Senate Judiciary Committee moves bill allowing state to file Permanent Fund Dividend claims for parents owed child support

The Alaska Senate Judiciary Committee on March 12 moved Senate Bill 12, a committee substitute concerning the Permanent Fund Dividend and child support, out of committee after the committee adopted changes that make the Department of Revenue responsible for filing PFD applications on behalf of individuals in arrears on child support and add a 7 percent administrative fee for the department.

The committee substitute, labeled Work Order 34 LS 0135/I, requires the Department of Revenue to file a dividend application on behalf of an individual behind on child support, to notify both the individual in arrears and the person owed child support that the department filed the application, and to give either party an opportunity to provide evidence relevant to eligibility, staff told the committee.

Brianna Karkarik, staff to Senator Clayman and committee aide to the Senate Judiciary Committee, told members that the substitute also removes a prior requirement that the department assume previously eligible applicants remain eligible and removes a requirement for an individual owing child support to provide proof of ineligibility. "Version A to version I contains the following changes," Karkarik said, listing the changes and telling the committee the child support enforcement division will indicate which people in arrears are presumed eligible for the PFD.

Senator David Dunbar, the bill sponsor, said the largest practical change in the substitute is shifting the filing ability away from a private party and to the department. "They take away the ability for the noncustodial parent to file the PFD. That's the biggest change," Dunbar said, adding that the 7 percent administrative fee was provided by the department to help offset costs of locating individuals and verifying eligibility.

Committee discussion was procedural and brief. Senator Gary Kiel moved to adopt the committee substitute as the working document and later moved that the committee report out the substitute with individual recommendations and attached fiscal notes. Senator Clayman at one point objected for purposes of discussion and asked staff to present the summary of changes; after the presentation Clayman removed his objection. "Hearing and seeing no objections, Senate Bill 12 moves from committee," Clayman said when the committee approved reporting the substitute out.

The substitute also removes the ability of a private party to file the application, but committee statements differed over which private party was referenced: Karkarik said the substitute "removes the custodial parent's ability to file these applications," while Dunbar described the change as removing the noncustodial parent's ability to file. The transcript records both characterizations; the committee did not reconcile that difference on the record during this hearing.

The committee recorded no roll-call vote in the transcript; the minutes show the measure passed the committee stage by unanimous consent after members were afforded discussion. The committee aide said staff worked closely with the sponsor's office and agencies to draft the substitute language intended to be operationally workable for the Department of Revenue and the child support enforcement division.

Senate Bill 12 was before the Senate Judiciary Committee for a second hearing. Committee members present included Senator Clayman (chair), Senator Kiel (vice chair), Senator Myers and Senator Tobin. The bill sponsor, Senator David Dunbar, attended and spoke. Department of Revenue representatives and a child support enforcement division representative were present as staff resource persons, according to the transcript.

The committee scheduled its next meeting for Friday, March 14, at 1:30 p.m., when it will hold a joint meeting with the Senate Education Committee.

Votes at a glance

- Motion to adopt the committee substitute (Work Order 34 LS 0135/I) as the working document: moved by Senator Gary Kiel; objected to temporarily by Senator Clayman for purposes of discussion; objection removed after staff presentation; outcome: adopted as working document (no roll-call recorded).

- Motion to report out Judiciary CS for Senate Bill 12 with individual recommendations and attached fiscal notes: moved by Senator Gary Kiel; outcome: reported out of committee by unanimous consent ("hearing and seeing no objections").