Legislature(1995 - 1996)

03/20/1995 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  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.                                                                 
                                                                               
                                                                               
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  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                 
                                                                               
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  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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