04/13/2009 09:00 AM Senate FINANCE

SENATE BILL NO. 171                                                                                                           
                                                                                                                                
"An  Act  relating  to  the permanent  fund  dividend  of  an                                                                   
otherwise   qualified   individual   who  dies   during   the                                                                   
qualifying year; and providing for an effective date."                                                                          
                                                                                                                                
10:14:36 AM                                                                                                                   
                                                                                                                                
SENATOR KEVIN  MEYER informed that  SB 171 would  provide the                                                                   
issuance  of  a Permanent  Fund  Dividend  (PFD) check  to  a                                                                   
personal  representative of  the estate  or successor  of the                                                                   
deceased during  the qualifying  year. He  noted that  SB 171                                                                   
treats deceased Alaskans  as living in terms  of applying for                                                                   
their final  PFD. in fulfilling all eligibility  requirements                                                                   
as  other  Alaskan   citizens  under  the   current  statute.                                                                   
Exceptions are  that an individual cannot apply  if deceased.                                                                   
The bill  itself includes the  application process.  He noted                                                                   
that the  director  of the PFD  division was  present in  the                                                                   
hearing for questions.                                                                                                          
                                                                                                                                
Co-Chair   Stedman  requested   a  chronological  time   span                                                                   
illustrating  how a  citizen may  or may not  qualify if  the                                                                   
bill was enacted.                                                                                                               
                                                                                                                                
Senator  Meyer answered  that the  issue was  brought to  his                                                                   
attention  by long  term constituents  whose  loved ones  had                                                                   
lived to  fulfill the  requirements, yet  had not received  a                                                                   
PFD. The  deceased has to meet  the same requirements  as any                                                                   
other Alaskan  meaning that the  deceased must live  180 days                                                                   
of the year for eligibility. Co-Chair  Stedman clarified that                                                                   
the applicant must apply as required  by statute, live in the                                                                   
state, but "just happen to pass away in July or later."                                                                         
                                                                                                                                
10:17:29 AM                                                                                                                   
                                                                                                                                
Senator  Olson  asked  if  there  was  a  difference  if  the                                                                   
applicant  is buried in  the state  of Alaska. Senator  Meyer                                                                   
answered that the place of burial makes no difference.                                                                          
                                                                                                                                
Co-Chair  Stedman  asked  if the  bill  in  question  affects                                                                   
citizens  in 2008  and  2009.  He asked  to  know the  bill's                                                                   
timeframe.                                                                                                                      
                                                                                                                                
DEBORAH   BITNEY,   DIRECTOR,    PERMANENT   FUND   DIVISION,                                                                   
DEPARTMENT OF REVENUE, answered  Co-Chair Stedman's question.                                                                   
She stated  that the legislation  begins the qualifying  year                                                                   
of 2009 and applies  to Alaskans who pass away  in the second                                                                   
half of 2009.                                                                                                                   
                                                                                                                                
Senator  Huggins  asked  what  precludes  the  deceased  from                                                                   
receiving  the benefit  currently. Ms.  Bitney answered  that                                                                   
current  regulations  allow  for  applicants  who  pass  away                                                                   
during the application period  only. The statute amended with                                                                   
this legislation  states that  a citizen  must be a  resident                                                                   
for the  entire qualifying year.  She stated that  a resident                                                                   
was defined as someone living.                                                                                                  
                                                                                                                                
Co-Chair  Stedman  asked  about proper  notification  to  the                                                                   
department that the deceased "passed on."                                                                                       
                                                                                                                                
10:20:37 AM                                                                                                                   
                                                                                                                                
Ms.  Bitney   stated  that   the  death  certificate   allows                                                                   
administration of the check.                                                                                                    
                                                                                                                                
Senator   Thomas  clarified   that  if   a  person   had  all                                                                   
qualifications from January to  June of 2009 they qualify for                                                                   
a PFD. Ms. Bitney agreed.                                                                                                       
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  ADOPT work  draft  for  SB  171                                                                   
LS0804\S.                                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
CHRISTINE  MARASIGAN, STAFF, SENATOR  KEVIN MEYER,  explained                                                                   
the work draft.  She explained that the work  draft contained                                                                   
three  major  changes.  One change  ensured  that  individual                                                                   
applicants received  a dividend at least one  year prior. She                                                                   
stated that another  change limits the dividend  to residents                                                                   
of Alaska.  The final  change allows a  person to  be present                                                                   
for 180  days versus  the entire  year as  was stated  in the                                                                   
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Stedman  removed  his  OBJECTION.  There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman addressed the  fiscal note, which is reduced                                                                   
by $50,000  in interagency receipts  as a result of  one less                                                                   
required position.                                                                                                              
                                                                                                                                
10:24:51 AM                                                                                                                   
                                                                                                                                
SB  171  was   HEARD  and  HELD  in  Committee   for  further                                                                   
          consideration.                                                                                                        
                                                                                                                                
10:25:28 AM  AT EASE                                                                                                          
10:26:03 AM  RECONVENED                                                                                                       
                                                                                                                                
10:26:22 AM RECESSED                                                                                                          
1:42:23 PM  RECONVENED