April 25, 2025 — The Alaska House Judiciary Committee voted 5-1 April 25 to move House Bill 137 out of committee. The bill, sponsored by Representative Ashley Carrick, would authorize the state to file a Permanent Fund Dividend (PFD) application on behalf of certain residents in arrears on child support who have not otherwise applied for the PFD.

"House Bill 137 very simply allows the state to apply for a PFD on behalf of eligible residents who are behind on child support and have not filed their own PFD applications," Representative Ashley Carrick said when she introduced the bill.

Representative Vance objected to moving the bill and raised constitutional concerns, including equal protection and due process. "My largest concern is that this could be an improper taking without due process because it is their property if they choose to apply," Vance said, questioning whether the state may presumptively apply for and seize a PFD without the individual's affirmative application or consent.

Emily Nauman of Legislative Legal Services responded to questions about equal protection and takings. On equal protection she said courts apply a low level of scrutiny to financial classifications and that a statute must be reasonable and bear a fair relationship to a legitimate governmental objective. On the due-process/takings question, Nauman said, "they've made an affirmative decision not to apply for the dividend and therefore it never in my opinion becomes their property that the government is taking." She also noted a practical risk: if the department mistakenly treats a nonresident as eligible, it could affect other benefits in another state.

Several members cited a 2018 law that created a restorative justice account as precedent for diverting PFDs in limited circumstances. Representative John Copp referenced that prior legislation and the way Departments of Corrections and Revenue coordinate when recipients are incarcerated and thereby ineligible to apply.

Representative Mina pointed to language in the draft bill requiring the department to notify the person in arrears and the person owed support at the time an application is filed, and allowing either party to submit evidence of eligibility. "At the time of filing the application, the department notifies the individual in arrears and the individual owed child support that a dividend application has been filed on behalf of the individual in arrears," she said, summarizing the bill text.

After debate and a recorded roll call, the committee vote was: Mina — yes; Eisheid — yes; Vance — no; Copp — yes; Underwood — yes; Chair Gray — yes. With five yeas and one nay, the committee moved the bill from committee with attached fiscal notes and authorized legislative legal services to make technical and conforming changes. The committee set an unrelated amendment deadline for a different bill (House Bill 156) and signed the paperwork for bills before adjournment.

Representative Carrick said she will work with other members to consider narrow amendments addressing concerns raised in the hearing.

The bill will proceed with attached fiscal notes and technical edits; the committee did not adopt amendments in this hearing.