. The hearing available 07 under this section 08 (1) is limited to issues of identity of the individual and whether an 09 amount is still owing in the claim for payment; and 10 (2) may be conducted telephonically or in writing. 11 (e) If the state agency making the claim has a notification or hearing procedure 12 established in statute or regulation, the state agency may instead use that notification 13 and hearing procedure so long as 14 (1) the procedure provides at least the minimum time frames for notice 15 specified in (b)(3)(B) of this section for the individual to request a hearing; 16 (2) the notice includes the statements required by (c) of this section; 17 and 18 (3) the hearing is limited to the issues specified in (d)(1) of this section. 19 (f) A state agency may adopt regulations to implement or interpret this section 20 by the same procedure under which it adopts regulations for the program for which the 21 claim for payment is being made. 22 (g) In a claim for payment under this section, the state agency may include 23 fines, fees, penalties, overpayments, attorneys' fees, costs, and other amounts owed the 24 state agency under other provisions of state law under which the claim for payment is 25 being made. 26 (h) In this section, "state agency" means a department, division, office, agency, 27 or other organizational unit of the executive branch that is authorized by state law to 28 establish or collect amounts due to a state agency. 29 * Sec. 2. AS 43.23.071 is amended to read: 30 Sec. 43.23.071. Fees for processing claims and assignments. The department 31 shall by regulation adopted under AS 44.62 (Administrative Procedure Act) establish
01 fees for processing claims on dividends received by the department under this chapter 02 [AS 43.23.065 OR 43.23.067] and for processing assignments of dividends received 03 by the department under AS 43.23.069(b). The fees shall cover the administrative 04 expenses of the department associated with the claims and assignments. Fees shall be 05 deducted from the amount of the dividend remaining after payment of the portion 06 claimed or assigned or, if the entire dividend is claimed or assigned, the fees shall be 07 deducted before the dividend is paid to the creditor or assignee. 08 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 TRANSITION: REGULATIONS. Notwithstanding sec. 5 of this Act, a state agency 11 that is affected by this Act may proceed to adopt regulations necessary to interpret or 12 implement secs. 1 and 2 of this Act. The regulations take effect under AS 44.62 13 (Administrative Procedure Act), but not before the effective date of secs. 1 and 2 of this Act. 14 * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 15 * Sec. 5. Sections 1 and 2 of this Act take effect January 1, 2001.