HB 190-PFD ALLOWABLE ABSENCE: MILITARY  9:47:19 AM CHAIR LYNN announced that the last order of business was HOUSE BILL NO. 190, "An Act relating to the allowable absence for active duty service members of the armed forces for purposes of permanent fund dividend eligibility." 9:47:31 AM REPRESENTATIVE ERIC FEIGE, Alaska State Legislature, as sponsor, introduced HB 190. He asked committee members to keep in mind a quote by Winston Churchill, on the bottom of the sponsor statement [including in the committee packet], which read as follows: We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm. REPRESENTATIVE FEIGE said a law was passed in 1998 allowing Alaskans absent from the state for specific reasons, including service in the military, to qualify for the state's permanent fund dividend (PFD); however, with the exception of the allowable absence to those serving in U.S. Congress, a limit of 10 years was set. Representative Feige opined that it is an injustice to apply the 10-year rule to those in the military but not to those in Congress, and HB 190 would correct that injustice. REPRESENTATIVE FEIGE directed attention to a committee substitute (CS) for HB 190, Version 27-LS0564\D, Kirsch, 3/28/11, which he said adds clarification to the originally proposed exemption. He said the bill would specifically address those Alaskans who grow up in the state and volunteer to serve in the military, so that the state does not penalize them for choosing a career in the military. 9:50:29 AM REPRESENTATIVE SEATON moved to adopt the committee substitute (CS) for HB 190, Version 27-LS0564\D, Kirsch, 3/28/11, as a work draft. REPRESENTATIVE GRUENBERG objected for the purpose of discussion. 9:51:46 AM REPRESENTATIVE SEATON asked the bill sponsor to provide a legal memorandum describing how this issue differs from the longevity bonus issue. He said he would like to know the percentages of those with various allowable absences who return to Alaska. He said the legal question relating to allowable absences is that the more tenuous the allowable absence becomes for a proxy for physical residence, the more likely it is that the federal government will declare that the entire fund will become a taxable entity. 9:54:21 AM REPRESENTATIVE P. WILSON mentioned a law suit and talked about some people in the military claiming Alaska residency while having no intention of returning. She said she would like the bill sponsor to find out if the law suit and the 10-year rule are related. 9:55:13 AM REPRESENTATIVE FEIGE clarified that the bill is designed for those who have a record of being Alaska residents prior to joining the armed forces; it really does not apply to people who come from the Outside and get stationed in Alaska. 9:56:04 AM TIKO CROFOOT, Lieutenant Commander, U.S. Navy, testified that he has been an Alaska resident since he was four years old, and the only reason he left Alaska was to attend a naval academy, after which he has served with the U.S. Navy for approximately 13 years. He said that because of the 10-year rule, he has not received a PFD for the past three years. He relayed that he has voted in all Alaska elections [since voting age], has an Alaska driver's license, owns property in Alaska, and is part-owner in a family business in Alaska. LIEUTENANT COMMANDER CROFOOT said he understands the rules about residency as they relate to keeping the PFD intact and [guarding against] people milking the system; however, he said he has every intention of returning to Alaska following service in the military. He asked the legislature to change the PFD rules to reflect an intention by the state not to penalize those who make a career choice to serve in the military. 9:58:34 AM BRIAN ROSS, Lieutenant Colonel, U.S. Marine Corp, testified in support of HB 190. He stated that he was born in Alaska, and he related his history with the military. He said he has an Alaska driver's license, has been a registered voter in Alaska since turning 18, has designated his residency as Alaska on his last will and testament, owns property near Glen Allen, and has family in Alaska. He said he has spent at least 80 days in Alaska in the last five years alone. He said he was denied his dividend in 2009 and has filed for an Alaska Superior Court judicial review, as allowed under Alaska statute. He asked the committee whether he is less deserving of a PFD because of having chosen a military career, which results in his exceeding the 10-year rule. LIEUTENANT COLONEL ROSS said he chose his military career eight years before AS 43.23.006 became law. He stated that on every PFD application he has signed for the last 20 years, he has sworn that he intends to return to Alaska upon his retirement from the military. He said many military personnel change their stated residency throughout their careers in order to take advantage of resident state taxes and in-state college tuition, for example, but he never changed his home of record or residency from Alaska in his 20 years in the military. He said he has lived in six states and one foreign country, but has ties only to Alaska. He encouraged the committee to pass HB 190 to allow lifetime Alaskans who are military personnel to continue to receive their PFDs. He further requested that the bill be made retroactive to 2009. [HB 190 was held over] [The objection by Representative Gruenberg to the motion to adopt the committee substitute (CS) for HB 190, Version 27- LS0564\D, Kirsch, 3/28/11, as a work draft, was left pending.]