Legislature(1995 - 1996)
01/24/1995 08:05 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HSTA - 01/24/95 Number 620 HB 70 - END PERMANENT FUND DIVIDEND HOLD HARMLESS CHAIR JAMES said she would like to go on to HB 70 briefly and get the sponsor statement so she could carry it over to the next meeting date. REPRESENTATIVE PETE KOTT, SPONSOR OF HB 70, testified that this measure would add a few dollars to the permanent fund dividend check. At the present time, a recipient of welfare who receives a Permanent fund dividend (PFD), fails to qualify for continued welfare benefits and depending on the circumstance, the disqualification could last up to four months. Generally, it is one month. Welfare benefits are then made to the individual, under what is known as the hold-harmless program. That program is funded by deducting that amount necessary for the welfare benefits from everyone else's PFD check. This year it was in the excess of $41. The amount has grown of the years - it started off at a little over $6. Over the course of time, the entire program has cost every other Alaskan about $240. The Department of Health and Social Services has eight full-time employees that administer this particular program. HB 70 would eliminate this hold-harmless program. It would mean that PFD checks would be treated as ordinary income for purposes of determining welfare eligibility, and this is the same way that income is treated by the Internal Revenue Service. It also means that PFD recipients would not continue to fund a program that allows individuals to receive that money while they are still on welfare. Representative Kott's belief is that it is a step self-sufficiency, and accomplishing welfare reform. There is no fiscal note associated with it. They do not know what the fiscal ramifications would be. All they know is that there are about eight individuals who work toward this particular end in the Department of Health & Social Services. CHAIR JAMES asked for questions, and the committee agreed to reserve questions for a later period. She said the bill will be held over to Thursday, January 31, 1995.
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