03/15/2002 01:10 PM House JUD

HB 501 - UNCLAIMED PROPERTY & RESTITUTION                                                                                     
                                                                                                                                
Number 0643                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  announced that  the next  order of business  would                                                              
be HOUSE BILL  NO. 501, "An Act  relating to the use  of unclaimed                                                              
property to  pay court-ordered restitution;  and providing  for an                                                              
effective date."                                                                                                                
                                                                                                                                
Number 0609                                                                                                                     
                                                                                                                                
HEATHER  M.  NOBREGA, Staff  to  Representative  Norman  Rokeberg,                                                              
House  Judiciary  Standing Committee,  Alaska  State  Legislature,                                                              
informed the committee  that [the need for] HB 501  was brought to                                                              
her  attention by  the Department  of Revenue.   This  legislation                                                              
would enable  the department  to take  unclaimed property  and use                                                              
it  to  satisfy  a  criminal  defendant's  unpaid  restitution  or                                                              
judgments  awarded to  the state.   Currently,  the department  is                                                              
required  to  take  additional  court  action  -  via  a  Writ  of                                                              
Execution  - before  the unclaimed  property can  be used  towards                                                              
the  collection  of  fees.    This  legislation  would  make  this                                                              
additional  court  action  unnecessary   and  thus  the  unclaimed                                                              
property  would be available  for restitution  and judgments  owed                                                              
to  the  state.    Ms.  Nobrega  highlighted  that  child  support                                                              
obligations  still  have  priority,  and  that  [HB  501]  doesn't                                                              
impact any civil judgments.                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  asked   whether  there  are  any  other                                                              
obligations that aren't specified [in HB 501].                                                                                  
                                                                                                                                
Number 0450                                                                                                                     
                                                                                                                                
RACHEL  LEWIS,  Unclaimed  Property  Section,  Treasury  Division,                                                              
Department  of   Revenue,  indicated  that  currently,   the  only                                                              
obligation   is  child  support   [and  HB   501  would   add  the                                                              
aforementioned second obligation].                                                                                              
                                                                                                                                
CHAIR  ROKEBERG  requested  an example  of  why  HB 501  would  be                                                              
necessary.                                                                                                                      
                                                                                                                                
MS. LEWIS  explained that there  have been several cases  in which                                                              
persons residing  in a correctional  facility have made  claims on                                                              
unclaimed property.   She explained that after a  few phone calls,                                                              
she  was  able  to  determine  that   these  individuals  did  owe                                                              
restitution or have  an outstanding judgment against  him/her, but                                                              
Ms.  Lewis  wasn't  able  to  pay   the  judgment  or  restitution                                                              
directly  because a  Writ of Execution  was still  required.   Ms.                                                              
Lewis noted  that there are only  a handful of such cases  a year;                                                              
in the  seven years that  she has been  in her position,  [HB 501]                                                              
might apply to only about 15 such cases.                                                                                        
                                                                                                                                
Number 0331                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  moved to report HB 501  out of committee                                                              
with individual  recommendations and the accompanying  zero fiscal                                                              
notes.   There being no  objection, HB  501 was reported  from the                                                              
House Judiciary Standing Committee.