HOUSE BILL NO. 52 am "An Act relating to allowable absences from the state for purposes of eligibility for permanent fund dividends; and providing for an effective date." Vice-Chair Fairclough MOVED to ADOPT the propose committee substitute for HB 52, Work Draft 28-LS0170\U (Martin 4/9/13). Co-Chair Meyer OBJECTED for purpose the discussion. CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, reported the change from the previous version. She noted that on Page 2, line 28 the following was added, "or a United States national team for an Olympic sport." She explained that the language was necessary due to the narrow interpretation of the statutes regarding the Permanent Fund Dividend program's allowable absences. In 2008, Alaskans were denied the dividend based on the situation. The new language added the conforming language to the statute. Co-Chair Meyer WITHDREW his OBJECTION. Vice-Chair Fairclough remarked that the Department of Revenue (DOR) acted responsibly in implementing the law and reviewing the legislative history regarding the case that prompted the legislation. The division worked to protect Alaskans rights while upholding the conditions set by the legislature. She stated that current law clearly did not allow for the absence related to the case. REPRESENTATIVE ERIC FEIGE, SPONSOR, stated that he was not opposed to the change in the proposed committee substitute. Senator Dunleavy asked a question regarding an existing allowable absence. He wondered whether the bill covered a minor accompanied by a parent who was absent receiving secondary or post-secondary education. Representative Feige responded that the bill did not affect any existing allowable absences. Vice-Chair Fairclough referenced discussions during a previous hearing about parents who did not file a Permanent Fund Dividend (PFD) application for their children. She noted that Senator Hoffman had requested the data from the division. She asked Senator Hoffman to share the results with the committee. Senator Hoffman stated that within the last five years from 2008 to 2012 the number of children affected averaged over 1000 per year. The children received a dividend in a prior year. Approximately $1 million was not distributed to the children on an annual basis. He pointed out that the children were still eligible for the dividend but could not apply until the children were of legal age. He felt that the issue needed to be addressed, but that he did not want to delay the legislation. He judged that the issue was much larger in magnitude than what HB 52 addressed. Representative Feige agreed with the comments of Senator Hoffman and related that the issue could be addressed next session in a separate bill. He believed the issue was important but the solution was difficult to address. 10:07:43 AM DAN DEBARTOLO, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION, DEPARTMENT OF REVENUE, responded to the earlier question by Senator Dunleavy. He communicated that the child's dividend was determined by the status of the parent or guardian. Allowable absences applied to accompanying children. Vice-Chair Fairclough referenced the statistics regarding children whose parents failed to apply for the PFD. She asked whether the data represented children who received the dividend in a prior year and qualified subsequent to the skipped year. Mr. DeBartolo responded that the number represented minors who previously applied then skipped some years and reapplied another year. The division looked for "prior year non-filers." The division audited the applications to determine why the dividend was skipped. Co-Chair Meyer asked whether the zero fiscal note still applied to the CS. Mr. DeBartolo replied in the affirmative. Vice-Chair Fairclough MOVED to REPORT HB 52 am out of committee with individual recommendations and the accompanying fiscal note. SCSHB 52(FIN) was REPORTED out of committee with a "do pass" recommendation and with a new zero fiscal note from the Department of Revenue. 10:11:29 AM AT EASE 10:14:00 AM RECONVENED