SB 171-PERMANENT FUND DIVIDEND FOR DECEASED  9:21:44 AM CHAIR MENARD announced the consideration of SB 171. SENATOR MEYER moved to adopt the committee substitute (CS) for SB 171, labeled 26-LS0804\R, as the working document. Hearing no objection, Version R was before the committee. CHRISTINE MARASIGAN, Staff to Senator Kevin Meyer, Alaska State Legislature, said SB 171 would allow the issuance of Alaska's permanent fund dividend (PFD) to an individual who dies during the qualifying year. The check would go to the personal representative claiming the personal property of the deceased. The applicant would have to meet all qualifying requirements. When SB 171 was first drafted it exempted the requirement that the applicant be a state resident the entire qualifying year. She noted Sections 1 and 2 of the eligibility requirements. The individual wouldn't be applying to the department; it would be the successor or estate. The deceased is also no longer a resident of the state on the date of the application. The estate or the successors would actually be filing the application. This is taken care of in the CS on line 13 of page 1. 9:25:49 AM SENATOR MEYER said this came about because two or three constituents have asked him about it. People who have lived in the state for the required 180 days and passed away wouldn't get the check. The loved ones had to pay the funeral costs and could have used the PFD. He never had a good reason why they couldn't have the PFD. He has been working with Debbie Bitney at the PFD division and he appreciates her helping make this bill happen. This is important to those who have lost a close person. "This is their final PFD." CHAIR MENARD said she falls into this category. She might need to declare a conflict. The expenses pile up. SENATOR KOOKESH asked when this will become effective. The deadline passed in March. SENATOR MEYER said yes, but the effective date can be worked on. 9:28:38 AM DEBORAH BITNEY, Director, Permanent Fund Dividend Division, said, "Currently, if a person passes away during the application period, that person is already able to apply for the dividend that would be paid in that year." SB 171 would look back to about the middle of the qualifying year. For a 2009 dividend, for example, it would apply to anyone who was a resident by all other accounts and dies after the 180-day mark in 2008, "if I'm correct." 9:29:53 AM SENATOR MEYER said the 2009 PFD is a look-back to 2008. "Were they in Alaska for 180 days? And if they weren't in Alaska, were they excused for military reasons or medical reasons, etc?" CHAIR MENARD said her husband passed away on March 3, so even if SB 171 doesn't pass, he has been taken care of. MS. BITNEY said that is correct. SENATOR FRENCH said this bill has sympathetic appeal for Alaskans who pass away, but he has some concern "that there will be some unsympathetic individuals who will qualify for this as well." He suggested those who die of a heroin overdose or in a shoot-out with the police, and their family will say, "he was never convicted of anything; he's qualified ... give us his dividend." That should be kept in mind. KATY NEHER, Anchorage, said her daughter was 16 when she was killed in a car accident in 1999, and she was not eligible for her last PFD. The state invalidated the last 10 months of her life, "and she will not let me rest until we fix this." For nine years Ms. Neher has been coming to Juneau trying to "get this fixed." Last summer she lost a brother, and two weeks ago her mother, who had lived in Alaska since the 1950s, died. Alaska needs to give the PFD to the folks that deserve it. 9:33:04 AM SENATOR MEYER asked if the CS will change the fiscal note. MS. BITNEY said the original fiscal note assumed that all people who died in a year would apply and qualify for a dividend. The fiscal note can be revised "to estimate about half of the 3,500 people who do die in the state each year will qualify." The note will be reduced by about $53,000, which includes one position in the division to qualify these additional eligibility cases. 9:34:34 AM CHAIR MENARD asked if the application will change. MS. BITNEY said she doesn't know if this information needs to be included on the application. It will likely be on the website. SENATOR KOOKESH responded to Senator French's concern. A person dying of a heroin overdose or police shootout would still have family members who are left and who may need the PFD money for closure. The person dying of a heroin overdose will not benefit from this bill. Senator French's example pertains to the wrong group of people - it's the people who are left. CHAIR MENARD said the money does not need to be used in a certain way. "We're hoping they'll use it for burials." SENATOR MEYER said SB 171 is meant for the living to help offset funeral or other costs. Even if the person dies in a gang shootout, that should not prohibit the family members from getting the PFD. 9:37:07 AM SENATOR FRENCH said it is a "side road." The vast majority of people will be good Alaskans. SENATOR KOOKESH moved to report CS for SB 171, labeled 26- LS0804\R, from committee with individual recommendations and attached fiscal note(s). Hearing no objections, CSSB 171(STA) moved out of committee.