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SB 12: "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 SENATE BILL NO. 12 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 applied for 07 and claimed by an individual owed child support under AS 43.23.005(i) or distributed 08 to an individual owed child support under AS 43.23.005(j) is counted as a child 09 support payment. 10 * Sec. 2. AS 25.27.020(a) is amended to read: 11 (a) The agency shall 12 (1) seek enforcement of child support orders of the state in other 13 jurisdictions and shall obtain, enforce, and administer the orders in this state; 14 (2) adopt regulations to carry out the purposes of this chapter and

01 AS 25.25, including regulations that establish 02 (A) procedures for hearings conducted under AS 25.27.170 and 03 for administrative enforcement of support orders; 04 (B) subject to AS 25.27.025 and to federal law, a uniform rate 05 of interest on arrearages of support that shall be charged the obligor upon 06 notice if child support payments are 10 or more days overdue or if payment is 07 made by a check backed by insufficient funds; however, an obligor may not be 08 charged interest on late payment of a child support obligation, other than a 09 payment on arrearages, if the obligor is 10 (i) employed and income is being withheld from the 11 obligor's wages under an income withholding order; 12 (ii) receiving unemployment compensation and child 13 support obligations are being withheld from the obligor's 14 unemployment payments under AS 23.20.401; or 15 (iii) receiving compensation for disabilities under 16 AS 23.30 and child support obligations are being withheld from the 17 obligor's compensation payments; 18 (C) procedures for establishing and disestablishing paternity 19 under AS 25.27.165 and 25.27.166, including procedures for hearings; and 20 (D) procedures under which the agency shall enter into 21 contracts or agreements with financial institutions, including brokerage houses, 22 insurance companies, and other companies providing individual investment, 23 transaction, or deposit accounts, doing business in the state to develop and 24 operate an automated data match system as required by 42 U.S.C. 666(a)(17); 25 the agency may pay a reasonable fee to a financial institution for conducting a 26 data match under a contract or agreement under this subparagraph; the fee may 27 not exceed the actual costs incurred by the financial institution for conducting 28 the data match; 29 (3) administer and enforce AS 25.25 (Uniform Interstate Family 30 Support Act); 31 (4) establish, enforce, and administer child support obligations

01 administratively under this chapter; 02 (5) administer the state plan required under 42 U.S.C. 651 - 669 (Title 03 IV-D, Social Security Act) as amended; 04 (6) disburse support payments collected by the agency to the obligee, 05 together with interest charged under (2)(B) of this subsection; 06 (7) establish and enforce administratively under this chapter, or 07 through the superior courts of the state, child support orders from other jurisdictions 08 pertaining to obligors within the state; 09 (8) enforce and administer spousal support orders if a spousal support 10 obligation has been established with respect to the spouse and if the support obligation 11 established with respect to the child of that spouse is also being administered; 12 (9) obtain a medical support order that meets the requirements of 13 AS 25.27.060(c) and 25.27.063; 14 (10) act on behalf of the Department of Health in the enforcement of 15 AS 47.07.025(b); 16 (11) establish or disestablish, administratively under AS 25.27.165 - 17 25.27.166 or through court action, the paternity of a child; 18 (12) promptly provide to the Bureau of Vital Statistics, in a format 19 approved by the bureau, any final agency decision administratively establishing or 20 disestablishing the paternity of a child born in this state; [AND] 21 (13) act as the central registry for all child support orders and exchange 22 information as required by federal law; and 23 (14) between January 1 and March 31 of each year, provide to the 24 Department of Revenue a list of individuals in arrears under a child support 25 order. 26 * Sec. 3. AS 43.23.005 is amended by adding new subsections to read: 27 (i) An individual owed child support may apply for and claim a permanent 28 fund dividend on behalf of the individual owing the child support if the individual has 29 a past due child support obligation established by court order or by the child support 30 services agency under AS 25.27.160 - 25.27.220 at the time of application and the 31 individual owing child support has not applied for a dividend for that year. AS 09.38

01 does not apply to a dividend claimed by an individual under this subsection. 02 (j) If, by March 31 of each year, the department has not received an 03 application from an individual on the list of individuals in arrears under a child 04 support order provided under AS 25.27.020(a) or an application for the individual 05 under (i) of this section, the department shall file an application on behalf of the 06 individual. If the individual in arrears under a child support order is determined to be 07 eligible for a permanent fund dividend, the department shall distribute dividend to the 08 individual or individuals owed the child support. AS 09.38 does not apply to a 09 dividend claimed and distributed by the department under this subsection. 10 * Sec. 4. AS 43.23.015(c) is amended to read: 11 (c) Except as provided in (d), (k), and (m) of this section or as may be 12 provided by regulations adopted by the department, an individual must personally sign 13 the application for permanent fund dividends, including the certification of residency 14 required under (b) of this section. 15 * Sec. 5. AS 43.23.015 is amended by adding new subsections to read: 16 (k) An application and certification of residency filed under AS 43.23.005(i) 17 must be signed by the individual owed the child support. The individual owed the 18 child support may submit, as evidence of residency of the individual owing child 19 support, child support records, motor vehicle records maintained by the Department of 20 Administration, voter registration, evidence of voter activity, utility bills, rental 21 agreements, known addresses, school records, employment records, sworn affidavits 22 from witnesses, Internet or social media records, or similar evidence to demonstrate 23 the residency of the individual owing the child support. 24 (l) The application and certification of residency of an individual filed by the 25 department under AS 43.23.005(j) is not required to be signed. 26 (m) For the purpose of an application filed under AS 43.23.005(i) or (j), the 27 department shall assume that an individual owing child support who has previously 28 qualified for a dividend remains eligible for the dividend, unless the individual owing 29 child support provides proof of ineligibility. 30 * Sec. 6. AS 43.23.130 is amended by adding a new subsection to read: 31 (o) An individual owed child support who is filing an application under

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

01 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. (a) AS 11.51.120(g), added by sec. 1 of this Act, applies to 04 permanent fund dividends received on or after the effective date of this Act. 05 (b) AS 43.23.005(i) and (j), added by sec. 3 of this Act, AS 43.23.015(c), as amended 06 by sec. 4 of this Act, AS 43.23.015(k) - (m), added by sec. 5 of this Act, AS 43.23.130(o), 07 added by sec. 6 of this Act, AS 43.23.140(e), added by sec. 7 of this Act, AS 43.23.150(d), 08 added by sec. 8 of this Act, AS 43.23.160(e), added by sec. 9 of this Act, AS 43.23.170(d), 09 added by sec. 10 of this Act, AS 43.23.180(g), added by sec. 11 of this Act, AS 43.23.190(e), 10 added by sec. 12 of this Act, and AS 43.23.230(f), added by sec. 13 of this Act, apply to the 11 permanent fund dividend 2025 qualifying year for the 2026 dividend year and thereafter.