02/20/1997 03:37 PM Senate STA

                                                                               
         SB 4 LONGEVITY BONUS SABBAT:PFD ELIGIBILITY                         
                                                                               
  CHAIRMAN GREEN  called the Senate State Affairs Committee to order           
 at 3:37 p.m. and brought up SB 4 as the first order of business               
 before the committee.                                                         
                                                                               
  SENATOR JOHN TORGERSON , prime sponsor of SB 4, said the main thrust         
 of SB 4 is to conform the eligibility requirements for the                    
 permanent fund dividend with the unpaid sabbatical provisions of AS           
 47.45.035, governing the longevity bonus program, so that both                
 programs will be consistent.  Under this section a recipient of the           
 longevity bonus may take an unpaid sabbatical for a period of up to           
 12 months.  A recipient having properly notified the Department of            
 Administration within a 30-day period before leaving Alaska may               
 make application upon return to the state to receive the bonus.               
 However, by law, the unpaid sabbatical recipient may only take one            
 sabbatical every five years.                                                  
                                                                               
 Senator Torgerson explained SB 4 would allow the senior citizen to            
 take a sabbatical from the state no more than once every five years           
 without losing eligibility for the permanent fund.  He said the               
 bill does not open a loophole in the eligibility process for                  
 receipt of the permanent fund; it is tailored to allow only those             
 who are in legitimate sabbaticals recognized under that statute to            
 remain eligible for receipt of the permanent fund.                            
 Number 085                                                                    
                                                                               
  NANCI JONES , Director, Permanent Fund Division, Department of               
 Revenue, said the legislation proposes to pay a person who has                
 taken a 12-month sabbatical leave a permanent fund dividend.                  
 Currently, if a person is not in the state with the longevity                 
 program more than 30 days, they begin to lose checks.  If they are            
 out of state over 90 days, then they become ineligible for the                
 program.  By allowing an allowable absence for this person who is             
 out of state 12 months, they are not getting a monthly check for              
 the longevity bonus, but they would be eligible for a dividend.               
                                                                               
 Ms. Jones said instead of that scenario, the department proposes              
 allowing a person who is on a 12-month sabbatical leave to still              
 become eligible for the dividend, but not be paid for the year that           
 they are absent, just like the longevity bonus program.  However,             
 she pointed out the one danger possible is that if a person who is            
 enrolled in this program right now takes a 12-month sabbatical and            
 is out of state for more than 180 days in one calendar year, it is            
 possible that person could be disqualified from receiving a                   
 dividend for two years.  She suggested working with the program and           
 within their regulations so that possibly they can come up with               
 something where the individual doesn't lose that second year                  
 dividend.                                                                     
                                                                               
 Number 140                                                                    
                                                                               
  SENATOR WARD  asked Ms. Jones if she thinks they will be able to             
 resolve this situation through regulations and looking at what is             
 in existence now.   MS. JONES  acknowledged that was correct, and to          
 still have the two programs on an even footing.  She added that if            
 an individual is not eligible to paid for a longevity bonus benefit           
 while absent, then the department does not believe that individual            
 should be paid a dividend while absent.                                       
                                                                               
 Number 160                                                                    
                                                                               
 There being no further testimony on SB 4,  CHAIRMAN GREEN  requested          
 that Ms. Jones work with the sponsor in addressing the department's           
 concern with the legislation before scheduling it for another                 
 hearing.