HB 359-ONE-TIME PFD PAYMENT  2:06:01 PM CHAIR MCKAY announced that the final order of business would be HOUSE BILL NO. 359, "An Act relating to the permanent fund dividend and a one-time permanent fund dividend payment and land voucher; and providing for an effective date." 2:06:29 PM The committee took a brief at-ease at 2:06 p.m. 2:06:43 PM REPRESENTATIVE RAUSCHER moved to adopt the proposed committee substitute (CS) for HB 359, Version 33-LS1292\B, Nauman, 3/15/24, as the working document. 2:07:15 PM REPRESENTATIVE MEARS objected for the purpose of discussion. 2:08:02 PM TREVOR JEPSEN, Staff, Representative Tom McKay, on behalf of Representative Mike Cronk, prime sponsor, gave the summary of changes under the proposed CS for HB 359 [included in the committee packet], which read as follows [original punctuation provided]: Summary of Changes CS for House Bill 359(RES) Permanent Fund Dividend Buy-Out Title: "An Act relating to the permanent fund dividend and a permanent fund dividend buy-out; and providing for an effective date" Slight title changes to account for change in payment from a one-time lump sum to a three-year buyout program. Sec. 1 Removes section 1 of HB 359 version A (Permanent Fund Dividend Land Vouchers) and replaces with a modified version of HB 359 version A section 2 that conforms the language to account for three PFD buy-out payments instead of a one-time lump sum payment. Sec. 2 Amended version of HB 359 version A section 3 which defines the PFD payout as three $5,000.00 payments in addition to three regular PFD payments distributed over a three-year period (2026-2028) instead of a one-time lump-sum payment. Sec. 3 Amended version of HB 359 version A section 4 with conforming language to reflect the three-year buy-out program as compared to the one-time payment. Sec. 4 Same as section 5 in HB 359 version A 2:09:43 PM A roll call vote was taken. Representatives McCabe, Baker, Rauscher, Saddler, Wright, and McKay voted in favor of adopting the proposed CS for HB 359, Version 33-LS1292\B, Nauman, 3/15/24, as the working document. Representatives Armstrong, Mears, and Dibert voted against it. Therefore, Version B was before the committee by a vote of 6-3. 2:11:04 PM REPRESENTATIVE MEARS shared her concern that Version B would negatively affect Alaskans who live in the state versus individuals who might want to move to Alaska to abuse the permanent fund dividend (PFD). 2:12:41 PM DAVE STANCLIFF Staff, Representative Mike Cronk, on behalf of Representative Mike Cronk, prime sponsor, answered committee questions regarding HB 359, Version B. He said that no one can know exactly what part of the demographic will benefit from the proposed legislation and explained how the option to receive a lump sum PFD might be beneficial for senior Alaskans or younger families. 2:16:02 PM CODY RICE, Professional Assistant, House Majority Office, on behalf of Representative Mike Cronk, prime sponsor, answered committee questions regarding HB 359, Version B. He shared a specific data set that he prepared for the committee meeting that highlighted how the proposed PFD distribution policies could be implemented without risk of the PFD recipient leaving Alaska or the State Treasury running out of money too quickly. 2:18:23 PM REPRESENTATIVE ARMSTRONG reiterated that behavioral economics indicate that a majority of people would choose to receive a lump sum check rather than a delayed distribution and asked why Version B is a good idea in the first place. 2:18:43 PM MR. RICE confirmed Representative Armstrong's knowledge of behavioral economics. 2:20:04 PM MR. STANCLIFF added that Version B was being proposed to create an option for residents that would prefer a lump sum PFD. He said that some Alaskans are worried about the future of the state and opined that Version B could create hope for those people feeling uncertain about living in Alaska. 2:22:20 PM REPRESENTATIVE MEARS asked if the proposed lump sum PFD would be subject to federal income taxes. 2:22:39 PM MR. RICE said that he did not know whether or not the proposed lump sum PFD would be subject to federal taxes. 2:23:32 PM REPRESENTATIVE SADDLER hypothesized about an individual who is allowed to sell their rights to any future PFD they might be eligible to receive and asked how the $15,000 figure mentioned under Version B was attained. MR. RICE answered that he was unsure if the PFD was transferrable. 2:25:30 PM MR. STANCLIFF added that the $15,000 figure was the product of "a lot of discussion." 2:26:31 PM REPRESENTATIVE RAUSCHER asked if the "Pick.Click.Give" program would be included with the proposed lump sum PFD. 2:27:01 PM MR. STANCLIFF assured Representative Rauscher that the Pick.Click.Give program would be retained under the provisions of Version B. 2:27:40 PM CHAIR MCKAY shared his agreement with Representative Mears that Version B should be deliberated further. 2:29:57 PM CHAIR MCKAY announced that HB 359, Version B was held over.