05/02/1996 09:05 AM Senate STA

                                                                               
                HB 198 PFD ALLOWABLE ABSENCES                                
                                                                               
 TAPE 96-32, SIDE A                                                            
                                                                               
 Number 001                                                                    
                                                                               
 CHAIRMAN SHARP called the Senate State Affairs Committee to order             
 at 9:05 a.m. and brought up HB 198 as the first order of business             
 before the committee.  He called the prime sponsor to testify.                
                                                                               
 Number 033                                                                    
                                                                               
 REPRESENTATIVE KIM ELTON, prime sponsor of HB 198, stated the bill            
 would provide an excused absence for receiving a permanent fund               
 dividend under three circumstances:                                           
                                                                               
 1) to take care of a terminally ill immediate family member;                  
                                                                               
 2) to settle the estate of an immediate family member;                        
                                                                               
 3) to care for a family member with a life-threatening illness.               
                                                                               
 Number 060                                                                    
                                                                               
 NANCI A. JONES, Director, Permanent Fund Dividend Division,                   
 Department of Revenue, stated the division does not oppose HB 198,            
 but stated allowable absences do cause problems.  Ms. Jones gave a            
 handout to committee members showing that current allowable                   
 absences are selective and exclusionary, they are inequitable,                
 there are millions of dollars leaving the state, allowances are               
 very expensive for the division to administer, and there are                  
 constant requests for additional allowable absences.  For instance,           
 there is no provision for allowing people in private enterprise to            
 leave the state to work on products that will benefit Alaska.                 
 There is no allowable absence for VISTA Volunteers, but Peace Corps           
 Volunteers are allowed absence from the state - what is the                   
 difference between those two organizations?  There is no allowable            
 absence for organized missionary work.  Allowable absences are                
 exclusionary and do not address the big picture.  Ms. Jones                   
 informed committee members that on the second page of her handout             
 is a breakdown of the dividends which were distributed outside the            
 state, the largest percentage of which were sent to students.  Her            
 purpose in testifying this morning is to inform committee members             
 that providing for additional selective and exclusionary allowable            
 absences only addresses the needs of a few of our state's                     
 residents, instead of looking at the entire picture.                          
                                                                               
 Number 113                                                                    
                                                                               
 SENATOR RANDY PHILLIPS stated he has an amendment that would allow            
 absence for athletes participating in sanctioned sports.                      
                                                                               
 CHAIRMAN SHARP asked if athletes are gone for more than 180 days.             
                                                                               
 SENATOR RANDY PHILLIPS replied yes.  He offered the amendment.                
                                                                               
 Amendment by Senator Phillips:                                                
                                                                               
 Page 1, line 6:                                                               
  Delete "and"                                                                 
                                                                               
 Page 1, line 7, following "stepchild;":                                       
  Insert "and to participate on certain amateur athletic teams;"               
                                                                               
 Page 2, line 19:                                                              
  Delete "or"                                                                  
                                                                               
 Page 2, following line 23:                                                    
  Insert a new subparagraph to read:                                           
      "(K) to participate on an amateur athletic                               
   team as evidenced by the international federation or                        
   national governing body for that sport;"                                    
                                                                               
 CHAIRMAN SHARP stated he is concerned about the perception that               
 there are more serious things out there that should be exempted.              
                                                                               
 SENATOR DONLEY stated this amendment would require a title change.            
                                                                               
 SENATOR RANDY PHILLIPS replied he didn't think it would.                      
                                                                               
 SENATOR DONLEY stated it would require a title change, which would            
 require a resolution which would have to pass by a 2/3 vote.  It              
 would also open the bill wide up for any other proposals.                     
                                                                               
 CHAIRMAN SHARP stated he is not inclined to open the title up or              
 try to fight a title battle on the floor at this late date.  He               
 asked the secretary to call the role.                                         
                                                                               
 Senator Phillip's amendment failed by a vote of 1 yea, 3 nays, and            
 1 abstention.  Voting in favor of the amendment is Senator                    
 Phillips.  Voting against the amendment are Senators Leman, Duncan,           
 and Donley.  Abstaining from the vote is Senator Sharp.                       
                                                                               
 SENATOR DUNCAN made a motion to discharge HB 198 from the Senate              
 State Affairs Committee with individual recommendations.                      
                                                                               
 Number 200                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, stated HB 198 was discharged            
 from the Senate State Affairs Committee.