Legislature(1997 - 1998)
02/25/1997 08:05 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 67 - LONGEVITY BONUS SABB'TCL:PFD ELIGIBILITY The next order of business to come before the House State Affairs Standing Committee was HB 67, "An Act relating, for purposes of eligibility for a permanent fund dividend, to an absence from the state while on an unpaid sabbatical under the longevity bonus program; and providing for an effective date." CHAIR JAMES called on Representative Joe Ryan, sponsor of HB 67, to present the bill. Number 1700 REPRESENTATIVE JOE RYAN, Alaska State Legislature, explained there was a companion bill to HB 67 in the Senate. Last year, a bill was passed to allow for the elderly to take a sabbatical, once every five years for up to one year, for medical care. However, as a result, they lost their eligibility for their Permanent Fund dividend and had to reestablish their eligibility upon return. Therefore, HB 67 added another provision to the statutes to allow for a person to take a sabbatical from the state for no more than once every five years without loosing eligibility for the dividend. It was tailored specifically for those that were on a justified sabbatical. "It was one of those things where a society that's not mean spirited makes allowances for youth and for the elderly." The state also benefitted by saving money because they did not receive their longevity bonus while on a sabbatical. Number 1836 CHAIR JAMES asked Representative Ryan to define the term "sabbatical?" Number 1846 REPRESENTATIVE RYAN replied it was defined in AS. 47.45.035. Number 1876 CHAIR JAMES commented that this provision opened it up so that every man, woman and child could take a sabbatical every five years and not lose their residency for their permanent fund dividend. She asked Representative Ryan if that was his intent? Number 1889 REPRESENTATIVE RYAN replied a sabbatical was for senior citizens. "It's not for everybody and his brother. It's for the elderly." Number 1947 CHAIR JAMES stated that the text in the bill did not indicate it was an unpaid sabbatical leave under the longevity program. Number 1966 REPRESENTATIVE RYAN replied the bill allowed for a new reason to be eligible to leave the state without loosing one's permanent fund dividend. Number 1980 CHAIR JAMES asked Representative Ryan wasn't it true that anybody could have an unpaid sabbatical? REPRESENTATIVE RYAN replied that one had to be a longevity bonus.... CHAIR JAMES replied that was not indicated in the text of the bill. Number 1990 REPRESENTATIVE RYAN explained he was referencing the bill that was passed last year that allowed for a sabbatical. Number 2012 CHAIR JAMES replied the problem with the bill was that it would benefit a select group of people. Other people took sabbaticals, not just senior citizens. Therefore, she wondered how this provision would not be discriminatory. Number 2090 REPRESENTATIVE RYAN replied it was a policy decision. "That's why we're here. We set up the program and pass the laws for eligibility and so forth. And, it's up to us to feel, if we do, that this is a good thing to do; to allow these elderly people to take this once-every-five-year sabbatical and not loose their permanent fund and not have to come back and reestablish eligibility, or we decide that, no, we don't want to do that." The bill proposed that the state allowed for the sabbatical. Number 2142 CHAIR JAMES stated that she received the longevity bonus. Therefore, she would be affected by the bill. She declared a conflict of interest. Number 2163 REPRESENTATIVE RYAN replied, "We won't hold that against you." CHAIR JAMES replied she did not like the bill anyway so it was not a problem. She reiterated the bill was discriminatory. She wanted to review it further to see if there was a constitutional problem. Number 2198 REPRESENTATIVE IVAN stated he was also concerned about the intent of the bill. TAPE 97-20, SIDE A Number 0000 CHAIR JAMES stated the bill was honorable, and she liked to do things for the senior citizens. However, she would like to get a legal opinion from Legislative Legal Services to see if the bill passed constitutional muster. Number 0091 DEBORAH VOGT, Deputy Commissioner, Office of the Commissioner, Department of Revenue, explained that the bill established an additional allowable absence for the Permanent Fund dividend program. The longevity bonus program allowed for an unpaid sabbatical, while HB 67 made the same sabbatical an allowable absence for the Permanent Fund program. The person would continue to be paid the dividend even though he or she would be out of the state for an entire year. That was what the Department of Revenue objected to; it did not establish parity between the programs. MS. VOGT further explained that the issue could be fixed to parallel the longevity bonus program in regulations. MS. VOGT further stated that the department shared the same concerns that Chair James expressed of the bill benefitting a small, select group of people not shared by the larger population. She did not know if that presented a legal problem, however. There were other allowable absences narrow in scope, such as, the Peace Corps. She reiterated HB 67 presented a question of equity. The record reflected the arrival of Representative Al Vezey at 9:28 a.m. Number 0354 CHAIR JAMES asked Ms. Vogt if the allowable absence of "(F) other reasons which the commissioner may establish for regulation;" was where the department would address the issue in regulations? Number 0380 MS. VOGT replied, "Yes." The department would not make it an allowable absence, however. It would make it an eligibility requirement for those who came back. Number 0394 CHAIR JAMES wondered if the seniors would get paid their permanent fund while they were gone. MS. VOGT replied, "That's exactly right." CHAIR JAMES said she still did not understand the term "sabbatical." Number 0453 MS. VOGT replied for the purposes of the longevity bonus program it was a long vacation. A sabbatical meant, during one's working years, a paid absence from work. According to AS 47.45.035 a sabbatical was limited to once every five years. Therefore, one could just take a vacation. Number 0523 CHAIR JAMES announced she wanted to look at this issue further. The thought behind the bill made a lot of sense. The permanent fund program was for residents of the state; for people who were here now. The longevity bonus program was originally for people who were here before statehood. It made sense to give the people on the longevity bonus a chance to leave the state for one year and upon return be able to get their longevity bonuses. However, allowing one year just for senior citizens created a problem with residency. She reiterated she would look at the issue further. Number 0656 MS. VOGT stated that once a person under the longevity bonus lost his eligibility he could never get it back. Number 0668 CHAIR JAMES replied, "That's the problem. That's why we had to do that for the longevity bonus." MS. VOGT further stated that under the permanent fund program a person could be gone for a year, return, then reestablish one's eligibility and get paid for future years. CHAIR JAMES stated that a senior citizen could possibly loose two years, depending on the timing, of the permanent fund. CHAIR JAMES announced she would hold the bill over to Thursday, February 27, 1997.
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