SENATE BILL NO. 145 "An Act relating to the recovery of overpayments of day care assistance and child care grants; and providing for an effective date." 1:49:46 PM AMANDA RYDER, ANALYST, LEGISLATIVE FINANCE DIVISION, introduced herself. SHAWNDA O'BRIEN, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, introduced herself. Co-Chair MacKinnon looked at FN 3, and was concerned with the funding source line 1005, general fund program receipts at an additional spend of $500,000. She asked for explanation. Ms. Ryder replied that the GF program receipts were from Permanent Fund Dividends (PFDs). She shared that federal government was requiring state to pay back overpayments. The $500,000 allowed the department to garnish PFDs for overpayments of child care benefits that were received by individuals. It was new revenue to the state, otherwise the PFDs would remain with the individual or be garnished by other agencies. The legislation brought the garnishment of PFDs in line with other public assistance programs. Co-Chair MacKinnon wondered whether the PFD payback to the state would be deposited into the GF, or designated receipts to the program itself. Ms. Ryder replied that the money would be used to reimburse the federal government for child care benefits that the federal government had already paid. The money would be used to directly offset federal expenditures, which is why there was a negative $500,000 in federal receipts and a positive $500,000 in GF program receipts. She shared that the department could only spend what they receive in garnishments. Senator Dunleavy surmised that the department could only spend what they receive in garnishments. Ms. Ryder agreed. Vice-Chair Micciche wondered how "first in line" worked with state agency garnishments. Ms. O'Brien explained that the department examined whether the garnishment would cover the full amount of the overpayment, if not then the oldest outstanding debt would be paid first. She furthered if there was an equal distribution across programs, the department would equally distribute the recovery to all the programs. Vice-Chair Micciche surmised that the payments could only be made based on the amount of garnishments from the individuals. He furthered that the state would not receive a portion of the garnishment, if, for example, the garnishment was used toward child support. There would be no impact on the general fund. Ms. O'Brien agreed with that summation. 1:54:40 PM AT EASE 1:54:46 PM RECONVENED 1:54:47 PM Co-Chair Kelly MOVED to REPORT CS SB 145(FIN) out of committee with individual recommendations and accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSB 145(FIN) was REPORTED out of committee with "no recommendation" and with previously published zero fiscal note: FN 2(REV); and previously published fiscal impact note: FN 3 (DHS). 1:55:13 PM AT EASE 1:57:30 PM RECONVENED 1:57:36 PM Co-Chair MacKinnon discussed the week's schedule.