Legislature(1995 - 1996)
04/05/1995 01:58 PM Senate JUD
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
4/5/95
HB 4 PERMANENT FUND DIVIDEND ELIGIBILITY
CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to
order at 1:38 p.m. The first order of business before the
committee was CSHB 4 (STA) title am, sponsored by Representative
Kott.
ROD MOURANT, legislative aide to the sponsor of HB 4, explained the
measure as follows. CSHB 4(STA) title am reinstates a previous
policy allowing the spouses who accompany residents out of state
for allowable absences to be eligible to receive a permanent fund
dividend while out of state. The spouse must also qualify as an
Alaska resident prior to leaving the state. This policy was changed
as the result of the Zyler vs. the State of Alaska case in 1993.
In 1992, 25 individuals were denied permanent fund dividends under
the changed policy, in 1993, 200 individuals were denied, and in
1994 approximately 1300 individuals were denied. Allowable
absences include college and vocational training, medical
treatment, and military duty. The bill allows for the retroactive
payment of the cases denied as a result of the Zyler case. The
administrative cost estimated by the Department of Revenue is $600
to process the appeals files.
Number 067
SENATOR ADAMS asked how an applicant would comply with the
language, "maintains and demonstrates at all times an intent," on
page 3, lines 10-11. He asked if proof of voter registration would
fulfill that requirement. MR. MOURANT responded voter registration
by itself is not a sole indicator of residency of any state. He
clarified that intent to return to Alaska is already in regulation;
the bill would place that requirement in statute.
Number 097
SENATOR ADAMS asked what the cost of paying the permanent fund
dividends, denied since 1992 because of the Zyler case, would be.
He commented there are times when in-state residents have been
denied permanent fund dividends because they missed the filing
deadline by one or two days. He suggested those people also be
allowed to re-apply. MR. MOURANT was unable to provide the
information but offered to calculate those costs.
SENATOR TAYLOR noted the fiscal impact would be on the Permanent
Fund, not the General Fund. MR. MOURANT stated the Permanent Fund
Division has adequate funds to cover the retroactive payments.
Number 120
SENATOR TAYLOR shared Senator Adams' concern about other people who
are denied their dividends unfairly and about the department's
system of acknowledging receipt of the applications. He suggested
creating a hearing board to review such cases. He commented the
department appears to go to extraordinary efforts to make sure
certain people do not get their dividends, especially military
spouses.
SENATOR TAYLOR also commented the objective standards for allowable
absences has been deleted in Section 3. MR. MOURANT explained that
at the department's request, the allowable absence section of
statute was renumbered and restructured and appears in Section 2.
Number 164
MIKE McGEE, Chief of Permanent Fund Dividend Operations, stated the
department supports CSHB 4(STA) title am. He clarified the
allowable absences that the bill is designed to reinstate were
established in 1982, but were excluded because of the Zyler case.
The changes on page 3, section 3, separate the residency definition
from allowable absences, as that is part of the conflict in the
Zyler case. Regarding the receipt of application issue discussed
by Senator Taylor, Mr. McGee noted the applicant is sent a receipt
card to verify receipt of the application. The department has
announced that applicants who do not receive the receipt card by
April 15 should notify the department. SENATOR TAYLOR stated the
problem is that the department does not know who did not apply
therefore does not know who to notify. MR. McGEE indicated if an
applicant determines they did not receive a receipt card after the
filing deadline, but have certain proofs that they filed, they can
request to reapply until September.
Number 200
SENATOR ADAMS asked for the department's interpretation of Section
3, lines 10-11. MR. McGEE replied that language defines a state
resident in conjunction with AS 01.10.055. SENATOR ADAMS asked
whether the bill requires a resident to be a registered voter. MR.
McGEE responded a person does not have to be a registered voter to
be a resident. SENATOR ADAMS asked if the spouse of an applicant
in the military in North Carolina could be a registered voter in
North Carolina, and still qualify for a permanent fund dividend.
MR. McGEE clarified if an applicant files from outside the state,
that person must fill out a supplemental schedule which requires
the disclosure of actions that may be inconsistent with being a
resident. If a person registers to vote in another state, thereby
declaring residency in another state, that person would become
ineligible for a permanent fund dividend.
Number 236
SENATOR ADAMS noted the filing deadline keeps changing and asked
how many Alaskans, from rural or urban communities, have missed the
filing deadline. MR. McGEE estimated there are 2100 unsolicited
late file applications per year. SENATOR ADAMS felt those
applicants should be accounted for in this bill. SENATOR ADAMS
asked what the total cost of paying the retroactive dividends
specified in CSHB 4 (STA) title am would be if the bill passes.
MR. McGEE replied the amount would differ each year. MR. McGee
asserted this bill corrects a conflict between the statutes and
regulations, determined by a court decision. The issue of filing
deadlines is a different one.
Number 274
SENATOR MILLER referred to Section 3, and stated although he agrees
with what the bill does, statute should not follow regulations; and
Section 3 does just that. MR. McGEE noted AS 01.10.055 contains
that language. SENATOR MILLER commented different statutes pertain
to residency.
Number 294
SENATOR ELLIS asked if the Permanent Fund Division investigates
applicants to determine if they are registered to vote outside of
Alaska. MR. McGEE replied the Permanent Fund Division is able to
match records with the Department of Defense and among state
agencies, however it would not be practical to match records with
other states. They do verify information on a case-by-case basis,
if an applicant appeals a denial.
SENATOR ELLIS asked about the fiscal impact of the retroactive
payments made under CSHB 4(STA) title am on future dividends. MR.
McGEE indicated there are only a few individuals that would be
served by the retroactive clause, and that cost would not have any
impact on future dividends because there is enough money in the
fund now from overestimates based on the projected number of
eligible individuals for those years.
SENATOR ELLIS requested information from the division on the exact
number of applicants affected by the retroactivity clause, and the
cost of those payments.
Number 339
SENATOR MILLER questioned if spouses of college students are the
largest group that have been denied, and spouses of military
personnel are the second largest. MR. McGEE replied affirmatively,
and clarified there are 677 spouses of college students, and 292
military spouses that have been denied.
SENATOR ADAMS asked about the effect of Section 6. MR. McGEE
stated that is to make the provisions in the bill consistent in
statute, during the years applicants were denied because of the
court decision.
SENATOR ADAMS noted he wanted to review the possibility of
including late filers in the bill. Senator Taylor announced the
bill would be held over.
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