CHAIRMAN KELLY brought CSHB 2(FIN) - PERMANENT FUND DIVIDEND ELIGIBILITY before the committee and directed attention to a proposed Rules SCS. NICOLE THIBODEAU, staff to Representative Pete Kott, explained the major change made in the proposed Rules SCS is that the 72-hour rule is made proactive by changing the effective date January 1, 2000. In the Finance SCS the 72-hour rule was retroactive. The 72-hour rule states that people who are gone on allowable absence must return to the state every two years for a period of 72 hours. CHAIRMAN KELLY asked what the current rule was on allowable absences. MS. THIBODEAU clarified that right now an individual must return to the state every two years, but there is no specified period of time on how long the individual must remain in the state. The Senate Finance Committee expanded it so that there will be no more "touch and go." MS. THIBODEAU also pointed out that the Senate Finance Committee removed some of the allowable absences including Peace Corps volunteers and national athletic team participants, and those have been added back into the Rules SCS. Also added are teacher exchange participants and Foreign Service members. SENATOR TORGERSON, a member of the Senate Finance Committee, noted that the committee had extensive debate on removing Peace Corps volunteers, and he had an amendment to add in Federal Emergency Management Agency (FEMA) volunteers, however, that amendment failed. He said he would have a problem with that particular section unless FEMA volunteers are included. He added there are just a few FEMA volunteers in the state that actually go out and volunteer their time in emergencies. SENATOR TORGERSON moved the following amendment to SCS CSHB 2(RLS): Amendment No. 1 Page 5, line 24: After "Peace Corps" add "or volunteering services for the Federal Emergency Management Agency" Hearing no objection, CHAIRMAN KELLY stated the amendment was adopted to be incorporated into the Rules SCS. There was brief discussion on the "piggybacking provision" in Section 10 which now provides that spouses and dependents accompanying individuals who are outside the state for allowable absences will be eligible for a 1998 dividend. It was noted that the provision was not made retroactive because it would have meant too big a fiscal note. CHAIRMAN KELLY commented it was his understanding that the sponsor of the bill has agreed to accept the legislation with the Senate changes so that it won't have to go to a conference committee and MS. THIBODEAU agreed that was also her understanding. SENATOR LEMAN said an area where he thinks there is a shortcoming and which should be addressed is people who are engaged in legitimate missionary activities outside the state, and he asked Ms. Thibodeau if she could relate why that is not included in the bill. MS. THIBODEAU responded that several people have requested that missionaries be included. She related that this question was put to Tam Cook, Director of Legal Services, and Ms. Cook has responded with a memo that would be made available to committee members. She noted that Ms. Cook has advised that just the phrase "religious volunteers" couldn't be used, and it would necessitate specifically listing every type of religious volunteer. SENATOR LEMAN moved the adoption of SCS CSHB 2(RLS), version "C", as amended. Hearing no objection, the motion carried. SENATOR LEMAN moved and asked unanimous consent SCS CSHB 2(RLS) be passed out of committee with individual recommendations and that it be approved for calendaring at the discretion of the Chair. Hearing no objection, it was so ordered.