2016-01-19                     Senate Journal                      Page 1611
SB 145                                                                                                                        
SENATE BILL NO. 145 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
             "An Act relating to the recovery of                                                                                
             overpayments of day care assistance and child                                                                      
             care grants; and providing for an effective                                                                        
             date."                                                                                                             
                                                                                                                                
was read the first time and referred to the Health and Social Services                                                          
and Finance Committees.                                                                                                         
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Health and Social Services                                                                    
  Fiscal Note No. 2, zero, Department of Revenue                                                                                
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the recovery of                                                              
overpayments of day care assistance and child care grants. The bill                                                             

2016-01-19                     Senate Journal                      Page 1612
would add day care assistance and child care grants to the list of public                                                       
assistance programs whose established overpayments can be recovered                                                             
by garnishing an individual's permanent fund dividend.                                                                          
                                                                                                                                
Under existing AS 47.05.080, many of the programs that provide                                                                  
assistance benefits to individuals are provided with the ability to                                                             
recover benefit overpayments by garnishing the benefit recipient's                                                              
permanent fund dividend. That section allows established                                                                        
overpayment claims to be filed directly with the Department of                                                                  
Revenue and does not make them subject to the exemptions under                                                                  
AS 43.23.065(a) (permanent fund dividends) or AS 09.38 (Alaska                                                                  
Exemptions Act). Before the Department of Health and Social                                                                     
Services seeks to garnish the permanent fund dividend of a benefit                                                              
recipient, the overpayment claim must be established either through a                                                           
hearing or after an individual has had a chance for a hearing, but did                                                          
not contest the overpayment claim. A separate provision in                                                                      
AS 43.23.068 establishes a procedure for garnishing a permanent fund                                                            
dividend to recover a benefit overpayment that includes notice to the                                                           
benefit recipient and an opportunity to request a hearing on whether a                                                          
mistake was made.                                                                                                               
                                                                                                                                
The ability to garnish a benefit recipient's permanent fund dividend to                                                         
recover overpayments under AS 47.05.080 exists for most public                                                                  
assistance programs including medical assistance, general relief, adult                                                         
public assistance, food stamps, and Alaska temporary assistance. The                                                            
bill would add the day care assistance and child care grants programs                                                           
to the other public assistance programs that already have the ability to                                                        
use the direct garnishment of a permanent fund dividend to recover                                                              
benefit overpayments. This would make recovery of these already-                                                                
established liabilities to the State much easier to recover from                                                                
recipients who do not enter into voluntary repayment plans. This                                                                
change also would align the day care assistance and child care grant                                                            
programs with other public assistance programs.                                                                                 
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor