04/28/1994 04:20 PM Senate JUD

 SENATOR TAYLOR introduced  HB 331 am  (USE PFD'S TO RECOVER WELFARE           
 OVERPAYMENTS) as the next order of business.                                  
                                                                               
 REPRESENTATIVE CYNTHIA TOOHEY, prime sponsor of HB 331, explained             
 the legislation is a mechanism by which the Department of Health &            
 Social Services will be able to collect overpayment of welfare                
 checks after the person is off of welfare.    There is no problem             
 when a family is on welfare because there is a mechanism in place             
 to take a small amount of each check.  The problem arises when the            
 person is no longer under the welfare system and they fail to repay           
 amounts owed.  HB 331 allows the garnishment of the individual's              
 permanent fund dividend for an overpayment, be it the result of an            
 overpayment by the department or by misinformation by the                     
 recipient.                                                                    
                                                                               
 SENATOR JACKO asked how big of a problem this was.  REPRESENTATIVE            
 TOOHEY answered it amounts to approximately one half million                  
 dollars.  JAN HANSRN, Director, Division of Public Assistance,                
 Department of Health & Social Services, added that the overpayments           
 can vary from a $50 error to a complete AFDC check.                           
                                                                               
 SENATOR HALFORD moved that HB 331 am be passed out of committee               
 with individual recommendations.  Hearing no objection, it was so             
 ordered.