Legislature(1995 - 1996)
03/20/1995 01:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL 32 "An Act relating to administrative proceedings involving a determination of eligibility for a permanent fund dividend or authority to claim a dividend on behalf of another." MELINDA GRUENING, STAFF, REPRESENTATIVE JOE GREEN, stated that HB 32 would address a serious problem with the number of appeals filed after an applicant is denied a Permanent Fund Dividend (PFD), and the length of time that it takes to process those appeals. She added, that processing such a large number of appeals is costly as well as being unfair to those who have a legitimate claim. Currently there are ten permanent full time employees in the Permanent Fund Division, yet there are still almost 10,000 appeals pending, with no end in sight. In years prior to 1994, the percentage rate of denials was significantly higher. HB 32 would implement a $25 filing fee for individuals protesting the denial of their PFD application. The legislation would provide for a waiver of the fee for an indigent individual who is a member of a family whose income is equal to or less than the federal poverty guideline. The filing fee would be refundable if the appeal is successful, and non-refundable if the denial was upheld. Representative Martin voiced his concern with appeals submitted by military personnel and their families. REPRESENTATIVE JOE GREEN acknowledged that the military concern had been addressed in other pending legislation. He added that the established criteria used to determine eligibility sometimes appears to be subjective. Discussion followed between Representative Green and Representative Martin regarding a person's intent when trying to determine eligibility. 7 Representative Brown asked Representative Green if filing an appeal time limit had been considered. Ms. Gruening stated that it would be more reasonable to institute a deadline filing date. She added, approximately 54% of the denials are labeled by the Department as "bright-line" issues. Tape Change, HFC 95-58, Side 1). Representative Therriault recommended a "family fee" consideration for military and/or education concerns. Representative Green explained that consideration had been made. MICHAEL MCGEE, CHIEF, PFD OPERATIONS, PERMANENT FUND DIVIDEND DIVISION, DEPARTMENT OF REVENUE, noted that each case is treated separately. Representative Martin asked who would file for a child in a foster home. Mr. McGee advised that the State Department of Health and Social Services, Family and Youth Service Division, would be the responsible party to file for the child. Each year, DHSS files about 2200 PFD cases. Mr. McGee stated that the legislation would discourage frivolous persons from filing an appeal, although, legislative clean-up projects have exasperated the denial system. He added that all applications containing missing information were denied. There are certain policies being implemented in DHSS that are eliminating some of the problems with the PFD system. Mr. McGee concluded that with the addition of a due date on appeals would create an unfair situation for rural communities. Discussion followed among Committee members regarding the effective date of the bill. Representative Grussendorf understood that it would be 90 days after passage of the legislation. Representative Martin thought it would be July 1, 1995, the beginning of the new fiscal year. Mr. McGee advised that administering the implementation would be difficult and that it would create the need for a new section to account for funds. Representative Mulder recommended implementing the legislation on January 1, 1996. Representative Brown commented that the correct language would be technically challenging in order to provide this calendar year's regulation inclusion. Representative Green stated that he would be amenable to the change. Ms. Gruening responded that appeals had been overturned resulting from lack of information and are not considered "frivolous". These are not the appeals addressed in the proposed legislation. She stated that regulations could go 8 into effect at the beginning of the next cycle. Representative Parnell MOVED a conceptual amendment adding the language: "The appeal fee set forth in AS 43.23.015G should take effect January 1, 1996". Mr. McGee advised that language would provide the Department ample time to write the needed regulations. Representative Brown MOVED a "friendly" amendment that regulations be adopted in the 1995 calendar year. She pointed out that the Department currently does not have the authority without the additional language. There being NO OBJECTION to the "friendly" amendment, it was adopted. There being NO OBJECTION to the amended amendment, it was adopted. Representative Parnell MOVED to report CS HB 32 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 32 (FIN) was reported out of Committee with a "no recommendation" and with a fiscal note by the Department of Revenue dated 2/13/95.
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