04/09/2009 01:00 PM House MILITARY & VETERANS' AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB65 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 65 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS
April 9, 2009
1:03 p.m.
MEMBERS PRESENT
Representative Carl Gatto, Chair
Representative John Harris
Representative Bob Lynn
Representative Kurt Olson
Representative Jay Ramras
Representative Robert L. "Bob" Buch
MEMBERS ABSENT
Representative Scott Kawasaki
COMMITTEE CALENDAR
HOUSE BILL NO. 65
"An Act relating to an allowable absence for certain military
civilian employees and civilian contractors for purposes of
determining eligibility for permanent fund dividends; and
providing for an effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 65
SHORT TITLE: PFD ALLOWABLE ABSENCE:MILTARY CONTRACTORS
SPONSOR(s): REPRESENTATIVE(s) LYNN
01/20/09 (H) PREFILE RELEASED 1/16/09
01/20/09 (H) READ THE FIRST TIME - REFERRALS
01/20/09 (H) MLV, STA, FIN
04/09/09 (H) MLV AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE BOB LYNN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, offered a preliminary
introduction to HB 65.
DIRK MOFFATT, Staff
Representative Bob Lynn
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 65 on behalf Representative
Lynn, prime sponsor.
KAREN DORONDO
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 65.
DEBBIE BITNEY, Director
Permanent Fund Dividend Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
65.
ACTION NARRATIVE
1:03:10 PM
CHAIR CARL GATTO called the House Special Committee on Military
and Veterans' Affairs meeting to order at 1:03 p.m.
Representatives Buch, Lynn, Olson, Ramras, and Gatto were
present at the call to order. Representative Harris arrived as
the meeting was in progress.
HB 65-PFD ALLOWABLE ABSENCE:MILTARY CONTRACTORS
1:03:38 PM
CHAIR GATTO announced that the only order of business would be
HOUSE BILL NO. 65, "An Act relating to an allowable absence for
certain military civilian employees and civilian contractors for
purposes of determining eligibility for permanent fund
dividends; and providing for an effective date."
1:04:08 PM
REPRESENTATIVE BOB LYNN, Alaska State Legislature, as prime
sponsor of HB 65, said he thinks the proposed legislation is a
good concept.
1:04:32 PM
DIRK MOFFATT, Staff, Representative Bob Lynn, Alaska State
Legislature, presenting HB 65 on behalf of Representative Lynn,
prime sponsor, paraphrased the sponsor statement, which read as
follows [original punctuation provided]:
HB 65 would create a Permanent Fund Dividend allowable
absence for Alaskans who serve in a civilian capacity
for the United States Military. This would include
civilians who are either direct employees or outside
contractors who are contractually obligated to deploy
with and in support of the U.S. Military. Currently
under Section 43.23.008 "Allowable absences" the state
of Alaska provides excused absences for otherwise
eligible Alaskans who are absent from the state for
more than 180 days. Excused absences are given to
students, armed service members, staff to and members
of congress and employees of the State who work
outside the state. We also provide excused absences
to civilians serving in the Peace Corps, members of
the United States Olympic Team and individuals serving
under foreign or coastal articles of employment aboard
an oceangoing vessel of the United States merchant
marine. In our modern military today jobs once done
by service members in uniform are now done by civilian
employees or contractors. We believe that an
allowable absence for civilian employees and
contractors serving outside while under orders to
deploy by the U.S. Armed Forces is justified. Whether
it's the civilian contractors who keep our military
aircraft flying in Iraq and Afghanistan, or the
civilian employees of the Army Corps of Engineers sent
to help with a natural disaster like Katrina, they
deserve to be excused.
1:06:17 PM
CHAIR GATTO offered his understanding that in World War II, the
U.S. Merchant Marines were civilian contractors rather than
military personnel.
MR. MOFFATT said the U.S. Merchant Marines are considered
civilians and "currently under statute they're covered as
excused absence if you fall under that category."
1:06:59 PM
REPRESENTATIVE OLSON inquired as to how many people this would
cover.
MR. MOFFATT estimated that it would be a small number, perhaps
30.
REPRESENTATIVE OLSON expressed discomfort at the proposed
retroactivity of the bill. He said he thinks the number would
be a lot more than 30, since he estimated he has close to 20
friends who are contractors in Iraq.
CHAIR GATTO recollected that former Representative Ethan
Berkowitz had talked about civilians who took jobs in
Antarctica, and that the legislature had voted down the ability
of those civilians to use their situation as an allowable
absence for the purpose of receiving a permanent fund dividend.
REPRESENTATIVE OLSON emphasized his concern is based not only on
the retroactivity of the bill, but also on the large amount of
last year's permanent fund dividend.
1:08:51 PM
REPRESENTATIVE LYNN indicated that he would be amenable to
changing the effective date.
1:09:09 PM
CHAIR GATTO expressed concern about whether the proposed
legislation should be passed, which would add on a group of
employees who are working for a corporation and are out of town
"for reasons they have considered economically advantageous."
He asked, "Why don't we just extend it to everybody who says,
'Hey, I'm an Alaskan and I'm getting out of town for the winter,
and I get an allowable absence.'?"
1:09:38 PM
REPRESENTATIVE OLSON remarked that the bill title is rather
broad.
1:09:51 PM
REPRESENTATIVE BUCH echoed [Representative Gatto's]
aforementioned sentiments, stating that he is reticent to
obligate the state with a commitment based on an individual's
economic choice. He said he has two "ongoing discrepancies"
with constituents. One is a woman who was a student in Japan
and whose absence did not qualify for receiving a PFD. He said
even if the effective date were not retroactive, he would have a
difficult time "giving somebody the opportunity just because
they made that choice that they felt they should be receiving
something that we have some very stringent requirements for."
1:11:16 PM
REPRESENTATIVE RAMRAS remarked that not all "these folks" are
making six figures. He suggested it might be worthwhile to find
out what the jobs are and how many of those jobs exist. He said
some of those folks share some of the same risks that those in
our military face.
1:13:45 PM
KAREN DORONDO testified that she is a civilian employee of the
U.S. Department of Defense, who works for the U.S. Army, and
whose work requires that she go wherever she is sent on
temporary duty (TDY). She relayed that she has been an Alaska
resident since 1970 and owns a home [in the state]. Ms. Dorondo
stated that she was offended that she was not considered a
resident when she was sent to Iraq in 2007. She said she thinks
the consideration that those who make too much money should not
get a permanent fund is odd. She stated that there are probably
some wealthy people who live in Alaska year round and receive
the PFD. She said her TDY has been extended in the past for
lack of a replacement. She concluded that she considers herself
deserving [of a PFD], because Alaska is her home.
1:17:13 PM
CHAIR GATTO said he does not think anyone present made the
suggestion that a person's income would be a consideration in
determining whether or not a person would qualify for an
allowable absence for purposes of a PFD. He offered his
understanding that the Permanent Fund Corporation sets the rules
and uses the requirement of residency and allowable absence
[from Alaska].
1:17:43 PM
REPRESENTATIVE HARRIS responded that he does not believe the
Permanent Fund Division makes rules; the legislature sets the
rules and the division administers those rules.
1:18:17 PM
REPRESENTATIVE LYNN thanked [Ms. Dorondo] for her service to
United States. He asked if she is ever subjected to enemy fire.
MS. DARONGO replied that where she is presently located, there
was mortar fire last week; however, she said she was nowhere
near it at the time. She said she has been on other bases when
they have had mortars, but not within fire. She said she has
been lucky. In response to a follow-up question, she said her
home station is Ft. Richardson, and she works as a supply
logistics representative - she takes part in providing equipment
to soldiers.
1:19:46 PM
REPRESENTATIVE LYNN said someone made the comment that it is the
economic choice of people like Ms. Dorondo to "go over there."
He said that in some respect it is also the economic choice of
people to join a volunteer military. He said the civilian
contractors share most of the same risk as [military personnel
serving] in hostile locations. He emphasized the importance of
the civilian contractors to the work of the military.
MS. DARONGO concurred.
1:20:46 PM
DEBBIE BITNEY, Director, Permanent Fund Dividend Division,
Department of Revenue, apologized for the lack of a fiscal note.
She explained that she was afraid to even attempt a guess as to
how many Alaskan's this proposed legislation could affect.
1:21:31 PM
MS. BITNEY, in response to Representative Harris, said the
Department of Revenue has taken no position regarding HB 65. In
response to a follow-up question, she said whether or not the
bill would create considerable work for the division would
depend on the number of people who claim the absence. She said
each person who makes the claim would automatically become a
case that would require review by a technician. People's
absences are sometimes more complex - "they don't always go
straight there and come back" - which means additional time
spent on the case, she said. Furthermore, denials and the
subsequent appeals would increase the division's work.
1:23:01 PM
MS. BITNEY, in response to Representative Harris, confirmed that
those active duty military personnel who are deployed are given
allowable absences and thus can receive their PFDs. She stated
her belief that they can request waivers of the "72-hour rule,"
which requires a person with an allowable absence to return to
Alaska for 72 hours every two years.
1:23:36 PM
REPRESENTATIVE HARRIS summarized that the proposed legislation
would include civilians deployed for work with the military
under the same provisions that currently cover active military
personnel who are deployed.
MS. BITNEY responded that that is her understanding.
1:23:53 PM
MS. BITNEY related that the retroactivity proposed in HB 65
would increase the fiscal note exponentially, which is a
concern, because the division does not have the money to pay
dividends for prior years.
1:24:35 PM
REPRESENTATIVE OLSON noted that during the 2001-2002 session,
legislation was proposed that would have included allowable
absences for those in the Peace Corps and AmeriCorps. He
recollected, "By the time the bill died, I think it was well
over a thousand ... people."
1:25:46 PM
REPRESENTATIVE BUCH asked if [Ms. Dorondo] would have qualified
for the PFD if she had returned. He clarified that when people
meet certain obligations of the permanent fund, they remain
eligible, and he wants to know "whereby this person would have
been eligible to meet those requirements."
MS. BITNEY stated her belief that [Ms. Dorondo] would have
remained a resident for the program by all other accounts; the
issue is [Ms. Dorondo's] length of absence from the state of
Alaska.
1:27:15 PM
REPRESENTATIVE OLSON questioned if an involuntary extension of
Ms. Dorondo's time away from Alaska would be grounds for appeal.
MS. BITNEY responded that currently anyone can be outside of the
state for 180 days for any reason and remain qualified for a
PFD, but beyond that, a person must qualify for an allowable
absence. Circumstances beyond a person's control have not ever
successfully resulted in a decision that was overturned by
appeal; not even in the case of people who exceeded the 180 days
as a direct result of planes not flying because of [the
terrorist attacks of September 11, 2001]. In response to Chair
Gatto, Ms. Bitney briefly discussed allowable absences for
students.
1:29:37 PM
CHAIR GATTO announced that HB 65 would be held over.
1:29:45 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Military and Veterans' Affairs meeting was
adjourned at 1:29 p.m.
| Document Name | Date/Time | Subjects |
|---|