02/08/1994 09:30 AM Senate FIN

  HB 144:        An Act relating to fees  for certain costs of                 
                 administering  the  permanent  fund  dividend                 
                 program.                                                      
                                                                               
                 Thomas C. Williams, Director,  Permanent Fund                 
                 Dividend  Division,  Department  of  Revenue,                 
                                                                               
                                                                               
                 testified    in    support    of   HB    144.                 
                 Representative Terry Martin later  joined him                 
                 and  answered  questions from  the committee.                 
                 Discussion  was  held by  Senators  Frank and                 
                 Kelly regarding  attachments and  assignments                 
                 of  PFDs.    The  bill  was REPORTED  OUT  of                 
                 committee  with  individuals  recommendations                 
                 and a zero fiscal note from the Department of                 
                 Revenue.                                                      
                                                                               
  HOUSE BILL NO. 144:                                                          
                                                                               
                                                                               
       An  Act  relating   to  fees   for  certain  costs   of                 
       administering the permanent fund dividend program.                      
                                                                               
  Co-Chair Pearce announced  that HB 144 was  before committee                 
  and invited  Thomas C.  Williams,  Director, Permanent  Fund                 
  Dividend  Division,  Department  of  Revenue,  to  join  the                 
  committee at the  table.  She  explained the only reason  HB
 was  brought back  to Senate Finance  from Senate  Rules                 
  Committee was a new Department of Revenue fiscal note.                       
                                                                               
  THOMAS C. WILLIAMS said  the fiscal note changed due  to the                 
  estimate of the  amount of revenues  that would be  received                 
  assuming a $2  fee would be adopted  instead of a $5  fee on                 
  which the original fiscal note was based.                                    
                                                                               
  In  answer to  Co-chair  Frank, Mr.  Williams said  that the                 
  original estimate only covered the staff cost for processing                 
  the applications.                                                            
                                                                               
  At this time  Co-chair Pearce invited Representative  Martin                 
  to join Mr. Williams at the table.                                           
                                                                               
  Co-chair Frank commented that he was encouraged that the fee                 
  was as low as $2 in estimating processing costs.                             
                                                                               
  REPRESENTATIVE  MARTIN  added that  HB  144 would  allow the                 
  recipients of the money, pay for the work involved.                          
                                                                               
  In answer  to Co-chair  Frank, Mr.  Williams explained  that                 
  last year the  estimated cost of processing  attachments and                 
  assignments was  approximately  $60.0,  not  including  data                 
  processing time.  Since they felt $1 fee would not cover the                 
  costs,  a  $2   was  chosen  as   a  even  fee  that   would                 
  approximately cover costs.  Mr. Williams said that the costs                 
  are now shown as administrative fees.                                        
                                                                               
  Discussion was  held between  Co-chair Frank,  Senator Kelly                 
  and   Mr.   Williams   regarding   false   assignments   and                 
  attachments.                                                                 
                                                                               
  CO-CHAIR FRANK  MOVED for passage  of HB 144  from committee                 
  with  individual  recommendations.     No  objections  being                 
  raised, HB 144 and a zero fiscal note from the Department of                 
  Revenue was REPORTED OUT of committee.  Co-chairs Pearce and                 
  Frank,  Senators   Kelly,  Rieger,  and   Sharp  signed  the                 
  committee report with  a "do pass" recommendation.   Senator                 
  Kerttula signed no recommendation.