Legislature(1997 - 1998)
04/16/1998 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
HB 481 - PERMANENT FUND DIVIDENDS FOR ESTATES Number 0001 CHAIR JAMES announced the first order of business is HB 481, "An Act relating to application for and payment of permanent fund dividends of certain deceased individuals; and providing for an effective date." Number 0006 JULIE TAURIAINEN, Legislative Assistant to Representative Gary Davis, Alaska State Legislature, presented the bill. She said HB 481 corrects an inequity in the categories of individuals who may apply for permanent fund dividends (PFD). One category of individuals who have been deprived of receiving their permanent fund, these are individuals who are eligible to receive their permanent fund but because they died during the application period, before applying, they do not receive their permanent fund dividend. In other words, they died at the wrong time of the year. MS. TAURIAINEN said permanent fund dividends are applied for between January 2 and March 31 of the year following the year for which the dividend applies, so you earn it the year before. Currently regulation allows, that if an applicant applies and then passes away before receiving their PFD, their estate may keep the dividend. However, if a potential applicant dies within the application period, but before applying for the PFD, their estate is unable to file for the PFD. This creates a class of individuals based solely on the date of their death. Number 0018 MS. TAURIAINEN explained HB 481 fixes the problem because it allows for estates or heirs, of individuals who are otherwise eligible but died during the application period, to apply for the deceased's PFD. It also adds into statute that an estate may keep a PFD of an individual who passes away after filing but before receiving their PFD. MS. TAURIAINEN concluded HB 481 requires no additional funding, however, the benefit to a family who are paying for a funeral or medical costs would be great. Number 0023 REPRESENTATIVE KIM ELTON indicated the class of individuals created isn't based on their death or the date of their death. It's based on whether or not they made the application before they died. He said we're not discriminating against someone because they died, it's because they didn't apply before they died when the application period was open. Number 0029 MS. TAURIAINEN replied there are two ways you can look at that. If you die on January 2... [DUE TO A MALFUNCTION, A PORTION OF THE MEETING WAS NOT RECORDED]. Number 0039 REPRESENTATIVE MARK HODGINS made a motion to adopt HCSHB 481, version LS1716\B, Cook, 4/15/98, as a working document. There being no objection that version was before the committee. Number 0042 CHAIR JAMES asked Ms. Taurianinen to explain the difference. MS. TAURIAINEN responded the difference is we're at the request of the permanent fund. She referred to the bottom of page 1, on the original bill, the application date. She said there was a separate application date that went through the 31st of July which created a problem for PFD because it was a whole new application date. So, this falls in line with the current application date of March 31. Then the retroactivity was taken out on what is now Section 3, it used to say January 1, 1997, and now it's to 1998. Number 0048 CHAIR JAMES asked if there were any objections to adopting HCSHB 481, version LS1716\B, Cook, 4/15/98. There being none, that version was before the committee. CHAIR JAMES noted for the record that Representatives Berkowitz and Ryan are present. Number 0052 NANCI JONES, Director, Permanent Fund Dividend Division, Department of Revenue, came before the committee. She said we currently have a provision to pay part of your dividends to 18-year-olds, who during their lifetime, their parents did not apply for them. She indicated they made provisions for them and also for [the Department of] Health and Social Services (H&SS) for children that are in their custody and seemed to fall through the cracks between the parents and H&SS, including disabled individuals who are not able to file for themselves. Number 0058 REPRESENTATIVE HODGINS asked who gets those permanent funds when you file for a dependent child or someone that's in the Division of Family and Youth Services system. Does a child actually receive that or is that gobbled up in the state? MS. JONES replied no, it's put in a trust for the child. Number 0062 REPRESENTATIVE HODGINS made a motion to move HB 481 out of committee as amended, with individual recommendations and attached zero fiscal note. There being no objection, CSHB 481(STA) moved from the House State Affairs Standing Committee.
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