HB 513-CSED NAME CHANGE/DRIVER'S LIC.SUSPENSION  MR. JOHN NAIN, legislative staff to Representative Pete Kott, sponsor, gave the following explanation of the measure. HB 513 changes the name of the Child Support Enforcement Division (CSED) to Child Support Services Division to reflect the fact that the division does many more things than enforce child support. It establishes paternity and provides other services. Additionally, HB 513 will close a loophole in the driver's license revocation program. SENATOR THERRIAULT asked for an explanation of the changes to Rule 90.3. MR. NAIN said the name change and driver's license revocation provision are encompassed in that rule, therefore a two-thirds vote of the legislature is required to make any changes to the rule. CHAIR SEEKINS commented that he received several calls from attorneys about HB 513 and asked the callers to contact Representative Kott's office. Those attorneys had cases that involved paternity matters in which the fathers did not know they had children, one for 17 years. Those fathers were being charged hundreds of thousands of dollars of back child support. The attorneys suggested including a statute of limitations in the bill for fathers who were not informed they had children. MR. NAIN informed members that Representative Kott is in the process of looking at that issue but he is not willing to address it at this time, as the effects on the custodial and non-custodial parent and to the State of Alaska need further research. He said he has had to make phone calls to individuals to inform them they had children. In one case, a couple had a short relationship and the parents took the mother and moved to California. Eventually the family came to Alaska and at some point, the mother collected public assistance. The father was informed that he had a child six years [after it was born]. This individual was willing to support the child but was told that he suddenly had a $30,000 debt. CHAIR SEEKINS noted in the case he was informed of, the state was proceeding against the father for back payment of public assistance that was provided for the child yet the father did not know of the child's existence. He asked if that could happen. MR. NAIN said it could although it is rare that a father would be unaware of his child. He said the child support system is not 100 percent perfect. It has to deal with state laws and federal regulations and mandates that require acts of Congress to change. He said the agency tries to do the best job it can. CHAIR SEEKINS said he has no problem exercising penalties against parents who deliberately ignore child support agreements or responsibilities but wonders whether a larger problem is festering. SENATOR THERRIAULT asked if a statute of limitations would be allowable under the federal law. MR. NAIN told members that other states have statutes of limitation on how far they can go back with regard to establishing paternity. SENATOR THERRIAULT asked if the opportunity for abuse is fairly slim. MR. NAIN said someone will figure out how to abuse the system, however he believes that will be the rare situation. TAPE 04-19, SIDE B  SENATOR FRENCH asked for a quick rundown of the technical aspects of the license revocation and reinstatement provisions. MR. JOHN MALLONEE, acting director of CSED, explained that CSED now gives an individual a 60-day notice before that person's name is added to the list of those who are not in substantial compliance. That is 150 days prior to the date the license is actually revoked. HB 513 will close a loophole that allows the th person to wait until the 147 day to execute a payment agreement and make one payment, in which case the license is released and the process starts over. HB 513 will allow CSED to pick up where th it left off so that after the 150 day, the individual would be noticed that CSED is going to revoke the release. The individual's only opportunity to clear up the matter would be to go to court. SENATOR FRENCH asked if the bill contains a time period in which the person could make payments that would allow the 60-day notice clock to restart or whether HB 513 will create an absolute bar to restarting the clock so that going to court will be the only option available to the individual. MR. MALLONEE said HB 513 creates a bar with no timeframe. CHAIR SEEKINS asked Mr. Mallonee to comment on the earlier discussion about charging a father who did not know he had a child for retroactive child support. MR. MALLONEE affirmed he is aware of cases in which a father did not realize he had a child. In the case of the father who was notified after 17 years, he assumes the court established the order. The court, when establishing child support, can go back to the birth of the child. If CSED is establishing an order administratively, the order starts from the time the custodial parent applies for service. However, if public assistance is involved, CSED can retroactively collect for up to six years. CHAIR SEEKINS asked if there is a de facto statute of limitations to six years on a public assistance case. MR. MALLONEE affirmed that is correct. MS. LANDA BAILEY, legislative liaison to Commissioner William Corbus, Department of Revenue (DOR), told members that DOR is very thankful to be working with Representative Kott on this legislation. She deferred to Mr. Mallonee for technical questions and Diane Wendlandt for legal questions. CHAIR SEEKINS told members that he told Ms. Wilson and Mr. Fink to provide written testimony to the committee so he would hold the bill in committee to await that testimony. SENATOR FRENCH said he would speak to Mr. Mallonee in the meantime about finding a way to restart the 60-day clock if one has made good-faith payments for an extended period of time. CHAIR SEEKINS announced that HB 513 would be held in committee and that the committee would take a 5-minute recess.