Legislature(2001 - 2002)
01/29/2001 01:35 PM Senate HES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 19-CHILD SUPPORT ENFORCEMENT/SOC SEC. #
MS. BARBARA MIKLOS, Director of the Child Support Enforcement
Division (CSED), introduced Ms. Diane Wendlandt, Assistant Attorney
General for CSED.
MS. MIKLOS explained that SB 19 is a sunset bill. In 1996, 1997,
and 1998, the legislature passed bills pertaining to the federal
welfare reform legislation. Congress included child support as
part of the welfare reform legislation in an attempt to reduce the
number of welfare recipients by ensuring that families had as many
resources as possible. Child support plays a big part in helping
people who have been on public assistance. In FY 00, almost half
of the money collected by CSED was collected on behalf of people
who, at one point in time, were on public assistance. The amount
collected for people who are actually on public assistance is less
because the number of recipients has been reduced.
MS. MIKLOS said that the legislature passed legislation in 1996-
1998 because, for the most part, Congress had put severe sanctions
on the states. States would lose all federal funding for public
assistance and child support funding if they did not comply. CSED
believes that although those sanctions continue, the legislation
helped CSED. In FY 99, CSED collected about $81 million; in FY 00,
CSED collected $85 million, and in FY 01, it expects to collect $90
million. As child support collections increase, the percentage of
the money given to families will increase.
CHAIR GREEN noted that a graph of that information is in committee
packets.
MS. MIKLOS said CSED believes the number of complaints about CSED
has decreased. The 1996-1998 legislation provided CSED with
additional collection tools, which CSED has been careful to use.
The 1996 legislation did not contain a sunset clause, so none of
its provisions are addressed in SB 19.
MS. MIKLOS said SB 19 simply repeals the sunset language in the
1997 and 1998 legislation. CSED worked very carefully with
legislators during both of those years to make sure the legislation
contained only provisions required by the federal legislation. She
explained CSSB 19(RES) has three sections. The first contains a
findings, purpose and intent section, the second repeals the
sunset, nonseverability and related provisions, and the third is
the effective date. The nonseverability is a provision from the
1998 legislation: it says that if any part of the legislation was
found to be unconstitutional, the entire legislation would be
unconstitutional. CSED requested that be removed. One case was
brought before the Supreme Court regarding the driver's license
program but was found to be constitutional. CSED is concerned that
if any small part of that provision was found to be
unconstitutional, the entire legislation would be thrown out.
Number 472
MS. MIKLOS reviewed a document entitled, "Child Support Enforcement
'Sunset' Summary." The laws passed in 1997 and 1998 contained
provisions that will sunset this year. If the sunset occurs,
Alaska will be out of compliance with welfare reform laws. The
following provisions will sunset if SB 19 is not enacted:
· One provision applies to the availability of records and
access to information and requires various agencies to provide
information to CSED, which CSED uses in several ways. Most
agencies were voluntarily providing that information before it
was required by Congress.
· Another section deals with best efforts language. Alaska's
1997 legislation had a provision allowing a person to contest
losing a driver's license if that person was making a best
effort to pay child support. That language was then put in
the 1998 legislation. It was not required by Congress.
CHAIR GREEN asked if that provision was meant to sunset.
MS. MIKLOS said it was.
CHAIR GREEN noted that Senator Ward had arrived.
MS. MIKLOS continued.
· The central registry provision is a congressional requirement
that requires CSED to keep a list of all child support orders
available, whether or not the parties are involved with CSED.
This helps CSED determine when a person applies for services
whether a child support order already exists.
CHAIR GREEN asked if that is part of the interstate compact.
MS. MIKLOS said it was part of welfare reform.
MS. WENDLANDT explained it is simply a federal requirement.
MS. MIKLOS continued explaining the provisions of SB 19, which
repeals sunset dates for the following activities:
· One section deals with credit bureau reporting. CSED was
doing credit reporting prior to the congressional
requirements.
· A definition provision was intended to make definitions common
between states and is not substantive. Another provision
deals with due process.
· The federal law improved due process, particularly when people
do voluntary paternity. In addition, other opportunities have
been provided for people to review various things CSED does in
case work. For example, when CSED sends out a withholding
order to an employer, CSED notices the person whose wages are
being withheld to give that person a chance to respond.
· The financial institution data match program is one in which a
list of people who have arrears is matched against assets in
financial accounts. CSED had a similar program before welfare
reform but it was not automated.
· A section requires seven days for employers to respond to a
request for withholding. It also requires CSED to get its
payments out within two days.
· Regarding liens, CSED is required to give full faith and
credit to liens from other states. Many states go through
CSED but the person must be notified and given the same due
process requirements.
· Regarding modifications, CSED must notify people every three
years that their support orders could be modified because of
income changes.
· The new hire reporting requirement mandates that employers
inform CSED of new or rehires. CSED works with employers to
make sure they comply as opposed to being punitive. CSED did
a 6-month study and found that 12 percent of the collections
were from new hire reporting.
CHAIR GREEN asked if the employer reporting requirement is federal.
MS. MIKLOS said it is.
SENATOR LEMAN asked if new hire reporting can be done
electronically so that an employer can go to a website and enter
the necessary information.
MS. MIKLOS answered that employers can file electronically by
sending tapes but they are not able to do it through a website yet.
SENATOR LEMAN asked how an employer with just one employee would
file.
MS. MIKLOS said small employers can mail or fax a copy of the W-4
form or another kind of form.
MS. MIKLOS said that people on public assistance have always had to
cooperate with CSED but CSED is now the entity to determine whether
a person is cooperating. CSED notifies DHSS about non-cooperation.
The next section of the bill pertains to nondisclosure of
information. CSED had an existing statute that required it to let
the non-custodial parent know where the custodial parent lives
unless the non-custodial parent was paid up with child support.
Congress felt, in general, that non-custodial parents should have
more access to their children. Congress said that unless providing
the custodial parent's address could endanger the child, the non-
custodial parent would get that address whether or not the non-
custodial parent had any child support arrears. The Legislature
amended Alaska's statute to reflect that change.
Regarding changes to paternity provisions, MS. MIKLOS said that the
rights and responsibilities of fathers who voluntarily acknowledge
paternity are explained right away. Either party may now request
genetic testing and may request two genetic tests. When genetic
tests are done, the best interest of the child must be considered.
The cost recovery of genetic testing is specified.
Number 1120
CHAIR GREEN asked in what circumstance it might not be in the best
interest of the child to do genetic testing.
MS. MIKLOS explained it would not be in the child's best interest
if establishing paternity could put the child in danger. If there
was an allegation of child abuse or child sexual abuse, CSED would
not go forward with the case and do genetic testing. She said that
has never happened to her knowledge and would be very rare.
MS. MIKLOS said the bill gives CSED the ability to do a seek work
order, although CSED has chosen to go through the court. Regarding
social security numbers, the state got the federal requirement to
list those on hunting and fishing licenses waived. That
requirement was waived because CSED could prove that better data
could be obtained from other sources, particularly the permanent
fund. However, social security numbers are required on
applications for drivers', occupational, and marriage licenses.
Regarding subpoenas, the legislation gives CSED the authority to
subpoena various people for information. CSED has been doing that
through the Commissioner's authority so the practice is not new.
The last change relates to UIFSA (the Uniform law) and makes minor
changes so that Alaska's law is consistent with other states.
Number 1252
CHAIR GREEN asked if every complicated issue in the bill is ground
that the legislature already covered in 1997 and 1998 or whether
any points are new, other than the sunset issue.
MS. MIKLOS said it is all ground the legislature has covered
before.
SENATOR LEMAN asked why Section 1 is in the bill.
MS. WENDLANDT stated that Section 1 was included to explain, as a
historical matter, what lead up to this legislation. It references
the federal requirements and the success of the provisions. Section
1 is not essential.
SENATOR LEMAN thought the intent could have been included in a
sponsor statement or letter, rather than put in statute. He said
he does not have a problem with the findings or intent.
CHAIR GREEN said she agrees. She asked Ms. Miklos to discuss the
driver's license issue, particularly the requirement that a social
security number be provided on the application for a driver's
license. She asked whether that issue is addressed in SB 19.
MS. MIKLOS said regarding the sunset, the driver's license is
listed with the other licenses on page 4. She said the requirement
is that the social security number be on the application but not on
the license itself.
CHAIR GREEN asked whether it is up to CSED or the issuing agency to
notify applicants that they can opt to not have the social security
number put on the license itself.
MS. MIKLOS said it is not up to CSED.
CHAIR GREEN asked if the Senate Resources Committee removed the
requirement to put social security numbers on hunting and fishing
licenses.
MS. MIKLOS said that is correct.
Number 1548
CHAIR GREEN noted the sunset provisions were put in the earlier
legislation to get greater support for it. She asked Ms. Miklos to
address the nonseverability clause.
MS. MIKLOS explained that the nonseverability clause was put in the
1998 legislation. It said if any piece of the legislation was
found to be unconstitutional, then everything would be thrown out.
The nonseverability clause has been used in the past when
legislation is pretty similar but, in this case, the legislation is
so diverse it differed from other circumstances when a
nonseverability clause was used.
CHAIR GREEN asked whether any questions have been raised about any
portions of the previous legislation being unconstitutional.
MS. MIKLOS said the driver's license provision was challenged and
found to be constitutional.
CHAIR GREEN asked if any other states have nonseverability language
in their child support legislation.
MS. MIKLOS said she is not aware of any.
CHAIR GREEN thought the legislation may have "stood the test of
time."
SENATOR WARD asked if the recent audit had any bearing on any of
the provisions in SB 19.
MS. MIKLOS said it did not.
CHAIR GREEN pointed out the Legislature does not want some of the
provisions in the legislation sunsetted, i.e., the ability of CSED
to do certain things versus the ability of the court and the best
efforts language. She asked whether the federal agency has had any
reaction to Alaska's 1997 and 1998 child support legislation.
MS. MIKLOS explained that the whole thing relates back to the child
support state plan. CSED had to respond to the federal agency,
which accepted Alaska's state plan.
CHAIR GREEN asked Ms. Miklos to provide her with a review in the
near future of the areas in the bill that can withstand a sunset
and those that cannot. She noted she would schedule CSSB 19(RES)
for another hearing on February 5.
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