Legislature(2023 - 2024)GRUENBERG 120

03/14/2023 01:00 PM House MILITARY & VETERANS' AFFAIRS

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Audio Topic
01:03:38 PM Start
01:04:24 PM HB25
01:15:47 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 25 PFD ELIGIBILITY UNIFORMED SERVICES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
            HB 25-PFD ELIGIBILITY UNIFORMED SERVICES                                                                        
                                                                                                                                
1:04:24 PM                                                                                                                    
                                                                                                                                
CHAIR WRIGHT announced  that the only order of  business would be                                                               
HOUSE  BILL NO.  25,  "An  Act relating  to  eligibility for  the                                                               
permanent fund  dividend; and providing  for an  effective date."                                                               
[Before the committee was CSHB 25(STA).]                                                                                        
                                                                                                                                
CHAIR  WRIGHT  advised the  committee  that  there is  a  revised                                                               
indeterminate fiscal note.                                                                                                      
                                                                                                                                
1:05:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDI STORY,  Alaska State  Legislature, as  prime                                                               
sponsor,  provided an  overview  of HB  25.   She  said the  bill                                                               
provides absence  allowance for  members of the  National Oceanic                                                               
and  Atmospheric Administration  Commissioned Officers  Corps and                                                               
the  Public  Health  Service   Commissioned  Officer  Corps  when                                                               
applying for  the permanent fund  dividend (PFD).  She  said CSHB
25(STA)  added merchant  marines, as  well a  section on  medical                                                               
exemptions.                                                                                                                     
                                                                                                                                
1:06:30 PM                                                                                                                    
                                                                                                                                
SETH  WHITTEN, Staff,  Representative  Andi  Story, Alaska  State                                                               
Legislature, said  he had  overestimated a  figure in  a question                                                               
posed at the  last meeting regarding the cost  impact the changes                                                               
would have on  individual dividends.  Using the  2022 dividend of                                                               
$3,284 as  an example, he had  advised that it would  cost $4 for                                                               
every   100   additional   people    added   to   the   dividend.                                                               
Subsequently, he checked the figure  with the Legislative Finance                                                               
Division,  who  advised  that  the  actual  impact  per  100  new                                                               
applicants would be $.52 cents rather than $4.00.                                                                               
                                                                                                                                
1:07:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER queried  Representative Story  about page                                                               
4, line  7, of the bill.   The language states  that: "Section 3.                                                               
AS  43.23.011 is  amended by  adding  a new  subsection to  read:                                                               
(d)An otherwise eligible individual may  apply for a current year                                                               
dividend after March  31 and before October 1 of  that year."  He                                                               
asked what  the genesis was  of the language "and  before October                                                               
1."                                                                                                                             
                                                                                                                                
REPRESENTATIVE STORY said  the language is from  an amendment she                                                               
had  worked   on  with  Representative   Shaw.    She   shared  a                                                               
hypothetical  scenario  where  a  person  experiences  a  medical                                                               
emergency and  is unable to  apply for the dividend  before March                                                               
31.                                                                                                                             
                                                                                                                                
REPRESENTATIVE  SADDLER relayed  his understanding  that existing                                                               
statute already  provides that if  a parent or guardian  does not                                                               
apply for  a PFD on  behalf of their  child, the child  can apply                                                               
for retroactive dividends upon turning 18.   He said he is unsure                                                               
how the proposed language in Section 3 melds with existing law.                                                                 
                                                                                                                                
1:09:35 PM                                                                                                                    
                                                                                                                                
MR.  WHITTEN  responded  that the  proposed  section  deals  with                                                               
dependents, in  that the language  allows the parent  or guardian                                                               
to  file on  the  dependent's behalf  in the  case  of a  medical                                                               
emergency preventing the dependent from filing before March 31.                                                                 
                                                                                                                                
1:10:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  asked Representative  Story about  the long-                                                               
term PFD  eligibility for members  of public health service.   He                                                               
relayed his understanding that deployment  in public health "is a                                                               
voluntary thing," and said that once  a person is hired, they are                                                               
not  forced to  relocate.   He posed  a hypothetical  scenario: A                                                               
person is  hired by the  U.S. Food and Drug  Administration (FDA)                                                               
in  Alaska; there  are no  FDA jobs  in the  state but  there are                                                               
positions in  Wisconsin, and the  person then works out  of state                                                               
for decades.   He stressed  that his main concern  is individuals                                                               
receiving  dividend payments  over a  long period  of time  while                                                               
never stepping foot in Alaska.                                                                                                  
                                                                                                                                
REPRESENTATIVE STORY  offered her understanding  that Legislative                                                               
Legal Services is looking into the matter.                                                                                      
                                                                                                                                
1:12:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  suggested  that Ms.  Wojtusik  from  the                                                               
Permanent  Fund  Dividend  Division   might  be  able  to  answer                                                               
Representative Gray's question.                                                                                                 
                                                                                                                                
1:12:39 PM                                                                                                                    
                                                                                                                                
GENEVIEVE   WOJTUSIK,   Director,    Permanent   Fund   Division,                                                               
Department of  Revenue, confirmed that Representative  Saddler is                                                               
referring  to the  five-year rule.   In  referring to  an earlier                                                               
line  of questioning,  she  noted  regulation around  retroactive                                                               
PFDs for  18-20 years  of age  whose parent  or guardian  did not                                                               
file  for  them:  15  AAC   23.133.    She  also  noted  existing                                                               
regulation   on  medical   conditions  as   it  relates   to  PFD                                                               
applications: 15 AAC 23.123.  She  said she is unsure whether the                                                               
proposed language is  in addition to, or  competes with, existing                                                               
law.   She  mentioned  that  the five-year  rule  falls under  AS                                                               
43.23.008(d), which read as follows:                                                                                            
                                                                                                                                
        (d) After an individual has been absent from the                                                                        
        state for more than 180 days in each of the five                                                                        
     preceding  qualifying   years,  the   department  shall                                                                    
     presume  that  the  individual is  no  longer  a  state                                                                    
     resident. The individual may  rebut this presumption by                                                                    
     providing   clear  and   convincing  evidence   to  the                                                                    
     department that                                                                                                            
          (1) the  individual was physically present  in the                                                                    
     state for at  least 30 cumulative days  during the past                                                                    
     five years; and                                                                                                            
          (2) the individual is a  state resident as defined                                                                    
     in AS 43.23.295.                                                                                                           
                                                                                                                                
1:14:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY said she will investigate whether the                                                                      
language conflicts and determine if any changes need to be made.                                                                
                                                                                                                                
1:15:23 PM                                                                                                                    
                                                                                                                                
CHAIR WRIGHT set an amendment deadline for Wednesday, March 15,                                                                 
at 4 p.m.                                                                                                                       
                                                                                                                                
[HB 25 was held over.]                                                                                                          

Document Name Date/Time Subjects
CSHB 25 Fiscal Note DOR-PFD 2.24.23.pdf HMLV 3/14/2023 1:00:00 PM
HB 25