HOUSE BILL NO. 366 An Act relating to an exemption from public disclosure of certain appropriations from the dividend fund; and providing for an effective date. REPRESENTATIVE HARRY CRAWFORD, SPONSOR, explained that the bill pertained to people without a voice. The Permanent Fund Dividend (PFD) was taken away from children of certain people in prison who had lost their PFD. The bill makes it possible to use the PFD money for child support. It does not take away the liability of the responsible person, but would make sure the Dividend would get to the young instead of to the Department of Corrections. 2:24:21 PM Co-Chair Chenault asked for clarification regarding how the bill would affect the parent's child support debt. Representative Crawford answered the PFD money does not go to the debt. Representative Kelly queried as to the order of priority of the distribution. Representative Crawford responded that in all other cases, the Child Support Services Division is first in line. The legislation puts them back into the list. There is a system in place that the legislation does not otherwise affect. Representative Gara asked if the bill was trying to solve the problem of those who owe legal child support or for all parents. 2:27:53 PM Representative Crawford answered some people are hard to find. They might have to apply for the money. He thought the change would not capture everyone but many. Vice-Chair Stoltze noted that the Department of Public Safety seemed unaware of the bill. Co-Chair Chenault expressed questions regarding the zero fiscal note. JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF REVENUE (DOR), responded that while there are 5,000 incarcerated people with active child support cases, between 2000 and 3000 children not under state foster care or public assistance would benefit from the legislation. Currently when DOR garnishes the PFD, the money goes to the State and is shared between the state and the federal government. The Department does not want to displace a shared state/federal program with an all-state program. He said a lot of work needed to be done to calculate the amount needed. Co-Chair Chenault did not want a surprise in the next year. He asked the total number of children involved. 2:32:33 PM Mr. Burnett clarified that there are approximately 5,000 obligore parents involved. Generally, there are 1.6 children per person who is obligated to pay. However, children can be up to 40, because of back money owed. There are approximately 2,000-3,000 children between 0 and 18 who are not currently receiving public benefits. Co-Chair Chenault asked how Department of Revenue would address that if there was no General Fund increase in their budget. DWAYNE PEOPLES, DEPUTY COMMISSIONER, DEPARTMENT OF CORRECTIONS, responded that the House version of the Operating Budget has all of the PFD money allocated to inmate health care. If that component comes up short, the Legislature will have to address it. 2:35:39 PM Representative Nelson thought the emphasis should be on the children and not on the prisoners. She did not want the children to go without. Co-Chair Chenault agreed and clarified that he wanted people to see the cost associated with the change. Representative Hawker addressed the fiscal notes. He wondered if the legislation would require the departments to change the way they are currently budgeting the funds. Mr. Burnett answered there is no requirement besides the Legislature's intent. Mr. Peoples agreed there was no obligation on his department. Representative Hawker asked if the individual dividend would have to show how much it was reduced as a result of the budgetary change. Mr. Burnett said that was correct. Because of the way the statute is constructed, the Department would be limited to the amount calculated from the number of people times the dividend paid. Representative Hawker asked if the statutory authority was broad enough. Mr. Burnett thought there was sufficient authorization to provide for the grant program. 2:39:37 PM Representative Hawker asked if DOR was accustomed to grant programs paying money out. Mr. Burnett said the Department does not have grant programs, but they do pay the money to parents of custodial children. There is a disbursement mechanism. Representative Hawker asked if DOR wanted to create a grant program with eligibility and compliance responsibilities. Mr. Burnett stated that he had discussed the issue with the Child Support Director and other staff. DOR was able and willing to do that. 2:41:14 PM There was a discussion about the requirements for the program. 2:43:43 PM PUBLIC TESTIMONY CLOSED. 2:46:14 PM Vice-Chair Stoltze MOVED to REPORT HB 366 out of Committee with individual recommendations and the accompanying fiscal note by Department of Corrections and Department of Revenue. There being NO OBJECTION, it was so ordered. HB 366 was REPORTED out of Committee with no recommendation and zero fiscal note by Department of Corrections and zero fiscal note by the Department of Revenue.