Legislature(1995 - 1996)

04/05/1995 01:58 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 4/5/95                                                                        
          HB   4 PERMANENT FUND DIVIDEND ELIGIBILITY                          
                                                                              
  CHAIRMAN ROBIN TAYLOR  called the Judiciary Committee meeting to             
 order at 1:38 p.m.  The first order of business before the                    
 committee was CSHB 4 (STA) title am, sponsored by Representative              
 Kott.                                                                         
                                                                               
 ROD MOURANT, legislative aide to the sponsor of HB 4, explained the           
 measure as follows.  CSHB 4(STA) title am reinstates a previous               
 policy allowing the spouses who accompany residents out of state              
 for allowable absences to be eligible to receive a permanent fund             
 dividend while out of state.  The spouse must also qualify as an              
 Alaska resident prior to leaving the state. This policy was changed           
 as the result of the Zyler vs. the State of Alaska case in 1993.              
 In 1992, 25 individuals were denied permanent fund dividends under            
 the changed policy, in 1993, 200 individuals were denied, and in              
 1994 approximately 1300 individuals were denied.  Allowable                   
 absences include college and vocational training, medical                     
 treatment, and military duty.  The bill allows for the retroactive            
 payment of the cases denied as a result of the Zyler case.  The               
 administrative cost estimated by the Department of Revenue is $600            
 to process the appeals files.                                                 
                                                                               
 Number 067                                                                    
                                                                               
 SENATOR ADAMS asked how an applicant would comply with the                    
 language, "maintains and demonstrates at all times an intent," on             
 page 3, lines 10-11.  He asked if proof of voter registration would           
 fulfill that requirement.  MR. MOURANT responded voter registration           
 by itself is not a sole indicator of residency of any state.  He              
 clarified that intent to return to Alaska is already in regulation;           
 the bill would place that requirement in statute.                             
                                                                               
 Number 097                                                                    
                                                                               
 SENATOR ADAMS asked what the cost of paying the permanent fund                
 dividends, denied since 1992 because of the Zyler case, would be.             
 He commented there are times when in-state residents have been                
 denied permanent fund dividends because they missed the filing                
 deadline by one or two days.  He suggested those people also be               
 allowed to re-apply.  MR. MOURANT was unable to provide the                   
 information but offered to calculate those costs.                             
                                                                               
 SENATOR TAYLOR noted the fiscal impact would be on the Permanent              
 Fund, not the General Fund.  MR. MOURANT stated the Permanent Fund            
 Division has adequate funds to cover the retroactive payments.                
                                                                               
 Number 120                                                                    
                                                                               
 SENATOR TAYLOR shared Senator Adams' concern about other people who           
 are denied their dividends unfairly and about the department's                
 system of acknowledging receipt of the applications.  He suggested            
 creating a hearing board to review such cases.  He commented the              
 department appears to go to extraordinary efforts to make sure                
 certain people do not get their dividends, especially military                
 spouses.                                                                      
                                                                               
 SENATOR TAYLOR also commented the objective standards for allowable           
 absences has been deleted in Section 3.  MR. MOURANT explained that           
 at the department's request, the allowable absence section of                 
 statute was renumbered and restructured and appears in Section 2.             
                                                                               
 Number 164                                                                    
                                                                               
 MIKE McGEE, Chief of Permanent Fund Dividend Operations, stated the           
 department supports CSHB 4(STA) title am.  He clarified the                   
 allowable absences that the bill is designed to reinstate were                
 established in 1982, but were excluded because of the Zyler case.             
 The changes on page 3, section 3, separate the residency definition           
 from allowable absences, as that is part of the conflict in the               
 Zyler case.  Regarding the receipt of application issue discussed             
 by Senator Taylor, Mr. McGee noted the applicant is sent a receipt            
 card to verify receipt of the application.  The department has                
 announced that applicants who do not receive the receipt card by              
 April 15 should notify the department.  SENATOR TAYLOR stated the             
 problem is that the department does not know who did not apply                
 therefore does not know who to notify.  MR. McGEE indicated if an             
 applicant determines they did not receive a receipt card after the            
 filing deadline, but have certain proofs that they filed, they can            
 request to reapply until September.                                           
                                                                               
 Number 200                                                                    
                                                                               
 SENATOR ADAMS asked for the department's interpretation of Section            
 3, lines 10-11.  MR. McGEE replied that language defines a state              
 resident in conjunction with AS 01.10.055.  SENATOR ADAMS  asked              
 whether the bill requires a resident to be a registered voter.  MR.           
 McGEE responded a person does not have to be a registered voter to            
 be a resident.  SENATOR ADAMS asked if the spouse of an applicant             
 in the military in North Carolina could be a registered voter in              
 North Carolina, and still qualify for a permanent fund dividend.              
 MR. McGEE clarified if an applicant files from outside the state,             
 that person must fill out a supplemental schedule which requires              
 the disclosure of actions that may be inconsistent with being a               
 resident.  If a person registers to vote in another state, thereby            
 declaring residency in another state, that person would become                
 ineligible for a permanent fund dividend.                                     
                                                                               
 Number 236                                                                    
                                                                               
 SENATOR ADAMS noted the filing deadline keeps changing and asked              
 how many Alaskans, from rural or urban communities, have missed the           
 filing deadline.  MR. McGEE estimated there are 2100 unsolicited              
 late file applications per year.  SENATOR ADAMS felt those                    
 applicants should be accounted for in this bill.  SENATOR ADAMS               
 asked what the total cost of paying the retroactive dividends                 
 specified in CSHB 4 (STA) title am would be if the bill passes.               
 MR. McGEE replied the amount would differ each year.  MR. McGee               
 asserted this bill corrects a conflict between the statutes and               
 regulations, determined by a court decision.  The issue of filing             
 deadlines is a different one.                                                 
                                                                               
 Number 274                                                                    
                                                                               
 SENATOR MILLER referred to Section 3, and stated although he agrees           
 with what the bill does, statute should not follow regulations; and           
 Section 3 does just that.  MR. McGEE noted AS 01.10.055 contains              
 that language.  SENATOR MILLER commented different statutes pertain           
 to residency.                                                                 
                                                                               
 Number 294                                                                    
                                                                               
 SENATOR ELLIS asked if the Permanent Fund Division investigates               
 applicants to determine if they are registered to vote outside of             
 Alaska.  MR. McGEE replied the Permanent Fund Division is able to             
 match records with the Department of Defense and among state                  
 agencies, however it would not be practical to match records with             
 other states.  They do verify information on a case-by-case basis,            
 if an applicant appeals a denial.                                             
                                                                               
 SENATOR ELLIS asked about the fiscal impact of the retroactive                
 payments made under CSHB 4(STA) title am on future dividends.  MR.            
 McGEE indicated there are only a few individuals that would be                
 served by the retroactive clause, and that cost would not have any            
 impact on future dividends because there is enough money in the               
 fund now from overestimates based on the projected number of                  
 eligible individuals for those years.                                         
                                                                               
                                                                               
 SENATOR ELLIS requested information from the division on the exact            
 number of applicants affected by the retroactivity clause, and the            
 cost of those payments.                                                       
                                                                               
 Number 339                                                                    
                                                                               
 SENATOR MILLER questioned if spouses of college students are the              
 largest group that have been denied, and spouses of military                  
 personnel are the second largest.  MR. McGEE replied affirmatively,           
 and clarified there are 677 spouses of college students, and 292              
 military spouses that have been denied.                                       
                                                                               
 SENATOR ADAMS asked about the effect of Section 6.  MR. McGEE                 
 stated that is to make the provisions in the bill consistent in               
 statute, during the years applicants were denied because of the               
 court decision.                                                               
                                                                               
 SENATOR ADAMS noted he wanted to review the possibility of                    
 including late filers in the bill.  Senator Taylor announced the              
 bill would be held over.                                                      

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