Legislature(1993 - 1994)
1994-05-15 House Journal
Full Journal pdf1994-05-15 House Journal Page 4419 SB 190 The following was read the second time: CS FOR SENATE BILL NO. 190(FIN) am "An Act relating to income withholding and other methods of enforcement for orders of support; relating to medical support orders; amending Alaska Rule of Civil Procedure 90.3(d); and providing for an effective date." with the: Journal Page FIN REFERRAL WAIVED 4084 STA RPT HCS(STA) 3DP 3NR 1AM 4104 SENATE LETTER OF INTENT WITH STA REPORT 4104 -ZERO FISCAL NOTE (H.STA/REV) 5/7/94 4104 -PREVIOUS SENATE ZERO FN (COURT) 4/11/94 4104 JUD REFERRAL WAIVED 4208 RULES TO CALENDAR 5/10/94 4382 RETURN TO RLS COMMITTEE 4382 Representative Phillips moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: HOUSE CS FOR CS FOR SENATE BILL NO. 190(STA) (same title) There being no objection, it was so ordered. 1994-05-15 House Journal Page 4420 SB 190 Amendment No. 1 was offered by Representative Davies: Page 11, after line 29: Insert a new bill section to read: "* Sec. 23. AS25.27 is amended by adding a new section to read: Sec. 25.27.229. ADVERSE ACTION AGAINST DELINQUENT OBLIGOR'S OCCUPATIONAL LICENSE. (a) The agency shall compile and maintain a list of obligors who are not in substantial compliance with a support order. The list must include the names, social security numbers, dates of birth, and last known addresses of the obligors. The list shall be updated by the agency on a monthly basis. (b) The agency shall, on a monthly basis, provide a copy of the list to each licensing entity through a computer-readable magnetic medium. A licensing entity subject to this section shall implement procedures to accept and process the list. Notwithstanding any other law to the contrary, a licensing entity may not issue or renew a license for a person on the list except as provided in this section. (c) Promptly after receiving an application from an applicant and before issuing or renewing a license, a licensing entity shall determine whether the applicant is on the most recent list provided by the agency. If the applicant is on the list, the licensing entity shall immediately serve notice under (e) or (f) of this section of the licensing entity's intent to withhold issuance or renewal of the license. The notice shall be made personally or by mail to the applicant's last known mailing address on file with the licensing entity. (d) Except as provided for commercial fishing licenses under (e) of this section, a licensing entity shall issue a temporary license valid for a period of 150 days to an applicant whose name is on the list if the applicant is otherwise eligible for a license. The temporary license may not be extended. Only one temporary license may be issued during a regular license term and its validity shall coincide with the first 150 days of that license term. A license for the full or remainder of the license term may be issued or renewed only upon compliance with this section. If a license or application is denied under this section, funds paid by the applicant or licensee may not be refunded by the licensing entity. 1994-05-15 House Journal Page 4421 SB 190 (e) If the Department of Fish and Game receives an application under AS16.05.480 for issuance or renewal of a commercial fishing license, other than a crewmember fishing license, from an applicant whose name is on the list, the Department of Fish and Game shall issue the license if the applicant otherwise qualifies for it. Along with the license, the Department of Fish and Game shall send to the applicant a notice that the license will not be reissued or renewed the next time it is applied for if the applicant's name is on the list at the time of the subsequent application unless the department receives a release from the agency. (f) Notices for use under (c) and (e) of this section, as applicable, shall be developed by each licensing entity under guidelines provided by the agency and are subject to approval by the agency. The notice must include the address and telephone number of the agency and shall emphasize the necessity of obtaining a release from the agency as a condition for the issuance or renewal of a license. The notice must inform an applicant whose license is governed by (d) of this section that the licensing entity shall issue a temporary license for 150 calendar days under (d) of this section if the applicant is otherwise eligible and that, upon expiration of that time period, the license will be denied unless the licensing entity has received a release from the agency. The notice must also inform the applicant that, if a license or application is denied under this section, funds paid by the applicant will not be refunded by the licensing entity. The agency shall also develop a form that the applicant may use to request a review by the agency. A copy of this form shall be included with each notice sent under (c) or (e) of this section. (g) The agency shall establish review procedures consistent with this section to allow an applicant to have the underlying arrearage and relevant defenses investigated, to provide an applicant information on the process of obtaining a modification of a support order, or to provide an applicant assistance in the establishment of a payment schedule on arrearages if the circumstances warrant. (h) If the applicant wishes to challenge being included on the list, the applicant shall submit to the agency a written request for review within 30 days after receiving the notice under (c) or (e) of this section by using the form developed under (f) of this section. Within 30 days after receiving a written request for review, the 1994-05-15 House Journal Page 4422 SB 190 agency shall inform the applicant in writing of the agency's findings. The agency shall immediately send a release to the appropriate licensing entity and the applicant if any of the following conditions is met: (1) the applicant is found to be in substantial compliance with each support order applicable to the applicant or has negotiated an agreement with the agency for a payment schedule on arrearages and is in substantial compliance with the negotiated agreement; if the applicant fails to be in substantial compliance with an agreement negotiated under this paragraph, the agency shall send to the appropriate licensing entity a revocation of any release previously sent to the entity for that applicant; (2) the applicant has submitted a timely request for review to the agency, but the agency will be unable to complete the review and send notice of findings to the applicant in sufficient time for the applicant to file a timely request for judicial relief within the 150-day period during which the applicant's temporary license is valid under (d) of this section or before the subsequent licensing period under (e) of this section; this paragraph applies only if the delay in completing the review process is not the result of the applicant's failure to act in a reasonable, timely, and diligent manner upon receiving notice from the licensing entity that the applicant's name is on the list; (3) the applicant has, within 30 days after receiving the agency's findings following a request for review under (2) of this section, filed and served a request for judicial relief under this section, but a resolution of that relief will not be made within the 150-day period of the temporary license under (d) of this section or before the subsequent licensing period under (e) of this section; this paragraph applies only if the delay in completing the judicial relief process is not the result of the applicant's failure to act in a reasonable, timely, and diligent manner upon receiving the agency's notice of findings; (4) the applicant has obtained a judicial finding of substantial compliance. (i) An applicant is required to act with diligence in responding to notices from the licensing entity and the agency with the recognition that the temporary license granted under (d) of this section will lapse after 150 days or that a subsequent license will not be issued under (e) of this section and that the agency and, where appropriate, the court must have time to act 1994-05-15 House Journal Page 4423 SB 190 within that 150-day period or before the subsequent license is needed, as applicable. An applicant's delay in acting, without good cause, that directly results in the inability of the agency to complete a review of the applicant's request or the court to hear the request for judicial relief within the required period does not constitute the diligence required under this section that would justify the issuance of a release. (j) Except as otherwise provided in this section, the agency may not issue a release if the applicant is not in substantial compliance with the order for support or is not in substantial compliance with an agreement negotiated under (h)(1) of this section. The agency shall notify the applicant in writing that the applicant may request any or all of the following: (1) judicial relief from the agency's decision not to issue a release or the agency's decision to revoke a release under (h)(1) of this section; (2) a judicial determination of substantial compliance; (3) a modification of the support order. The notice must also contain the name and address of the court in which the applicant may file the request for relief and inform the applicant that the applicant's name shall remain on the list if the applicant does not request judicial relief within 30 days after receiving the notice. The applicant shall comply with all statutes and rules of court implementing this section. This section does not limit an applicant's authority under other law to request an order to show cause or notice of motion to modify a support order or to fix a payment schedule on arrearages accruing under a support order or to obtain a court finding of substantial compliance with a support order. (k) A request for judicial relief from the agency's decision must state the grounds on which relief is requested and the judicial action shall be limited to those stated grounds. The court shall hold an evidentiary hearing within 20 calendar days of the filing of service on the opposing party. The court's decision shall be limited to a determination of each of the following issues: (1) whether there is a support order or a payment schedule on arrearages; (2) whether the petitioner is the obligor covered by the support order; and (3) whether the obligor is in substantial compliance with the support order or payment schedule. 1994-05-15 House Journal Page 4424 SB 190 (l) If the court finds that the obligor is in substantial compliance with the support order or payment schedule, the agency shall immediately send a release under (h) of this section to the appropriate licensing entity and the applicant. (m) When the obligor is in substantial compliance with a support order or payment schedule, the agency shall mail to the applicant and the appropriate licensing entity a release stating that the applicant is in substantial compliance. The receipt of a release shall serve to notify the applicant and the licensing entity that, for the purposes of this section, the applicant is in substantial compliance with the support order or payment schedule unless the agency, under (a) of this section, certifies subsequent to the issuance of a release that the applicant is once again not in substantial compliance with a support order or payment schedule. (n) The agency may enter into interagency agreements with the state agencies that have responsibility for the administration of licensing entities as necessary to implement this section to the extent that it is cost effective to implement the interagency agreements. The agreements shall provide for the receipt by the other state agencies and licensing entities of federal funds to cover that portion of costs allowable in federal law and regulation and incurred by the state agencies and licensing entities in implementing this section. (o) Notwithstanding any other provision of law, the licensing entities subject to this section may levy a surcharge on a fee collected to cover the costs of implementing and administering this section. (p) The process described in (h) of this section is the sole administrative remedy for contesting the issuance to the applicant of a temporary license or the denial of a license under this section. The procedures specified in AS44.62.330 - 44.62.630 (Administrative Procedure Act) do not apply to the denial or failure to issue or renew a license under this section. (q) The agency and licensing entities, as appropriate, shall adopt regulations necessary to implement this section. (r) In this section, (1) "applicant" means a person applying for issuance or renewal of a license; (2) "license" 1994-05-15 House Journal Page 4425 SB 190 (A) means, except as provided in (B) of this paragraph, a license, certificate, permit, registration, or other authorization that, at the time of issuance, will be valid for more than 150 days that may be acquired from a state agency to perform an occupation, including the following: (i) license relating to boxing or wrestling under AS05.10; (ii) authorization to perform an occupation regulated under AS08; (iii) teacher certificate under AS14.20; (iv) commercial fishing license under AS16.05.480, except for a crewmember fishing license; (v) entry permit or interim use permit under AS16.43; (vi) authorization under AS18.08 to perform emergency medical services; (vii) asbestos worker certification under AS18.31; (viii) boiler operator's license under AS18.60.395; (ix) certificate of fitness under AS18.62; (x) hazardous painting certification under AS18.63; (xi) security guard license under AS18.65.400 - 18.65.490; (xii) license relating to insurance under AS21.27; (xiii) employment agency permit under AS23.15.330 - 23.15.520; (xiv) endorsement to operate a commercial motor vehicle or school bus under AS28.15; (xv) registration as a broker-dealer, agent, or investment adviser under AS45.55.030; (xvi) certification as a pesticide applicator under AS46.03.320; (xvii) certification as a storage tank worker or contractor under AS46.03.375; and (xviii) certification as a water and wastewater works operator under AS46.30; (B) does not include (i) a vessel license issued under AS16.05.490 or 1994-05-15 House Journal Page 4426 SB 190 16.05.530; (ii) a license issued under AS47.35; or (iii) a business license issued under AS43.70; (3) "licensee" means a person holding a license or applying to renew a license; (4) "licensing entity" means the state agency that issues or renews a license; in the case of a license issued or renewed by the Department of Commerce and Economic Development after an applicant's qualifications are determined by another agency, "licensing entity" means the department; (5) "list" means the list of obligors compiled and maintained under (a) of this section; (6) "substantial compliance with a support order or payment schedule" means that, with respect to a support order or a negotiated payment schedule under (g) of this section, the obligor has no more than $2,500 past due and has cumulatively paid an amount equal to or greater than the amount due for one month during the past 12 months." Renumber the following bill sections accordingly. Page 15, after line 17: Insert a new bill section to read: "* Sec. 36. REPORT. (a) In furtherance of the public policy of increasing child support enforcement and collections, on or before November 1, 1996, the child support enforcement agency shall make a report to the legislature and the governor based on data collected by the licensing entities and the agency in a format prescribed by the agency. The report must contain (1) the number of delinquent obligors on the list maintained by the agency under AS25.27.229, added by sec. 23 of this Act; (2) the number of delinquent obligors who also were applicants or licensees subject to AS25.27.229; (3) the number of new licenses and renewals that were delayed or denied and temporary licenses issued subject to AS25.27.229 and the number of new licenses and renewals granted following receipt by licensing entities of releases under AS25.27.229 by May 1, 1996; and (4) the costs incurred in the implementation and enforcement of AS25.27.229. 1994-05-15 House Journal Page 4427 SB 190 (b) A licensing entity receiving an inquiry from the agency under (a) of this section shall cooperate with the agency. When queried as to the licensed status of an applicant who has had a license denied under AS25.27.229 or has been granted a temporary license under AS25.27.229, the licensing entity shall respond only that the license was denied or the temporary license was issued." Renumber the following bill sections accordingly. Page 16, line 1: Delete "This Act takes" Insert "Sections 1 - 22, 24 - 35, and 37 of this Act take" Delete "it becomes" Insert "those sections become" Representative Davies moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Phillips objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: HCS CSSB 190(STA) Second Reading Amendment No. 1 YEAS: 17 NAYS: 21 EXCUSED: 2 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Hudson, Mackie, Menard, Navarre, Nicholia, Nordlund, Sitton, Ulmer, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Hanley, James, Kott, Larson, MacLean, Martin, Mulder, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams 1994-05-15 House Journal Page 4428 SB 190 Excused: Hoffman, Moses And so, Amendment No. 1 was not adopted. Representative Phillips moved and asked unanimous consent that HCS CSSB 190(STA) be considered engrossed, advanced to third reading and placed on final passage. There being no objection, it was so ordered. HCS CSSB 190(STA) was read the third time. The question being: "Shall HCS CSSB 190(STA) pass the House?" The roll was taken with the following result: HCS CSSB 190(STA) Third Reading Final Passage YEAS: 35 NAYS: 3 EXCUSED: 2 ABSENT: 0 Yeas: Brice, Brown, Bunde, Carney, Davidson, Davies, B.Davis, G.Davis, Finkelstein, Foster, Green, Grussendorf, Hanley, Hudson, Kott, Larson, Mackie, MacLean, Martin, Menard, Mulder, Navarre, Nicholia, Nordlund, Olberg, Parnell, Phillips, Porter, Sitton, Therriault, Toohey, Ulmer, Vezey, Williams, Willis Nays: Barnes, James, Sanders Excused: Hoffman, Moses Barnes changed from "Yea" to "Nay". And so, HCS CSSB 190(STA) passed the House. 1994-05-15 House Journal Page 4429 SB 190 Representative Phillips moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. Representative Phillips moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the court rule change. There being no objection, it was so ordered. Representative Phillips moved and asked unanimous consent that the House adopt the Senate Finance Committee Letter of Intent (page 3463 of the Senate Journal). There being no objection, it was so ordered. Representative Davies gave notice of reconsideration of his vote on HCS CSSB 190(STA).