Sponsor Statement for CSHB 2(FIN)

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.

Historically the spouse was allowed to piggy-back on the individual leaving the state under an allowable absence. A 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 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. Students who leave the state on allowable absences remain eligible for the permanent fund while their spouses who accompany them are ineligible. Similarly, service members who leave the state on allowable absences remain eligible for the permanent fund while the spouses are ineligible.

Through monetary incentives the ruling has effectively encouraged families to break apart for lengthy periods of time. The situation is deplorable and will be remedied by HB 2.

HB 2 excuses an individual from an absence of the state when the reason for the absence includes accompanying another eligible resident, who is absent for a reason permitted under this section, as the spouse, minor dependent, or disabled dependent of the eligible resident.

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.

HB 2 passed the House unanimously. This bill is good public policy. I urge your support.

Sponsor Statement for HB 2

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.

Historically the spouse was allowed to piggy-back on the individual leaving the state under an allowable absence. A 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 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. Students who leave the state on allowable absences remain eligible for the permanent fund while their spouses who accompany them are ineligible. Similarly, service members who leave the state on allowable absences remain eligible for the permanent fund while the spouses are ineligible.

Through monetary incentives the ruling has effectively encouraged families to break apart for lengthy periods of time. The situation is deplorable and will be remedied by HB 2.

HB 2 excuses an individual from an absence of the state when the reason for the absence includes accompanying another eligible resident, who is absent for a reason permitted under this section, as the spouse, minor dependent, or disabled dependent of the eligible resident.

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; (2) are eligible for the 1998 dividend; and (3) apply for the prior year dividend during the 1998 application period.

A bill similar to HB 2 passed the House last session by a 38-0 vote. HB 2 is good public policy. I urge your support.