04/16/2025 01:00 PM House JUDICIARY

                    HB 137-PFD/CHILD SUPPORT                                                                                
                                                                                                                                
5:00:52 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY  announced that  the next 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."                                                                                               
                                                                                                                                
5:01:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EISCHEID moved Amendment 1  to HB 137, labeled 34-                                                               
LS0758\A.3, Nauman, 4/16/25, which read:                                                                                        
                                                                                                                                
     Page 2, line 13, following "support.":                                                                                     
          Insert    "For   purposes    of   AS 29.45.030(f),                                                                    
     AS 36.10.005,    AS 37.10.210(b)(2),   AS 43.23.005(h),                                                                    
     AS 43.40.092(b)(1),  AS 43.82.230,   or  another  state                                                                    
     benefit, receipt  of a dividend applied  for under this                                                                    
     subsection  is  not  evidence of  eligibility  for,  or                                                                    
     receipt   of,   a   permanent   fund   dividend   under                                                                    
     AS 43.23.005  or residency  in this  state. A  dividend                                                                    
     recipient  under  this  subsection is  not  a  dividend                                                                    
     applicant for purposes of AS 43.23.101."                                                                                   
                                                                                                                                
CHAIR GRAY objected.                                                                                                            
                                                                                                                                
5:01:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EISCHEID explained  that Amendment  1 would  make                                                               
clear  that  receipt of  a  dividend  under  this policy  is  not                                                               
evidence of eligibility or residency.                                                                                           
                                                                                                                                
5:02:21 PM                                                                                                                    
                                                                                                                                
CHAIR GRAY  asked Representative  Carrick to  provide a  recap of                                                               
the HB 137 and how Amendment 1 would impact it.                                                                                 
                                                                                                                                
5:02:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ASHLEY  CARRICK,  Alaska  State  Legislature,  as                                                               
prime sponsor,  said HB 137  would allow  the state to  apply for                                                               
the  permanent   fund  dividend  (PFD)  on   behalf  of  eligible                                                               
residents who  are behind on child  support and have not  filed a                                                               
PFD application by the deadline.   In response to a question that                                                               
was asked during a previous  hearing, she reported that there are                                                               
30,000 child  support cases,  of which  20,000 would  be eligible                                                               
for garnishment.                                                                                                                
                                                                                                                                
5:03:49 PM                                                                                                                    
                                                                                                                                
GRIFFEN  SUKKAEW, Staff,  Representative  Ashley Carrick,  Alaska                                                               
State  Legislature, on  behalf of  Representative Carrick,  prime                                                               
sponsor,  explained that  Amendment  1 would  be  a safeguard  to                                                               
protect the State of Alaska from any potential legal issues.                                                                    
                                                                                                                                
5:05:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  asked  whether  the  state  is  truly  that                                                               
concerned about  someone losing their  benefits in  another state                                                               
if they  are not supporting  their child  on a criminal  level in                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  CARRICK agreed  with  the sentiment.   She  noted                                                               
that  Amendment 1  was drafted  by request  of a  senator who  is                                                               
working on  the companion  bill to  address the  slim possibility                                                               
that  the state  may  be liable  [when applying  for  the PFD  on                                                               
behalf  of  individuals]  who are  not  considered  residents  of                                                               
Alaska by another state.                                                                                                        
                                                                                                                                
REPRESENTATIVE KOPP sought  to confirm that Amendment 1  is not a                                                               
matter of making it easier to receive benefits in other states.                                                                 
                                                                                                                                
CHAIR GRAY shared his understanding  that the proposed amendments                                                               
would remove  the state's liability  for applying for  a dividend                                                               
on behalf  of a  resident who is  not eligible for  the PFD.   He                                                               
asked whether that's correct.                                                                                                   
                                                                                                                                
REPRESENTATIVE CARRICK responded in the affirmative.                                                                            
                                                                                                                                
REPRESENTATIVE  VANCE  asked  to   hear  from  Legislative  Legal                                                               
Services.   She  opined that  Amendment 1  would undermine  every                                                               
standard for  receiving a dividend.   Further, she opined  that a                                                               
dividend  should  not be  provided  unless  the recipient  is  an                                                               
eligible resident.                                                                                                              
                                                                                                                                
CHAIR GRAY  asked whether Representative Carrick  was comfortable                                                               
with the bill moving out of committee without Amendment 1.                                                                      
                                                                                                                                
REPRESENTATIVE CARRICK said  she's not clear on  all the statutes                                                               
referenced in Amendment  1 and suggested that it  be withdrawn to                                                               
be considered in a future committee.                                                                                            
                                                                                                                                
5:11:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EISCHEID moved  to withdraw  Amendment 1.   There                                                               
being no objection, Amendment 1 was withdrawn.                                                                                  
                                                                                                                                
5:12:03 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 5:12 p.m.                                                                                 
                                                                                                                                
5:13:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EISCHEID moved Amendment 2  to HB 137, labeled 34-                                                               
LS0758\A.2, Nauman, 4/5/25, which read:                                                                                         
                                                                                                                                
     Page 1, line 14, following "dividend.":                                                                                    
          Insert "The agency shall notify the department                                                                        
     when  an individual  on the  list  provided under  this                                                                    
     subsection is no longer in arrears."                                                                                       
                                                                                                                                
     Page 2, line 13, following "support.":                                                                                     
          Insert "The department shall retain the amount of                                                                     
     a dividend that is more  than the amount owed for child                                                                    
     support  payments in  arrears  and  shall include  that                                                                    
     amount in a child support  payment in a subsequent year                                                                    
     under  this  subsection.  If the  agency  notifies  the                                                                    
     department  that a  child support  obligation has  been                                                                    
     paid  in   full,  the  department  shall   deposit  the                                                                    
     remaining amount of a dividend from a prior year into                                                                      
     the permanent fund."                                                                                                       
                                                                                                                                
CHAIR GRAY objected for purposes of discussion.                                                                                 
                                                                                                                                
5:13:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EISCHEID explained that  Amendment 2 would clarify                                                               
that if  a portion of someone's  PFD is garnished for  backpay on                                                               
child support, the remaining funds  would go back into the Alaska                                                               
Permanent Fund "the fund".                                                                                                      
                                                                                                                                
CHAIR GRAY sought clarification on Amendment 2.                                                                                 
                                                                                                                                
REPRESENTATIVE  CARRICK  explained  that under  current  law,  if                                                               
someone  owes  child  support  and  a portion  of  their  PFD  is                                                               
garnished, the  remainder is  distributed to  the applicant.   In                                                               
contrast,  Amendment  2  would apply  to  those  dividends  being                                                               
applied for by  the state and clarifies that  any remainder would                                                               
go back into the fund.                                                                                                          
                                                                                                                                
CHAIR GRAY sought  to confirm that Amendment  2 would incentivize                                                               
people to  apply for  their own  PFD, as  they would  receive the                                                               
remainder owed after garnishment.                                                                                               
                                                                                                                                
[Representative Carrick nodded in the affirmative.]                                                                             
                                                                                                                                
5:16:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  suggested  that  if  the  amount  of  child                                                               
support  crosses into  criminal negligence,  the parent  could be                                                               
eligible for the Victims Compensation  Fund.  He stressed that he                                                               
would only  want the state going  after people who are  in Alaska                                                               
and eligible for the dividend.                                                                                                  
                                                                                                                                
REPRESENTATIVE CARRICK  deferred the  question to  the Department                                                               
of Law.                                                                                                                         
                                                                                                                                
5:19:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  asked whether it  would be possible  to make                                                               
an individual who's owed child  support a recipient of [the crime                                                               
Victim  Compensation Fund]  if the  amount crosses  the threshold                                                               
into criminal  negligence.  Secondly,  he asked whether  it would                                                               
be illegal for the state to apply  for a dividend on behalf of an                                                               
ineligible individual.                                                                                                          
                                                                                                                                
5:21:35 PM                                                                                                                    
                                                                                                                                
JOHN  SKIDMORE,  Deputy   Attorney  General,  Criminal  Division,                                                               
Department of  Law (DOL), clarified  that he was here  to testify                                                               
on a different bill and did not know the answer.                                                                                
                                                                                                                                
REPRESENTATIVE CARRICK pointed out that  if obligators are out of                                                               
state, they  would not be added  to DOR's list of  applicants for                                                               
back owed child support.                                                                                                        
                                                                                                                                
5:23:02 PM                                                                                                                    
                                                                                                                                
CHRIS  TRAN,   Director,  Child  Support   Enforcement  Division,                                                               
Department of  Revenue (DOR), described the  division's screening                                                               
process  for PFD  garnishment  from people  in  arrears on  child                                                               
support.                                                                                                                        
                                                                                                                                
5:24:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE  asked  whether  Amendment  2  would  raise                                                               
constitutional  concerns  based  on the  remaining  amount  after                                                               
garnishment  not being  returned to  the individual,  and instead                                                               
deposited back into the fund.                                                                                                   
                                                                                                                                
5:25:13 PM                                                                                                                    
                                                                                                                                
EMILY NAUMAN,  Director, Legislative Legal  Services, Legislative                                                               
Affairs  Agency,  Juneau,  Alaska,  said  by  not  applying,  the                                                               
individual  has   foregone  their   interest  in   receiving  the                                                               
dividend.   Therefore, the  state would  be garnishing  the money                                                               
before ever reaching that person.                                                                                               
                                                                                                                                
REPRESENTATIVE  VANCE asked  whether the  department applies  for                                                               
dividends on behalf of felons in the same manner.                                                                               
                                                                                                                                
MS.  NAUMAN  offered to  follow  up  with  the specifics  of  the                                                               
Restorative Justice Program.                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE said  she wants to ensure  that the proposal                                                               
is based on precedent and legally sound.                                                                                        
                                                                                                                                
5:27:46 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 5:27 p.m.                                                                                 
                                                                                                                                
5:28:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EISCHEID moved  to withdraw  Amendment 2.   There                                                               
being no objection, Amendment to was withdrawn.                                                                                 
                                                                                                                                
CHAIR GRAY announced that HB 137 was held over.