02/13/2014 09:00 AM Senate STATE AFFAIRS

          SB 104-APPROPRIATIONS FROM THE DIVIDEND FUND                                                                      
                                                                                                                                
[Due to technical difficulties, the  audio is not available until                                                               
9:26:24.]                                                                                                                       
                                                                                                                                
9:25:43 AM                                                                                                                    
CHAIR DYSON  announced that the  next order of business  would be                                                               
SB 104.                                                                                                                         
                                                                                                                                
SENATOR  GIESSEL moved  to  adopt  the proposed  CS  for SB  104,                                                               
labeled  26-LS0847\R,   as  the   working  document   before  the                                                               
committee.                                                                                                                      
                                                                                                                                
CHAIR  DYSON said  he would  wait until  his staff  presented the                                                               
changes  in the  bill to  hear if  there were  any objections  to                                                               
adopting version R.                                                                                                             
                                                                                                                                
9:26:42 AM                                                                                                                    
JOSHUA BANKS, Staff for Senator  Dyson, Alaska State Legislature,                                                               
Juneau, Alaska,  addressed the changes  in SB 104, version  R. He                                                               
said there  were a  few minor changes  after discussion  with the                                                               
Child  Support  Division.  He  said  on page  2,  line  20,  "and                                                               
operating  costs of  the Violent  Crimes  Compensation Board"  is                                                               
added after "victims". This provision is currently taking place.                                                                
                                                                                                                                
CHAIR DYSON clarified  that this change is  putting into statute,                                                               
that which has been the standard practice.                                                                                      
                                                                                                                                
MR. BANKS  explained that on  page 4, line  1, the words  "to the                                                               
crime  victim compensation  fund established  under AS  18.67.162                                                               
for  payments to  crime victims  and for  operating costs  of the                                                               
Violent Crimes Compensation Board" is added.                                                                                    
                                                                                                                                
CHAIR  DYSON added  that  the change  brings  consistency to  the                                                               
wording.                                                                                                                        
                                                                                                                                
MR. BANKS  said on page  4, line  9 deletes "to  a state-approved                                                               
rehabilitation   program"  and   adds  "to   the  Department   of                                                               
Corrections".                                                                                                                   
                                                                                                                                
MR. BANKS said on page 4,  line 20 deletes "the Court System" and                                                               
adds "the Department of Corrections".                                                                                           
                                                                                                                                
CHAIR DYSON asked what line.                                                                                                    
                                                                                                                                
MR. BANKS  said line  20. He  highlighted a  new change  found on                                                               
page 4, line  4; after "arrearages" the words "owed  to a child's                                                               
custodian  or guardian  when the  child  to who  a support  order                                                               
applies  is  under  19  years  of  age;  payments  to  a  child's                                                               
custodian  or guardian  for child  support arrearages  under this                                                               
paragraph are  limited to the amount  of the dividend paid  to an                                                               
eligible individual in the previous year;" were added.                                                                          
                                                                                                                                
9:29:59 AM                                                                                                                    
CHAIR DYSON noted  Mr. Banks has worked closely with  each of the                                                               
agencies and the CS reflects  agency suggestions. He stressed the                                                               
importance of  the aforementioned change. He  mentioned the large                                                               
number  of  arrearages on  child  support.  He commented  on  the                                                               
difficulty of  deciding how to  allocate child support  funds. He                                                               
explained that the bill provides  that current and recent victims                                                               
with profound needs  are the priority for where  the money should                                                               
go.  This  change  was  the  recommendation  from  Child  Support                                                               
Services Division.                                                                                                              
                                                                                                                                
MR. BANKS  indicated that the  language was suggested  from Child                                                               
Support Services, the  Department of Law, and  the Violent Crimes                                                               
Compensation Board (VCCB).  The language puts limits  on the $100                                                               
million  child  support arrearage.  Only  children  under 19  and                                                               
younger  will  receive  money  from the  Criminal  Fund  for  the                                                               
equivalent of one PFD.                                                                                                          
                                                                                                                                
CHAIR DYSON added that it would be paid annually.                                                                               
                                                                                                                                
9:32:30 AM                                                                                                                    
MR.  BANKS said  that  another  change is  found  on  page 4,  in                                                               
multiple references in  (b) through (f). The  previous version of                                                               
the  bill talked  about providing  reports  to "the  department",                                                               
meaning  the  Department  of Revenue  (DOR),  and  DOR  providing                                                               
reports to  the legislature as to  how much money should  go from                                                               
the Criminal Fund to the various  agencies. Because that is not a                                                               
job that  DOR typically  does, it  was changed  to the  Office of                                                               
Budget and Management  (OMB). In paragraphs (b), (c),  and (d) it                                                               
states that VVCB,  Child Support Service, and DOC  will report to                                                               
OMB, who will use the reports  to determine how much goes to each                                                               
agency and report to the legislature.                                                                                           
                                                                                                                                
He said  two changes were missed  during the drafting of  the CS.                                                               
He  proposed conceptual  amendments that  would add,  on page  3,                                                               
line 15, after  "victims;" the words "and operating  costs of the                                                               
Violent Crimes  Compensation Board."  The same language  would be                                                               
added on page 4, line 16, after "compensable claims."                                                                           
                                                                                                                                
9:34:19 AM                                                                                                                    
CHAIR  DYSON  indicated  that  his intention  was  to  adopt  the                                                               
committee   substitute  and   then  the   conceptual  amendments,                                                               
depending on the will of the committee.                                                                                         
                                                                                                                                
He  asked if  there  is an  objection to  the  acceptance of  the                                                               
committee substitute. Seeing none, the  R version of the bill was                                                               
before the committee.                                                                                                           
                                                                                                                                
SENATOR GIESSEL moved  to adopt the two  conceptual amendments to                                                               
SB 104,  labeled LS-0847\R, on  page 3, line  15, and on  page 4,                                                               
line  16, to  add  "and  operating costs  of  the Violent  Crimes                                                               
Compensation  Board. There  being  no  objection, the  conceptual                                                               
amendments were adopted.                                                                                                        
                                                                                                                                
9:35:48 AM                                                                                                                    
SENATOR  COGHILL asked  if there  was  a fiscal  impact from  the                                                               
changes in version R.                                                                                                           
                                                                                                                                
MR. BANKS asked if Senator  Coghill was asking whether the change                                                               
from DOR  to OMB  would result  in new  expenses. He  pointed out                                                               
that there was  a $15,000 fiscal note in version  Y, but it would                                                               
change to a zero note under version R.                                                                                          
                                                                                                                                
CHAIR  DYSON  questioned  if  the fiscal  note  would  remain  at                                                               
$15,000.                                                                                                                        
                                                                                                                                
MR. BANKS indicated that it would now be a zero fiscal note.                                                                    
                                                                                                                                
CHAIR DYSON  noted that the  bill has a Senate  Finance Committee                                                               
referral next.                                                                                                                  
                                                                                                                                
SENATOR  COGHILL  reiterated  his  concern  about  the  financial                                                               
impact.                                                                                                                         
                                                                                                                                
SENATOR DYSON  suggested the change  could have an impact  on the                                                               
Department of Corrections (DOC)  because they have been receiving                                                               
roughly $13 million annually and a  large amount of that will now                                                               
go to the victims.  Monies that are left over will  go to DOC. He                                                               
reported that  DOC said  the increase  in the  amount of  the PFD                                                               
will  offset the  loss. He  asked if,  under the  Affordable Care                                                               
Act,  Medicaid  and  Medicare  are  available  for  the  care  of                                                               
inmates.                                                                                                                        
                                                                                                                                
MR. BANKS did not know.                                                                                                         
                                                                                                                                
SENATOR DYSON repeated the question for DOC.                                                                                    
                                                                                                                                
9:38:53 AM                                                                                                                    
LESLIE  HOUSTON, Deputy  Commissioner, Department  of Corrections                                                               
(DOC), Juneau, Alaska, answered questions  related to SB 104. She                                                               
said  DOC is  working with  the Department  of Health  and Social                                                               
Services  (DHSS) to  pursue clauses  under the  Affordable Health                                                               
Care  Act  that  may  include   a  small  number  of  the  prison                                                               
population  to be  eligible for  reimbursement for  both Medicaid                                                               
and Medicare.                                                                                                                   
                                                                                                                                
CHAIR  DYSON voiced  appreciation  for DOC's  cooperation on  the                                                               
bill.                                                                                                                           
                                                                                                                                
9:40:33 AM                                                                                                                    
STACY  STEINBERG,  Chief   Assistant  Attorney,  Collections  and                                                               
Support  Section,  Civil  Division,   Department  of  Law  (DOL),                                                               
Anchorage,  Alaska; offered  to  answer questions  related to  SB
.                                                                                                                            
                                                                                                                                
CHAIR DYSON thanked  Ms. Steinberg for her team's  efforts on the                                                               
bill.                                                                                                                           
                                                                                                                                
9:41:23 AM                                                                                                                    
SENATOR  GIESSEL  moved  to report  CSSB  104(STA),  version  28-                                                               
LS0847\R   with  conceptual   amendments,  from   committee  with                                                               
individual  recommendations  and  attached  fiscal  notes.  There                                                               
being no  objection, CSSB 104(STA)  was reported from  the Senate                                                               
State Affairs Standing Committee.                                                                                               
                                                                                                                                
CHAIR DYSON, sponsor  of SB 104, thanked everyone  for working on                                                               
the bill.  He stated  that this  legislation is  one of  the more                                                               
significant pieces  of legislation  he has contributed.  The bill                                                               
will help many victims of crime.