02/19/1993 01:30 PM House FIN

                                                                               
  HOUSE BILL 144                                                               
                                                                               
       "An  Act  relating   to  fees  for  certain   costs  of                 
       administering the permanent fund dividend program."                     
                                                                               
  Representative  Martin  stated that  HB  144 is  designed to                 
  transfer the costs of  administering permanent fund dividend                 
  assignments  and  attachments  back  to  the  person   whose                 
  financial  obligations  are  the   cause  of  assignment  or                 
  attachment.                                                                  
                                                                               
  The amount  of every  Alaskan's permanent  fund dividend  is                 
  affected  by  the  cost  of  operating  the  Permanent  Fund                 
  Dividend Division.   The  Division processed  over fifty-one                 
  thousand assignments in 1992.  If HB 144 is passed, the cost                 
  of processing the  attachment or assignment will  be paid by                 
  the obligor instead of  being absorbed by the Division  as a                 
  cost of  doing business.   The effect of  the bill  would be                 
  that every Alaskan's dividend would  be increased, albeit by                 
  a small amount; and those Alaskans whose financial practices                 
  cause their dividends to  be assigned will pay a fee for the                 
  cost of the extra handling and processing.                                   
                                                                               
  Representative  Navarre commented  that he thought  the cost                 
  would be closer to $.10 per check.  He felt this was a minor                 
  charge.   Representative Hanley  agreed with  Representative                 
  Navarre although  he thought that  if someone were  at fault                 
  they should  pay the  administrative costs.   Representative                 
  Navarre questioned  the assignments from  denied felons  and                 
  the probability that those costs would be paid.                              
                                                                               
  (Tape Change, HFC 93-28, Side 1).                                            
                                                                               
  ROD   MOURANT,  SPECIAL   ASSISTANT  TO   THE  COMMISSIONER,                 
  DEPARTMENT OF REVENUE,  clarified that  the charge would  be                 
                                                                               
                                9                                              
                                                                               
                                                                               
  $1.18 per assignment which is processed by the Division.                     
                                                                               
  Administrative Settlement Act                                                
                                                                               
  Representative  Brown asked  when  the  accounting would  be                 
  available from  the  Department  of  Revenue  regarding  the                 
  Administrative Settlement Account.   Mr. Mourant stated  the                 
  final  version   of  that   information  is  nearly   ready.                 
  Representative  Brown  understood  that  the  amount of  the                 
  settlements would total  $279 million dollars.   Mr. Mourant                 
  stated that he  did know the  numbers but would provide  the                 
  Committee  that  information as  soon  as it  was available.                 
  Representative  Brown  pointed  out  that  there  are  large                 
  amounts of money being  moved around and she wanted  to have                 
  the information  made available  as soon  as possible.   Mr.                 
  Mourant  replied,  that  the  review  and  auditing  process                 
  relating to assessment payments is not a simple process.                     
                                                                               
  HOUSE BILL 144                                                               
                                                                               
  Representative  Navarre  asked  if  more   than  one  entity                 
  attached to the dividends  would their administrative  costs                 
  be added.  Mr. Mourant replied, that if there was sufficient                 
  balance to satisfy all services,  they would be charged each                 
  time.  Representative Navarre asked  who would have priority                 
  in an  account.  Mr. Mourant  stated that either  the IRS or                 
  the CSED  would have  priority and noted  that each  service                 
  does  cost the  Department of  Revenue an  average  of $1.18                 
  average.                                                                     
                                                                               
  Representative  Martin  MOVED  to  report   HB  144  out  of                 
  Committee with individual  recommendations.   Representative                 
  Navarre OBJECTED.                                                            
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Martin,  Parnell,  Therriault,   Hanley,                 
                      Larson.                                                  
                                                                               
       OPPOSED:       Navarre, Brown, Grussendorf.                             
                                                                               
  Representatives Hoffman, Foster and MacLean were not present                 
  for the vote.                                                                
                                                                               
  The MOTION FAILED, 5-3.                                                      
                                                                               
  Representative Martin requested HB 144  be reconsidered at a                 
  later  date.   HB  144  was  HELD in  Committee  for further                 
  discussion.