Legislature(1999 - 2000)
04/15/1999 03:32 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 119-PFD ALLOWABLE ABSENCES
CHAIRMAN WARD informed committee members a companion bill to SB 119
was introduced in the House by Representative Jerry Sanders.
MARK HODGINS, legislative staff to Senator Ward, sponsor of the
measure, explained SB 119 will allow absences for otherwise
qualified Alaskans, for the purpose of eligibility for permanent
fund dividends, serving under foreign or coastal articles of
employment aboard an oceangoing vessel of the United States
Merchant Marine.
HAROLD HOLTEN, Seafarers International Union (SIU), made the
following comments regarding SB 119. The SIU opened an office in
Anchorage two years ago to recruit Alaskans to its apprenticeship
program in Maryland to give them an opportunity to obtain good
paying jobs with benefits. Those Alaskan merchant seamen are
denied permanent fund dividend (PFD) checks even though they may
own homes and vote in Alaska, have Alaska drivers' licenses, and
intend to return and maintain Alaska residency. Alaskan merchant
seamen cannot choose whether or not to sail in Alaska and even
those who do sail in Alaskan waters have been denied PFDs. Mr.
Holten said he hates to see young people turn down a great career
opportunity because absences during periods of work will prevent
them from receiving a PFD.
MR. HOLTEN estimated that SB 119 will affect no more than 200
Alaska merchant seamen over a ten-year period. He pointed out that
for the purpose of eligibility verification, the Coast Guard keeps
records of where and when merchant seamen are working on ships.
Number 129
SENATOR PHILLIPS expressed concern that SB 119 will become a
"Christmas tree" bill because many others will argue that they
should receive PFDs while out of state for various reasons.
MR. HOLTEN said the difference is that Alaskan merchant seamen
travel by ship from Anchorage, spend one night in Tacoma while the
ship is being loaded, and return to Anchorage. Also, all of their
family members receive PFDs.
CHAIRMAN WARD took teleconference testimony.
Number 174
JOY TUCKER, testifying from Anchorage via teleconference, informed
committee members she is married to John O.Glen, a merchant seaman.
His work shift is four months on and two months off throughout the
year and he sails from Tacoma to Anchorage every seven days.
Although he and his family reside in Alaska, he is the only member
of his family who does not receive a PFD.
EDEN LATTA, a merchant seaman and 10-year resident of Alaska,
stated he spends all of his time and money in Alaska when he is not
at sea. He noted he would be required to pay the Alaska State
income tax if one existed, yet he is ineligible for a PFD.
Number 222
ROCKY LATTA, father of Eden, stated the Seafarer's International
Union provides high-paying jobs for Alaskan youth at a time when
low paying service jobs are the order of the day. While the
unemployment rate is lower, the quality of service jobs is poor in
pay and benefits. He questioned why Alaska blatantly discriminates
against seamen by denying resident seamen their PFDs. A second
bothersome issue is the response he received when he asked
Permanent Fund Dividend Division employees why merchant seamen are
denied the PFD while military members stationed outside Alaska
receive PFDs even though they do not intend to return to Alaska.
The response was that military members have no choice of where they
are stationed and they are placed in life threatening situations.
He noted military members are volunteers, and although they have no
choice of where they are sent once they enlist, neither do merchant
seamen. He also pointed out the highest casualty incident rate in
World War II was for merchant seamen and that his son's ship
carries cruise missiles while at sea.
MR. LATTA concluded by saying Representative Don Young started the
apprenticeship program for Alaskans because he saw it as a viable
Alaskan industry however the State of Alaska denies participants
the PFD. PFD denial makes merchant seamen second class citizens in
their own state.
Number 271
MARK TABBOTT, Vice President of Totem Motion Trailer Express for
Alaska, informed committee members his company has three vessels
that run between Tacoma and Anchorage and supply about 70 percent
of the groceries consumed in Alaska. Both his company and the
industry are committed to hiring Alaskans and bringing them into
the trade. SB 119 will support the industry's effort to hire more
Alaskans. He urged the committee's support.
Number 299
PAUL FUHS, representing Sealand Services, stated Sealand went along
with other Jones Act carriers to help provide this Alaska training
and hire program and believes it is ironic that participants are
denied their PFDs. In regard to Senator Phillips concern about
other groups with the same request, MR. FUHS said the sea time
records of merchant seamen are documented by the U.S. Coast Guard
and are extremely accurate. He believes seamen could easily
provide that information when applying for a PFD.
CHAIRMAN WARD noted Dwight Perkins, Department of Labor, was
available to answer questions if need be, and that the Department
of Labor supports SB 119.
Number 318
NANCI JONES, Director of the Permanent Fund Dividend Division,
pointed out SB 119 creates a bright line meaning it specifically
allows only merchant seamen to leave the state on an allowable
absence; it does not provide an allowance for family members to
accompany a seaman out-of-state while working. SB 119 also allows
Alaskans attending the apprenticeship program an additional 120 day
absence as other college students get.
SENATOR WILKEN asked Ms. Jones if SB 119 pertains to a person who
resides in Alaska but is absent from Alaska for more than 180 days
because of a job. MS. JONES said that is correct.
SENATOR WILKEN asked whether he would receive a PFD if he worked
for British Petroleum and was assigned to Kuwait for more than 180
days. MS. JONES said he would not.
SENATOR WILKEN asked whether he would receive a PFD if he was an
Alaska teacher teaching in Australia for nine months. MS. JONES
said he would not.
SENATOR ELTON asked Ms. Jones if the companion bill on the House
side has been changed at all. MS. JONES said it has not. She
pointed out the difference between SB 119 and its companion bill,
and other House legislation, is that the other legislation
addresses employment absences in general. SB 119 is specific to
merchant seamen.
CHAIRMAN WARD noted the general employment absence legislation Ms.
Jones was referring to was sponsored by Representative Cowdery.
SENATOR ELTON moved the adoption of Amendment 1, which reads as
follows.
Page 1, line 2, following "marine":
Insert "or while serving as a volunteer in the Peace Corps"
Page 2, following line 21:
Insert a new paragraph to read:
"(13) serving as a volunteer in the Peace Corps;"
Page 2, line 22:
Delete "(13)"
Insert "(14)"
Page 2, line 23:
Delete "(14)"
Insert "(15)"
Page 2, line 25:
Delete "(14)"
Insert "(15)"
Page 2, line 28:
Delete "(1)-(13)"
Insert "(1)-(14)"
Page 2, line 31:
Delete "(3)-(13)"
Insert "(3)-(14)"
Page 3, line 2:
Delete "(1)-(13)"
Insert "(1)-(14)"
Page 3, line 3:
Delete "(a)(1)-(13)"
Insert "(a)(1)-(14)"
Page 3, line 11:
Delete "(a)(13)"
Insert "(a)(14)"
CHAIRMAN WARD objected for the purpose of discussion.
SENATOR ELTON explained Amendment 1 will return to statute the
excused absence for Peace Corps volunteers. The cost of providing
a permanent fund dividend to Alaskan Peace Corps volunteers is
estimated at $39,000. Peace Corps volunteers serve for 27 months.
Their living expenses are paid and they receive a lump sum payment
of $225 per month served upon discharge. He wagered that more
Peace Corps volunteers return to Alaska to reside than college
students or military members and he noted the difference between
Peace Corps volunteers and military members is the tools they use.
SENATOR ELTON said it is not only egregious that Peace Corps
volunteers do not receive their PFDs while serving for 27 months,
they also have to wait two to three years to re-establish
residency.
Number 385
SENATOR PHILLIPS asked Eddie Burke, legislative aide to
Representative Sanders, his opinion of Amendment 1.
MR. BURKE replied this legislation was designed to apply to
merchant seamen only.
SENATOR WILKEN noted his support for Amendment 1 as he believes the
Legislature erred last year in removing Peace Corps volunteers from
PFD eligibility.
CHAIRMAN WARD maintained his objection to Amendment 1. Amendment
1 was adopted with Senators Elton, Wilken, and Phillips voting
"yea," and Senator Green and Chairman Ward voting "nay."
CHAIRMAN WARD announced CSSB 119(STA) would be held in committee
until a later date.
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