Legislature(1993 - 1994)

04/06/1994 08:25 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  CSSB 190(JUD): An  Act relating  to  income withholding  and                 
                 other methods  of enforcement  for orders  of                 
                 support; and providing for an effective date.                 
                                                                               
                                                                               
                 The  committee  ADOPTED  CSSB  190(FIN)  work                 
                 draft "U" which incorporated amendments 1 and                 
                 2 ADOPTED in  a previous meeting.   Mary Gay,                 
                 Director, Child Support Enforcement Division,                 
                 Department  of Revenue;  Josh  Fink, aide  to                 
                 Senator   Kelly;    Mike   Hostina,    Deputy                 
                 Ombudsman,   via   teleconference  Fairbanks;                 
                 Sherry Goll, Lobbyist, Alaska  Women's Lobby;                 
                 Susan  Miller,  Manager,   Special  Projects,                 
                 Alaska Court System;  and Donna Page,  Senior                 
                 Hearing Officer, Department  of Revenue,  all                 
                 testified on the bill.   On page 11, line  5,                 
                 the word  "intentionally" was  added to  work                 
                 draft "U", and amendments  3, 4, 5, 6, and  a                 
                 letter  of intent  were also  ADOPTED.   CSSB
                 190(FIN) was REPORTED  OUT of committee  with                 
                 individual  recommendations,  and  new fiscal                 
                 notes for the Department of Revenue - $109.0,                 
                 and the Alaska Court System - $33.7.                          
                                                                               
  CS FOR SENATE BILL NO. 190(JUD):                                             
                                                                               
       An Act relating to income withholding and other methods                 
       of enforcement for orders of support; and providing for                 
       an effective date.                                                      
                                                                               
  Co-chair Frank announced  that CSSB 190(FIN) work  draft "U"                 
  was  before  the  committee  which  incorporated  previously                 
  ADOPTED in the March 30, 1994 meeting.                                       
                                                                               
  Josh Fink, aide to Senator Kelly, spoke to amendment 3 which                 
  imposed a $5  fee instead of  $1.   Senator Kelly MOVED  for                 
  adoption of amendment  3.  No objection  having been raised,                 
  the amendment was ADOPTED for  incorporation within a Senate                 
  Finance Committee Substitute for the bill.                                   
                                                                               
  Mr.  Fink,  spoke to  amendment  4 which  would  require the                 
  agency to  immediately return overpayments to the obligator,                 
  and the obligee would be liable to the state for  any amount                 
  overpaid.                                                                    
                                                                               
  MARY  GAY,  Director,  Child Support  Enforcement  Division,                 
  Department of Revenue,  came before the committee  and asked                 
  that on  page 4,  line 25,  the words  "within five  working                 
  days" be changed to "within fifteen working days."  She felt                 
  that five  days was not an  adequate amount of  time for the                 
  agency to respond.  The committee agreed to change "five" to                 
  "fifteen."  Senator Kelly MOVED for adoption  of amendment 4                 
  as amended.  No objection having been raised, amendment 4 as                 
  amended  was  ADOPTED  for  incorporation  within  a  Senate                 
  Finance Committee Substitute for the bill.                                   
                                                                               
  Mr.  Fink  spoke to  amendment 5  which  gave credit  to the                 
  obligor for  medical and  dental insurance,  and educational                 
  payments towards child support payments.  He also noted that                 
  prior to  January 1992, adjustments  were not made  in child                 
  support court orders for those payments.                                     
                                                                               
  MIKE    HOSTINA,    Deputy    Ombudsman,   testified,    via                 
  teleconference  from   Fairbanks,  that  their   office  had                 
  received various complaints regarding this issue, especially                 
  when  health insurance  payments  were increased  and  court                 
  orders had not made provisions for any adjustment.                           
                                                                               
                                                                               
  SHERRY  GOLL, Lobbyist, Alaska  Women's Lobby,  testified in                 
  opposition to  Amendment  5.   She said  that child  support                 
  orders were reviewed fairly frequently and she did not agree                 
  that  the  provisions  regarding the  court  in  amendment 5                 
  should be in state statutes.                                                 
                                                                               
  SUSAN  MILLER,  Manager,  Special  Projects,  Alaska   Court                 
  System, said  that as  early as  tomorrow there  could be  a                 
  court decision that would effect  provisions in Amendment 5.                 
  She was also opposed to the provisions in the amendment that                 
  applied to the court.  Discussion was had by Senators Kelly,                 
  Sharp,  Ms.  Miller,  Mr. Hostina,  and  Donna  Page, Senior                 
  Hearing Officer, Department of Revenue,  regarding the court                 
  and agency responsibilities as outlined in amendment 5.                      
                                                                               
  The committee  agreed to amend  amendment 5 by  removing all                 
  reference  to the courts.   The words  "and consistent with"                 
  were added to Section 23 in amendment 5.  (These  words were                 
  found  to  be  redundant  as   legal  services  advised  the                 
  committee that the words "to the extent of" already found in                 
  the amendment took care of the concern that the credit would                 
  be consistent with the  percent of the credit as  allowed in                 
  the child support order.)                                                    
                                                                               
  Senator Kelly MOVED for adoption of amendment 5  as amended.                 
  No  objection having been raised, amendment 5 as amended was                 
  ADOPTED for incorporation within a  Senate Finance Committee                 
  Substitute for the bill.                                                     
                                                                               
  DONNA PAGE,  Senior Hearing Officer, Department  of Revenue,                 
  said the  Child Support Enforcement  Division had  requested                 
  amendment  6 because  there were  situations where  children                 
  were  given  a  monthly  stipend  because  the  obligor  was                 
  disabled  and  then his  social  security payments  might be                 
  attached  for child support.   When the  child support order                 
  was  computed, it was not  taken into consideration that the                 
  children were  already being taken  care, for example,  by a                 
  social security payment.   This amendment would  require the                 
  agency  to  take  into  consideration   the  fact  that  the                 
  child(ren) was already being  taken care of and the  obligor                 
  would not have his/her wages attached.                                       
                                                                               
  Senator  Jacko  MOVED  for  adoption  of  amendment  6.   No                 
  objection having been  raised, amendment  6 was ADOPTED  for                 
  incorporation within a  Senate Finance Committee  Substitute                 
  for the bill.                                                                
                                                                               
  Co-chair Frank raised the question regarding Section 26 that                 
  if a person  would fail to honor a child  support order they                 
  would  be liable to  the obligee in  an amount  equal to 100                 
  percent of the  amount ordered withheld.   He felt that  was                 
  excessive  especially  if  it  was  an  unintentional error.                 
  Discussion  was had by Mary Gay, Co-chair Frank, and Senator                 
                                                                               
                                                                               
  Sharp regarding the  penalty.  The word  "intentionally" was                 
  added  to Section 26 after the  words "of the state that" as                 
  amendment 7.  No objection  having been raised, amendment  7                 
  was  ADOPTED  for  incorporation  within  a  Senate  Finance                 
  Committee Substitute for the bill.                                           
                                                                               
  Ms.  Gay  reiterated her  concern that  this bill  pass this                 
  session because of federal regulations.                                      
                                                                               
  Senator Sharp MOVED  for passage of CSSB 190(FIN) as amended                 
  from  committee   with  individual   recommendations.     No                 
  objections having been raised, CSSB  190(FIN) as amended was                 
  REPORTED OUT of  committee with individual  recommendations,                 
  and a zero fiscal  note for the  Alaska Court System, and  a                 
  fiscal note for the  Department of Revenue in the  amount of                 
  $109.0.  Co-chair Frank  signed "do pass."   Senators Jacko,                 
  Rieger, and Sharp signed "no recommendation."                                
                                                                               

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