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CSSB 203(FIN): "An Act establishing an energy assistance program in the Alaska Housing Finance Corporation to issue an energy voucher to Alaska permanent fund dividend recipients; relating to the analysis and recommendation of an energy assistance program by the governor; and providing for an effective date."

00 CS FOR SENATE BILL NO. 203(FIN) 01 "An Act establishing an energy assistance program in the Alaska Housing Finance 02 Corporation to issue an energy voucher to Alaska permanent fund dividend recipients; 03 relating to the analysis and recommendation of an energy assistance program by the 04 governor; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 ALASKA ENERGY VOUCHER. (a) To help residents meet the high cost of energy 09 in the state in 2011, the Alaska Housing Finance Corporation shall establish a program under 10 which the corporation will issue not more than one energy voucher to each adult or 11 emancipated minor who 12 (1) in 2011, was permitted to apply for a permanent fund dividend on the 13 person's own behalf and who was determined by the Department of Revenue to be eligible for 14 the permanent fund dividend paid in 2012; or

01 (2) did not apply for the permanent fund dividend paid in 2012 but certifies, 02 on a form provided by the corporation that bears notice that false statements made in the form 03 are punishable by law, that the person was eligible for the permanent fund dividend paid in 04 2012 and is determined by the corporation to have otherwise been eligible for the permanent 05 fund dividend paid in 2012. 06 (b) An energy voucher issued under this section is redeemable for the monetary 07 equivalent of 250 gallons of heating oil, the monetary equivalent of 35,000 cubic feet of 08 natural gas, the monetary equivalent of 31,000,000 British thermal units of hot water or steam 09 district heat, or the monetary equivalent of 1,500 kilowatt-hours of electricity. For purposes of 10 this subsection, the monetary equivalent of 250 gallons of heating oil, 35,000 cubic feet of 11 natural gas, 31,000,000 British thermal units of hot water or steam district heat, or 1,500 12 kilowatt-hours of electricity is the retail price of 250 gallons of heating oil, 35,000 cubic feet 13 of natural gas, 31,000,000 British thermal units of hot water or steam district heat, or 1,500 14 kilowatt-hours of electricity as approved for each distributor qualified under (e) of this 15 section. The corporation shall specify a date in 2012 for which each distributor that wants to 16 be qualified under (e) of this section shall submit the retail price of 250 gallons of heating oil, 17 the retail price of 35,000 cubic feet of natural gas, the retail price of 31,000,000 British 18 thermal units of hot water or steam district heat, or the retail price of 1,500 kilowatt-hours of 19 electricity, as applicable. On receipt of a voucher and eligible claim, the corporation shall 20 issue a payment to the qualified distributor of the monetary amount determined under this 21 subsection using the retail price approved by the corporation under (e) of this section for a 22 qualified distributor for the applicable type of energy, district heat, or fuel. On receipt of the 23 payment from the corporation, a qualified distributor shall credit the full amount of the 24 payment to the account that services the primary physical residence of the recipient of the 25 voucher. A payment made under this section may not be used for costs unassociated with the 26 purchase of the energy, district heat, or fuel, may not be transferred between customer 27 accounts, and may not be paid out in cash. If an account with a remaining balance from a 28 payment made under this section is closed, a qualified distributor shall return the balance of 29 the account attributable to the energy voucher to the corporation. 30 (c) The energy voucher 31 (1) must be numbered and state the name of the person to whom the voucher

01 is issued; 02 (2) must require the recipient of the voucher to sign, and date, and certify, on a 03 form bearing notice that false statements made in the form are punishable by law, that the 04 recipient of the voucher is complying with all the requirements of the voucher, including the 05 requirement that the voucher amount be used to supply heating oil, natural gas, district heat, 06 or electricity to the voucher recipient's primary physical residence in the state; 07 (3) is nontransferable and may not be sold, transferred, or traded for any other 08 compensation, except as provided in (g) and (l) of this section; 09 (4) is redeemable only at a distributor qualified under (e) of this section and 10 may not be split among multiple distributors; 11 (5) is not valid for submission to a distributor more than four months after the 12 date the energy voucher is issued; 13 (6) is valid for heating oil, natural gas, district heat, or electricity delivered to 14 the voucher recipient's primary physical residence in the state; and 15 (7) shall be issued by the corporation not more than 30 days following the 16 issuance in 2012 of the permanent fund dividend. 17 (d) A distributor qualified under (e) of this section shall, within 30 days after 18 accepting the voucher, issue a document acknowledging receipt of the voucher to the person 19 exchanging the voucher. The corporation shall issue the amount determined under (b) and (e) 20 of this section to the qualified distributor for an energy voucher not later than 20 days after 21 receiving an eligible claim from a qualified distributor. Submitted claims must include 22 (1) the number of the voucher; 23 (2) the name of the recipient, as stated on the voucher; and 24 (3) the address or other identifying information requested by the corporation 25 listed on the heating oil, natural gas, district heat, or electricity account that the voucher will 26 credit. 27 (e) The corporation shall maintain a list of qualified distributors eligible to accept and 28 redeem vouchers. A distributor of oil, natural gas, district heat, or electricity is qualified if the 29 distributor 30 (1) is licensed to do business in the state; 31 (2) is regularly engaged in the business of distributing oil, natural gas, district

01 heat, or electricity; 02 (3) submits a retail price of oil, natural gas, district heat, or electricity, as 03 applicable, for the quantities described in (a) of this section, submits all evidence for that 04 retail price requested by the corporation, and responds to inquiries of the corporation related 05 to that retail price, and the corporation finds that retail price is representative of the price 06 charged under similar circumstances; and 07 (4) meets other eligibility requirements that the corporation may adopt under 08 AS 18.56.088 or emergency regulations adopted under sec. 3 of this Act. 09 (f) In determining the eligibility of an individual under a public assistance program, a 10 heating assistance program, or a veterans' benefits program in which eligibility for assistance 11 is based on financial need, the state may not consider an energy voucher as income or 12 resources received by the recipient or by a member of the recipient's household. An individual 13 whose 14 (1) supplemental security income benefit payment under 42 U.S.C. 1381 - 15 1383f is reduced solely because of the receipt of energy assistance under this section is 16 entitled to receive from the state, for a period not to exceed 12 months, the same level of 17 benefit payment as the individual would have received under 42 U.S.C. 1381 - 1383f had 18 energy assistance not been received under this section; or 19 (2) nutrition assistance or benefits under 42 U.S.C. 1786 (Special 20 Supplemental Nutrition Program for Women, Infants, and Children) or 7 U.S.C. 612c 21 (Commodity Supplemental Food Program) are reduced solely because of the receipt of energy 22 assistance under this section is entitled to receive, notwithstanding the assistance limit in 23 AS 47.25.130(a), cash assistance under AS 47.25.120 - 47.25.300 (general relief assistance), 24 for a period not to exceed 12 months, in the same amount as the individual would have 25 received under 42 U.S.C. 1786 (Special Supplemental Nutrition Program for Women, Infants, 26 and Children) or 7 U.S.C. 612c (Commodity Supplemental Food Program) had energy 27 assistance not been received under this section. 28 (g) A recipient of an energy voucher who does not pay directly for the heating oil, 29 natural gas, district heat, or electricity used in the recipient's primary physical residence or 30 who does not have reasonable access to a qualified distributor of the type of fuel, district heat, 31 or electricity used in the recipient's primary physical residence in the state may certify that

01 fact on a form provided by the corporation bearing notice that false statements made in the 02 form are punishable by law, and may exchange the voucher with the corporation 03 (1) if applicable, for a replacement voucher in the name of the landlord or 04 owner of the recipient's primary physical residence in the state, the value of which may, 05 subject to negotiations between the landlord and tenant, be deducted from rent; or 06 (2) upon certification that the $250 will be used toward rent, energy, or 07 heating costs at the recipient's primary physical residence in the state, for a check for $250 in 08 the name of the recipient of the energy voucher. 09 (h) Except as provided in (j) of this section or as may be provided by regulations 10 adopted by the corporation, an energy voucher issued under this section is not valid unless it 11 is signed and dated by the individual named on the face of the voucher. 12 (i) A replacement voucher issued to a landlord under (g) of this section is not valid 13 until the landlord certifies on a form provided by the corporation bearing notice that false 14 statements made in the form are punishable by law that the amount of the voucher will be 15 used to provide energy or heat to the primary physical residence of the original recipient of 16 the voucher and certifies to the amount that the landlord will apply against the rent of the 17 original recipient of the voucher. 18 (j) Certification or signature on an energy voucher or other certification under this 19 section required of an individual who is disabled or incapacitated may be signed or certified 20 by the individual's legal guardian or other authorized representative. An individual may 21 complete, sign, and redeem an energy voucher on behalf of a member of the armed forces of 22 the United States who is serving on active duty outside of the United States if the individual 23 has a power of attorney from the member of the armed forces that, in specific or general 24 terms, authorizes the individual to redeem the voucher. 25 (k) An individual who is disabled or incapacitated may not maintain a claim against 26 the state or an officer or employee of the state based on the manner in which the guardian or 27 authorized representative other than a public agency of the state managed or disposed of an 28 energy voucher received on behalf of the disabled or incapacitated individual. 29 (l) If a person is eligible for an energy voucher but dies before the energy voucher is 30 issued or redeemed, the energy voucher may be transferred to a personal representative of the 31 estate or to a successor claiming personal property under AS 13.16.680.

01 (m) In addition to any criminal penalties imposed by state law, if an individual or 02 qualified distributor is convicted of a crime in connection with a false statement made in a 03 certification required under this section, in a submission for a reimbursement under (d) of this 04 section, or in connection with forging an energy voucher, and the conviction is not reversed, 05 vacated, or set aside, or if an individual or qualified distributor is found by the Alaska 06 Housing Finance Corporation to have bought, sold, traded, or otherwise violated the terms of 07 the voucher, that individual or qualified distributor forfeits the energy voucher, or the 08 monetary amount received from the voucher, and the individual is not eligible for a future 09 permanent fund dividend. 10 (n) If an individual is aggrieved by a decision of the Department of Revenue with 11 respect to the individual's eligibility for a permanent fund dividend, and thus an energy 12 voucher under (a)(1) of this section, the individual may request that the department review its 13 decision under AS 43.23.015(g). 14 (o) If an individual or distributor is aggrieved by a decision of the Alaska Housing 15 Finance Corporation with respect to the individual's authority to claim an energy voucher on 16 behalf of another, or reimbursement of a distributor, or other decision under (a)(2), (e), (g), or 17 (m) of this section, the individual or distributor may request that the corporation review its 18 decision. Within 12 months after an administrative appeal under this subsection is filed, the 19 corporation shall provide the individual or distributor with a final written decision. If the 20 individual or distributor is aggrieved by the final written decision of the corporation, the 21 individual or distributor may appeal that decision to the superior court in accordance with 22 AS 44.62.560. An appeal to the court under this subsection does not entitle the aggrieved 23 individual or distributor to a trial de novo. The appeal shall be based on the record of the 24 administrative proceeding from which appeal is taken, and the scope of appeal is limited to 25 matters contained in the record of the administrative proceeding. 26 (p) If the corporation determines that an energy voucher or a cash payment made in 27 exchange for a voucher should not have been issued to an individual or a reimbursement 28 should not have been made to a distributor, the state may use all collection procedures or 29 remedies available under AS 43 to recover the energy voucher or the cash value of the 30 voucher that was improperly issued or for which reimbursement was improperly made. 31 Except as provided in (q) of this section, a notice of an improperly issued voucher or improper

01 reimbursement shall be sent to the individual or distributor, as applicable, within 02 (1) three years after the energy voucher was issued if the notice is sent to an 03 individual; or 04 (2) three years after the distributor received reimbursement if the notice is sent 05 to a distributor. 06 (q) The three-year time limit under (p) of this section for the corporation to send 07 notice of an improperly issued voucher or an improper reimbursement is extended to six years 08 if the corporation determines that the individual or distributor 09 (1) exercised gross negligence or reckless disregard with respect to a material 10 fact in connection with a false statement on the energy voucher or submission for 11 reimbursement; or 12 (2) forged an energy voucher. 13 (r) If notice is not sent within the time required under (p) or (q) of this section, 14 administrative or judicial proceedings may not be commenced for recovery of an improperly 15 issued energy voucher or improper reimbursement. 16 (s) An energy voucher, account credit, or cash payment provided under this section is 17 exempt from garnishment, levy, or execution by a private party or the state. 18 (t) To the extent allowed by federal law and notwithstanding other state law that may 19 be to the contrary, the department shall, on request of the corporation, electronically provide 20 the corporation with information about applicants who the department has determined are 21 eligible for the permanent fund dividend paid in 2012. Information requested by the 22 corporation under this subsection may include the name of the applicant, the physical and 23 mailing address of the applicant, the date of birth of the applicant, the social security number 24 of the applicant, and any other information necessary to execute the energy voucher program. 25 Information from the department may be used by the corporation only for the purpose of 26 executing the energy voucher program created under this section. 27 (u) In this section, 28 (1) "corporation" means the Alaska Housing Finance Corporation created 29 under AS 18.56; 30 (2) "department" means the Department of Revenue; 31 (3) "disabled" means physically or mentally unable to sign an energy voucher

01 or make a certification required in this section because of serious emotional disturbance, 02 visual, orthopedic, or other health impairment, or developmental disability that is attributable 03 to mental retardation, cerebral palsy, epilepsy, autism, or other cause; 04 (4) "incapacitated" means the ability to receive and evaluate information or to 05 communicate decisions is impaired for reasons other than minority to the extent that the 06 person lacks the ability to provide the essential requirements for the person's physical health 07 or safety without court-ordered assistance. 08 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 ANALYSIS AND RECOMMENDATION OF AN ENERGY ASSISTANCE 11 PROGRAM. (a) The governor shall take public testimony, consider the recommendations 12 from organizations involved in providing energy or energy assistance to Alaskans, analyze the 13 energy assistance options in (b) of this section, and analyze alternate options to those 14 proposed in (b) of this section for providing energy assistance to Alaskans and, before 15 October 1, 2012, the governor shall provide a report to the legislature making a 16 recommendation for an energy assistance program to be implemented in the fiscal year ending 17 June 30, 2014, that 18 (1) correlates the amount of assistance to the local cost of residential heating, 19 taking into consideration the price of fuel and heating degree days in each community; 20 (2) is implemented based on crude oil price or heating oil price; 21 (3) has total funding based on state revenue; 22 (4) minimizes administrative costs; 23 (5) makes participation of fuel distributors voluntary; 24 (6) includes a hold harmless provision for recipients of public assistance and 25 veterans' benefits; and 26 (7) includes penalties for fraud, including ineligibility for a future permanent 27 fund dividend. 28 (b) The governor shall analyze the following options and may analyze alternate 29 options to provide energy assistance to Alaskans: 30 (1) a fuel price reduction program with the following features: 31 (A) state reimbursement to a heating oil or natural gas distributor of a

01 portion of the wholesale purchase price of fuel that the distributor sold to heat 02 residential structures; 03 (B) an amount of reimbursement necessary to reduce the wholesale 04 purchase price of a distributor by a specified amount or to a specified price; 05 (C) a limit on the amount of fuel that a person may purchase and for 06 which a distributor received a state reimbursement; and 07 (2) an individual account program with the following features: 08 (A) application on a permanent fund dividend application for energy 09 assistance in the form of a state payment to the applicant's account with a fuel 10 distributor or electric utility; 11 (B) assistance based on heating degree days and the cost of energy in 12 the community; 13 (C) electronic selection of 14 (i) a fuel distributor or electric utility to receive the individual's 15 energy assistance payment; and 16 (ii) an optional amount from the applicant's dividend to be 17 deposited in the individual's account with a fuel distributor or electric utility; 18 (D) a statewide base amount to be sent with the applicant's permanent 19 fund dividend for an applicant for energy assistance who fails to select a fuel 20 distributor or electric utility to receive the individual's energy assistance payment. 21 (c) The governor's report to the legislature under (a) of this section shall evaluate 22 (1) the estimated cost of the program for the first five years; 23 (2) the cost of administering the program compared to the assistance provided; 24 (3) whether the program provides the highest level of assistance to the 25 individuals with the highest heating costs; and 26 (4) whether the program can be structured so that energy assistance is not 27 subject to federal taxation. 28 (d) In this section, "heating degree days" means the average temperature for a day 29 minus the reference temperature of 65 degrees Fahrenheit. 30 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 EMERGENCY REGULATION AND PROCUREMENT PROVISIONS. 02 Notwithstanding AS 18.56.088, the Alaska Housing Finance Corporation may adopt 03 emergency regulations under AS 44.62.250 and 44.62.260 necessary to implement the Alaska 04 energy voucher program in sec. 1 of this Act without making written findings under 05 AS 44.62.250. The legislature finds that the adoption of emergency regulations is necessary to 06 implement this Act and for the immediate preservation of public health and general welfare. 07 In addition, the Alaska Housing Finance Corporation is exempt from AS 36.30, including 08 AS 36.30.015(f), for the purposes of implementing the Alaska energy voucher program. 09 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).