Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/23/2022 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB160 | |
| SB174 | |
| HB133 | |
| SB233 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 160 | TELECONFERENCED | |
| *+ | SB 234 | TELECONFERENCED | |
| + | HB 133 | TELECONFERENCED | |
| *+ | SB 233 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 174 | TELECONFERENCED | |
SB 233-PFD ALLOWABLE ABSENCE/MERCHANT MARINE
2:28:07 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SENATE BILL NO. 233 "An Act relating to
allowable absences for permanent fund dividend qualification;
and providing for an effective date."
2:28:39 PM
KATIE MCCALL, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, introduced SB 233 on behalf of the
Senate Labor and Commerce Standing Committee, paraphrasing the
following sponsor statement:
In 1999, House Bill 157 was offered by Representative
Jerry Sanders. The bill added those serving under
articles of employment aboard oceangoing vessels of
the US Merchant Marine to an allowable absence for the
purposes of qualifying for the permanent fund
dividend. At the time, the apprenticeship program that
qualified them for these careers as commercial sailors
was an allowable absence. This program was created in
part with the help of Congressman Don Young, and
decades ago when touring a ship, the Congressman had
asked "where are all of the Alaskans?" To his
disappointment, there were no Alaskans working on the
ship. This interaction helped begin an effort to train
more Alaskans for careers in the US Merchant Marine.
The intent of the 1999 legislation was to allow
merchant mariners and trainees to qualify for an
allowable absence, with that intent clearly expressed
through the testimony and supporting documents for the
original bill. Since 1999, over 750 Alaskans have
graduated from the Harry Lundeberg School of
Seamanship and the Paul Hall Center. However, due to
statutes and regulations that have been amended since
then, Alaskans who participate in this training
program remain ineligible for the permanent fund
dividend while they are out of state receiving the
training.
Senate Bill 233 would amend state statute to include
an allowable absence for Alaskans attending a merchant
marine training program, so they are not
disincentivized from attending.
2:30:42 PM
MS. MCCALL presented the sectional analysis for SB 233 that read
as follows:
Sec. 1 AS 43.23.008(a)(4) Page 2, Lines 6-7
Is amended by adding a new subsection specifying that
an Alaska resident who is otherwise eligible to
receive the permanent fund dividend remains eligible
if they are absent from the state during the
qualifying year for the purposes of attending a
program that prepares students for careers in the
United States merchant marine.
Sec. 2 Page 3, Line 14
Provides for an effective date of January 1, 2023.
CHAIR COSTELLO turned to invited testimony.
2:31:45 PM
RICH BERKOWITZ, Consultant, Transportation Institute (TI),
Seattle, Washington, testified by invitation in support of SB
233. He advised that until recently he worked as the Pacific
Coast Vice President of Transportation Institute, which is an
educational and research organization that supports US flagged
vessel operators. He listed the companies in Alaska that are TI
members.
MR. BERKOWITZ recapped the genesis of promoting maritime local
hire of Alaskans on ocean going vessels plying trade in Alaska
as outlined in the sponsor statement above. Despite the intent
of Representative Jerry Sanders' House Bill 157 that passed the
Alaska Legislature in 1999, Alaskans who participate in an out-
of-state federally registered maritime training program are not
eligible for the permanent fund dividend. SB 233 resolves this
issue by amending state statute to include an allowable absence
for Alaskans attending a merchant marine training program.
2:36:24 PM
TIFFANY ALBERT, Director of Communications, Alaska State
Chamber, Anchorage, Alaska, testified by invitation in support
of SB 233. She stated that the Chamber's mission is to promote a
healthy business environment in Alaska. As such, the Chamber
supports amending the PFD statute to assure that Alaskans who
attend training out of state at federally registered apprentice
programs are eligible to receive a PFD provided they have met
all other eligibility criteria. Since 1997, over 700 Alaskans
have been trained and placed in maritime employment after
graduating from the Paul Hall Center for maritime training
education. This includes a broad range of Alaskans whose
training was paid for through a labor management training trust
fund. This assures management that these individuals are
thoroughly trained to US Coast Guard standards and uniformly
meet security, safety, and competency standards. By recruiting
Alaskans for maritime work in Alaska, maritime companies that
ply trade in Alaska waters continue to meet their commitment to
hire local. Denying PFD benefits to Alaskans while they are
engaged in training for this work is an impediment to the
pursuit of this career path.
MS. ALBERT reiterated support for SB 233 on behalf of the Alaska
State Chamber and urged passage of this "good for business"
bill.
2:38:44 PM
CHAIR COSTELLO opened public testimony on SB 233.
2:39:03 PM
MYKEL POTTER, representing self, Sitka, Alaska, testified in
support of SB 233. He relayed his story of joining the Merchant
Marine in 2017 through a local recruitment program and attending
training at Piney Point, Maryland. He filed for the PFD and his
application was denied because of the time he spent in training
at Piney Point. He said the denial was particularly confusing
because he had a contract with the Department of Labor to attend
the training. He urged the committee to resolve this issue so
Alaskans like himself are not denied a dividend for attending
federally authorized maritime training outside the state.
2:41:48 PM
CHAIR COSTELLO discerned no others wished to comment and closed
public testimony on SB 233.
She asked Anna MacKinnon if SB 233 would create a problem for
the Permanent Fund Dividend Division.
2:42:25 PM
ANNA MACKINNON, Director, Permanent Fund Dividend Division,
Department of Administration (DOA), Juneau, Alaska, directed
attention to the new text in SB 233, "or attending a vocational
program that" on page 2, lines 6-7. She described the provisions
attached to that phrase as overly broad and potentially would
allow programs beyond what is intended. She noted that the
programs have been described as a certified federal program or
one that is held at the US Coast Guard National Maritime Center,
but that language is not in the bill so the division would have
to look at each application and determine whether the program
qualified to prepare the applicant for a career in the US
Merchant Marine. She noted that the PFD division had received
some interesting requests for out-of-state training and
suggested that may have been what caused the Alaska Commission
on Postsecondary Education to change its regulations. She said
the PFD division recognizes the issue and appreciates that this
registered merchant mariner training program benefits the Alaska
workforce.
2:45:39 PM
CHAIR COSTELLO offered her belief that the drafters were not
comfortable naming certain programs in statute and the bill
attempts to provide that specificity. She committed to work with
the PFD division and other interested parties to tighten the
language so it is clear which programs qualify.
CHAIR COSTELLO held SB 233 in committee for further work.