Bill > HB137

This bill addresses how permanent fund dividends (PFDs) are handled for individuals who owe child support in Alaska. The legislation requires the child support agency to provide the Department of Revenue with a list of individuals in arrears on child support between January 1 and March 31 each year. If the department identifies an individual on this list who appears eligible for a PFD but has not applied by March 31, the department will automatically file an application on their behalf. When such an application is filed, the dividend will be distributed directly to the individual or individuals owed child support. The bill includes several key provisions: the dividend will count as a child support payment, the department can file the application without the individual's signature, and the department will deduct 7% of the dividend for administrative costs. Furthermore, the bill specifies that these automatically filed dividends cannot be claimed by state agencies, cannot be used for donations, and are not subject to debt collection. The new procedures will apply to the 2025 qualifying year for the 2026 dividend year and thereafter, creating a new mechanism to help ensure child support obligations are met through the state's annual dividend program.

Budget and Finance, Justice

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB137