HB 198 - PFD ALLOWABLE ABSENCES The next order of business to come before the House State Affairs Committee was CSHB 198(STA) (9-LS0745/C). CHAIR JAMES called on Representative Kim Elton, to present the committee substitute. Number 2349 REPRESENTATIVE KIM ELTON explained the changes to the committee substitute. He referred the committee members to page 2, line 20, and explained item (J) was added. The item was added to allow an absence for the care of a parent, spouse, sibling, child, or stepchild with a critical life-threatening illness whose treatment required travel outside of the state. The language was also included in the title to avoid the "christmas tree" effect. He thanked the staff members and the committee members for their time spent on the bill. CHAIR JAMES announced she was ready to move the bill forward. Number 2408 REPRESENTATIVE PORTER explained the committee substitute precluded a resident from taking care of a relative who resided outside of Alaska. Number 2424 REPRESENTATIVE PORTER moved that CSHB 198(STA) move from the committee with individual recommendations and attached fiscal notes. Representative Ogan objected for further testimony from the public and to offer an amendment. CHAIR JAMES called on the first witness via teleconference in Mat- Su, Ross Perrine. Number 2439 ROSS PERRINE said he was a merchant seaman and had lived in Alaska for the past 10 years. He had been consistently denied the permanent fund dividend (PFD). He felt his work as a merchant seaman should be considered an allowable absence. It was not a question of residency. TAPE 96-50, SIDE B Number 0000 MR. PERRINE further said his work was vital to Alaska as a direct participant in the moving of Alaskan Northslope Oil. He reiterated he felt he was being excluded from the PFD program because of his occupation. He said it was not intentional on the part of the program, but an accidental result when defining the allowable absences. The majority of Alaskans he had talked to also felt his situation was unfair. Number 0033 CHAIR JAMES asked Mr. Perrine how long at a time was he gone? Number 0037 MR. PERRINE replied anywhere from two to three months. He also received six weeks of leave when he was at home before returning to the sea. CHAIR JAMES called on Nanci Jones, Department of Revenue, to address the concerns of Mr. Perrine. Number 0062 NANCI JONES, Director, Central Office, Permanent Fund Dividend Division, Department of Revenue, stated there were many inequities in the allowable absences for the PFD. She said, "I am asking the legislature to deal with the inequities regarding the absences." The program did not recognize the private industry. The current allowable absences were for congressional delegation, and state employees, for example. She reiterated there were no provisions for the private industry. She called it a discrimination and an inequity against the other half of the Alaskan residents that had careers that required them to be outside of the state. She was trying to bring more balance and equity between the allowable absences. She asked the committee members to recall her previous testimony warning them that when considering this issue there were many areas to consider. Number 0121 REPRESENTATIVE GREEN said he knew of a constituent that was an airline pilot that was out of the state for approximately 190 days. There were inequities, but he did not know if the legislature should continue to make exceptions. "Sooner or later, we say it doesn't matter anymore. If you want the Alaska Permanent Fund, just come here and stay for a little while." Number 0143 CHAIR JAMES explained she asked Representative Elton to keep the title tight to prevent the christmas tree effect. She believed the serious considerations of a terminally ill family members needed to be addressed. Therefore, she was willing to consider the bill in the House State Affairs Committee. She agreed with the concerns of Ms. Jones regarding the inequities for allowable absences. She said she would yield to the department for suggestions. She suggested a bill next session to clean up the problems. The current program did not designate the difference between long-time Alaskans and those that have been here a short time. The courts, however, had ruled that it was not legal to consider the tenure of a long-time Alaskan resident. She suggested as a solution to take away all the exceptions. That would be fair, she said, rather than including only a few exceptions for some. She reiterated she empathized with Mr. Perrine's concerns. She was not willing to consider his profession as an exemption in the bill, however. Number 0255 REPRESENTATIVE OGAN moved to include "U.S. Merchant Marines" to page 2, line 24, item (K), and to amend the title accordingly. Representative Green objected. Discussion followed. Number 0279 REPRESENTATIVE OGAN said he understood the concerns of the christmas tree effect. He said it was late in the game to consider this issue and would consider working on it further next session. He said a disqualification based on a person's career was not fair. Number 0305 CHAIR JAMES replied she agreed with Representative Ogan. However, she did not think this was the correct piece of legislation to include that amendment. The bill would never pass. Number 0315 REPRESENTATIVE GREEN said he could not pass the bill in good conscience without including "Airline Pilot" as an allowable absence. Number 0319 CHAIR JAMES reiterated she wanted to maintain the integrity of the bill and to only address the concerns of terminally ill family members. CHAIR JAMES called for a roll call vote. Representatives James, Green, Ivan and Porter voted against the motion. Representative Ogan voted in favor of the motion. The amendment failed. CHAIR JAMES called on the next witness via teleconference in Glennallen, George Reichman. Number 0354 GEORGE REICHMAN said he had been a missionary worker in Alaska since 1975. As a result of his job he was required to leave Alaska every four years to meet with individuals and churches that financially supported his work. He wondered why it was not included as an allowable absence since it was a requirement of his job. His family could use the money because his children were about ready to go to college. He said it would be easy to document his time away from Alaska and show the intent of his family to return. He felt he and his family were being excluded unfairly. Number 0426 CHAIR JAMES thanked Mr. Reichman for his testimony. She reiterated a serious look at the allowable absences was needed. CHAIR JAMES called on a motion to move the bill from the committee. Number 0443 REPRESENTATIVE OGAN moved that CSHB 198(STA) (9-LS0745/F) be adopted for consideration. Hearing no objection, it was so adopted. Number 0462 REPRESENTATIVE GREEN moved that the word "or" be deleted from page 2, line 14. Hearing no objection, it was so deleted. (Amendment 1) Number 0528 REPRESENTATIVE PORTER moved that CSHB 198(STA) am move from the committee with individual recommendations and attached fiscal notes. Hearing no objection, it was so moved from the House State Affairs Committee.