03/27/2025 03:30 PM Senate STATE AFFAIRS

           SB  77-PERM FUND; EMPLOYMENT; ELIGIBILITY                                                                        
                                                                                                                                
3:58:30 PM                                                                                                                    
CHAIR  KAWASAKI   reconvened  the   meeting  and   announced  the                                                               
consideration of SENATE BILL NO.  77 "An Act relating to national                                                               
criminal  history  record checks  for  certain  employees of  the                                                               
Department  of  Revenue;  relating   to  allowable  absences  for                                                               
eligibility  for  a  permanent  fund dividend;  relating  to  the                                                               
confidentiality of  certain information  provided on  a permanent                                                               
fund  dividend  application;  relating   to  the  duties  of  the                                                               
Department of Revenue; and providing for an effective date."                                                                    
                                                                                                                                
3:58:53 PM                                                                                                                    
SENATOR  JESSE  KIEHL,  District  B,  Alaska  State  Legislature,                                                               
Juneau, Alaska, sponsor of SB  77. He stated that eligibility for                                                               
the Alaska Permanent  Fund Dividend (PFD) requires  being a state                                                               
resident with  the intent to  remain. SB 77 updates  rules around                                                               
allowable absences for PFD purposes.  Currently, residents may be                                                               
gone  up to  180  days in  a qualifying  year,  with 16  specific                                                               
categories  of allowable  absences.  SB 77  outlines several  key                                                               
changes:                                                                                                                        
                                                                                                                                
-Merchant  Marine  Training:  Previously, absences  for  merchant                                                               
mariners  in training  outside the  state weren't  fully counted,                                                               
even though  deployed merchant mariners  may be gone  longer. The                                                               
bill  now allows  additional days  for training  programs located                                                               
outside  Alaska,  helping those  who  work  in Alaska's  maritime                                                               
industries.                                                                                                                     
                                                                                                                                
-College  Students: Full-time  students attending  school out  of                                                               
state  already receive  extra allowable  days,  but breaks  (like                                                               
Thanksgiving   or   spring    break)   didn't   count,   creating                                                               
difficulties and  extra paperwork. SB  77 treats these  breaks as                                                               
allowable  absences,  making  the  system  fairer  for  students,                                                               
especially  those  from  lower-  or  middle-income  families.  He                                                               
stated that this provision doesn't include summer months.                                                                       
                                                                                                                                
4:02:16 PM                                                                                                                    
SENATOR KIEHL continued with his introduction:                                                                                  
                                                                                                                                
-Medical Absences: The  current rules for being out  of state for                                                               
medical care  not available in  Alaska are overly complex.  SB 77                                                               
simplifies  this, ensuring  that  unexpected medical  emergencies                                                               
outside  the state  don't retroactively  disqualify someone  from                                                               
receiving their PFD.                                                                                                            
                                                                                                                                
-Division Employee  Security: SB  77 allows  the PFD  division to                                                               
fingerprint   its  employees   and   job   applicants  (not   PFD                                                               
applicants)  to ensure  they don't  have  a history  of fraud  or                                                               
embezzlement,   protecting  Alaskans'   personal  and   financial                                                               
information.                                                                                                                    
                                                                                                                                
-Privacy  of  Applicant  Lists:  SB  77 keeps  the  list  of  PFD                                                               
applicants'  names  private.  This protects  personal  data  from                                                               
being  harvested internationally  and used  to submit  fraudulent                                                               
applications.                                                                                                                   
                                                                                                                                
-Electronic  Notices for  Garnishments: Alaskans  who opt  in for                                                               
electronic  notifications  about  their  PFD  will  also  receive                                                               
electronic  notices  if  their PFD  is  subject  to  garnishment,                                                               
giving them the same choice as other notifications.                                                                             
                                                                                                                                
SENATOR  KIEHL  stated that  SB  77  simplifies rules  for  state                                                               
absences,  strengthens security  for the  PFD division,  protects                                                               
applicant privacy,  and expands electronic  notification options,                                                               
building   on   prior   proposals  and   aiming   to   streamline                                                               
administration while enhancing protections.                                                                                     
                                                                                                                                
4:06:37 PM                                                                                                                    
CATHY  SCHLINGHEYDE, Staff,  Senator  Jesse  Kiehl, Alaska  State                                                               
Legislature, Juneau, Alaska, provided  the sectional analysis for                                                               
SB 77:                                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       Sectional Analysis                                                                                     
                                                                                                                                
     Sec. 1:  Requires the Permanent Fund  Dividend division                                                                  
     to  fingerprint   its  staff   and  applicants   for  a                                                                    
     background check.                                                                                                          
                                                                                                                                
     Sec. 2:  Amends allowable absences for  PFD eligibility                                                                  
     Adds  allowable absence  for school  breaks during  the                                                                    
     academic  year   Adds  allowable  absence for  merchant                                                                    
     mariner training  Keeps  medical absences from limiting                                                                    
     the length of voluntary absences                                                                                           
                                                                                                                                
     Sec. 3: Conforms  to Sec. 1 requiring  the PFD division                                                                  
     to  fingerprint   its  staff   and  applicants   for  a                                                                    
     background check.                                                                                                          
                                                                                                                                
     Sec. 4: Makes the names of PFD applicants confidential                                                                   
                                                                                                                                
     Sec. 5: Lets people opt-in for electronic levy notices                                                                   
                                                                                                                                
     Sec. 6: Sets an effective date                                                                                           
                                                                                                                                
4:07:32 PM                                                                                                                    
CHAIR  KAWASAKI  asked  whether   finger  printing  is  a  common                                                               
standard in  other divisions or if  it's being proposed as  a new                                                               
standard for employment in the PFD division.                                                                                    
                                                                                                                                
4:07:58 PM                                                                                                                    
MS.  SCHLINGHEYDE  responded that  she  isn't  familiar with  the                                                               
Department of Motor Vehicles(DMV) but  she is aware of many state                                                               
government  divisions handling  sensitive information,  including                                                               
several  within the  Department of  Revenue (DNR),  which already                                                               
requires fingerprinting for employees.                                                                                          
                                                                                                                                
4:08:18 PM                                                                                                                    
SENATOR KIEHL  explained that  fingerprinting must  be authorized                                                               
in statute  to access the  federal system for  background checks.                                                               
This requirement is  specific to certain job groups  and does not                                                               
automatically  apply to  all  state  employment; the  legislature                                                               
reviews it on a case-by-case basis.                                                                                             
                                                                                                                                
4:08:53 PM                                                                                                                    
CHAIR   KAWASAKI  [announced   invited   testimony]  and   public                                                               
testimony for SB 77.                                                                                                            
                                                                                                                                
4:09:11 PM                                                                                                                    
BEVERLY WOOLEY,  representing self,  Big Lake,  Alaska, testified                                                               
in  support of  SB 77.  She said  she is  a cancer  survivor. She                                                               
described the  challenges of accessing out-of-state  medical care                                                               
under  the current  eligibility  rules for  the Alaska  Permanent                                                               
Fund  Dividend(PFD)  eligibility. She  said  her  and her  spouse                                                               
needed treatment  unavailable in Alaska, which  required spending                                                               
time out of  state. Fortunately, early diagnoses  allowed them to                                                               
stay within the  allowable 180 days and receive  their PFD, which                                                               
was  critical   for  covering  medical  and   travel  costs.  She                                                               
highlighted  the problem  if a  serious medical  diagnosis occurs                                                               
late  in the  year after  already using  the allowable  180 days.                                                               
Current rules  could force Alaskans to  limit necessary treatment                                                               
to meet the 180-day cap, delay  care until the following year, or                                                               
lose the  PFD. She said  none of  these options are  practical or                                                               
fair,  especially   given  the  stress,  travel   logistics,  and                                                               
additional costs involved in  medical emergencies. She emphasized                                                               
that  retirees and  other Alaskans  may also  use allowable  days                                                               
early  in  the   year  for  travel  or   family  visits,  further                                                               
complicated access to  care. She said that SB  77 would alleviate                                                               
this   stress  by   simplifying   rules   and  ensuring   medical                                                               
emergencies  requiring  out-of-state   treatment  don't  unfairly                                                               
jeopardize a PFD.                                                                                                               
                                                                                                                                
4:13:58 PM                                                                                                                    
KATI CAPOZZI,  President, Alaska Chamber of  Commerce, Anchorage,                                                               
Alaska,  testified in  support of  SB 77  and the  clarifying PFD                                                               
statute,  so  Alaskans  in the  uniformed  services  or  merchant                                                               
marine training remain eligible to  receive the PFD, if they meet                                                               
all other requirements. Since 1997,  over 700 Alaskans, including                                                               
youth,  Alaska Natives,  displaced  workers,  and veterans,  have                                                               
trained at  the Paul Hall  Center for Maritime  Training, gaining                                                               
Coast Guard  certified skills. She  said maritime  companies rely                                                               
on  these programs  to  meet their  commitment  to hire  locally.                                                               
Denying PFDs  during training  could discourage  younger Alaskans                                                               
from pursuing these careers, which  are designed to bring workers                                                               
back to Alaska to live, work, and contribute to the economy.                                                                    
                                                                                                                                
4:16:48 PM                                                                                                                    
CHAIR KAWASAKI held SB 77 in committee.