Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

House Measure Changes Requirements For Permanent Fund Eligibility

For Immediate Release: February 5, 1997 Contact: Rep. Pete Kott (907) 465-3777

JUNEAU - Legislation to maintain permanent fund eligibility for extended out-of-state travel for Alaska residents traveling with their spouse for military, educational and other allowable absences, passed the House of Representatives Wednesday.

HB 2 allows Alaska residents to be absent from the state and to maintain their permanent fund eligibility, when the reason for the absence includes accompanying another eligible resident, who is absent for a reason permitted under Alaska law, if the person is the spouse, minor dependent, or disabled dependent of the eligible resident.

"This bill resolves the damage done by a particular court ruling. The ruling's effects have unintentionally excluded spouses from receiving permanent fund dividends in the event an individual leaves the state under an "allowable absence" and the spouse accompanies the individual," said Kott.

"Alaska residents should not be disqualified from the Dividend program because of many legitimate reasons their spouses have for leaving the state for an extended period of time," said Kott.

Kott said historically the spouse was allowed to piggy-back on the individual leaving the state under an allowable absence. The court ruling changed this status by stating that marriage can not be the reason used to determine a person's residence eligibility.

"Unintentionally, the effect of this court ruling has disrupted the allowable absences traditionally accepted which include a spouse accompanying an individual for purposes of military service, medical treatment and educational pursuits," said Kott.

Kott said under the court ruling, students who leave the state on allowable absences remain eligible for the permanent fund while their spouses who accompany them are ineligible. Similarly, military service members who leave the state on allowable absences remain eligible for the permanent fund while the spouses are ineligible.

"HB 2 will allow the spouses of students and military personnel as well as others whose absence is accepted under current law to travel out-of-state and remain eligible for the permanent fund dividend," said Kott.

"Through monetary incentives the ruling effectively encouraged families to break apart for lengthy periods of time. The situation will be remedied by HB 2," said Kott.

Kott said effective January 1, 1998, HB 2 will restore to spouses the status they had prior to the Superior Court's unfortunate ruling. In addition, this bill will permit Alaskans who, because of the Court's ruling, did not previously qualify, to apply for prior year dividends, provided they: (1) would have been otherwise eligible for prior year dividends and; (2) apply for the prior year dividend during the 1998 application period.

Broadcast Note: An audio actuality is available by calling 1-800-478-6540.

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