Legislature(2025 - 2026)GRUENBERG 120
03/28/2025 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB137 | |
| HB118 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 137 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 118 | TELECONFERENCED | |
HB 137-PFD/CHILD SUPPORT
1:03:17 PM
CHAIR GRAY announced that the first order of business would be
HOUSE BILL NO. 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."
1:03:41 PM
REPRESENTATIVE ASHLEY CARRICK, Alaska State Legislature, as
prime sponsor, presented HB 137. She paraphrased the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
House Bill 137 allows the state to apply for the
Permanent Fund Dividends (PFDs) on behalf of eligible
residents who are behind on child support and have not
filed their own PFD applications by the deadline.
Currently, some people avoid filing for their PFDs to
prevent them being garnished, denying their children
access to essential financial support. HB 137 requires
the state step in for these families, ensuring that
PFDs owed for child support are applied for and
distributed. By addressing this gap, HB 137
strengthens Alaska's child support system and helps
custodial parents provide for their children.
This bill is a fair and straightforward way to support
Alaskan families. I urge your support for HB 137 to
close this gap and prioritize the well-being of our
children.
1:04:57 PM
GRIFFEN SUKKAEW, Staff, Representative Ashley Carrick, Alaska
State Legislature, on behalf of Representative Carrick, prime
sponsor, presented the sectional analysis for HB 137 [included
in the committee packet], which read as follows [original
punctuation provided]:
Section 1: States that a permanent fund dividend
distributed to an individual owed child support counts
as a child support payment.
Section 2: Requires the Child Support Services
Division to send the Department of Revenue a list of
residents behind on child support between January 1
and March 31 of each year.
Section 3: Adds rules around applying for the PFD:
-If by March 31 of each year an PFD application has
not been filed by an individual in arrears who the
department believes is eligible for a dividend and is
on the list provided by the Child Support Services
Division, the department will file on their behalf.
-The department shall notify the individual in arrears
as well as the individual owed child support that the
dividend has been filed on behalf of the individual in
arrears. Both individuals are noticed of their ability
to submit evidence of eligibility and that there is no
penalty to not responding to this notice.
-The department shall deduct 7% of the dividend
distributed. The 7% shall be separately accounted for
and deposited into the general fund and may be
appropriated by the legislature for administrative
costs incurred in implementing these changes.
Section 4: States that signatures are required on
applications of PFDs except as provided in Section 5
subsections D, K, M.
Section 5: Provides additional details about filing
and eligibility:
-The application and certification of residency
is not required to be signed under 43.23.005(j)
-The department shall assume that an individual
owing child support who has previously qualified
for a dividend remains eligible for the dividend
unless the individual owing child support
provides proof of ineligibility.
Section 6: Prohibits donations from the PFDs
distributed for child support.
Section 7: Ensures that PFDs claimed for child support
cannot be garnished for other debts.
Sections 8-13: States that certain agencies may not
claim PFDs distributed under these rules.
Section 14: Applies these rules to PFDs for the 2025
qualifying year and beyond.
1:07:51 PM
CHAIR GRAY sought to confirm that a parent who pays their child
support would not be affected.
REPRESENTATIVE CARRICK said that is correct.
CHAIR GRAY pointed out that that there could be a scenario in
which a person misses a child support payment and does not
qualify for the PFD, such as a person who moves out of state.
REPRESENTATIVE CARRICK agreed.
1:08:58 PM
REPRESENTATIVE COSTELLO asked whether the Department of
Revenue's (DOR's) list of individuals in arrears would be kept
confidential.
REPRESENTATIVE CARRICK shared her understanding that the
division already keeps a confidential list of those in arrears
on child support. This bill would not affect that, she added.
1:11:24 PM
REPRESENTATIVE VANCE sought to clarify the intent of the bill.
REPRESENTATIVE CARRICK said the bill addresses an existing
problem where people who owe child support choose not to apply
for a dividend if they know it will be garnished. The bill
would help that person be less in arrears.
REPRESENTATIVE VANCE asked whether there is a mechanism for the
parent who is owed child support to notify the department.
1:13:58 PM
PHUONG ("CHRIS") TRAN, Child Support Enforcement Division,
Department of Revenue (DOR), said Alaska statutes allow the
division to work with the attorney general's office and apply
for a PFD on behalf of the evading individual.
REPRESENTATIVE VANCE questioned the priority order of
garnishment for individuals who are relinquishing this right.
MR. TRAIN shared his belief that child support is highly
prioritized and on par with the Internal Revenue Service (IRS).
It depends on whether the lien makes it to the Permanent Fund
Dividend Division before the IRS.
1:16:38 PM
REPRESENTATIVE UNDERWOOD asked if the state is assuming
responsibility for filling out these applications for the
permanent fund dividend (PFD) garnishment, who would be liable
if the application was filed incorrectly.
1:17:00 PM
GENEIVIEVE WOJTUSIK, Director, Permanent Fund Dividend Division,
Department of Revenue (DOR), said currently the department does
not file on behalf of an individual, so this would be a new
process. She said there would need to be a regulation created
to address the liability.
REPRESENTATIVE UNDERWOOD asked who would file the federal taxes
on these dividends.
MS. WOJTUSIK speculated that the 1099 would be sent to the
person in the arrears, as it would be filed under their Social
Security number.
1:18:20 PM
REPRESENTATIVE EISCHEID inquired as to the 7 percent for
administrative costs.
REPRESENTATIVE CARRICK said this language mirrors the companion
bill in the Senate.
CHAIR GRAY asked whether 7 percent is deducted for the Pick
Click Give program.
MS. WOJTUSIK confirmed that this language is already in statute
for those distribution funds.
1:19:35 PM
CHAIR GRAY asked how many people owe child support and refuse to
file for a PFD out of spite.
REPRESENTATIVE CARRICK said it's hard to quantify. Anecdotally,
it's a common problem that ex-spouses and ex-partners are
experiencing, and it is done out of spite.
1:22:27 PM
REPRESENTATIVE KOPP asked how the bill would impact the
Restorative Justice Fund and which would take primacy for
garnishment.
MS. WOJTUSIK stated that there would not be a "double dip," as
each Alaskan receives only one PFD. She did not know which
would take priority.
1:26:23 PM
REPRESENTATIVE MINA asked on average, how much of people's PFDs
are being garnished for child support.
MS. WOJTUSIK responded it varies per person.
1:27:03 PM
REPRESENTATIVE VANCE asked whether there is precedence in
statute for garnishing the dividend.
MR. TRAIN did not know the answer.
REPRESENTATIVE VANCE asked why there are such limited hours for
the public to contact the division for support.
MR. TRAIN offered to follow up with the requested information.
CHAIR GRAY said it sounds like there needs to be extended hours
for public to contact the division.
1:31:26 PM
LYNDSAY KOTALIK, representing self, shared her personal story as
an effected constituent who is owed over $100,000 in child
support. She said the [Child Support Enforcement Division] has
taken every step on her behalf, but they cannot make the father
of her child apply for the dividend and are out of tools.
Furthermore, she said her ex-husband greatly regrets the
stubbornness, impulsiveness, and spite he showed in his 20s, and
now, at age 43, its possible that his Social Security could be
garnished. She said even one dividend payment would have helped
and discussed the impact of compounding interest. She explained
that he hasn't opened a bank account or filed a tax return in 16
years because he knows they would be garnished. She concluded
that the bill is common sense and would benefit both custodial
and noncustodial parents.
1:38:00 PM
REPRESENTATIVE VANCE said she finds it offensive that people may
be living off state services and not paying child support. She
asked whether her ex-husband is eligible for state services.
MS. KOTALIK said he was eligible for emergency housing and
rental assistance during the COVID-19 pandemic.
REPRESENTATIVE VANCE expressed a strong interest in hearing from
the Department of Health (DOH) on how many people in arrears are
receiving state services.
1:40:43 PM
REPRESENTATIVE UNDERWOOD asked whether he had been charged of
criminal nonpayment and asked why these people are not being
prosecuted.
MS. KOTALIK relayed that in 2012, she considered prosecuting him
for criminal negligence but without documented income, he was
never criminally charged.
1:42:01 PM
LAURA NORTON-CRUZ, representing self, informed the committee
that as a public health professional, she could speak to the
high prevalence of financial abuse as a tactic of intimate
partner violence. Instead, she shared her personal story as a
single mom who is owed nearly $17,000 in child support from her
ex-husband. She opined that the PFD gives Alaska a unique
opportunity to do this for children and custodial parents.
CHAIR GRAY announced that HB 137 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 137 Sponsor Statement Version A.pdf |
HJUD 3/28/2025 1:00:00 PM |
HB 137 |
| HB 137 Sectional Analysis Version A.pdf |
HJUD 3/28/2025 1:00:00 PM |
HB 137 |
| HB 118 Amendment 1.pdf |
HJUD 3/28/2025 1:00:00 PM |
HB 118 |
| HB 118 Mike Coons Email.pdf |
HJUD 3/28/2025 1:00:00 PM |
HB 118 |
| HB 118 Letter of Opposition 1.pdf |
HJUD 3/28/2025 1:00:00 PM |
HB 118 |
| HB 118 Amendment 2.pdf |
HJUD 3/28/2025 1:00:00 PM |
HB 118 |