CHAIRMAN HUDSON invited Representative Davies to the table to present HB 458 - CHILD SUPPORT NONPAYMENT/LICENSING BAN "An Act relating to certain licenses and applications for licenses for persons who are not in compliance with orders, judgments, or payment schedules for child support." Number 580 REPRESENTATIVE DAVIES presented CSHB 458 (L&C). He reminded the committee that his staff had presented the bill at the last committee meeting so he would not go through it again except to discuss the issue raised by Representative Porter regarding substantial compliance. He stated there was a proposed amendment to address this concern. Number 592 REPRESENTATIVE PORTER stated the following amendment, Amendment #1, did take care of the concern that he had. On page 7, lines 19 - 20, delete "made at least one payment or partial payment in" and insert "cumulatively paid an amount equal to or greater than the amount due for one month during". REPRESENTATIVE PORTER moved that Amendment #1 be adopted. There being no objection, it was so ordered. Number 598 REPRESENTATIVE WILLIAMS stated that it was his memory that the department was to work on strengthening the bill. Number 600 REPRESENTATIVE PORTER stated that he thought the amendment would satisfy the concerns of the committee. There was general discussion about amendment. Number 636 CHAIRMAN HUDSON summed up what the amendment would effect: "The trigger was when a self employed individual goes in to renew his license, the search would be made and if it was found that they were substantially out of compliance they would be held off for 150 days until they made the situation right". Number 650 KENNETH KIRK, testifying via teleconference from Anchorage, spoke against the bill. He stated that not all persons in arrearage are deserving of punishment. He asserted that there were a variety of reasons a person could get behind in payments without having done anything wrong. TAPE 94-34 SIDE B Number 001 MR. KIRK added that the second point was that the child support laws are extremely rigid. He noted that the bill brings the district attorneys into the scenario and shouldn't as they have virtually no jurisdiction over these types of case. MR. KIRK told the committee the bill did not seem to provide for any administrative appeal. Number 090 CHAIRMAN HUDSON interrupted Mr. Kirk to say that staff had informed him that he was testifying to the previous version of the bill and that the problems noted were taken care of in the version before the committee. MR. KIRK noted that he was indeed working off of the old version as that was the only one available and he assumed it was the one the committee was considering. Number 100 JUANITA HENSLEY, Chief, Driver Services, Division of Motor Vehicles, Department of Public Safety, testified against the bill. She contended that the bill would be difficult for the division to implement and it would have significant fiscal impact. MS. HENSLEY asked for additional time to review the committee substitute for comment. Number 140 CHAIRMAN HUDSON asked if she could more fully respond to the bill if the committee were to carry it over to another meeting. Number 150 MS. HENSLEY responded that she would be out of town but the director could respond. Number 189 REPRESENTATIVE SITTON suggested the committee move the bill and let the next two committee's address some of the concerns. Number 206 KIT BALLENTINE, Acting Director, Environmental Sanitation Section, Division of Environmental Health, Department of Environmental Conservation, testified to concerns the division has regarding the reporting requirements needed to implement this legislation. Ms. Ballentine said she believes the bill would have a significant fiscal impact on the division. Number 218 SHERRIE GOLL, Alaska Women's Lobby and Kidpac, testified in support of HB 458. She stated her groups believe that anything the state can do to help collect the over $300 million that is owed to Alaska's children, they should do so. Number 242 KARL LUCK, Director, Division of Occupational Licensing, Department of Commerce and Economic Development (DCED), testified that there would be an impact on the division if this legislation were to pass, but believes it could be reversed if the Department of Revenue did a internal process to match deadbeats with applicants for licensure within his division. The division's impact would be significantly lessened. Number 262 CHAIRMAN HUDSON asked if Occupational Licensing would be able to delegate the authority to issue the licenses to the Department of Revenue. Number 270 MR. LUCK replied "no," but that it was not the issuance of a license that creates the impact but the matching of lists to identify those who are out of compliance and applicants for licensure. Number 308 LARAINE DERR, Deputy Commissioner, Treasury, Department of Revenue, testified that she supports HB 458, but that it would have some impact on at least ten different departments. MS. DERR explained that the federal government will share 66 percent of the costs of the fiscal impact on the state. She suggested that the money be deposited into the child support division and then RSA'd out to the various departments affected by the legislation. Number 345 CHAIRMAN HUDSON asked if the agencies referenced in this hearing could take this concept and implement it without legislation. Number 350 MS. DERR answered that they could do it administratively but felt that the impact of the legislation would be preferable. JIM ARNESON, Alaska Family Support Group, stated that his group is opposed to the bill and believes it would be a return to the "debtors prison" mentality. MR. ARNESON noted that there is a good compliance rate when both parents have good visitation such as in the case of joint custody. MR. ARNESON stated that it would not be in any ones best interest to take away the license of an obligor and leave them with no way to make an income. Number 428 CHAIRMAN HUDSON stated that he would hold the bill over and asked the prime sponsor to get together with the agencies that would be affected by the bill and address the concerns they have.