Legislature(2005 - 2006)HOUSE FINANCE 519

03/30/2005 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 127 PFD:PEACE CORPS/DIPLOMAT/SANCTIONS
Moved CSHB 127(FIN) Out of Committee
HB 75 HUNTING
Heard & Held
                                                                                                                                
HOUSE BILL NO. 127                                                                                                            
                                                                                                                                
     "An Act  relating to service  in the peace corps  and to                                                                   
     service  as  a diplomat  in  the United  States  Foreign                                                                   
     Service  as  allowable  absences   from  the  state  for                                                                   
     purposes  of eligibility  for  permanent fund  dividends                                                                   
     and  to  the period  for  filing  an application  for  a                                                                   
     permanent fund  dividend; authorizing the  Department of                                                                   
     Revenue   to   issue  administrative   orders   imposing                                                                   
     sanctions  for   certain  misrepresentations   or  other                                                                   
     actions  concerning  eligibility  for a  permanent  fund                                                                   
     dividend  and  providing  for administrative  appeal  of                                                                   
    those orders; and providing for an effective date."                                                                         
                                                                                                                                
9:07:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LESIL MCGUIRE, sponsor,  spoke in  support of                                                                   
HB  127.   She  reported that  the  Peace Corps  provides  an                                                                   
important  service  and  its members  return  to  Alaska  and                                                                   
contribute to the state.  Peace  Corps volunteers were one of                                                                   
the original groups  that were a recognizable  exemption from                                                                   
the   eligibility  requirements   for   the  permanent   fund                                                                   
dividend.    Representative  McGuire   highlighted  the  many                                                                   
contributions  made  by members  of  the  Peace Corps.    She                                                                   
explained that the  second part of the bill  would give civil                                                                   
penalty authority to the Department  of Revenue to crack down                                                                   
on dividend fraud.                                                                                                              
                                                                                                                                
Vice-Chair Stoltze  asked if  this is the  same bill  as last                                                                   
year's bill.  Representative McGuire  replied yes.  She noted                                                                   
that a  Peace Corps Volunteer  application has  been included                                                                   
in the members' packets (copy on file.)                                                                                         
                                                                                                                                
9:12:14 AM                                                                                                                    
                                                                                                                                
RUSSELL WALKER,  ANCHORAGE, (via  teleconference) shared  his                                                                   
Peace  Corps experiences  in  Africa.   He  explained that  a                                                                   
Peace  Corps worker  is alone  in the country  and that  some                                                                   
have died  in service  to the  United States.   He  submitted                                                                   
written  testimony  about  "Fallen   Peace  Corps  Volunteers                                                                   
Memorial Project"(copy  on file.) He testified  in support of                                                                   
HB 127.                                                                                                                         
                                                                                                                                
SHELLY  BREWER,  ANCHORAGE,  (via  teleconference)  requested                                                                   
that the  permanent fund  dividend be  reinstated for  future                                                                   
Peace Corps  workers.  She shared  her experience as  a Peace                                                                   
Corps worker in Romania.                                                                                                        
                                                                                                                                
9:18:41 AM                                                                                                                    
                                                                                                                                
JOE  SULLIVAN,  ANCHORAGE, (via  teleconference)  shared  his                                                                   
experiences in Zambia in the Peace  Corps.  He spoke in favor                                                                   
of HB 127.                                                                                                                      
                                                                                                                                
9:22:15 AM                                                                                                                    
                                                                                                                                
DENMER  WELLS,  ANCHORAGE, (via  teleconference)  shared  his                                                                   
Peace Corps experiences in Thailand  and testified in support                                                                   
of HB 127.                                                                                                                      
                                                                                                                                
BRIAN  BRUBAKER,  ANCHORAGE, (via  teleconference)  spoke  in                                                                   
support of HB 127 and in support of Peace Corps workers.                                                                        
                                                                                                                                
9:28:45 AM                                                                                                                    
                                                                                                                                
JUSTIN  BARBALACE, PALMER,  (via teleconference)  spoke  as a                                                                   
Peace Corps nominee in support of HB 127.                                                                                       
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
9:30:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer MOVED  to ADOPT  Amendment 1  which reads  as                                                                   
follows:                                                                                                                        
                                                                                                                                
     Page 2, line 29:                                                                                                           
          Delete "[OR](14), or (15)"                                                                                        
          Insert "or (15)[14)]"                                                                                             
                                                                                                                                
Vice-Chair Stoltze OBJECTED for discussion purposes.                                                                            
                                                                                                                                
SUZANNE  CUNNINGHAM,   STAFF,  REPRESENTATIVE   KEVIN  MEYER,                                                                   
explained that  Amendment 1 closes  a loophole  regarding the                                                                   
eligibility  of a  spouse or  a  dependant of  a Peace  Corps                                                                   
volunteer to also receive a permanent fund dividend.                                                                            
                                                                                                                                
Vice-Chair Stoltze asked about previous legislation related                                                                     
to this bill.  Representative McGuire spoke in favor of                                                                         
Amendment 1.                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze WITHDREW his OBJECTION.                                                                                      
                                                                                                                                
There being NO OBJECTION, Amendment 1 was adopted.                                                                              
                                                                                                                                
9:33:22 AM                                                                                                                    
                                                                                                                                
Representative Croft WITHDREW Amendment 2 and stated that he                                                                    
would work with the sponsor on his ideas.                                                                                       
                                                                                                                                
Representative Weyhrauch MOVED to ADOPT Amendment 3, which                                                                      
reads as follows:                                                                                                               
                                                                                                                                
     Page 1, line 1, following "Act":                                                                                         
     Insert "relating  to voter  registration and  voting for                                                                 
     purposes of eligibility for permanent fund dividends;"                                                                   
                                                                                                                                
     Page 1, following line 7:                                                                                                  
     Insert a new bill section to read:                                                                                         
   "* Section 1.  AS 43.23.005(a) is amended to read:                                                                       
          (a)  An individual is eligible to receive one                                                                         
     permanent  fund dividend  each year in  an amount  to be                                                                   
     determined under AS 43.23.025 if the individual                                                                            
              (1)  applies to the department;                                                                                   
               (2)  is a state resident on the date of                                                                          
     application;                                                                                                               
               (3)  was a state resident during the entire                                                                      
     qualifying year;                                                                                                           
               (4)  has been physically present in the state                                                                    
     for at  least 72 consecutive  hours at some  time during                                                                   
     the prior two years before the current dividend year;                                                                      
               (5)  is                                                                                                          
                    (A)  a citizen of the United States;                                                                        
                    (B)  an alien lawfully admitted for                                                                         
         permanent residence in the United States;                                                                              
                    (C)  an alien with refugee status under                                                                     
          federal law; or                                                                                                       
                    (D)  an alien that has been granted                                                                         
          asylum under federal law;                                                                                             
               (6)  was, at all times during the qualifying                                                                     
     year,  physically present  in the  state or, if  absent,                                                                   
     was absent only as allowed in AS 43.23.008; [AND]                                                                          
               (7)  was in compliance during the qualifying                                                                     
     year  with the military  selective service  registration                                                                   
     requirements imposed under  50 U.S.C. App. 453 (Military                                                                   
     Selective  Service  Act),  if  those  requirements  were                                                                   
     applicable   to  the  individual,   or  has   come  into                                                                   
     compliance   after  being  notified   of  the   lack  of                                                                   
     compliance;                                                                                                            
               (8)  is registered to vote in state elections                                                                
     if the individual was qualified to register to vote in                                                                 
     state elections during the qualifying year; and                                                                        
               (9)  voted in the most recent general                                                                        
     election held before the current dividend year if the                                                                  
     individual was qualified to vote in that general                                                                       
     election."                                                                                                             
                                                                                                                                
     Page 1, line 8:                                                                                                            
     Delete "Section 1"                                                                                                       
     Insert "Sec. 2"                                                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, line 12:                                                                                                           
     Delete "secs. 3 - 5"                                                                                                       
     Insert "secs. 4 - 6"                                                                                                       
                                                                                                                                
     Page 4, line 15:                                                                                                           
     Delete "sec. 4"                                                                                                            
     Insert "sec. 5"                                                                                                            
                                                                                                                                
     Page 4, line 16:                                                                                                           
     Delete "sec. 5"                                                                                                            
     Insert "sec. 6"                                                                                                            
                                                                                                                                
     Page 4, line 19:                                                                                                           
     Delete "Section 6"                                                                                                         
     Insert "Section 7"                                                                                                         
                                                                                                                                
     Page 4, line 20:                                                                                                           
     Delete "Sections 3 - 5"                                                                                                    
     Insert "Sections 4 - 6"                                                                                                    
                                                                                                                                
     Page 4, line 21:                                                                                                           
     Delete "Sections 1 and 2"                                                                                                  
     Insert "Sections 1 - 3"                                                                                                    
                                                                                                                                
Representative  Weyhrauch explained  that the  intent of  the                                                                   
amendment is to get citizens to  have registered and voted in                                                                   
the last general  election before receiving a  permanent fund                                                                   
dividend.                                                                                                                       
                                                                                                                                
Co-Chair  Meyer  OBJECTED.    He spoke  of  a  concern  about                                                                   
putting a higher  standard on Peace Corps workers  than other                                                                   
citizens.  Representative Weyhrauch  replied that Amendment 3                                                                   
would  treat  all  people  who apply  for  a  permanent  fund                                                                   
dividend equally.   Co-Chair Meyer  asked how it  would apply                                                                   
to military  personnel.   Representative Weyhrauch  explained                                                                   
that it  would be the same;  they would have to  register and                                                                   
vote first.                                                                                                                     
                                                                                                                                
9:35:45 AM                                                                                                                    
                                                                                                                                
Representative Hawker applauded  the intent of the amendment,                                                                   
however, he pointed out that many  people do not vote because                                                                   
of religious  reasons.  He stated  that he  does not want  to                                                                   
disenfranchise those people.                                                                                                    
                                                                                                                                
Representative  Holm warned  against unintended  consequences                                                                   
of mandating voting requirements.                                                                                               
                                                                                                                                
Representative   Joule   asked  Representative   McGuire   if                                                                   
Amendment   3   would  raise   any   constitutional   issues.                                                                   
Representative McGuire  opined that it would.   She expressed                                                                   
that "as  much as we  want people to  vote," there  are First                                                                   
Amendment reasons  why some people  choose not to vote.   She                                                                   
concurred   with   Representative  Holm's   warning   against                                                                   
unintended consequences.                                                                                                        
                                                                                                                                
9:38:49 AM                                                                                                                    
                                                                                                                                
Representative  Croft  related  that  he  tried  to  draft  a                                                                   
similar bill  that would  require a person  to have  voted in                                                                   
order to receive a dividend, but  he could not get beyond the                                                                   
difficulties of religious exemption  and a person's right not                                                                   
to vote.  He expressed concern  about forcing people to vote.                                                                   
He commented  that he would  rather see more  informed voters                                                                   
and not  more forced  voters.  He  reported that  he couldn't                                                                   
support Amendment 3.                                                                                                            
                                                                                                                                
Representative Weyhrauch  summed up the issue  of free choice                                                                   
and the right to  vote or not to vote.  He opined  that it is                                                                   
not  right to  force a  person to  vote because  voting is  a                                                                   
privilege  and not  an obligation.   He  voiced concern  that                                                                   
money  is  given out  to  those  who  are not  physically  or                                                                   
politically  present in  the state,  and the  list of  abuses                                                                   
continues  to grow.   He summarized  a concern that  citizens                                                                   
have  a fundamental  obligation to  participate in  democracy                                                                   
and  vote, and  if  they  don't they  should  not  be paid  a                                                                   
permanent  fund  dividend  check.   The  state  should  allow                                                                   
exempt Alaskans  to collect a  permanent fund  dividend check                                                                   
only when  they return  to the  state so  that the  state can                                                                   
receive  the benefits  of their  presence in  the state.   He                                                                   
acknowledged that legal issues  raised by the sponsor and the                                                                   
committee exist.                                                                                                                
                                                                                                                                
9:44:43 AM                                                                                                                    
                                                                                                                                
Representative Kelly  mentioned mechanical  challenges raised                                                                   
by Amendment 3.   He noted that he understands  the spirit of                                                                   
the bill.                                                                                                                       
                                                                                                                                
9:46:10 AM                                                                                                                    
                                                                                                                                
SHARON BARTON,  DIRECTOR, PERMANENT  FUND DIVIDEND  DIVISION,                                                                   
DEPARTMENT  OF  REVENUE,  related   that  the  Department  of                                                                   
Revenue  would  need  a  year to  inform  recipients  of  the                                                                   
changes caused by Amendment 3.                                                                                                  
                                                                                                                                
Representative Weyhrauch WITHDREW Amendment 3.                                                                                  
                                                                                                                                
9:47:31 AM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to  report CS HB  127 (FIN)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 127 (FIN) was REPORTED out  of Committee as amended with                                                                   
a "do pass" recommendation and  with accompanying zero fiscal                                                                   
note #1 by the Department of Revenue.                                                                                           
                                                                                                                                
9:48:54 AM                                                                                                                    

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