03/15/2016 09:00 AM Senate FINANCE

SENATE BILL NO. 145                                                                                                           
                                                                                                                                
     "An Act relating to the recovery of overpayments of                                                                        
     day care assistance and child care grants; and                                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
9:13:11 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  discussed the  agenda. She noted  that SB
  would   be  addressed  through   a  conversation   by  the                                                                   
committee only.                                                                                                                 
                                                                                                                                
SEAN  O'BRIEN,  DIRECTOR,  DIVISION   OF  PUBLIC  ASSISTANCE,                                                                   
DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES,  stated that  SB
 was  a change in law  to allow the child  care assistance                                                                   
program  to collect  funds  through permanent  fund  dividend                                                                   
(PFD)  garnishment  in  instances   where  voluntary  payment                                                                   
collection  was not possible.  He furthered  that the  change                                                                   
would  be  consistent   with  the  rest  of   the  division's                                                                   
collection processes.  The bill  would bring the  division in                                                                   
alignment  with recouping  overpayments  and misspent  funds.                                                                   
He  continued  that the  bill  supported  federal  compliance                                                                   
with   childcare  regulations,   which   required  that   the                                                                   
division   pursue  fraudulent   and  improper  payments.   He                                                                   
summarized that  if volunteer  recruitment did not  work, the                                                                   
bill  would  allow the  division  to  move forward  with  PFD                                                                   
garnishment.                                                                                                                    
                                                                                                                                
Senator Olson asked what programs currently garnished PFDs.                                                                     
                                                                                                                                
MONICA  WINDOM,  POLICY  DEVELOPMENT   CHIEF,  DEPARTMENT  OF                                                                   
PUBLIC   ASSISTANCE,   DEPARTMENT   OF  HEALTH   AND   SOCIAL                                                                   
SERVICES,  listed the following  programs  that were  able to                                                                   
garnish   PFDs:  food   stamps,   adult  public   assistance,                                                                   
temporary assistance  for needy families (TANF),  and general                                                                   
relief   assistance.   She   summarized   that   all   public                                                                   
assistance   programs  could   garnish  the   PFD  with   the                                                                   
exception of senior benefits and childcare.                                                                                     
                                                                                                                                
9:16:40 AM                                                                                                                    
                                                                                                                                
Senator Olson  wondered about  entities outside of  DHSS that                                                                   
garnished  dividends. He  asked  about daycare  as listed  in                                                                   
the entitlement programs.                                                                                                       
                                                                                                                                
Ms. Windom agreed  to provide Senator Olson  information from                                                                   
the claims  unit later  in the day.  She mentioned  the court                                                                   
system and child support.                                                                                                       
                                                                                                                                
Co-Chair   MacKinnon   asked  for   Ms.   Windom  to   direct                                                                   
information  to her  office so  she could  disseminate it  to                                                                   
the committee members.                                                                                                          
                                                                                                                                
Co-Chair  MacKinnon  asked  about the  retroactivity  of  the                                                                   
bill,  and referred  to the effected  date  of July 1,  2016;                                                                   
but saw a  reference on page 2  of the bill, "before,  on, or                                                                   
after  July 2016."  She  thought  that the  language  sounded                                                                   
retroactive,  and that  the state  would be  able to  collect                                                                   
funds in the next dividend cycle.                                                                                               
                                                                                                                                
Mr.  O'Brien referred  to Section  3, which  stated that  the                                                                   
bill would  take effect July 1,  2016. He specified  that the                                                                   
current  program was  set up  to go  back one  year, and  the                                                                   
bill  would allow  the  division to  collect  on the  current                                                                   
year's PFD as a garnishment.                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
SB  145  was   HEARD  and  HELD  in  committee   for  further                                                                   
consideration.