Legislature(2009 - 2010)BELTZ 105 (TSBldg)

03/24/2010 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 46 CHILD SUPPORT AWARDS TELECONFERENCED
Heard & Held
+ SB 63 TRANSFER RESTRICTIONS ON TRUSTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 277 PUB. UTILITY EXEMPTION: RENEWABLE ENERGY TELECONFERENCED
Moved CSSB 277(RES) Out of Committee
+= HB 319 FIREARMS TELECONFERENCED
Heard & Held
                  SB  46-CHILD SUPPORT AWARDS                                                                               
                                                                                                                                
1:40:19 PM                                                                                                                    
CHAIR FRENCH announced the consideration  of SB 46. [CSSB 46(HSS)                                                               
was before the committee.                                                                                                       
                                                                                                                                
DOROTHY SHOCKLEY,  Staff to Senator  Albert Kookesh, said  CS for                                                               
SB  46 puts  the Child  Support Civil  Rule 90.3  Guidelines into                                                               
statute. When the Alaska Supreme  Court enacted the rule in 1987,                                                               
they admitted  that it was  substantive law that  the Legislature                                                               
could replace at any time. SB 46 proposes to do that.                                                                           
                                                                                                                                
MS. SHOCKLEY  explained that  when a  child support  guideline is                                                               
set  by court  rule, the  people who  are affected  don't have  a                                                               
chance to  speak to the  individuals who  have the power  to make                                                               
changes. This has  been a problem. The feedback  that the sponsor                                                               
has received is that people  don't mind paying child support, but                                                               
they don't agree with the formula  the court has set. She related                                                               
that  she   encouraged  constituents  to  write   to  the  review                                                               
committee, but  it made a disappointingly  small difference. Just                                                               
one  statewide-call-in  hearing  was  held and  people  in  rural                                                               
Alaska  in particular  weren't able  to talk  about their  unique                                                               
situation  to anyone  who could  make changes.  Putting the  rule                                                               
into statute is perhaps the only solution, she said.                                                                            
                                                                                                                                
1:44:00 PM                                                                                                                    
CHAIR FRENCH  asked Mr.  Wooliver to  explain how  it came  to be                                                               
that child  support orders are  done through a court  rule rather                                                               
than statute.                                                                                                                   
                                                                                                                                
DOUG  WOOLIVER,  Administrative  Attorney, Alaska  Court  System,                                                               
informed the committee that the  state's child support guidelines                                                               
were adopted  by the court  shortly after the federal  law passed                                                               
requiring states  to have guidelines. Then  Governor Cowper asked                                                               
the administrative  director of the  court if the court  would be                                                               
willing  to  establish  the   child  support  guidelines  because                                                               
neither  the  Legislature  nor  the governor  wanted  to  do  so.                                                               
Although it's  not a typical role  for the court, they  did agree                                                               
and they've been doing it for the past 23 years.                                                                                
                                                                                                                                
MR. WOOLIVER explained that federal  law requires a review of the                                                               
guidelines every  four years. About  two years prior  to enacting                                                               
any changes, a  committee is appointed and the court  sends out a                                                               
letter asking for  public comment on the  guidelines. Posters are                                                               
put  in  all  the  court  locations, notices  are  posted  in  32                                                               
newspapers in  the state, and  the information is on  the court's                                                               
website.  Notices  of the  contemplated  changes  go out  to  all                                                               
attorneys in a number of venues  and to child support services to                                                               
include  in  their mailings.  The  notice  tells people  who  are                                                               
making  and receiving  child support  payments that  a change  is                                                               
coming  and it  asks for  input. This  last year  the court  sent                                                               
34,000  notices to  child support  services to  include in  their                                                               
mailings.                                                                                                                       
                                                                                                                                
After this process  the comments are summarized  and organized by                                                               
subject and  distributed to the  committee members who  develop a                                                               
draft proposal.  The draft  proposal again  goes out  for comment                                                               
and a  memo summarizing  the rule  goes out to  many of  the same                                                               
venues as before,  including to legislators. Last  time the court                                                               
received  80 comments  from members  of the  public through  that                                                               
process. He  said there is  one statewide teleconference,  but it                                                               
hasn't  been  a  successful  venue. Last  time  just  six  people                                                               
participated.                                                                                                                   
                                                                                                                                
The  committee takes  the comments  into account  and forwards  a                                                               
recommendation to  the five supreme  court justices who  have the                                                               
ultimate authority to form the rule.                                                                                            
                                                                                                                                
1:48:18 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  how similar the current  Rule 90.3 is                                                               
to the federal guidelines on child support.                                                                                     
                                                                                                                                
MR. WOOLIVER offered to find the answer.                                                                                        
                                                                                                                                
SENATOR  WIELECHOWSKI  asked if  other  states  have their  child                                                               
support rules in statute.                                                                                                       
                                                                                                                                
MR. WOOLIVER offered to find the answer.                                                                                        
                                                                                                                                
CHAIR  FRENCH asked  if he  had  a feeling  for how  much of  the                                                               
court's  time is  absorbed in  child support  matters because  he                                                               
recalls that they are extremely time intensive.                                                                                 
                                                                                                                                
1:49:58 PM                                                                                                                    
MR.  WOOLIVER replied  these matters  take  a great  deal of  the                                                               
court's time.  He reminded the  committee that several  weeks ago                                                               
when he  asked the Legislature  for another superior  court judge                                                               
in Anchorage, one reason he  cited was unrepresented litigants in                                                               
family law  cases. That  category is child  support. He  said one                                                               
reason he  asked for  just one  more judge  is because  the court                                                               
wants to add staff, part of whose  job will be to help the judges                                                               
calculate child support payments. The judges do that now.                                                                       
                                                                                                                                
1:50:59 PM                                                                                                                    
JOHN   MALLONEE,  Director   Child  Support   Services  Division,                                                               
Department  of Revenue  (DOR)  said he  was  available to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
CHAIR  FRENCH  asked  if  he participates  in  the  process  that                                                               
results  in  modifications  to  Civil  Rule  90.3  Child  Support                                                               
Guidelines.                                                                                                                     
                                                                                                                                
MR. MALLONEE  replied the Child Support  Services Division (CSSD)                                                               
works through Assistant Attorney  General Stacy Steinberg when it                                                               
wants  changes. She  currently  represents CSSD  and  has been  a                                                               
member of the committee Mr. Wooliver described.                                                                                 
                                                                                                                                
Responding  to an  earlier  question about  the  federal law,  he                                                               
explained that  45 CFR 302.56  basically states what  the general                                                               
guidelines must consider. It's fairly  open for interpretation by                                                               
the  states other  than  that  a review  is  required every  four                                                               
years.                                                                                                                          
                                                                                                                                
1:52:52 PM                                                                                                                    
CHAIR  FRENCH   asked  Ms.  Steinberg  her   perspective  on  the                                                               
administration's  ability to  get changes  made in  child support                                                               
guidelines.                                                                                                                     
                                                                                                                                
STACY  STEINBERG,  Chief   Assistant  Attorney  General,  Section                                                               
Supervisor,  Collections  and  Support Section,  Civil  Division,                                                               
Department of  Law (DOL),  explained that  the attorneys  in this                                                               
section represent CSSD whenever they  have legal issues or when a                                                               
matter goes to court.                                                                                                           
                                                                                                                                
MS. STEINBERG said  she served on the most  recent committee that                                                               
reviewed child  support guidelines  and at  the time  she brought                                                               
CSSD  concerns to  the committee's  attention.  The committee  is                                                               
comprised of private attorneys and a  judge who sits as chair and                                                               
the  process  the  committee undertakes  is  extensive  and  time                                                               
consuming.  During  the  last  review CSSD  didn't  ask  for  any                                                               
specific changes  but they  did work with  the committee  to make                                                               
the court form more efficient for collecting child support.                                                                     
                                                                                                                                
1:55:01 PM                                                                                                                    
CHAIR FRENCH asked if the  administration had taken a position on                                                               
the bill.                                                                                                                       
                                                                                                                                
MS. STEINBERG deferred to Mr. Mallonee.                                                                                         
                                                                                                                                
MR. MALLONEE  replied, "We have  no objection to the  bill." They                                                               
simply use  the guidelines  to do  the calculations  to establish                                                               
child support orders and it wouldn't  matter if it was in statute                                                               
or court rule.                                                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI asked  if CSSD gets involved  in every four-                                                               
year review.                                                                                                                    
                                                                                                                                
MR. MALLONEE said their only  real involvement is through the DOL                                                               
section chief that represents CSSD.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI  asked if he  believes that the  formula and                                                               
other calculations in the bill are fair.                                                                                        
                                                                                                                                
MR.  MALLONEE  replied  it  would   take  an  economic  study  to                                                               
determine whether or not the  percentages are fair and equitable.                                                               
The last one was done when the rule was established originally.                                                                 
                                                                                                                                
MS. SHOCKLEY  added that the idea  was to adopt the  same numbers                                                               
as  Civil Rule  90.3 then  after they're  in statute  the sponsor                                                               
would look at perhaps making changes.                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI said he appreciates knowing that.                                                                          
                                                                                                                                
CHAIR FRENCH  asked Ms.  Steinberg if  the new -  and as  yet not                                                               
adopted - CS  addresses the concerns she outlined in  a letter to                                                               
the sponsor.                                                                                                                    
                                                                                                                                
MS.  STEINBERG replied  she understands  that that  a new  CS was                                                               
drafted,  but  she  hasn't  seen it;  she's  still  working  from                                                               
version 26-LS0279\P.                                                                                                            
                                                                                                                                
CHAIR FRENCH said  he'd wait until a subsequent  hearing to adopt                                                               
the new CS  to make sure that everyone was  working from the same                                                               
document. Noting  that one concern  she spoke to was  how medical                                                               
costs are  to be divided, he  asked if the problem  doesn't exist                                                               
now if the numbers in the  bill were simply lifted from the court                                                               
rule.                                                                                                                           
                                                                                                                                
MS. STEINBERG  said the bill  initially mimicked Civil  Rule 90.3                                                               
and the  few legal  changes that were  needed were  resolved. The                                                               
problem  came  about because  of  2008  federal regulations  that                                                               
required the addition  of cash medical support  and provisions to                                                               
define  reasonableness  and  accessibility of  health  insurance.                                                               
Those aspects were added to version  P but because they aren't in                                                               
rule  90.3 it  wasn't clear  how  some of  the uncovered  medical                                                               
expenses would  be handled and who  would pay. She said  the main                                                               
point of  the letter  was to  ensure that  the additions  of cash                                                               
medical support will legally work in this new statute.                                                                          
                                                                                                                                
2:03:23 PM                                                                                                                    
SENATOR WIELECHOWSKI questioned how  the judicial branch was able                                                               
to  adopt  substantive  law  if   Civil  Rule  90.3  is  in  fact                                                               
substantive.                                                                                                                    
                                                                                                                                
MS.  STEINBERG replied  it is  substantive  in that  it sets  how                                                               
child support  is established  in each  court case,  but it  is a                                                               
court rule that  only applies to court.  The constitutionality of                                                               
the rule  has been challenged and  the supreme court found  it to                                                               
be   constitutional.  CSSD   has  a   separate  regulation   that                                                               
specifically says it will follow Civil Rule 90.3.                                                                               
                                                                                                                                
2:04:42 PM                                                                                                                    
CHAIR   FRENCH    asked   the    drafting   attorney    why   the                                                               
nonapplicability of  two-thirds vote  requirement is  included in                                                               
the bill and how she came to that conclusion.                                                                                   
                                                                                                                                
JEAN MISCHEL,  Drafting Attorney, Legislative Legal  and Research                                                               
Services, Legislative  Affairs Agency, explained that  her office                                                               
has  construed this  to be  a  substantive rule.  Since the  bill                                                               
isn't  affecting  judicial  procedure, a  two-thirds  vote  isn't                                                               
required.                                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI questioned how  the Legislature can change a                                                               
court rule without a two-thirds vote.                                                                                           
                                                                                                                                
MR. WOOLIVER explained that the  supreme court adopts rules under                                                               
two provisions  of the  constitution. Article  4, Section  15, is                                                               
the rules of  practice and procedure and Article 4,  Section 1 is                                                               
the  inherent  authority of  the  court.  Rule  90.3 says  it  is                                                               
adopted pursuant to the authority  under Article 4, Section 1 and                                                               
is not subject to the  super majority requirements that the rules                                                               
of practice  and procedure  would be subject  to with  respect to                                                               
legislative  change. The  rule itself  says it  is a  substantive                                                               
rule  and the  Legislature can  change  it by  a simple  majority                                                               
vote.                                                                                                                           
                                                                                                                                
CHAIR FRENCH  mused about  the separation of  powers and  the 2/3                                                               
vote requirement.                                                                                                               
                                                                                                                                
SENATOR WIELECHOWSKI commented that  it's an interesting question                                                               
and the logic is somewhat circular.                                                                                             
                                                                                                                                
2:07:27 PM                                                                                                                    
MS. MISCHEL clarified  that the court adopts  both procedural and                                                               
substantive  rules  and  the substantive  rules  are  within  the                                                               
purview of  both the  judicial and  legislative branches.  As Mr.                                                               
Wooliver pointed  out, the  court told  the Legislature  it could                                                               
amend  or adopt  this  rule without  a 2/3  vote.  "We're all  in                                                               
agreement  that this  is not  a  procedural rule  that the  court                                                               
would have more control over," she said.                                                                                        
                                                                                                                                
CHAIR  FRENCH asked  if there  are other  instances of  the court                                                               
adopting substantive rules.                                                                                                     
                                                                                                                                
MS. MISCHEL said yes, but it would take time to point them out.                                                                 
                                                                                                                                
CHAIR FRENCH said he wouldn't move the bill before he heard from                                                                
the family law section and Mr. Kirk who has been supportive of                                                                  
the bill.                                                                                                                       
                                                                                                                                
CHAIR FRENCH announced that because this is a fairly significant                                                                
change, he would hold SB 46 for a future hearing.                                                                               
                                                                                                                                

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