HB 75-PERM FUND; EMPLOYMENT; ELIGIBILITY  3:20:00 PM CO-CHAIR FIELDS announced that the first order of business would be HOUSE BILL NO. 75, "An Act relating to national criminal history record checks for certain employees of the Department of Revenue; relating to allowable absences for eligibility for a permanent fund dividend; relating to the confidentiality of certain information provided on a permanent fund dividend application; relating to electronic notice of debt collection executed on a permanent fund dividend; and providing for an effective date." [Before the committee was CSHB 75(STA).] 3:20:32 PM REPRESENTATIVE JEREMY BYNUM, Alaska State Legislature, as prime sponsor, presented HB 75. He said HB 75 is an important bill, particularly for mariners. He paraphrased the second and third paragraphs of the sponsor statement [included in the committee file], which read as follows [original punctuation provided]: The Permanent Fund Dividend is a cornerstone of economic stability for many residents, but outdated regulations create unnecessary barriers for Alaskans pursuing education, maritime careers, and medical care. House Bill 75 addresses these issues by modernizing allowable absences, enhancing program security, and improving administrative efficiency. HB 75 ensures that time spent in a U.S. merchant marine academy is treated the same as attending college, allowing Alaskans to pursue this vital technical training without losing their PFD eligibility. The bill also provides relief for college students who cannot afford to return home for winter or spring breaks, ensuring that these short-term absences do not jeopardize their qualification. Additionally, it simplifies the rules governing out-of-state medical care, preventing Alaskans with unexpected health emergencies from being penalized. To strengthen program security, HB 75 requires fingerprint-based background checks for PFD Division employees who handle sensitive personal data, reducing the risk of fraud and identity theft. The bill also makes the PFD applicant list confidential, further protecting Alaskans from fraudulent claims and identify theft. Additionally, it improves overall administrative efficiency by allowing residents to opt-in to electronic levy notices, cutting costs associated with printing and mailing. REPRESENATIVE BYNUM spoke to the updated sectional analysis, stating that the previous committee of referral had changed "armed services" to "uniform services". 3:23:25 PM TREVOR SHAW, President & CEO, Alaska Society of Certified Public Accountants (AKCPA), as invited testifier, presented a summary of changes from the original bill version to CSHB 75(STA) [included in the committee file], which read as follows [original punctuation provided]: 1. Changes all instances of "armed services to "uniformed services". 2. Adds Section 3 defining "family members" by relationship. 3. Adds to Section 3 defining Uniformed Services as "Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, and the Commissioned Corps of the National 2 Oceanic and Atmospheric Administration and Public Health Services". 4. Renumbers the following sections. MR. SHAW noted that the major change was the addition of merchant mariner training at the Merchant Marine Academy as an allowable absence for permanent fund dividend (PFD) eligibility. MR. SHAW further noted that HB 75 would not expand statutory protections for voluntary out-of-state activities such as Peace Corps or participation in the Olympic games, for example. He clarified that CSHB 75(STA) "preserves and aligns protections already granted to individuals whose careers require extensive training and certification outside of Alaska." He explained that existing statute already allows for eligible absence for those "serving under foreign or coastal articles of employment aboard an ocean-going vessel of the United States Merchant Marine." He stated that HB 75 would clarify additional relevant educational programs that should qualify as allowable absences. He further stated that an individual who received necessary out- of-state medical care would not be exempted from PFD eligibility. He stated that HB 75 would protect students unable to return home [to Alaska] during their spring or winter breaks, "as long as they ... return to their educational program." He stated that PFD Division employees would be required to provide fingerprints under the proposed legislation, noting that many professions are subject to Federal Bureau of Investigation (FBI) background checks, such as nurses, hairdressers, massage therapists, retail estate appraisers, et cetera. Additionally, he stated that the PFD applicant list would be confidential under CSHB 75(STA). He concluded that the proposed legislation also would allow individuals to opt in to electronic communications regarding their PFD. MR. SHAW paraphrased the sectional analysis for CSHB 75(STA) [included in the committee file], which read as follows [original punctuation provided]: Section 1. Requires the Permanent Fund Division to conduct background checks on and fingerprint its employees and applicants for employment within the Division. Section 2. Modifies the allowable absences for Permanent Fund Dividend eligibility to include: • Absences for school breaks and holiday, not including summer break, during the academic year. • Education (1) to become a merchant mariner, and (2) through other vocational programs approved by the United States Coast Guard. • Prevents medical absences from limiting the length of voluntary absences. Section 3. Provides definitions relating to "family members" and "uninformed services". Section 4. Aligns to Sect 1., requiring the Permanent Fund Division to conduct background checks on and fingerprint its employees and applicants for employment within the Division. Section 5. Makes the names of Permanent Fund Dividend applicants confidential. Section 6. Allows an opt-in option for Permanent Fund Dividend recipients to receive levy notices electronically. Section 7. Establishes an effective date of January 1, 2026. 3:27:28 PM SENATOR JESSE KIEHL, Alaska State Legislature, began by stating that HB 75 contains half of the elements originally proposed by the governor in a previous legislature. He further surmised that the proposed legislation contains "important tune-ups" to allowable absences, and the safety and efficiency of the PFD. He concluded that CSHB 75(STA) is not a PFD formula bill; rather, it is a "clean-up bill," noting that it nearly passed in the prior year. 3:28:58 PM KARI NORE, External Affairs Director, Alaska Chamber, gave invited testimony in support of HB 75. She gave prepared testimony [included in the committee file], which read as follows [original punctuation provided]: The Alaska Chamber was founded in 1953 and is Alaska's largest statewide business advocacy organization. Our mission is to promote a healthy business environment in Alaska. The Chamber has more than 700 members and represents businesses of all sizes and industries from across the state, representing 58,000 Alaskan workers and $4.6 billion in wages. The Chamber has a formal policy position to support clarifying vocational training absences for purposes of receiving PFD benefits. We support the enactment of clarifying changes to the PFD statute in order to assure Alaskans who are members of the uniformed services or those attending merchant marine training programs remain eligible to obtain their PFD, provided they have met all other eligibility criteria. Since 1997, over 700 Alaskans have been recruited, trained, and placed in deep-sea maritime employment by attending the Paul Hall Center for Maritime Training and Education. Many of these candidates were youth, Alaskan Natives, displaced workers, and veterans who attended an apprentice program paid for through a labor-management training trust fund. In so doing, management can be assured the individuals they hire to crew their vessels are thoroughly trained to USCG [United States Coast Guard] standards and uniformly meet their security, safety, and competency standards. Furthermore, by recruiting Alaskans for this apprenticeship opportunity companies in the Alaska maritime trade, like Alaska Tanker Company, Crowley Maritime, Matson Navigation, and TOTE Maritime Alaska, continue to meet their commitment to hire local. Denying PFD benefits to Alaskans, particularly younger Alaskans, while engaged in this required training, discourages them from considering this pathway as a career opportunity. The purpose for the local hire effort is for these individuals to be trained outside and to return to Alaska to spend their earned wages and enjoy their benefits on their time off. In closing, the Chamber supports [HB 75] and encourages swift passage of this straightforward and good for business bill. Thank you for considering the Alaska Chamber's comments. 3:31:37 PM CO-CHAIR FIELDS noted that a transportation company has an apprenticeship program due to efforts by both former Congressman Don Young and former Senator Ted Stevens to develop local workforce. He explained that CSHB 75(STA) was a multi-decade piece of legislation. He stated that swift passage was his goal. 3:32:21 PM REPRESENTATIVE COULOMBE stated that she is in support of legislation that aids in developing Alaska's workforce. She noted there is a zero fiscal note. She queried whether current employees, future employees, or both would be fingerprinted under CSHB 75(STA). REPRESENATIVE BYNUM deferred to Ms. Wojtusik. 3:33:14 PM GENEVIEVE WOJTUSIK, Director, Permanent Fund Dividend Division, Department of Revenue, replied that, were CSHB 75(STA) to pass, the division would take six months to develop regulations for background checks. 3:33:37 PM REPRESENTATIVE COULOMBE asked whether the exemption for emergency medical leave was a new exemption. 3:33:58 PM MS. WOJTUSIK replied that an emergency-related exemption would be a new piece of statute. She explained that, currently, there are 16 different allowable absences in Alaska Statute (AS) that qualify as an emergency. She further explained that there are exemptions for medical leave and family medical leave, but not for emergency medical leave. 3:34:26 PM REPRESENTATIVE NELSON queried the reason for changing armed services to uniform services in the proposed legislation, thereby including the National Oceanic and Atmosphere Administration (NOAA). 3:34:48 PM REPRESENATIVE BYNUM replied that the change occurred in the previous committee of referral, House State Affairs Standing Committee. He explained that the chair of the committee requested that change be included. MR. SHAW responded that the change was proposed by Representative Andi Story in House State Affairs Standing Committee. He explained that it was technical change that would create allowable absences for an additional 50 people or less. 3:36:15 PM REPRESENTATIVE NELSON asserted that NOAA was not militarized. He stated that he would like to see NOAA removed from the proposed legislation. 3:36:52 PM MR. SHAW noted that the Peace Corps also fall under allowable absences, because of their service as commissioned officers through a federal agency. He stated their office was open to refinement of CSHB 75(STA). 3:37:38 PM REPRESENTATIVE SADDLER echoed concerns about changing the exemption from "armed services" to "uniformed services". He shared additional concerns that exemptions are "always expanded, never contracted." REPRESENTATIVE SADDLER noted that members of armed services cannot decline assignments and asked whether members of NOAA or the public health service could decline moves. 3:39:10 PM CO-CHAIR FIELDS thanked the various speakers for CSHB 75(STA). REPRESENATIVE BYNUM thanked the committee members for their time and stated that his office was always open to questions. [HB 75 was held over.]