Legislature(2023 - 2024)BELTZ 105 (TSBldg)

04/05/2023 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 83 PROFESSIONAL LICENSING; TEMP PERMITS TELECONFERENCED
Heard & Held
*+ SB 85 PERM FUND; EMPLOYMENT; ELIGIBILITY TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+= SB 45 DIRECT HEALTH AGREEMENT: NOT INSURANCE TELECONFERENCED
Heard & Held
-- Public Testimony -- <Time Limit May Be Set>
**Streamed live on AKL.tv**
            SB 85-PERM FUND; EMPLOYMENT; ELIGIBILITY                                                                        
                                                                                                                                
1:42:41 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration of  SENATE BILL NO.  85 "An Act relating  to record                                                               
checks  for  certain  employees of  the  Department  of  Revenue;                                                               
relating  to  permanent  fund dividends;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
He asked Mr. Limani and Mr. Bigelow to introduce the bill.                                                                      
                                                                                                                                
1:43:12 PM                                                                                                                    
FADIL LIMANI,  Deputy Commissioner, Department of  Revenue (DOR),                                                               
Anchorage,   Alaska,  introduced   SB   85  on   behalf  of   the                                                               
administration speaking to the following:                                                                                       
                                                                                                                                
     SB 85 - Bill Overview                                                                                                    
                                                                                                                                
     An Act relating to  record checks for certain employees                                                                    
     of  the Department  of Revenue;  relating to  permanent                                                                    
     fund dividends                                                                                                             
                                                                                                                                
     •  The   proposed   legislation    provides   statutory                                                                    
        authority to collect fingerprints for the purpose of                                                                    
        conducting  background   checks  on   DOR  employees                                                                    
        including  contractors  that  may   have  access  to                                                                    
        personal identifiable information (PII).                                                                                
                                                                                                                                
     •  Allows   merchant   mariners   attending   qualified                                                                    
        vocational programs  to  qualify  for  an  allowable                                                                    
        absence from the state for eligibility purposes.                                                                        
                                                                                                                                
     •  Adds a new subsection to AS  43.23.008 to define the                                                                    
        term  "education  on  a  full-time  basis"  for  the                                                                    
        purposes  of  calculating  allowable   absences  for                                                                    
        students  receiving   secondary   or   postsecondary                                                                    
        education,  vocational,   professional,   or   other                                                                    
        specific education.                                                                                                     
                                                                                                                                
     •  Amends AS 43.23.140(d) to allow the  division to use                                                                    
        electronic notice  of levy  for individuals  who are                                                                    
        subjected  to  a  court   order  or  writ   for  the                                                                    
        collection of a debt.                                                                                                   
                                                                                                                                
1:45:24 PM                                                                                                                    
COREY BIGELOW, Operations Manager, Permanent Fund Dividend                                                                      
Division, Juneau, Alaska, paraphrased the sectional analysis for                                                                
SB 85:                                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       Sectional Analysis                                                                                     
       Senate Bill 85  Perm Fund; Employment; Eligibility                                                                     
                                                                                                                                
     Sections 1, 2,  and 5: Amends AS 12.62 and  AS 43.23 to                                                                  
     authorize   the  Department   of  Revenue   to  collect                                                                    
     fingerprints  for  completion  of a  national  criminal                                                                    
     history  record check  for the  purpose of  determining                                                                    
     suitability for  employment. The amendment to  AS 12.62                                                                    
     authorizes the  Department of Public Safety  to conduct                                                                    
     national   criminal   history   checks   for   division                                                                    
     employees.                                                                                                                 
                                                                                                                                
     Section  3: Amends  AS 43.23.008(a)  to allow  merchant                                                                  
     mariners  attending  qualified vocational  programs  to                                                                    
     qualify  for an  allowable absence  from the  state for                                                                    
     eligibility purposes.                                                                                                      
                                                                                                                                
     Section 4:  Adds a  new subsection  to AS  43.23.008 to                                                                  
     define the  term "education on  a full-time  basis" for                                                                    
     the  purposes  of  calculating allowable  absences  for                                                                    
     students    receiving   secondary    or   postsecondary                                                                    
     education, vocational, professional,  or other specific                                                                    
     education.  The  proposed  definition would  allow  the                                                                    
     division  to include  intra-academic year  holidays and                                                                    
     breaks,  but  not  summer   breaks,  in  the  full-time                                                                    
     education  calculation,   as  opposed   for  separately                                                                    
     calculating  holidays  and  breaks  under  the  current                                                                    
     iteration of the statute.                                                                                                  
                                                                                                                                
     Section  6:   Amends  AS  43.23.140(d)  to   allow  the                                                                  
     division  to   use  electronic   notice  of   levy  for                                                                    
     individuals who are subjected to  a court order or writ                                                                    
     for the  collection of a debt.  Currently, the division                                                                    
     is  required  to  provide  notice  of  levy  via  mail,                                                                    
     despite  the  consent  of many  applicants  to  receive                                                                    
     electronic notices.                                                                                                        
                                                                                                                                
     Section 7: Adds transitional regulation language.                                                                        
                                                                                                                                
     Section 8: Adds immediate effective date language.                                                                       
                                                                                                                                
     Section 9:  Adds otherwise  effective date  language as                                                                  
     of 1/1/2024.                                                                                                               
                                                                                                                                
1:49:33 PM                                                                                                                    
SENATOR BISHOP  asked Mr.  Bigelow to  expound on  the background                                                               
check.                                                                                                                          
                                                                                                                                
MR. BIGELOW  deferred the question  to Mr.  Stair, Investigations                                                               
Manager.                                                                                                                        
                                                                                                                                
1:50:17 PM                                                                                                                    
SCOTT  STAIR,  Investigations  Manager,  Criminal  Investigations                                                               
Unit, Department  of Revenue (DOR),  answered questions  about SB
85. He  replied that  the background  check currently  looks back                                                               
ten years,  but the  department is  trying to  reduce it  to five                                                               
years.                                                                                                                          
                                                                                                                                
1:51:15 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 85.                                                                                
                                                                                                                                
1:51:46 PM                                                                                                                    
RICH  BERKOWITZ,  representing self,  stated  support  for SB  85                                                               
which  will help  individuals attending  certain merchant  marine                                                               
vocational  programs to  remain eligible  for the  permanent fund                                                               
dividend (PFD)  during absences  from the state.  He said  he had                                                               
worked on behalf  of U.S. flag vessel  operators, including those                                                               
in  Alaska,  since 1995  to  recruit,  train, and  place  Alaskan                                                               
youth,  Natives, and  others  to work  as  deep-sea mariners.  He                                                               
shared  a  brief  history  of  partnering  with  the  state  that                                                               
resulted in the  hire of more than 800 Alaskans  in mariner jobs.                                                               
He said  Alaskans initially weren't  interested in  attending the                                                               
esteemed mariner school  in Maryland because it  would risk their                                                               
PFD benefits, but in 1999 the  legislature passed a law to ensure                                                               
that Alaskan mariners  would qualify for the  PFD while attending                                                               
this training,  provided they met  all the  other qualifications.                                                               
Their time training and time  at sea were considered an allowable                                                               
absence.  However, in  2017 the  PFD  administration changed  the                                                               
definition    of    qualified     vocational    training    which                                                               
unintentionally eliminated the training  program in Maryland as a                                                               
qualified program. He said the  PFD administration recognizes the                                                               
unintended consequence  and supports this  bill to return  to the                                                               
pre-2017 allowable absence provisions  for mariners. He urged the                                                               
committee to support SB 85.                                                                                                     
                                                                                                                                
1:56:10 PM                                                                                                                    
CHAIR BJORKMAN stated  he would hold public testimony  open on SB
85.                                                                                                                             
                                                                                                                                
1:56:28 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
CHAIR  BJORKMAN  reconvened  the  meeting  and  continued  public                                                               
testimony.                                                                                                                      
                                                                                                                                
1:57:09 PM                                                                                                                    
RALPH MIRSKY,  Chief Executive Officer, SeaLink  Inc., Ketchikan,                                                               
Alaska,  agreed  with  Mr.  Berkowitz  that  it  was  unfair  for                                                               
merchant mariners enrolled  in a bona fide sea  farers school not                                                               
to receive a  permanent fund dividend. He noted  that his company                                                               
was responsible for recruiting the  bulk of the 800 Alaskans that                                                               
Mr. Berkowitz mentioned.                                                                                                        
                                                                                                                                
1:59:41 PM                                                                                                                    
SENATOR BISHOP asked  Mr. Bigelow whether he had  a running total                                                               
of the number  of mariners denied a permanent  fund dividend from                                                               
2017 until today.                                                                                                               
                                                                                                                                
MR. BIGELOW answered it was fewer than 20 each year.                                                                            
                                                                                                                                
SENATOR BISHOP  calculated that the  total was  approximately 125                                                               
over five years.                                                                                                                
                                                                                                                                
2:00:57 PM                                                                                                                    
SENATOR GRAY-JACKSON asked whether SB 85 was retroactive.                                                                       
                                                                                                                                
MR. BIGELOW answered no; it is effective from 2024 forward.                                                                     
                                                                                                                                
SENATOR GRAY-JACKSON recommended making the bill retroactive.                                                                   
                                                                                                                                
[CHAIR BJORKMAN  held SB  85 in  committee with  public testimony                                                               
open.]                                                                                                                          

Document Name Date/Time Subjects
SB 83 Draft Proposed CS ver S.pdf SL&C 4/5/2023 1:30:00 PM
SB 85 ver A.PDF SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Transmittal Letter 02.23.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Sectional Analysis 02.24.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Fiscal Note-DOR-PFD-02.22.23.PDF SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Presentation to SL&C by DOR 04.05.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Public Testimony-Letter_AK State Chamber 04.3.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Public Testimony-Letter_Cindy Spanyers 03.21.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Public Testimony-Letter_Matson 03.22.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85
SB 85 Handout-Maritime Career.org_Presented by Rich Berkowitz 04.05.23.pdf SL&C 4/5/2023 1:30:00 PM
SB 85