Legislature(2023 - 2024)SENATE FINANCE 532
02/26/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SJR14 | |
| Confirmation of Governor's Appointees: John Sturgeon, Alaska Mental Health Trust Authority | |
| Confirmation of Governor's Appointees: Brent Fisher, Alaska Mental Health Trust Authority | |
| SB85 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 85 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SJR 14 | TELECONFERENCED | |
SENATE BILL NO. 85
"An Act relating to record checks for certain
employees of the Department of Revenue; relating to
permanent fund dividends; and providing for an
effective date."
9:15:19 AM
GENEVIEVE WOJTUSIK, DIRECTOR, PERMANENT FUND DIVIDEND
DIVISION, introduced the legislation. She discussed slide 3
of the presentation, "SB 85" (copy on file):
9:16:38 AM
Ms. Wojtusik pointed to slide 3,SB 85-Bill Overview:
An Act relating to record checks for certain employees
of the Department of Revenue; relating to permanent
fund dividends.
• The proposed legislation provides statutory
authority to collect fingerprints for the purpose of
conducting background checks on DOR employees
including contractors that may have access to personal
identifiable information (PII).
• Allows merchant mariners attending qualified
vocational programs to qualify for an allowable
absence from the state for eligibility purposes.
• Adds a new subsection to AS 43.23.008 to define the
term "education on a full-time basis" for the purposes
of calculating allowable absences for students
receiving secondary or postsecondary education,
vocational, professional, or other specific education.
• Amends AS 43.23.140(d) to allow the division to use
electronic notice of levy for individuals who are
subjected to a court order or writ for the collection
of a debt.
9:16:48 AM
Ms. Wojtusik addressed slide 4, SB 85:
Sections 1, 3 and 5: Background Checks on Employees:
Amends AS 12.62 and AS 43.23 to authorize the
Department of Revenue to collect fingerprints for
completion of a national criminal history record check
for the purpose of determining suitability for
employment.
The amendment to AS 12.62 authorizes the Department of
Public Safety to conduct national criminal history
checks for division employees.
9:17:14 AM
Ms. Wojtusik looked at slide 5, SB 85:
Section 2: Adds Definition to "education on a full-
time basis"
Adds a new subsection to AS 43.23.008 to define the
term "education on a full-time basis" for the purposes
of calculating allowable absences for students
receiving secondary or postsecondary education,
vocational, professional, or other specific education.
• The proposed definition would allow the division to
include intraacademic year holidays and breaks, but
not summer breaks, in the full-time education
calculation, as opposed for separately calculating
holidays and breaks under the current iteration of the
statute.
9:17:28 AM
Ms. Wojtusik highlighted slide 6, SB 85:
Section 2: Merchant Mariners
Amends AS 43.23.008(a) to allow merchant mariners
students training to be Merchant Mariners attending
qualified vocational courses to maintain PFD
eligibility.
9:17:59 AM
Ms. Wojtusik pointed to slides 7 and 8, SB 85:
Section 2: New from S L&C CS:
Amends AS 43.23.008(a) (5) receiving continuous
medical treatment recommended by a licensed physician
or convalescing as recommended by the physician who
treated the illness if the treatment or convalescence
is not based on a need for climatic change;
to allow:
(A) 180 days in addition to any absence or cumulative
absences claimed (i) under (3) of this subsection
if the individual is not claiming an absence
under (1), (2), or (4) - (16) of this subsection;
or (ii) under (5) of this subsection if the
individual is not claiming an absence under (1) -
(4) or (6) - (16) of this subsection;
Section 4: Electronic Notice of Levy Amends AS
43.23.140(d) to allow the division to use electronic
notice of levy for individuals who are subjected to a
court order or writ for the collection of a debt.
• Currently, the division is required to provide
notice of levy via mail, despite the consent of many
applicants to receive electronic notices.
9:18:25 AM
Ms. Wojtusik addressed slide 9:
Section 5: Adds transitional regulation language.
Section 6: Adds immediate effective date language.
Section 7: Adds otherwise effective date language as
of 1/1/2024.
9:18:36 AM
Senator Kiehl requested further clarification on the "break
or holiday" language.
9:18:51 AM
Ms. Wojtusik replied that the number of absences were
counted for students out of state for school; the intent
was to assure student were not disqualified if they could
not make it back to the state for spring or winter break.
9:19:43 AM
Senator Kiehl asked about the fingerprinting and whether it
was a current practice.
9:19:58 AM
Ms. Wojtusik responded that currently background checks,
including fingerprinting, was not a practice for the
department. She said that the addition of fingerprinting
was meant as a safety measure.
9:20:29 AM
Senator Kiehl queried the possible risks that had been
identified to require the background check.
9:20:43 AM
Ms. Wojtusik replied that employees would have access to
sensitive information and the department believed that this
was a step in mitigating risk while handing confidential
and private information.
9:21:10 AM
Co-Chair Olson asked whether it had been a problem in the
past.
9:21:13 AM
Ms. Wojtusik responded that there had been no problems in
the past.
9:21:21 AM
Senator Kiehl wondered how much of PFD applicant
information was available to individual Alaskans or
department staff.
Ms. Wojtusik replied that staff signed confidentiality
agreements and were privy to information listed on the PFD
application.
Senator Kiehl thought that the names of PFD applicants had
been available in the past to data brokers.
9:22:09 AM
Ms. Wojtusik said that the data base was no longer
available online. She said that a paper copy of every
Alaskan that had applied for the PFD could be requested by
the public.
9:24:19 AM
COREY BIGELOW, OPERATIONS MANAGER, PFD DIVISION, DEPARTMENT
OF REVENUE, JUNEAU (via teleconference), stated that he did
not have a presentation and was available for questions.
9:25:28 AM
Co-Chair Olson asked for a presentation of the fiscal note.
9:25:36 AM
AT EASE
9:26:25 AM
RECONVENED
9:26:38 AM
Ms. Wojtusik spoke to the zero fiscal note, OMB component
981. She noted that there would be minimal costs absorbed
by the department.
9:26:57 AM
Co-Chair Olson surmised that that the costs would not
increase the departments budget.
9:27:13 AM
Ms. Wojtusik agreed.
9:27:44 AM
RICH BERKOWITZ, TRANSPORTATION INSTITUTE, SEATTLE (via
teleconference), spoke in support of the legislation. He
spoke to the importance that Merchant Mariners be allowed
to qualify for the PFD even though they might be absent
from the state for training or deployment. He noted that
training for mariners did not require tuition, which was
different from students being out of state for college. He
stressed that the legislation would not change eligibility
requirements but would recognize the importance of the work
of Merchant Mariners and support them in procuring their
PFD even while they are working and training outside of the
state.
9:33:39 AM
Co-Chair Olson wondered whether anyone in training had had
their PFD application challenged.
9:33:54 AM
Mr. Berkowitz replied that there had been a few Alaskans in
mariner training who had been denied their PFD. He believed
that reinstating the Merchant Marine language was fair.
9:36:27 AM
SARAH SCHERER, VICE PRESIDENT OF PACIFIC COAST OPERATIONS,
TRANSPORTATION INSTITUTE, SEATTLE (via teleconference),
testified in support of the bill. She offered support to
the language pertaining to the Merchant Marines.
9:39:36 AM
Co-Chair Olson asked how many of the 800 Alaskans currently
employed as Merchant Mariners were receiving the PFD
annually.
9:39:43 AM
Ms. Scherer replied that she did not know.
Co-Chair Olson asked for an approximation.
9:39:58 AM
Ms. Scherer stated that in 2022 there were 12 claims
denied, 15 in 2021, 12 in 2020, 19 in 2019, and 15 in 2018.
She recognized that the numbers were not huge, but that
Merchant Marines were in limited supply and losing the PFD
was not an incentive for hiring Alaskans.
9:40:55 AM
Ms. Wojtusik agreed with the numbers provided by Ms.
Scherer.
9:41:10 AM
Co-Chair Olson asked for the numbers again.
9:41:13 AM
Ms. Wojtusik repeated the numbers.
9:41:31 AM
Senator Wilson asked whether students attending school on
an alternative schedule could still qualify.
9:42:11 AM
Ms. Wojtusik deferred to Ms. Lane.
9:42:40 AM
KIMBERLY LANE, ELIGIBILITY MANAGER, PFD DIVISION,
DEPARTMENT OF REVENUE, JUNEAU (via teleconference),
responded that if a student was registered in school they
would be covered under the bill.
9:43:02 AM
Senator Wilson wondered about students who were in school
during the summer break and taking a break when students
were traditionally in school.
9:43:29 AM
Ms. Lane replied that 120 days was covered in allowable
absences. She noted that summer classes were generally not
full-time.
9:44:42 AM
Senator Wilson felt that it was an assumption that students
would not be attending school in the summer. He thought the
matter needed further discussion.
9:45:19 AM
Ms. Wojtusik said that the school registrar sent a verified
education verification that informed whether students were
taking classes full-time. She stressed that students were
usually registered for half-time classes in the summer and
did not qualify under the bill.
9:45:47 AM
Senator Wilson hypothesized that there could be students
who attended school full-time in the summer and that they
should be allowed protection under the bill the same as the
Merchant Marines.
9:46:26 AM
Ms. Wojtusik agreed to explore the issue further.
9:46:34 AM
Co-Chair Olson asked about a student who dropped out of
school and whether they would still be eligible.
9:46:42 AM
Ms. Wojtusik replied that it depended on factors. If the
student returned to Alaska within the timeframe for
allowable absences yes.
9:47:20 AM
Senator Wilson wondered how the enforcement would work in
terms of qualifying years.
9:47:55 AM
Ms. Wojtusik deferred to Ms. Lane.
9:48:04 AM
Ms. Lane explained that the application period covered
applicable absences for the qualifying year, which was
always the prior year.
9:48:42 AM
Senator Wilson asked whether the intent to go to school
would qualify a person.
9:49:05 AM
Ms. Lane said that the division received verification from
the school and an estimated graduation date to separate
intent from actual action.
9:49:43 AM
Senator Wilson continued the same question track.
9:50:15 AM
Ms. Lane replied that the verification form allowed for the
spring semester to be reported.
9:50:48 AM
FADIL LIMANI, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE,
explained the bill was straight forward. He said that the
department had made improvements to protect peoples
privacy and that the bill would strengthen those
protections.
9:51:41 AM
Co-Chair Hoffman looked at page 7, Section 7, and wondered
whether the bill would be retroactive to January 2024.
9:52:02 AM
Ms. Wojtusik said that the department would like the bill
to be active January 1, 2025.
9:52:22 AM
Co-Chair Olson asked whether the administration was in
favor of the change form 45 days to 180 days for sick
leave.
9:52:26 AM
Mr. Limani deferred the question to Ms. Wojtusik.
9:52:45 AM
Co-Chair Olson OPENED and CLOSED public testimony.
SB 85 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 022624 Confirmation Brent Fisher AMHTA Resume_Redacted.pdf |
SFIN 2/26/2024 9:00:00 AM |
|
| 022624 John Sturgeon AMHTA Bio_Redacted.pdf |
SFIN 2/26/2024 9:00:00 AM |
|
| SB 85 Letters of Support.pdf |
SFIN 2/26/2024 9:00:00 AM |
SB 85 |
| SB 85 S.FIN Hearing Request 05.05.23.pdf |
SFIN 2/26/2024 9:00:00 AM |
SB 85 |
| SB 85 Sectional Analysis version S.pdf |
SFIN 2/26/2024 9:00:00 AM |
SB 85 |
| SB 85 Summary of Changes from ver A to ver S.pdf |
SFIN 2/26/2024 9:00:00 AM |
SB 85 |
| SB 85 Presentation to S FIN 2.26.24.pdf |
SFIN 2/26/2024 9:00:00 AM |
SB 85 |