03/09/1995 09:40 AM Senate FIN

                                                                               
  SENATE BILL NO. 37                                                           
                                                                               
       An  Act  relating   to  treatment  of   permanent  fund                 
       dividends for purposes  of determining eligibility  for                 
       certain benefits; and providing for an effective date.                  
                                                                               
  Co-chairman Halford directed  that SB 37  be brought on  for                 
  discussion.  He noted an earlier discrepancy in  adoption of                 
  a  draft  CSSB 37  (Fin)  and  asked that  it  be clarified.                 
                                                                               
                                                                               
  Senator Randy  Phillips, sponsor  of the legislation,  MOVED                 
  for adoption of CSSB 37 (Fin) (9-LS0449\G, Cook, 2/17/95) in                 
  lieu of adoption  of an earlier  version dated 2/15/95.   No                 
  objection having been  raised, CSSB  37 (Fin), 2/17/95,  was                 
  ADOPTED.                                                                     
                                                                               
  Senator Phillips explained  that the new draft  "exempts the                 
  PFD and  the SSI and  APA (adult  public assistance)  people                 
  from  this bill."   Those  8,000  out of  47,500 individuals                 
  receiving welfare  benefits will receive both  the permanent                 
  fund dividend  as well as benefits  under APA and SSI.   All                 
  others will  have to  choose between  acceptance of  welfare                 
  benefits or the permanent fund dividend.                                     
                                                                               
  Speaking  to  concern that  children  will  be hurt  by  the                 
  proposed  bill,    Senator  Phillips  explained   that  upon                 
  reaching  their eighteenth  birthday, young  people can  "go                 
  retroactive  and collect  all  the permanent  fund dividends                 
  from the eighteen years prior."                                              
                                                                               
                                                                               
  Co-chairman Halford clarified  his understanding that  under                 
  the  proposed bill, those  receiving adult public assistance                 
  and SSI would  be exempted.  Senator  Phillips concurred and                 
  advised  that  that  category  of  individuals  is generally                 
  receiving welfare benefits  because of a disability.   Those                 
  individuals  are least able  to help themselves.   They will                 
  thus receive  both their  permanent fund  dividends and  the                 
  benefits to which they are entitled under APA and SSI.                       
                                                                               
  Co-chairman Frank MOVED to tighten the title of the  adopted                 
  CSSB  37  (Fin)  to  reflect  changes included  therein.  No                 
  objection having  been raised, Co-chairman  Halford directed                 
  that a restricted  title be incorporated within  the working                 
  document.  He then announced that further action on the bill                 
  would  not be taken  at this time.   CSSB 37  (Fin) was thus                 
  HELD in committee.                                                           
                                                                               
  Senator  Zharoff asked  which  groups of  individuals  would                 
  continue to be impacted by the  new draft.  Senator Phillips                 
  advised  of  those  on  AFDC,   food  stamps,  and  Medicaid                 
  (approximately 39,500  people).  Co-chairman  Halford voiced                 
  his  understanding  that  those  receiving welfare  benefits                 
  because  of age or disability would  continue to receive the                 
  dividend.  Senator Phillips concurred.