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HB 137: "An Act relating to permanent fund dividends for individuals owing child support; and relating to applications and qualifications for permanent fund dividends for individuals owing child support."

00 HOUSE BILL NO. 137 01 "An Act relating to permanent fund dividends for individuals owing child support; and 02 relating to applications and qualifications for permanent fund dividends for individuals 03 owing child support." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 11.51.120 is amended by adding a new subsection to read: 06 (g) For purposes of (d) of this section, a permanent fund dividend distributed 07 to an individual owed child support under AS 43.23.005(i) is counted as a child 08 support payment. 09 * Sec. 2. AS 25.27.020 is amended by adding a new subsection to read: 10 (i) Between January 1 and March 31 of each year, the agency shall provide to 11 the Department of Revenue a list of individuals in arrears under a child support order. 12 On the list, the agency shall indicate, based on existing records and using its 13 investigative powers, each individual that the agency believes is eligible for a 14 permanent fund dividend.

01 * Sec. 3. AS 43.23.005 is amended by adding new subsections to read: 02 (i) If, by March 31 of each year, the department has not received an 03 application from an individual who the department believes is eligible for a dividend 04 and who is on the list of individuals in arrears under a child support order provided 05 under AS 25.27.020(i), the department shall file an application on behalf of the 06 individual. At the time of filing the application, the department shall notify the 07 individual in arrears and the individual owed child support that a dividend application 08 has been filed on behalf of the individual in arrears, that the individual in arrears or the 09 individual owed child support may submit evidence of eligibility of the individual in 10 arrears, and that there is no penalty for failure to respond to the notice. If the 11 individual in arrears under a child support order is determined to be eligible for a 12 permanent fund dividend, the department shall distribute the dividend to the individual 13 or individuals owed the child support. AS 09.38 does not apply to a dividend claimed 14 and distributed by the department under this subsection. 15 (j) The department shall deduct seven percent of a dividend distributed under 16 (i) of this section. The amounts deducted under this subsection shall be separately 17 accounted for and deposited into the general fund and may be appropriated by the 18 legislature for administrative costs incurred in implementing (i) of this section. 19 * Sec. 4. AS 43.23.015(c) is amended to read: 20 (c) Except as provided in (d) and (k) of this section or as may be provided by 21 regulations adopted by the department, an individual must personally sign the 22 application for permanent fund dividends, including the certification of residency 23 required under (b) of this section. 24 * Sec. 5. AS 43.23.015 is amended by adding new subsections to read: 25 (k) The application and certification of residency of an individual filed by the 26 department under AS 43.23.005(i) is not required to be signed. 27 (l) For the purpose of an application filed under AS 43.23.005(i), the 28 department may presume that an individual in arrears under a child support order who 29 has previously qualified for a dividend remains eligible for the dividend. 30 * Sec. 6. AS 43.23.130 is amended by adding a new subsection to read: 31 (o) The department may not elect to make a contribution under this section

01 from the dividend applied for under AS 43.23.005(i). 02 * Sec. 7. AS 43.23.140 is amended by adding a new subsection to read: 03 (e) This section does not apply to a dividend received through an application 04 filed under AS 43.23.005(i). A dividend received through an application filed under 05 AS 43.23.005(i) is not subject to levy, execution, garnishment, attachment, or another 06 remedy for the collection of debt. 07 * Sec. 8. AS 43.23.150 is amended by adding a new subsection to read: 08 (d) The Department of Family and Community Services may not claim a 09 permanent fund dividend under this section that is received as a result of an 10 application filed under AS 43.23.005(i). 11 * Sec. 9. AS 43.23.160 is amended by adding a new subsection to read: 12 (e) The Alaska Commission on Postsecondary Education may not claim a 13 permanent fund dividend under this section that is received as a result of an 14 application filed under AS 43.23.005(i). 15 * Sec. 10. AS 43.23.170 is amended by adding a new subsection to read: 16 (d) The Department of Health may not claim a permanent fund dividend under 17 this section that is received as a result of an application filed under AS 43.23.005(i). 18 * Sec. 11. AS 43.23.180 is amended by adding a new subsection to read: 19 (g) The Department of Labor and Workforce Development may not claim a 20 permanent fund dividend under this section that is received as a result of an 21 application filed under AS 43.23.005(i). 22 * Sec. 12. AS 43.23.190 is amended by adding a new subsection to read: 23 (e) The University of Alaska may not claim a permanent fund dividend under 24 this section that is received as a result of an application filed under AS 43.23.005(i). 25 * Sec. 13. AS 43.23.230 is amended by adding a new subsection to read: 26 (f) The department may not donate any amount under this section from a 27 dividend applied for under AS 43.23.005(i). 28 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 APPLICABILITY. (a) AS 11.51.120(g), added by sec. 1 of this Act, applies to 31 permanent fund dividends received on or after the effective date of this Act.

01 (b) AS 43.23.005(i) and (j), added by sec. 3 of this Act, AS 43.23.015(c), as amended 02 by sec. 4 of this Act, AS 43.23.015(k) and (l), added by sec. 5 of this Act, AS 43.23.130(o), 03 added by sec. 6 of this Act, AS 43.23.140(e), added by sec. 7 of this Act, AS 43.23.150(d), 04 added by sec. 8 of this Act, AS 43.23.160(e), added by sec. 9 of this Act, AS 43.23.170(d), 05 added by sec. 10 of this Act, AS 43.23.180(g), added by sec. 11 of this Act, AS 43.23.190(e), 06 added by sec. 12 of this Act, and AS 43.23.230(f), added by sec. 13 of this Act, apply to the 07 permanent fund dividend 2025 qualifying year for the 2026 dividend year and thereafter.