Legislature(2009 - 2010)BELTZ 211

04/07/2009 09:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 2 PUBLIC FINANCE WEBSITE TELECONFERENCED
Moved SB 2 Out of Committee
*+ SB 171 PERMANENT FUND DIVIDEND FOR DECEASED TELECONFERENCED
Moved CSSB 171(STA) Out of Committee
*+ SJR 17 DESIGNATING 2009 AS THE YEAR OF ARMY NCO TELECONFERENCED
Moved SJR 17 Out of Committee
*+ SJR 18 SUPPORT SOLDIERS' BURIAL DESIGNATIONS TELECONFERENCED
Moved CSSJR 18(STA) Out of Committee
+ HJR 10 VETERANS' HEALTH CARE TELECONFERENCED
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
          SB 171-PERMANENT FUND DIVIDEND FOR DECEASED                                                                       
                                                                                                                                
9:21:44 AM                                                                                                                    
CHAIR MENARD announced the consideration of SB 171.                                                                             
                                                                                                                                
SENATOR MEYER  moved to adopt  the committee substitute  (CS) for                                                               
SB 171, labeled 26-LS0804\R, as  the working document. Hearing no                                                               
objection, Version R was before the committee.                                                                                  
                                                                                                                                
CHRISTINE MARASIGAN,  Staff to Senator Kevin  Meyer, Alaska State                                                               
Legislature, said  SB 171  would allow  the issuance  of Alaska's                                                               
permanent fund  dividend (PFD) to  an individual who  dies during                                                               
the  qualifying  year.  The  check   would  go  to  the  personal                                                               
representative claiming  the personal  property of  the deceased.                                                               
The  applicant would  have to  meet all  qualifying requirements.                                                               
When SB  171 was first  drafted it exempted the  requirement that                                                               
the applicant  be a  state resident  the entire  qualifying year.                                                               
She noted Sections  1 and 2 of the  eligibility requirements. The                                                               
individual wouldn't  be applying to  the department; it  would be                                                               
the  successor  or estate.  The  deceased  is  also no  longer  a                                                               
resident of the state on the  date of the application. The estate                                                               
or the successors would actually  be filing the application. This                                                               
is taken care of in the CS on line 13 of page 1.                                                                                
                                                                                                                                
9:25:49 AM                                                                                                                    
SENATOR  MEYER  said  this  came   about  because  two  or  three                                                               
constituents have  asked him about  it. People who have  lived in                                                               
the state for the required 180  days and passed away wouldn't get                                                               
the check. The loved ones had  to pay the funeral costs and could                                                               
have used the  PFD. He never had a good  reason why they couldn't                                                               
have the PFD.  He has been working with Debbie  Bitney at the PFD                                                               
division and  he appreciates her  helping make this  bill happen.                                                               
This is  important to those who  have lost a close  person. "This                                                               
is their final PFD."                                                                                                            
                                                                                                                                
CHAIR MENARD  said she falls  into this category. She  might need                                                               
to declare a conflict. The expenses pile up.                                                                                    
                                                                                                                                
SENATOR  KOOKESH  asked  when this  will  become  effective.  The                                                               
deadline passed in March.                                                                                                       
                                                                                                                                
SENATOR MEYER said yes, but the effective date can be worked on.                                                                
                                                                                                                                
9:28:38 AM                                                                                                                    
DEBORAH  BITNEY,  Director,  Permanent  Fund  Dividend  Division,                                                               
said, "Currently, if a person  passes away during the application                                                               
period, that  person is  already able to  apply for  the dividend                                                               
that  would be  paid in  that year."  SB 171  would look  back to                                                               
about the  middle of  the qualifying year.  For a  2009 dividend,                                                               
for example, it  would apply to anyone who was  a resident by all                                                               
other accounts and  dies after the 180-day mark in  2008, "if I'm                                                               
correct."                                                                                                                       
                                                                                                                                
9:29:53 AM                                                                                                                    
SENATOR MEYER  said the 2009  PFD is  a look-back to  2008. "Were                                                               
they in Alaska for 180 days?  And if they weren't in Alaska, were                                                               
they excused for military reasons or medical reasons, etc?"                                                                     
                                                                                                                                
CHAIR MENARD said her husband passed  away on March 3, so even if                                                               
SB 171 doesn't pass, he has been taken care of.                                                                                 
                                                                                                                                
MS. BITNEY said that is correct.                                                                                                
                                                                                                                                
SENATOR  FRENCH  said  this  bill   has  sympathetic  appeal  for                                                               
Alaskans who pass away, but he  has some concern "that there will                                                               
be some  unsympathetic individuals who  will qualify for  this as                                                               
well." He  suggested those who die  of a heroin overdose  or in a                                                               
shoot-out with  the police,  and their family  will say,  "he was                                                               
never  convicted of  anything;  he's qualified  ...  give us  his                                                               
dividend." That should be kept in mind.                                                                                         
                                                                                                                                
KATY  NEHER, Anchorage,  said her  daughter was  16 when  she was                                                               
killed in  a car accident in  1999, and she was  not eligible for                                                               
her last  PFD. The state  invalidated the  last 10 months  of her                                                               
life, "and she will not let me  rest until we fix this." For nine                                                               
years Ms.  Neher has been  coming to  Juneau trying to  "get this                                                               
fixed." Last  summer she lost  a brother,  and two weeks  ago her                                                               
mother, who  had lived  in Alaska since  the 1950s,  died. Alaska                                                               
needs to give the PFD to the folks that deserve it.                                                                             
                                                                                                                                
9:33:04 AM                                                                                                                    
SENATOR MEYER asked if the CS will change the fiscal note.                                                                      
                                                                                                                                
MS. BITNEY said the original  fiscal note assumed that all people                                                               
who died  in a year would  apply and qualify for  a dividend. The                                                               
fiscal note can  be revised "to estimate about half  of the 3,500                                                               
people who do die in the  state each year will qualify." The note                                                               
will be reduced by about  $53,000, which includes one position in                                                               
the division to qualify these additional eligibility cases.                                                                     
                                                                                                                                
9:34:34 AM                                                                                                                    
CHAIR MENARD asked if the application will change.                                                                              
                                                                                                                                
MS. BITNEY said she doesn't know  if this information needs to be                                                               
included on the application. It will likely be on the website.                                                                  
                                                                                                                                
SENATOR KOOKESH  responded to Senator French's  concern. A person                                                               
dying of  a heroin overdose  or police shootout would  still have                                                               
family members  who are left and  who may need the  PFD money for                                                               
closure. The person  dying of a heroin overdose  will not benefit                                                               
from this  bill. Senator French's  example pertains to  the wrong                                                               
group of people - it's the people who are left.                                                                                 
                                                                                                                                
CHAIR  MENARD said  the  money does  not  need to  be  used in  a                                                               
certain way. "We're hoping they'll use it for burials."                                                                         
                                                                                                                                
SENATOR MEYER said SB 171 is  meant for the living to help offset                                                               
funeral  or other  costs.  Even  if the  person  dies  in a  gang                                                               
shootout,  that  should  not prohibit  the  family  members  from                                                               
getting the PFD.                                                                                                                
                                                                                                                                
9:37:07 AM                                                                                                                    
SENATOR FRENCH  said it is  a "side  road." The vast  majority of                                                               
people will be good Alaskans.                                                                                                   
                                                                                                                                
SENATOR  KOOKESH moved  to  report  CS for  SB  171, labeled  26-                                                               
LS0804\R,  from  committee  with individual  recommendations  and                                                               
attached  fiscal note(s).  Hearing no  objections, CSSB  171(STA)                                                               
moved out of committee.                                                                                                         

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