03/12/2025 01:30 PM Senate JUDICIARY

                     SB  12-PFD/CHILD SUPPORT                                                                               
                                                                                                                                
1:31:31 PM                                                                                                                    
CHAIR CLAMAN  announced the consideration  of SENATE BILL  NO. 12                                                               
"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."                                                                                                           
                                                                                                                                
CHAIR CLAMAN  said this  is the  second hearing of  SB 12  in the                                                               
Senate  Judiciary  Committee.  The  intention  is  to  propose  a                                                               
Judiciary committee substitute (CS).                                                                                            
                                                                                                                                
CHAIR CLAMAN solicited a motion.                                                                                                
                                                                                                                                
1:31:49 PM                                                                                                                    
SENATOR KIEHL  moved to adopt  the committee substitute  (CS) for                                                               
SB 12, work order 34-LS0135\I, as the working document.                                                                         
                                                                                                                                
1:32:03 PM                                                                                                                    
CHAIR  CLAMAN objected  for purposes  of  discussion. He  invited                                                               
Ms. Kakaruk to present the explanation of changes.                                                                              
                                                                                                                                
1:32:26 PM                                                                                                                    
BREANNA  KAKARUK,  Staff,  Senator   Matt  Claman,  Alaska  State                                                               
Legislature,  Juneau,   Alaska,  presented  the   explanation  of                                                               
changes for  SB 12 from version  \A to version \I  as paraphrased                                                               
below:                                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                     Explanation of Changes                                                                                   
                                                                                                                                
       Senate Judiciary Committee: Version A to Version I                                                                   
                                                                                                                                
     The  Senate Judiciary  Committee  Substitute  to SB  12                                                                    
     contains the following changes described below.                                                                            
                                                                                                                                
   • Require the Department of Revenue to file a dividend                                                                       
     application  on  behalf  of an  individual  in  arrears                                                                    
     under a child support order.                                                                                               
   • Require the Department of Revenue to notify the                                                                            
     individual  in   arrears  and  individual   owed  child                                                                    
     support  that  the  application for  an  individual  in                                                                    
     arrears  has  been filed  by  the  department and  that                                                                    
     either party  have an  opportunity to  provide evidence                                                                    
     of eligibility.                                                                                                            
   • Remove language requiring the Department of Revenue to                                                                     
     assume previously  eligible applicants of  the dividend                                                                    
     remain   eligible   for   the  dividend,   and   remove                                                                    
     requirements for  an individual owing child  support to                                                                    
     provide proof of ineligibility.                                                                                            
   • Add a 7 percent administrative fee for the Department                                                                      
     of  Revenue on  applications distributed  under (i)  of                                                                    
     Sec. 3.                                                                                                                    
   • Require Child Support Enforcement Division of the                                                                          
     Department  of  Revenue  to indicate  which  people  in                                                                    
     arrears are  presumed eligible  for the  Permanent Fund                                                                    
     dividend and removes the  custodial parent's ability to                                                                    
     file these applications.                                                                                                   
                                                                                                                                
1:33:59 PM                                                                                                                    
CHAIR CLAMAN  removed his  objection and CSSB  12 was  adopted as                                                               
the  working  document.  He  invited the  bill  sponsor  to  make                                                               
closing comments.                                                                                                               
                                                                                                                                
1:34:08 PM                                                                                                                    
SENATOR  FORREST DUNBAR,  District J,  Alaska State  Legislature,                                                               
Juneau, Alaska, gave a recap  of SB 12. He expressed appreciation                                                               
to  the   members  of  the  committee   who  provided  thoughtful                                                               
feedback.  The  intent of  SB 12  is  to help  custodial  parents                                                               
collect money  owed for  child support,  which the  Department of                                                               
Revenue (DOR)  could provide through the  permanent fund dividend                                                               
(PFD).                                                                                                                          
                                                                                                                                
SENATOR DUNBAR  said the  challenge in making  this work  lies in                                                               
the  technical   aspects.  He  expressed  appreciation   for  the                                                               
cooperation between  the chair, administrative agencies,  and his                                                               
office  in  creating  a  functional   system  that  avoids  known                                                               
pitfalls. He stated  that the major change is the  removal of the                                                               
non-custodial parent's ability  to apply for a  PFD; instead, the                                                               
CS proposes that  DOR file the application. The  CS also proposes                                                               
that DOR  collect a  seven percent  administrative fee  to offset                                                               
costs  for  locating  individuals, determining  eligibility,  and                                                               
managing the  process. He said  DOR provided the figure  and that                                                               
seven percent  is reasonable. He  thanked the  committee, stating                                                               
version \I is  workable and designed  with flexibility  to ensure                                                               
agencies can implement SB 12 in a rational way.                                                                                 
                                                                                                                                
1:35:40 PM                                                                                                                    
CHAIR CLAMAN  noted that representatives  from the  Child Support                                                               
Enforcement Division,  Permanent Fund Dividend Division,  and the                                                               
liaison  from   the  Department  of  Revenue   were  present  and                                                               
available to answer questions.                                                                                                  
                                                                                                                                
1:35:50 PM                                                                                                                    
He found no questions and solicited the will of the committee.                                                                  
                                                                                                                                
1:35:52 PM                                                                                                                    
SENATOR KIEHL  moved to report  CSSB 12, work  order 34-LS0135\I,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
1:36:09 PM                                                                                                                    
CHAIR CLAMAN  found no  objection and  CSSB 12(JUD)  was reported                                                               
from the Senate Judiciary Standing Committee.