SB 104-APPROPRIATIONS FROM THE DIVIDEND FUND  [Due to technical difficulties, the audio is not available until 9:26:24.] 9:25:43 AM CHAIR DYSON announced that the next order of business would be SB 104. SENATOR GIESSEL moved to adopt the proposed CS for SB 104, labeled 26-LS0847\R, as the working document before the committee. CHAIR DYSON said he would wait until his staff presented the changes in the bill to hear if there were any objections to adopting version R. 9:26:42 AM JOSHUA BANKS, Staff for Senator Dyson, Alaska State Legislature, Juneau, Alaska, addressed the changes in SB 104, version R. He said there were a few minor changes after discussion with the Child Support Division. He said on page 2, line 20, "and operating costs of the Violent Crimes Compensation Board" is added after "victims". This provision is currently taking place. CHAIR DYSON clarified that this change is putting into statute, that which has been the standard practice. MR. BANKS explained that on page 4, line 1, the words "to the crime victim compensation fund established under AS 18.67.162 for payments to crime victims and for operating costs of the Violent Crimes Compensation Board" is added. CHAIR DYSON added that the change brings consistency to the wording. MR. BANKS said on page 4, line 9 deletes "to a state-approved rehabilitation program" and adds "to the Department of Corrections". MR. BANKS said on page 4, line 20 deletes "the Court System" and adds "the Department of Corrections". CHAIR DYSON asked what line. MR. BANKS said line 20. He highlighted a new change found on page 4, line 4; after "arrearages" the words "owed to a child's custodian or guardian when the child to who a support order applies is under 19 years of age; payments to a child's custodian or guardian for child support arrearages under this paragraph are limited to the amount of the dividend paid to an eligible individual in the previous year;" were added. 9:29:59 AM CHAIR DYSON noted Mr. Banks has worked closely with each of the agencies and the CS reflects agency suggestions. He stressed the importance of the aforementioned change. He mentioned the large number of arrearages on child support. He commented on the difficulty of deciding how to allocate child support funds. He explained that the bill provides that current and recent victims with profound needs are the priority for where the money should go. This change was the recommendation from Child Support Services Division. MR. BANKS indicated that the language was suggested from Child Support Services, the Department of Law, and the Violent Crimes Compensation Board (VCCB). The language puts limits on the $100 million child support arrearage. Only children under 19 and younger will receive money from the Criminal Fund for the equivalent of one PFD. CHAIR DYSON added that it would be paid annually. 9:32:30 AM MR. BANKS said that another change is found on page 4, in multiple references in (b) through (f). The previous version of the bill talked about providing reports to "the department", meaning the Department of Revenue (DOR), and DOR providing reports to the legislature as to how much money should go from the Criminal Fund to the various agencies. Because that is not a job that DOR typically does, it was changed to the Office of Budget and Management (OMB). In paragraphs (b), (c), and (d) it states that VVCB, Child Support Service, and DOC will report to OMB, who will use the reports to determine how much goes to each agency and report to the legislature. He said two changes were missed during the drafting of the CS. He proposed conceptual amendments that would add, on page 3, line 15, after "victims;" the words "and operating costs of the Violent Crimes Compensation Board." The same language would be added on page 4, line 16, after "compensable claims." 9:34:19 AM CHAIR DYSON indicated that his intention was to adopt the committee substitute and then the conceptual amendments, depending on the will of the committee. He asked if there is an objection to the acceptance of the committee substitute. Seeing none, the R version of the bill was before the committee. SENATOR GIESSEL moved to adopt the two conceptual amendments to SB 104, labeled LS-0847\R, on page 3, line 15, and on page 4, line 16, to add "and operating costs of the Violent Crimes Compensation Board. There being no objection, the conceptual amendments were adopted. 9:35:48 AM SENATOR COGHILL asked if there was a fiscal impact from the changes in version R. MR. BANKS asked if Senator Coghill was asking whether the change from DOR to OMB would result in new expenses. He pointed out that there was a $15,000 fiscal note in version Y, but it would change to a zero note under version R. CHAIR DYSON questioned if the fiscal note would remain at $15,000. MR. BANKS indicated that it would now be a zero fiscal note. CHAIR DYSON noted that the bill has a Senate Finance Committee referral next. SENATOR COGHILL reiterated his concern about the financial impact. SENATOR DYSON suggested the change could have an impact on the Department of Corrections (DOC) because they have been receiving roughly $13 million annually and a large amount of that will now go to the victims. Monies that are left over will go to DOC. He reported that DOC said the increase in the amount of the PFD will offset the loss. He asked if, under the Affordable Care Act, Medicaid and Medicare are available for the care of inmates. MR. BANKS did not know. SENATOR DYSON repeated the question for DOC. 9:38:53 AM LESLIE HOUSTON, Deputy Commissioner, Department of Corrections (DOC), Juneau, Alaska, answered questions related to SB 104. She said DOC is working with the Department of Health and Social Services (DHSS) to pursue clauses under the Affordable Health Care Act that may include a small number of the prison population to be eligible for reimbursement for both Medicaid and Medicare. CHAIR DYSON voiced appreciation for DOC's cooperation on the bill. 9:40:33 AM STACY STEINBERG, Chief Assistant Attorney, Collections and Support Section, Civil Division, Department of Law (DOL), Anchorage, Alaska; offered to answer questions related to SB 104. CHAIR DYSON thanked Ms. Steinberg for her team's efforts on the bill. 9:41:23 AM SENATOR GIESSEL moved to report CSSB 104(STA), version 28- LS0847\R with conceptual amendments, from committee with individual recommendations and attached fiscal notes. There being no objection, CSSB 104(STA) was reported from the Senate State Affairs Standing Committee. CHAIR DYSON, sponsor of SB 104, thanked everyone for working on the bill. He stated that this legislation is one of the more significant pieces of legislation he has contributed. The bill will help many victims of crime.