HB 75-PERM FUND; EMPLOYMENT; ELIGIBILITY  3:40:33 PM CHAIR KAWASAKI announced the consideration of CS FOR HOUSE BILL NO. 75(STA) "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." 3:40:55 PM TREVOR SHAW, Staff, Representative Jeremy Bynum, Alaska State Legislature, Juneau, Alaska, presented an overview of HB 75. He disclosed the companion legislation to HB 75 is SB 77 by Senator Kiehl and read an overview: [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. • Changes "armed forces" to "uniformed services" Section 3. Provides the definition for "uniformed services" to encompass the armed forces and the Commissioned Corps of the National Oceanic and Atmospheric Administration and the United States Public Health Service, and renumbers other provisions of the statute accordingly. 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. 3:42:41 PM MR. SHAW read the letter of intent: [Original punctuation provided.] AS 43.23.005(c) lets a parent, guardian, or other authorized representative file for a permanent fund dividend on behalf of a minor child or disabled adult. The statute requires the child or disabled adult to be eligible in the same manner as other Alaskans. It does not require the sponsor to be eligible for a permanent fund dividend. By regulation in 15 AAC 23.123, the Department of Revenue does not require a disabled adult's sponsor to be eligible for a permanent fund dividend to apply. Despite identical statutory language, the Department of Revenue does require the sponsor of a minor child to be eligible for a permanent fund dividend in regulation 15 AAC 23.113. The regulation 15 AAC 23.113 prohibits eligible minors from receiving a PFD if their sponsor is ineligible. This creates hardship for minors in kinship care or whose parents travel for work. The regulation currently provides exceptions for minors whose parents are ineligible because of incarceration. By repealing or amending the regulation, the Department can use this same model for other eligible minors sponsored by ineligible parents or guardians. It is the intent of the Thirty-Fourth Alaska State Legislature that the Department of Revenue repeal or amend regulation 15 AAC 23.113(b)(1)(a) to treat eligible minors equitably with eligible disabled adults by March 31, 2026. The Department of Revenue shall report to the presiding officers of the House and Senate on the regulation changes by March 15, 2026. 3:44:52 PM CHAIR KAWASAKI opened public testimony on HB 75. 3:45:11 PM RICK BERKOWITZ, representing self, Seattle, Washington, testified in support of HB 75 and explained that the Lynch and Mariner allowable absence provision has long been needed to support local hire in Alaska. Since the late 1990s, companies like Crowley and Sea Land backed legislation to ensure vocational training outside Alaska would qualify for the PFD allowable absence. He said over time, the Department of Revenue narrowed the definition, creating barriers for maritime training programs that guarantee employment upon graduation. HB 75 restores eligibility, helping Alaskans pursue federally recognized training, secure good jobs, and strengthen local hire. 3:49:17 PM RALPH MIRSKY, Executive Director, Sealink Inc., Ketchikan, Alaska, testified in support of HB 75 and highlighted that for over 22 years in Ketchikan, the seafarers program recruited and trained workers, placing more than 800 people through federal grants and the Alaska Department of Labor. He said a major challenge arose when trainees were denied the Permanent Fund Dividend. During the salmon industry crash, a six-week specialized program retrained 150 fishermen, many of whom stayed in maritime work, though the loss of PFD eligibility discouraged some from returning. 3:52:08 PM REPRESENTATIVE JEREMY BYNUM, District 1, Alaska State Legislature, Juneau, Alaska, sponsor of HB 75 stated that though it may appear to make only minor legal changes, HB 75 is considered significant for Alaska, especially Southeast Alaska's maritime industry. HB 75 also protects students studying out of state, modernizes health provisions, and provides long-needed updates and safeguards within the division. 3:53:15 PM SENATOR WIELECHOWSKI expressed concern with Section 5, [AS 43.23.110(a)] which makes the names of Permanent Fund applicants confidential. He said constituents have used this information to detect fraud, though the division also faces hacking risks. The suggestion is to consider a middle ground that balances privacy with public assurance against fraud. 3:54:32 PM REPRESENTATIVE BYNUM emphasized the need to balance transparency with security in managing state resources. HB 75 provisions protect citizens from fraud while still allowing investigations when fraud is suspected. He said members of the public can raise concerns through available channels, and valid reports would be investigated even with the confidentiality provision in place. 3:56:15 PM SENATOR WIELECHOWSKI asked the PFD Division to explain why HB 75, Section 5, is necessary. 3:56:28 PM GENEVIEVE WOJTUSIK, Director, Permanent Fund Dividend Division, Department of Revenue, Juneau, Alaska, answered questions about HB 75 and stated that after years of collaboration with the Criminal Investigation Unit, CIO, and risk manager, the division concluded that making PFD application data easily accessible online poses unnecessary risks. She stated her belief that confidentiality is essential and prevents more issues from happening than HB 75 will solve. 3:57:17 PM SENATOR WIELECHOWSKI noted that while he has not supported similar legislation in the past, this version only protects names. He said given the abundance of public information online, even this limited confidentiality provides some Alaskans with reassurance that their PFD is protected, especially against out- of-state recipients or absentee residents. 3:58:40 PM SENATOR BJORKMAN said that HB 75 has appeared in previous legislative sessions and asked whether last year's version included the same provision. 3:58:57 PM MS. WOJTUSIK answered yes. She said last year's amended version included the same language making the name list confidential, though addresses have never been public. The Revenue Permanent Fund Information (RPFI) system remains available to government agencies, while HB 75 only removes public access. Alaskans can still submit fraud tips to the Criminal Investigation Unit. 3:59:48 PM SENATOR WIELECHOWSKI noted that voter lists, election records, and property tax information are already public and expressed uncertainty about why PFD applicant names should be excluded. 4:00:18 PM CHAIR KAWASAKI referred to HB 75, Section 5 and asked how often the Criminal Investigation Unit receives tips about individuals fraudulently receiving a PFD and asked whether the Criminal Investigation Unit tracks reports of fraudulent Permanent Fund Dividend (PFD) activity and inquired about the frequency of such reporting. 4:00:44 PM MS. WOJTU answered yes, the Criminal Investigation Unit receives hundreds of fraud tips to review, analyze and investigate. 4:00:54 PM CHAIR KAWASAKI asked whether PFD fraud tips usually come from credible sources, such as someone knowing an applicant no longer lives in Alaska, or from other triggers for investigation. 4:01:13 PM MS. WOJTUSIK replied that fraud tips can come from various sources and may be submitted, including anonymously. She said she could provide a written summary of the types of tips received. 4:01:36 PM CHAIR KAWASAKI asked where he could find the public list of current Permanent Fund recipients names. MS. WOJTUSIK replied that about a year and a half ago, regulations were changed to remove the downloadable Excel list of all PFD recipients. She said now only individual name searches are available on the PFD website, though a printed list can still be requested in writing. 4:02:41 PM SENATOR BJORKMAN asked if the list requires searching for a specific name, what level of risk does that tool pose. 4:03:04 PM MS. WOJTUSIK replied that removing the full list online was done by regulation, and HB 75 provides a statutory fix. She said without it, someone could still pay for a printed copy of the entire list and potentially misuse it. Even with name searches, there are risks, such as using death records to file fraudulent claims, which HB 75 aims to prevent. 4:04:00 PM SENATOR GRAY-JACKSON joined the meeting. 4:04:27 PM CHAIR KAWASAKI commented that he has concerns with Section 5 of HB 75. 4:04:42 PM SENATOR WIELECHOWSKI said his preference is to remove Section 5 of HB 75. 4:04:58 PM At ease. 4:06:21 PM CHAIR KAWASAKI reconvened the meeting and commented that during the at ease the committee discussed removing Section 5 of HB 75. SENATOR WIELECHOWSKI stated that Section 5 appears ancillary to HB 75 and he would like it addressed under a separate bill to avoid holding up HB 75. 4:06:29 PM SENATOR WIELECHOWSKI moved to adopt Conceptual Amendment 1, to CSHB 75(STA) Conceptional Amendement 1  BY SENATOR WIELECHOWSKI Page 6, line 28 - Page 7, line 13: Delete all material. 4:07:12 PM CHAIR KAWASAKI objected for purposes of discussion. 4:07:23 PM REPRESENTATIVE BYNUM agreed it was reasonable to remove Section 5 so HB 75 could move forward with its other provisions. He noted that both he and the co-sponsor had no objection. 4:08:01 PM CHAIR KAWASAKI removed his objection. 4:08:10 PM CHAIR KAWASAKI found no further objection and Conceptual Amendment 1 to CSHB 75(STA) was adopted. 4:08:30 PM CHAIR KAWASAKI solicited the will of the committee. 4:08:52 PM SENATOR BJORKMAN moved to report CSHB 75(STA), work order 34- LS0475\I, from committee, as amended, with individual recommendations and attached fiscal note(s) and authorization for Legislative Legal Services to make technical and conforming changes regarding the Conceptual Amendment. 4:09:34 PM CHAIR KAWASAKI found no objection and SCS CSHB 75(STA) was reported from the Senate State Affairs Standing Committee.