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SB 104: "An Act relating to appropriations from the dividend fund; creating the criminal fund; and providing for an effective date."

00 SENATE BILL NO. 104 01 "An Act relating to appropriations from the dividend fund; creating the criminal fund; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 12.55.051 is amended by adding a new subsection to read: 05 (k) The Department of Law shall pay the outstanding balances on orders of 06 restitution as provided in AS 43.23.031. 07 * Sec. 2. AS 43.23.028 is amended to read: 08 Sec. 43.23.028. Public notice. (a) By October 1 of each year, the 09 commissioner shall give public notice of the value of each permanent fund dividend 10 for that year and notice of the information required to be disclosed under (3) of this 11 subsection. In addition, the stub attached to each individual dividend disbursement 12 advice must 13 (1) disclose the amount of each dividend attributable to income earned 14 by the permanent fund from deposits to that fund required under art. IX, sec. 15,

01 Constitution of the State of Alaska; 02 (2) disclose the amount of each dividend attributable to income earned 03 by the permanent fund from appropriations to that fund and from amounts added to 04 that fund to offset the effects of inflation; 05 (3) disclose the amount by which each dividend has been reduced due 06 to each appropriation from the dividend fund, including amounts to pay the costs of 07 administering the dividend program and the hold harmless provisions of 08 AS 43.23.075; 09 (4) include a statement that an individual is not eligible for a dividend 10 when 11 (A) during the qualifying year, the individual was convicted of 12 a felony; 13 (B) during all or part of the qualifying year, the individual was 14 incarcerated as a result of the conviction of a 15 (i) felony; or 16 (ii) misdemeanor if the individual has been convicted of 17 a prior felony or two or more prior misdemeanors; 18 (5) include a statement that the legislative purpose for making 19 individuals listed under (4) of this subsection ineligible is to 20 (A) pay restitution to the victims of the individuals' crimes 21 [OBTAIN REIMBURSEMENT FOR SOME OF THE COSTS IMPOSED ON 22 THE STATE CRIMINAL JUSTICE SYSTEM RELATED TO 23 INCARCERATION OR PROBATION OF THOSE INDIVIDUALS]; 24 (B) make child support payments and reduce child support 25 arrearages for the individuals; 26 (C) pay for court-ordered rehabilitation programs for the 27 individuals; and 28 (D) obtain reimbursement for some of the costs of 29 incarceration or probation of the individuals [PROVIDE FUNDS FOR 30 SERVICES FOR AND PAYMENTS TO CRIME VICTIMS AND FOR 31 GRANTS FOR THE OPERATION OF DOMESTIC VIOLENCE AND

01 SEXUAL ASSAULT PROGRAMS]; 02 (6) disclose the total amount that would have been paid during the 03 previous fiscal year to individuals who were ineligible to receive dividends under 04 AS 43.23.005(d) if they had been eligible; 05 (7) disclose the total amount appropriated for the current fiscal year 06 under AS 43.23.031 and (b) of this section for each of the funds and agencies listed in 07 AS 43.23.031 and (b) of this section. 08 (b) To the extent that amounts appropriated for a fiscal year do not exceed the 09 total amount that would have been paid during the previous fiscal year to individuals 10 who were ineligible to receive dividends under AS 43.23.005(d) or under 11 AS 43.23.021(b) if they had been eligible, the notice requirements of (a)(3) of this 12 section do not apply to appropriations from the dividend fund to the criminal fund 13 (AS 43.23.048) or, after the appropriation to the criminal fund, to 14 (1) the crime victim compensation fund established under 15 AS 18.67.162 for payments to crime victims; 16 (2) the Council on Domestic Violence and Sexual Assault established 17 under AS 18.66.010 for grants for the operation of domestic violence and sexual 18 assault programs; 19 (3) the Department of Corrections for incarceration and probation 20 programs; 21 (4) the office of victims' rights; 22 (5) nonprofit victims' rights organizations for grants for services to 23 crime victims; or 24 (6) the Department of Revenue for grants to minor children of 25 incarcerated individuals under a grant program established by regulations of the 26 Department of Revenue under AS 44.62 (Administrative Procedure Act). 27 * Sec. 3. AS 43.23 is amended by adding a new section to read: 28 Sec. 43.23.031. Appropriations from the criminal fund. (a) The legislature 29 may appropriate amounts from the criminal fund (AS 43.23.048) to the following 30 recipients in the priority order listed based on the amounts determined in (g) of this 31 section:

01 (1) to the Department of Law for restitution payments as provided in 02 (b) of this section; 03 (2) to the child support services agency for child support arrearages; 04 (3) to a state-approved rehabilitation program for court-ordered 05 rehabilitation program costs; or 06 (4) to the Department of Corrections for costs related to incarceration 07 or probation. 08 (b) The Department of Law shall pay the outstanding balances on orders of 09 restitution under AS 12.55.045 or AS 47.12.120, not to exceed $10,000 for each 10 victim for each order, from appropriations from the criminal fund (AS 43.23.048). The 11 department shall set aside 10 percent of the money in the criminal fund for the 12 Department of Law to pay the balance on orders of restitution from years before the 13 previous fiscal year. The Department of Law shall pay the outstanding balances on 14 orders of restitution from the previous fiscal year, not to exceed $10,000 for each 15 victim for each order with the remaining money in the criminal fund. If the money in 16 the criminal fund is insufficient to pay all outstanding orders of restitution, the 17 Department of Law shall pay the oldest outstanding restitution order first. A victim 18 may receive not more than $10,000 from the criminal fund for each order of 19 restitution, regardless of the age or amount of the order. 20 (c) A person who is subject to an order of restitution all or part of which is 21 paid under this section shall reimburse the state 50 percent of the amount paid by the 22 state. A claim of the state for reimbursement under this subsection is secondary to a 23 victim's claim for the remaining balance on an order of restitution. The state may 24 enforce payment of reimbursement under this subsection as if the reimbursement were 25 a civil judgment enforceable by execution. 26 (d) By October 1 of each year, the Department of Law shall send to the 27 department the total amount of restitution owed to victims from the previous fiscal 28 year and the total amount of restitution owed to victims from years before the previous 29 fiscal year. 30 (e) By October 1 of each year, the child support services agency shall send to 31 the department the total amount of child support arrearages owed by incarcerated

01 individuals in the previous fiscal year. 02 (f) By October 1 of each year, the court system shall send to the department 03 the amount that is owed for court-ordered drug or alcohol treatment. 04 (g) The department shall use the amounts provided in AS 43.23.028(a)(6) in 05 combination with the amounts provided under (d) - (f) of this section to determine the 06 amount each state agency should receive from the criminal fund (AS 43.23.048) in 07 accordance with the priority order in (a) of this section. 08 (h) The department shall submit to the legislature a report listing the amounts 09 determined under (g) of this section. The report shall be submitted at the same time as 10 the governor's budget under AS 37.07.020. 11 (i) Nothing in this section creates a dedicated fund. 12 * Sec. 4. AS 43.23 is amended by adding a new section to read: 13 Sec. 43.23.048. Criminal fund. The criminal fund is created as a separate 14 account in the dividend fund. The legislature shall appropriate from the dividend fund 15 each fiscal year an amount equal to the amount that would have been paid during the 16 previous fiscal year to individuals who were ineligible to receive dividends under 17 AS 43.23.005(d) if they had been eligible. Money in the fund may be appropriated in 18 accordance with AS 43.23.031. 19 * Sec. 5. AS 43.23.055 is amended to read: 20 Sec. 43.23.055. Duties of the department. The department shall 21 (1) annually pay permanent fund dividends from the dividend fund; 22 (2) subject to AS 43.23.011 and [PARAGRAPH] (8) of this section, 23 adopt regulations under AS 44.62 (Administrative Procedure Act) that establish 24 procedures and time limits for claiming a permanent fund dividend; the department 25 shall determine the number of eligible applicants by October 1 of the year for which 26 the dividend is declared and pay the dividends by December 31 of that year; 27 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 28 that establish procedures and time limits for an individual upon emancipation or upon 29 reaching majority to apply for permanent fund dividends not received during minority 30 because the parent, guardian, or other authorized representative did not apply on 31 behalf of the individual;

01 (4) assist residents of the state, particularly in rural areas, who, because 02 of language, disability, or inaccessibility to public transportation, need assistance to 03 establish eligibility and to apply for permanent fund dividends; 04 (5) use a list of individuals ineligible for a dividend under 05 AS 43.23.005(d) provided annually by the Department of Corrections and the 06 Department of Public Safety to determine the number and identity of those 07 individuals; 08 (6) adopt regulations that are necessary to implement AS 43.23.005(d) 09 and 43.23.031; 10 (7) adopt regulations that establish procedures for the parent, guardian, 11 or other authorized representative of a disabled individual to apply for prior year 12 permanent fund dividends not received by the disabled individual because no 13 application was submitted on behalf of the individual; 14 (8) adopt regulations that establish procedures for an individual to 15 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 16 collected within two years after the date of its issuance; however, the department may 17 not establish a time limit within which an application to have a disbursement reissued 18 must be filed; 19 (9) provide any information, upon request, contained in permanent 20 fund dividend records to the child support services agency created in AS 25.27.010, or 21 the child support enforcement agency of another state, for child support purposes 22 authorized under law; if the information is contained in an electronic data base, the 23 department shall provide the requesting agency with either 24 (A) access to the data base; or 25 (B) a copy of the information in the data base and a statement 26 certifying its contents; 27 (10) establish a fraud investigation unit for the purpose of assisting the 28 (A) Department of Law in the prosecution of individuals who 29 apply for or obtain a permanent fund dividend in violation of a provision in 30 AS 11, by detecting and investigating those crimes; and 31 (B) commissioner to detect and investigate the claiming or

01 paying of permanent fund dividends that should not have been claimed by or 02 paid to an individual and to impose the penalties and enforcement provisions 03 under AS 43.23.035; 04 (11) use a list of individuals ineligible for a dividend under 05 AS 43.23.005(d) provided annually by the Department of Corrections and the 06 Department of Public Safety to determine the amount of child support 07 arrearages owed by those individuals. 08 * Sec. 6. AS 47.12.170 is amended by adding a new subsection to read: 09 (h) The Department of Law shall pay the outstanding balances on orders of 10 restitution as provided in AS 43.23.031. 11 * Sec. 7. This Act takes effect July 1, 2014.