Legislature(2001 - 2002)

04/25/2001 01:24 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SB 19 - CHILD SUPPORT ENFORCEMENT/SOC SEC.#                                                                                   
                                                                                                                                
Number 1491                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  announced that the  next order of  business would                                                               
be CS  FOR SENATE BILL NO.  19(HES), "An Act relating  to federal                                                               
child support enforcement  requirements regarding social security                                                               
number  information,   employer  reports  about   employees,  and                                                               
certain  kinds   of  automated   data  matching   with  financial                                                               
institutions; repealing  the termination date of  changes made by                                                               
ch. 87, SLA 1997, and ch.  132, SLA 1998, regarding child support                                                               
enforcement and  related programs; repealing  the nonseverability                                                               
provision  of  ch.  132,  SLA  1998;  repealing  uncodified  laws                                                               
relating  to  ch. 87,  SLA  1997,  and  ch.  132, SLA  1998;  and                                                               
providing for an  effective date." [Before the  committee was HCS                                                               
CSSB 19(HES).]                                                                                                                  
                                                                                                                                
Number 1460                                                                                                                     
                                                                                                                                
BARBARA   MIKLOS,  Director,   Central   Office,  Child   Support                                                               
Enforcement  Division   (CSED),  Department  of   Revenue  (DOR),                                                               
explained that in  1996, congress passed welfare  reform with the                                                               
intention of  making people self-sufficient and  not dependent on                                                               
public money.  One important  aspect of helping families maintain                                                               
self-sufficiency  is child  support,  and to  this end,  congress                                                               
added requirements  that states pass  laws to help  child support                                                               
programs  collect  child  support  as well  as  facilitate  child                                                               
support collection between states.   The Alaska State Legislature                                                               
passed  legislation  in  1996,  1997,   and  1998  that  met  the                                                               
requirements   imposed  by   congress  in   the  welfare   reform                                                               
legislation.   In fiscal  year (FY) 1999  the CSED  collected and                                                               
distributed $81 million in child  support, in FY 2000 $85 million                                                               
was  collected  and distributed,  and  in  FY  2001 the  CSED  is                                                               
expecting  to  collect and  distribute  $91  million.   The  CSED                                                               
believes that the  tools it was given have  helped increase child                                                               
support collections and disbursements.                                                                                          
                                                                                                                                
MS. MIKLOS noted that legislation passed  in 1997 and 1998 was to                                                               
be  "sunsetted"  this year  for  the  purpose of  revisiting  the                                                               
issues involved.  She opined that  CSED is doing much better than                                                               
it was three  years ago in terms of the  Alaskan public; although                                                               
there  are  still  some  problems  and  issues  to  be  resolved,                                                               
complaints  of  the  CSED  have   dramatically  decreased.    She                                                               
explained  that it  is very  important to  pass SB  19 this  year                                                               
because  it  will help  the  CSED  maintain some  very  effective                                                               
programs,  and  also  because   congress  will  impose  financial                                                               
penalties on Alaska by withholding  federal child support funding                                                               
(approximately   $15  million)   and  funding   for  the   public                                                               
assistance   program   (approximately   $55  million)   if   such                                                               
legislation is not enacted.                                                                                                     
                                                                                                                                
MS.  MIKLOS  noted  that  SB  19  started  out  as  a  couple  of                                                               
paragraphs  simply  authorizing  sunsets  to be  repealed.    She                                                               
explained that  one of the  changes made to  the bill as  it made                                                               
its  way through  the process  was  to remove  all references  to                                                               
collecting  social  security  numbers from  hunting  and  fishing                                                               
licenses.    This  change  was made  possible  because  the  CSED                                                               
applied for  and received  a waiver  from the  federal government                                                               
exempting  Alaska  from  the  requirement  of  collecting  social                                                               
security numbers  from those documents.   Another change involved                                                               
placing five-year  sunsets on  provisions requiring  the exchange                                                               
of  social  security  numbers  and  provisions  requiring  social                                                               
security  numbers on  various applications  such as  occupational                                                               
licenses  and driver's  licenses.   Another five-year  sunset was                                                               
placed on a  financial data match program, which  provides for an                                                               
automated   match  between   the  CSED   and  various   financial                                                               
institutions for collections purposes.                                                                                          
                                                                                                                                
Number 1198                                                                                                                     
                                                                                                                                
MS. MIKLOS said that in starting  out, SB 19 was intended to only                                                               
address  welfare  reform  and  its   requirements.    During  the                                                               
process,  however, a  couple of  provisions have  been added  on,                                                               
both with the agreement of the  CSED.  One provision - Section 11                                                               
-  states  that  violation  of AS  25.27.075(a),  which  requires                                                               
employers to report personnel information  to the CSED, would not                                                               
give rise  to a  private cause  of action.   Another  provision -                                                               
Section  12  -  although  unrelated   to  welfare  reform,  added                                                               
language  to  ensure that  any  child  support payments  received                                                               
during the last five business days  of the prior month because of                                                               
the payroll  cycle would be  credited to the next  calendar month                                                               
as intended by the obligor.                                                                                                     
                                                                                                                                
MS. MIKLOS  explained that Sections  1-10, 13, 14, and  17 relate                                                               
to the new sunset requirements.   Section 15 repeals all sunsets;                                                               
Section 16  says that  all those sections  that are  repealed and                                                               
don't come  back are  repealed immediately;  and Section  17 says                                                               
that July 1,  2003, is the new sunset date  for all sections that                                                               
continue  to have  a  sunset.   She  noted  that  since the  CSED                                                               
already believes that the most  important thing it should do with                                                               
social security numbers is hold  them sacred and ensure that they                                                               
are not misused, it would prefer  to have a longer sunset period;                                                               
she added  that the CSED is  very vigilant and sends  out monthly                                                               
messages   to  all   its  employees   reminding  them   of  their                                                               
responsibility  to  hold  certain information,  including  social                                                               
security numbers,  confidential.   She said  that the  CSED would                                                               
rather have the  opportunity to focus on those  kinds of programs                                                               
and safeguards as opposed to  spending the resources to come back                                                               
before  the legislature  and debate  the  social security  number                                                               
issue.                                                                                                                          
                                                                                                                                
MS.  MIKLOS,  in  response  to   questions,  explained  that  the                                                               
effective date of  2003 in Section 17 pertains to  sections of SB
19  that  remove the  social  security  number requirements  from                                                               
existing law.  This means  that those requirements will remain in                                                               
effect until July  1, 2003.  She noted, however,  that the CSED's                                                               
preference  would   be  to  leave  the   social  security  number                                                               
requirements in  place until 2004,  although removing  any sunset                                                               
date from those  requirements would be more preferable.   As long                                                               
as  there  is  a  sunset  date  on  the  social  security  number                                                               
requirements, since  the CSED is  required by federal law  to use                                                               
the  social  security  numbers  as  referenced  in  the  sections                                                               
contained in  Section 17, it will  also be required to  come back                                                               
before the  legislature to debate the  issue.  At the  request of                                                               
Representative  James,  Ms.   Miklos  repeated  her  calculations                                                               
regarding how  much child  support money  has been  collected and                                                               
distributed by  the CSED since 1999  and how much of  a financial                                                               
penalty would imposed on Alaska  for noncompliance of the federal                                                               
government's regulations.                                                                                                       
                                                                                                                                
REPRESENTATIVE  COGHILL noted  that he  would prefer  that [state                                                               
government]  not  collect any  social  security  numbers, and  he                                                               
mentioned that  there is  a national debate  in congress  on this                                                               
issue.                                                                                                                          
                                                                                                                                
MS.  MIKLOS, in  response to  a  question, said  that no  federal                                                               
funds would be  withheld by having the effective  date of Section                                                               
17 remain July 1, 2003.                                                                                                         
                                                                                                                                
Number 0583                                                                                                                     
                                                                                                                                
JULIA LOUISE  TENNISON (ph), testified  via teleconference.   She                                                               
explained that she has experienced  great difficulties because of                                                               
the  federal requirement  that she  disclose her  social security                                                               
number when renewing her Alaska  driver's license.  She recounted                                                               
the details  of the  legal processes that  she has  undertaken to                                                               
straighten  out  her situation.    She  noted that  although  the                                                               
Alaska Court  of Appeals has not  yet finished with her  case, it                                                               
has  waived  the filing  fee  and  has  relayed  to her  that  it                                                               
considers her case worthy of review.                                                                                            
                                                                                                                                
MS  TENNISON reminded  the committee  that  when the  legislature                                                               
passed  the  legislation requiring  her  to  disclose her  social                                                               
security number,  it did so with  the inclusion of a  finding and                                                               
intent  section  that  described   the  federal  requirements  as                                                               
"unreasonable   and   constitutionally    questionable".      The                                                               
legislation also  included a  nonseverability clause,  which said                                                               
that   if  any   part  of   the  legislation   is  found   to  be                                                               
unconstitutional, then so  is all of that legislation.   She then                                                               
cited  numerous constitutional  and statutory  points to  back up                                                               
her    argument    that    such    federal    requirements    are                                                               
unconstitutional.                                                                                                               
                                                                                                                                
TAPE 01-75, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MS.  TENNISON  said  she  did  not  understand  why  there  is  a                                                               
distinction  being  made between  a  person  who has  never  been                                                               
issued  a social  security number  and someone  who was  issued a                                                               
social security  number but  then had  "gotten rid  of" it.   She                                                               
also   noted  that   she  did   not  completely   understand  the                                                               
ramifications of signing an affidavit  to the effect that she has                                                               
never had a social security number issued to her.                                                                               
                                                                                                                                
CHAIR ROKEBERG suggested  to Ms. Tennison that she  also send her                                                               
testimony to Alaska's congressional  delegation, since the social                                                               
security number disclosure requirements are federal mandates.                                                                   
                                                                                                                                
MS.  TENNISON pointed  out  that there  are  no federal  mandates                                                               
requiring  anyone to  disclose  his/her  social security  number;                                                               
instead,  mandates  were  placed  on  states  to  make  statutory                                                               
changes  enabling the  collection of  social security  numbers in                                                               
order  to  continue  receiving  federal  funds.    She  expressed                                                               
displeasure  that the  legislature sold  everybody's freedom  for                                                               
$70 million per year.                                                                                                           
                                                                                                                                
REPRESENTATIVE BERKOWITZ pointed out  that the committee recently                                                               
passed legislation that will prevent  people from being penalized                                                               
if they don't have a social  security number to put on a driver's                                                               
license application.                                                                                                            
                                                                                                                                
REPRESENTATIVE  COGHILL clarified  that this  pending legislation                                                               
has removed the  requirement that a person who  does not disclose                                                               
his/her social security number on  a driver's license application                                                               
must fill out  the aforementioned affidavit.  He  agreed with Ms.                                                               
Tennison  that the  legislature  is responsible  for the  current                                                               
statutes regarding social security number disclosure.                                                                           
                                                                                                                                
MS.  TENNISON  concluded  by  asking  why  she  should  face  the                                                               
possibility of  being arrested simply  for refusing to  provide a                                                               
social security  number on a  driver's license application.   She                                                               
suggested  that  the  legislature  should get  rid  of  any  such                                                               
statutory   requirements   because,    she   opined,   they   are                                                               
unconstitutional.                                                                                                               
                                                                                                                                
Number 0346                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  moved to report  HCS CSSB 19(HES)  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  note.   There being  no objection,  HCS CSSB  19(HES) was                                                               
reported from House Judiciary Standing Committee.                                                                               
                                                                                                                                

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