03/14/2006 11:00 AM House RULES

HB 273-PFD: DELAY PAYMENT FOR ALLOWABLE ABSENCES                                                                              
                                                                                                                                
12:46:43 PM                                                                                                                   
                                                                                                                                
CHAIR ROKEBERG announced  that the final order  of business would                                                               
be  HOUSE BILL  NO. 273,  "An Act  relating to  the dividends  of                                                               
individuals  claiming allowable  absences; and  providing for  an                                                               
effective date."  [Before the committee is CSHB 273(FIN).]                                                                      
                                                                                                                                
12:46:52 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  COGHILL  moved to  adopt  CSHB  273, Version  24-                                                               
LS0871\I, Cook, 3/10/06, as the working document.                                                                               
                                                                                                                                
REPRESENTATIVE  BERKOWITZ objected,  and  mentioned  that in  the                                                               
House Finance Committee  two amendments that received  a 4-3 vote                                                               
were  deemed not  to have  passed and  thus not  included in  the                                                               
House Finance  Committee's substitute.   However, it's  clear, he                                                               
opined, that only  a majority of the quorum is  all that's needed                                                               
to adopt an amendment.                                                                                                          
                                                                                                                                
12:47:39 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   BRUCE  WEYHRAUCH,   Alaska  State   Legislature,                                                               
sponsor,  began by  confirming that  the House  Finance Committee                                                               
did deem two  amendments that received a 4-3 vote  as failed.  He                                                               
informed the committee that he  requested this hearing because of                                                               
the interest  with regard  to anything  related to  the permanent                                                               
fund dividend  (PFD) and to  address any amendments  in committee                                                               
rather than on  the House floor.  He explained  that once someone                                                               
applies  for an  allowable absence,  of which  there are  11, the                                                               
individual  can continue  to receive  the PFD  if the  individual                                                               
returns  to  the state  to  demonstrate  his/her presence.    The                                                               
aforementioned situation  is allowed  for a  period of  10 years.                                                               
However, under  HB 273 once an  individual has been out  of state                                                               
for two  years and the  individual hasn't returned to  the state,                                                               
the PFD check  would be held until the individual  returns to the                                                               
state.  Once the individual  returns to the state and establishes                                                               
residency  again, then  all  the  held checks  are  given to  the                                                               
individual.     Therefore,  the  legislation  provides   a  large                                                               
incentive to  return to  the state and  provides a  bonus because                                                               
once residency  is established, the individual  would receive all                                                               
the PFD checks that were  held.  Representative Weyhrauch related                                                               
that he  has learned, through  the [Permanent Fund  Division] and                                                               
the  Department of  Law, that  individuals who  have been  out of                                                               
state for  three years don't return  to the state.   In fact, the                                                               
allowable  absence  category in  which  an  individual who  is  a                                                               
dependent  of  military personnel  living  outside  of the  state                                                               
could  receive  a PFD  without  ever  being  in  the state.    He                                                               
recalled that  the amendments  to which  Representative Berkowitz                                                               
spoke about were related to  extending the period of time allowed                                                               
for allowable absences.  He  concluded by informing the committee                                                               
that before the committee is  essentially the House State Affairs                                                               
Standing Committee  version of HB  273 because Version  I doesn't                                                               
include  Representative Mike  Kelly's  amendment  adopted in  the                                                               
House  Finance Committee,  which would've  prohibited individuals                                                               
who had been out of state for five years from receiving a PFD.                                                                  
                                                                                                                                
12:52:40 PM                                                                                                                   
                                                                                                                                
CHAIR  ROKEBERG requested  that Representative  Weyhrauch explain                                                               
the  substance of  the two  amendments that  were deemed  to have                                                               
failed in the House Finance Committee.                                                                                          
                                                                                                                                
REPRESENTATIVE WEYHRAUCH  recalled that the  amendments addressed                                                               
extending the number  of years in which a person  could be out of                                                               
state before collecting the PFD.                                                                                                
                                                                                                                                
REPRESENTATIVE    BERKOWITZ   informed    the   committee    that                                                               
Representative Joule's  amendment in the House  Finance Committee                                                               
would've allowed an exemption for  students who were in the state                                                               
for at least 90 days.                                                                                                           
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH  recalled   that  the  other  amendment                                                               
addressed the  notion that students are  more in need of  the PFD                                                               
than other categories of excused  absences.  The concern was that                                                               
the  needs-based test  for receiving  the PFD  couldn't withstand                                                               
legal scrutiny and wouldn't be applied across the board.                                                                        
                                                                                                                                
REPRESENTATIVE    BERKOWITZ    specified   that    Representative                                                               
Kerttula's  amendment in  the  House  Finance Committee  would've                                                               
extended by a  year, the time period an individual  would be able                                                               
to collect a PFD under the delayed payment plan.                                                                                
                                                                                                                                
12:55:01 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   WEYHRAUCH   reiterated   that   Version   I   is                                                               
essentially the  House State Affairs Standing  Committee version,                                                               
which included an amendment by  Representative Gardner that would                                                               
extend the period  of time in which one could  receive a PFD when                                                               
out of  state to  two years.   He  highlighted that  data relates                                                               
that greater  than 60 percent of  those out of state  longer than                                                               
two years don't return yet still claim a PFD.                                                                                   
                                                                                                                                
12:55:56 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE BERKOWITZ withdrew his objection.                                                                                
                                                                                                                                
There being no further objection, Version I, was adopted.                                                                       
                                                                                                                                
12:56:33 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HARRIS  moved to  report  CSHB  273, Version  24-                                                               
LS0871\I,  Cook,  3/10/06,  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  CSHB 273(RLS)  was reported  from the  House Rules                                                               
Standing Committee.