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.