SB 4 LONGEVITY BONUS SABBAT:PFD ELIGIBILITY  CHAIRMAN GREEN called the Senate State Affairs Committee to order at 3:37 p.m. and brought up SB 4 as the first order of business before the committee. SENATOR JOHN TORGERSON , prime sponsor of SB 4, said the main thrust of SB 4 is to conform the eligibility requirements for the permanent fund dividend with the unpaid sabbatical provisions of AS 47.45.035, governing the longevity bonus program, so that both programs will be consistent. Under this section a recipient of the longevity bonus may take an unpaid sabbatical for a period of up to 12 months. A recipient having properly notified the Department of Administration within a 30-day period before leaving Alaska may make application upon return to the state to receive the bonus. However, by law, the unpaid sabbatical recipient may only take one sabbatical every five years. Senator Torgerson explained SB 4 would allow the senior citizen to take a sabbatical from the state no more than once every five years without losing eligibility for the permanent fund. He said the bill does not open a loophole in the eligibility process for receipt of the permanent fund; it is tailored to allow only those who are in legitimate sabbaticals recognized under that statute to remain eligible for receipt of the permanent fund. Number 085 NANCI JONES , Director, Permanent Fund Division, Department of Revenue, said the legislation proposes to pay a person who has taken a 12-month sabbatical leave a permanent fund dividend. Currently, if a person is not in the state with the longevity program more than 30 days, they begin to lose checks. If they are out of state over 90 days, then they become ineligible for the program. By allowing an allowable absence for this person who is out of state 12 months, they are not getting a monthly check for the longevity bonus, but they would be eligible for a dividend. Ms. Jones said instead of that scenario, the department proposes allowing a person who is on a 12-month sabbatical leave to still become eligible for the dividend, but not be paid for the year that they are absent, just like the longevity bonus program. However, she pointed out the one danger possible is that if a person who is enrolled in this program right now takes a 12-month sabbatical and is out of state for more than 180 days in one calendar year, it is possible that person could be disqualified from receiving a dividend for two years. She suggested working with the program and within their regulations so that possibly they can come up with something where the individual doesn't lose that second year dividend. Number 140 SENATOR WARD asked Ms. Jones if she thinks they will be able to resolve this situation through regulations and looking at what is in existence now. MS. JONES acknowledged that was correct, and to still have the two programs on an even footing. She added that if an individual is not eligible to paid for a longevity bonus benefit while absent, then the department does not believe that individual should be paid a dividend while absent. Number 160 There being no further testimony on SB 4, CHAIRMAN GREEN requested that Ms. Jones work with the sponsor in addressing the department's concern with the legislation before scheduling it for another hearing.