SB 77-PERM FUND; EMPLOYMENT; ELIGIBILITY  3:58:30 PM CHAIR KAWASAKI reconvened the meeting and announced the consideration of SENATE BILL NO. 77 "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 the duties of the Department of Revenue; and providing for an effective date." 3:58:53 PM SENATOR JESSE KIEHL, District B, Alaska State Legislature, Juneau, Alaska, sponsor of SB 77. He stated that eligibility for the Alaska Permanent Fund Dividend (PFD) requires being a state resident with the intent to remain. SB 77 updates rules around allowable absences for PFD purposes. Currently, residents may be gone up to 180 days in a qualifying year, with 16 specific categories of allowable absences. SB 77 outlines several key changes: -Merchant Marine Training: Previously, absences for merchant mariners in training outside the state weren't fully counted, even though deployed merchant mariners may be gone longer. The bill now allows additional days for training programs located outside Alaska, helping those who work in Alaska's maritime industries. -College Students: Full-time students attending school out of state already receive extra allowable days, but breaks (like Thanksgiving or spring break) didn't count, creating difficulties and extra paperwork. SB 77 treats these breaks as allowable absences, making the system fairer for students, especially those from lower- or middle-income families. He stated that this provision doesn't include summer months. 4:02:16 PM SENATOR KIEHL continued with his introduction: -Medical Absences: The current rules for being out of state for medical care not available in Alaska are overly complex. SB 77 simplifies this, ensuring that unexpected medical emergencies outside the state don't retroactively disqualify someone from receiving their PFD. -Division Employee Security: SB 77 allows the PFD division to fingerprint its employees and job applicants (not PFD applicants) to ensure they don't have a history of fraud or embezzlement, protecting Alaskans' personal and financial information. -Privacy of Applicant Lists: SB 77 keeps the list of PFD applicants' names private. This protects personal data from being harvested internationally and used to submit fraudulent applications. -Electronic Notices for Garnishments: Alaskans who opt in for electronic notifications about their PFD will also receive electronic notices if their PFD is subject to garnishment, giving them the same choice as other notifications. SENATOR KIEHL stated that SB 77 simplifies rules for state absences, strengthens security for the PFD division, protects applicant privacy, and expands electronic notification options, building on prior proposals and aiming to streamline administration while enhancing protections. 4:06:37 PM CATHY SCHLINGHEYDE, Staff, Senator Jesse Kiehl, Alaska State Legislature, Juneau, Alaska, provided the sectional analysis for SB 77: [Original punctuation provided.] Sectional Analysis  Sec. 1: Requires the Permanent Fund Dividend division to fingerprint its staff and applicants for a background check. Sec. 2: Amends allowable absences for PFD eligibility Adds allowable absence for school breaks during the academic year Adds allowable absence for merchant mariner training Keeps medical absences from limiting the length of voluntary absences Sec. 3: Conforms to Sec. 1 requiring the PFD division to fingerprint its staff and applicants for a background check. Sec. 4: Makes the names of PFD applicants confidential Sec. 5: Lets people opt-in for electronic levy notices Sec. 6: Sets an effective date 4:07:32 PM CHAIR KAWASAKI asked whether finger printing is a common standard in other divisions or if it's being proposed as a new standard for employment in the PFD division. 4:07:58 PM MS. SCHLINGHEYDE responded that she isn't familiar with the Department of Motor Vehicles(DMV) but she is aware of many state government divisions handling sensitive information, including several within the Department of Revenue (DNR), which already requires fingerprinting for employees. 4:08:18 PM SENATOR KIEHL explained that fingerprinting must be authorized in statute to access the federal system for background checks. This requirement is specific to certain job groups and does not automatically apply to all state employment; the legislature reviews it on a case-by-case basis. 4:08:53 PM CHAIR KAWASAKI [announced invited testimony] and public testimony for SB 64. 4:09:11 PM BEVERLY WOOLEY, representing self, Big Lake, Alaska, testified in support of SB 77. She said she is a cancer survivor. She described the challenges of accessing out-of-state medical care under the current eligibility rules for the Alaska Permanent Fund Dividend(PFD) eligibility. She said her and her spouse needed treatment unavailable in Alaska, which required spending time out of state. Fortunately, early diagnoses allowed them to stay within the allowable 180 days and receive their PFD, which was critical for covering medical and travel costs. She highlighted the problem if a serious medical diagnosis occurs late in the year after already using the allowable 180 days. Current rules could force Alaskans to limit necessary treatment to meet the 180-day cap, delay care until the following year, or lose the PFD. She said none of these options are practical or fair, especially given the stress, travel logistics, and additional costs involved in medical emergencies. She emphasized that retirees and other Alaskans may also use allowable days early in the year for travel or family visits, further complicated access to care. She said that SB 77 would alleviate this stress by simplifying rules and ensuring medical emergencies requiring out-of-state treatment don't unfairly jeopardize a PFD. 4:13:58 PM KATI CAPOZZI, President, Alaska Chamber of Commerce, Anchorage, Alaska, testified in support of SB 77 and the clarifying PFD statute, so Alaskans in the uniformed services or merchant marine training remain eligible to receive the PFD, if they meet all other requirements. Since 1997, over 700 Alaskans, including youth, Alaska Natives, displaced workers, and veterans, have trained at the Paul Hall Center for Maritime Training, gaining Coast Guard certified skills. She said maritime companies rely on these programs to meet their commitment to hire locally. Denying PFDs during training could discourage younger Alaskans from pursuing these careers, which are designed to bring workers back to Alaska to live, work, and contribute to the economy. 4:16:48 PM CHAIR KAWASAKI held SB 77 in committee.