SB 96-CHILD SUPPORT/ CASH MEDICAL SUPPORT  1:32:13 PM CHAIR DAVIS announced consideration of SB 96. LINDA ZAUGG, staff to Senator Davis, read the sponsor statement for SB 96 as follows: In July 2008, the federal government issued new medical support regulations that require states to have guidelines addressing how either or both parents will provide for a child's healthcare needs through accessible health insurance coverage, cash medical support, or both. Under the federal regulations, states must order either or both parents to purchase reasonably-priced, accessible health insurance coverage, provide cash medical support or both. Cash medical support may be required in those states where no reasonably-priced health insurance coverage is accessible to the child. If a parent is ordered to pay cash medical support, the Child Support Services Division must enforce the ongoing cash medical support obligation as well as collect any cash medical support arrears. Failure to satisfy these mandates jeopardizes $17 million in federal funding for the state's child support program. Alaska's request for a waiver was denied by the federal government in January 2009. This bill adds to existing law the authority for a tribunal to order either or both parents to pay cash medical support, if warranted. In addition, the bill directs CSSD to review child support orders for modification on a federally mandated three-year cycle. The bill adds cash medical support to the definition of arrearage and the definition of support order, thereby enabling CSSD to use its existing enforcement tools to collect a cash medical support obligation on behalf of the child. 1:34:44 PM Finally, the bill removes the language limiting who may request the correction of a clerical mistake in an administrative order or request the vacation of an administrative order based upon a default outcome. This bill puts Alaska in compliance with the federal requirements. As explained above, this bill will assure that Alaska's children receive the medical support to which they are entitled. 1:35:14 PM GINGER BLAISDELL, Legislative Liaison, Department of Revenue, introduced department staff on teleconference that would be providing information on SB 96. 1:36:33 PM JOHN MALLONEE, Director, Child Support Services Division, Department of Revenue (DOR), said that this is a federally mandated program, and this bill allows the state its requirements for child support. MR. MALLONEE explained that under the new federal regulations either or both parents must provide cash medical support. While insurance coverage is preferred, cash support may be required where it is not reasonably available. This adds to existing law and further assures that children receive the medical support to which they are entitled. The bill says that CSSD clients can request a review at any time. Federal regulations require the state to have procedures under which child support orders must be reviewed and be appropriately modified every three years. This bill requires the agency to perform the reviews with the review cycle. However, it doesn't limit clients' ability to request a review at any time. CSSD has an automated system that collects income data from the parties in each case once a year to perform calculations to determine if the case meets the criteria. A notice is sent to both parties when modification criterion is met. In addition to these federal requirements, the bill removes the language limiting who can request the correction of a clerical mistake in an administrative child support order or who may request vacation of an administrative order based on false income. Currently in those situations only the [indisc.] can request these actions. 1:40:58 PM STACY STEINBERG, Department of Law (DOL), said she was available to answer questions. 1:41:21 PM DANA L. OLSON, representing herself, said, "For the record, I am opting out of your proceedings, and I have a number of reasons why." She gave them notice that this issue is not reviewable under claim of privilege under National Defense Law. She said the state is subject to the 13th amendment of dictating slavery and that issue is already in federal courts. She also stated that HB 645 allows each state to adopt sovereignty, and that this bill seems to be part of the dictate of the federal government that gives children more rights than their parents. CHAIR DAVIS asked Ms. Olson if she understood what bill is being considered. MS. OLSON said she does understand. MR. MALLONEE said he does not see how the previous testimony applies to this bill at all. 1:50:21 PM SENATOR PASKVAN moved to adopt work draft CS for SB 96, labeled 26-LS0485\E, as the working document. SENATOR THOMAS objected for discussion. SENATOR DYSON asked if it's true that federal regulation states that either or both parents must provide health care insurance. MR. MALLONEE answered that is correct; 42 US Code says that also. SENATOR DYSON asked if a financially capable parent who wanted to pay his own bills and not have health insurance could do so. MR. MALLONEE replied yes. Parents have to purchase reasonably priced insurance; if no insurance is available, they have to put up cash support. 1:53:16 PM SENATOR DYSON said wanted to verify that he meant "yes" - the regulation says a person can't be self-insured. MR. MALLONEE responded if the question is whether a person can elect not to buy health insurance and rather provide cash medical support that would not be okay. 1:54:10 PM CHAIR DAVIS clarified if a parent has the cash and wants to pay for the insurance they can. MR. MALLONEE agreed. SENATOR DYSON asked if the sentence that says "states must order either or both parents to purchase reasonably priced accessible health insurance" should have said "or provide cash medical support". CHAIR DAVIS said he was probably correct. She asked that they take this issue up at a later time rather than during the committee meeting. 1:57:53 PM MR. MALLONEE said the purpose of the federal Uniform Interstate Family Support Act (UIFSA) is to provide efficient procedures to collect child support inter-state cases and to eliminate multiple support orders that were permitted under previous child support law. In 1995, Alaska adopted its version of UIFSA using a different definition of "state." In 1996, Congress passed legislation that mandated the states adopt the UIFSA to be eligible to continue receiving federal funding for their child support programs. Alaska's definition of "state" does not currently include two entities that are included in UIFSA - the U.S. Virgin Islands and an Indian Tribe. This bill would incorporate these two into the Alaska UIFSA statute. SENATOR DYSON said that, having gotten pretty involved in this child support issue over the years, he is concerned that they might be doing something that would frustrate some advocacy group, and he wanted to know if anything in this bill could be perceived to be against the interests of any of the interested parties. CHAIR DAVIS remarked that there were concerns about the original bill, but the CS addressed them. 2:01:29 PM MS. BLAISDELL responded that the Department of Revenue (DOR) has not received any negative comment on it. SENATOR DYSON said he thought that all of the custodial parents out there know that this is naïve. CHAIR DAVIS set SB 96 aside.