SB 119-PFD ALLOWABLE ABSENCES CHAIRMAN WARD informed committee members a companion bill to SB 119 was introduced in the House by Representative Jerry Sanders. MARK HODGINS, legislative staff to Senator Ward, sponsor of the measure, explained SB 119 will allow absences for otherwise qualified Alaskans, for the purpose of eligibility for permanent fund dividends, serving under foreign or coastal articles of employment aboard an oceangoing vessel of the United States Merchant Marine. HAROLD HOLTEN, Seafarers International Union (SIU), made the following comments regarding SB 119. The SIU opened an office in Anchorage two years ago to recruit Alaskans to its apprenticeship program in Maryland to give them an opportunity to obtain good paying jobs with benefits. Those Alaskan merchant seamen are denied permanent fund dividend (PFD) checks even though they may own homes and vote in Alaska, have Alaska drivers' licenses, and intend to return and maintain Alaska residency. Alaskan merchant seamen cannot choose whether or not to sail in Alaska and even those who do sail in Alaskan waters have been denied PFDs. Mr. Holten said he hates to see young people turn down a great career opportunity because absences during periods of work will prevent them from receiving a PFD. MR. HOLTEN estimated that SB 119 will affect no more than 200 Alaska merchant seamen over a ten-year period. He pointed out that for the purpose of eligibility verification, the Coast Guard keeps records of where and when merchant seamen are working on ships. Number 129 SENATOR PHILLIPS expressed concern that SB 119 will become a "Christmas tree" bill because many others will argue that they should receive PFDs while out of state for various reasons. MR. HOLTEN said the difference is that Alaskan merchant seamen travel by ship from Anchorage, spend one night in Tacoma while the ship is being loaded, and return to Anchorage. Also, all of their family members receive PFDs. CHAIRMAN WARD took teleconference testimony. Number 174 JOY TUCKER, testifying from Anchorage via teleconference, informed committee members she is married to John O.Glen, a merchant seaman. His work shift is four months on and two months off throughout the year and he sails from Tacoma to Anchorage every seven days. Although he and his family reside in Alaska, he is the only member of his family who does not receive a PFD. EDEN LATTA, a merchant seaman and 10-year resident of Alaska, stated he spends all of his time and money in Alaska when he is not at sea. He noted he would be required to pay the Alaska State income tax if one existed, yet he is ineligible for a PFD. Number 222 ROCKY LATTA, father of Eden, stated the Seafarer's International Union provides high-paying jobs for Alaskan youth at a time when low paying service jobs are the order of the day. While the unemployment rate is lower, the quality of service jobs is poor in pay and benefits. He questioned why Alaska blatantly discriminates against seamen by denying resident seamen their PFDs. A second bothersome issue is the response he received when he asked Permanent Fund Dividend Division employees why merchant seamen are denied the PFD while military members stationed outside Alaska receive PFDs even though they do not intend to return to Alaska. The response was that military members have no choice of where they are stationed and they are placed in life threatening situations. He noted military members are volunteers, and although they have no choice of where they are sent once they enlist, neither do merchant seamen. He also pointed out the highest casualty incident rate in World War II was for merchant seamen and that his son's ship carries cruise missiles while at sea. MR. LATTA concluded by saying Representative Don Young started the apprenticeship program for Alaskans because he saw it as a viable Alaskan industry however the State of Alaska denies participants the PFD. PFD denial makes merchant seamen second class citizens in their own state. Number 271 MARK TABBOTT, Vice President of Totem Motion Trailer Express for Alaska, informed committee members his company has three vessels that run between Tacoma and Anchorage and supply about 70 percent of the groceries consumed in Alaska. Both his company and the industry are committed to hiring Alaskans and bringing them into the trade. SB 119 will support the industry's effort to hire more Alaskans. He urged the committee's support. Number 299 PAUL FUHS, representing Sealand Services, stated Sealand went along with other Jones Act carriers to help provide this Alaska training and hire program and believes it is ironic that participants are denied their PFDs. In regard to Senator Phillips concern about other groups with the same request, MR. FUHS said the sea time records of merchant seamen are documented by the U.S. Coast Guard and are extremely accurate. He believes seamen could easily provide that information when applying for a PFD. CHAIRMAN WARD noted Dwight Perkins, Department of Labor, was available to answer questions if need be, and that the Department of Labor supports SB 119. Number 318 NANCI JONES, Director of the Permanent Fund Dividend Division, pointed out SB 119 creates a bright line meaning it specifically allows only merchant seamen to leave the state on an allowable absence; it does not provide an allowance for family members to accompany a seaman out-of-state while working. SB 119 also allows Alaskans attending the apprenticeship program an additional 120 day absence as other college students get. SENATOR WILKEN asked Ms. Jones if SB 119 pertains to a person who resides in Alaska but is absent from Alaska for more than 180 days because of a job. MS. JONES said that is correct. SENATOR WILKEN asked whether he would receive a PFD if he worked for British Petroleum and was assigned to Kuwait for more than 180 days. MS. JONES said he would not. SENATOR WILKEN asked whether he would receive a PFD if he was an Alaska teacher teaching in Australia for nine months. MS. JONES said he would not. SENATOR ELTON asked Ms. Jones if the companion bill on the House side has been changed at all. MS. JONES said it has not. She pointed out the difference between SB 119 and its companion bill, and other House legislation, is that the other legislation addresses employment absences in general. SB 119 is specific to merchant seamen. CHAIRMAN WARD noted the general employment absence legislation Ms. Jones was referring to was sponsored by Representative Cowdery. SENATOR ELTON moved the adoption of Amendment 1, which reads as follows. Page 1, line 2, following "marine": Insert "or while serving as a volunteer in the Peace Corps" Page 2, following line 21: Insert a new paragraph to read: "(13) serving as a volunteer in the Peace Corps;" Page 2, line 22: Delete "(13)" Insert "(14)" Page 2, line 23: Delete "(14)" Insert "(15)" Page 2, line 25: Delete "(14)" Insert "(15)" Page 2, line 28: Delete "(1)-(13)" Insert "(1)-(14)" Page 2, line 31: Delete "(3)-(13)" Insert "(3)-(14)" Page 3, line 2: Delete "(1)-(13)" Insert "(1)-(14)" Page 3, line 3: Delete "(a)(1)-(13)" Insert "(a)(1)-(14)" Page 3, line 11: Delete "(a)(13)" Insert "(a)(14)" CHAIRMAN WARD objected for the purpose of discussion. SENATOR ELTON explained Amendment 1 will return to statute the excused absence for Peace Corps volunteers. The cost of providing a permanent fund dividend to Alaskan Peace Corps volunteers is estimated at $39,000. Peace Corps volunteers serve for 27 months. Their living expenses are paid and they receive a lump sum payment of $225 per month served upon discharge. He wagered that more Peace Corps volunteers return to Alaska to reside than college students or military members and he noted the difference between Peace Corps volunteers and military members is the tools they use. SENATOR ELTON said it is not only egregious that Peace Corps volunteers do not receive their PFDs while serving for 27 months, they also have to wait two to three years to re-establish residency. Number 385 SENATOR PHILLIPS asked Eddie Burke, legislative aide to Representative Sanders, his opinion of Amendment 1. MR. BURKE replied this legislation was designed to apply to merchant seamen only. SENATOR WILKEN noted his support for Amendment 1 as he believes the Legislature erred last year in removing Peace Corps volunteers from PFD eligibility. CHAIRMAN WARD maintained his objection to Amendment 1. Amendment 1 was adopted with Senators Elton, Wilken, and Phillips voting "yea," and Senator Green and Chairman Ward voting "nay." CHAIRMAN WARD announced CSSB 119(STA) would be held in committee until a later date.