Legislature(2003 - 2004)
04/02/2003 01:32 PM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 58-PFD INELIGIBILITY/MOTOR VEHICLE INSURANCE
CHAIR RALPH SEEKINS asked for a motion to adopt the committee
substitute (CS) as the working document.
SENATOR GENE THERRIAULT made a motion to adopt CS \H Cook.2
4/2/03 as the working document. There being no objection, it was
so ordered.
SENATOR COWDERY asked his staff to explain the changes and the
reasons for those changes.
CRYSTAL MOORE, staff to Senator John Cowdery, explained CS SB 58
[Version H] amends AS 43.23.005 (g) to add "and (i)" to (d)(1)
of the section and "(i)(2)" to (d)(2)(B). The latter takes out
all programs and departments to which the PFD is appropriated
when a person loses his or her PFD and the money stays in the
general fund
SENATOR SCOTT OGAN clarified the money stays in the corpus of
the permanent fund, not the general fund.
MS. MOORE agreed.
CHAIR SEEKINS added it would actually stay in the realized
earnings of the reserve account.
SENATOR COWDERY said yes.
SENATOR GENE THERRIAULT explained the Legislature makes an
annual appropriation for dividends; the money goes into an
account and dividends are paid from that account. An individual
that is convicted of a DUI wouldn't get a dividend so that money
would stay in the dividend fund to be distributed equally among
other eligible recipients.
Frequently, when the PFD is garnished for a court settlement,
the court considers that to be the fine or penalty. He
understands that the prime sponsor doesn't want the dividend to
be available to pay the fine. He intends that the violator lose
the dividend and also pay the court fine.
SENATOR COWDERY said that was his intent. A DUI conviction would
make an individual ineligible to receive a PFD and the funds
would not be disbursed to an agency to satisfy that or any other
obligation.
SENATOR OGAN asked if it is correct that the money would stay in
the earnings reserve.
SENATOR THERRIAULT said it would not and restated his
explanation.
CHAIR SEEKINS said the earnings reserve brings the money over to
the Legislature who then makes the appropriation to the dividend
account. He asked Senator Ellis if that was correct.
SENATOR JOHNNY ELLIS said that was correct and Senator
Therriault clearly understood the process.
1:22 pm
SENATOR HOLLIS FRENCH asked if he understood correctly that
driving without insurance and DUI convictions would be treated
differently than any other PFD forfeitures.
SENATOR COWDERY replied that is correct. The language in SB 58
and SB 59 is similar, but language in SB 59 also covers
municipalities.
CHAIR SEEKINS verified that the bill applies just to convictions
in Alaska and isn't retroactive.
MS. MOORE confirmed; the bill applies to convictions for driving
without auto insurance in Alaska only and it is not retroactive.
SENATOR OGAN made a motion to move CSSB 58(JUD) from committee
with individual recommendations and attached fiscal notes. There
being no objection, it was so ordered.
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