"An Act relating to the dividends of certain individuals claiming allowable absences; and providing for an effective date. "

To qualify for a Permanent Fund Dividend (PFD) an individual must establish residency in Alaska by being physically present for a minimum of 185 days in a calendar year. The Alaska Legislature has recognized that under certain circumstances, however, physical presence in our state could be waived and an individual would still qualify to receive a PFD. There are currently 13 excused absences that allow individuals and their dependents to leave the state and still receive a PFD. The individual Alaskan resident who applies for an allowable absence with the PFD Division must declare their intent to return after a temporary absence. Essentially, it's an honor system. Military service and secondary education are the most common reasons individuals apply for an allowable absence. As the categories of allowable absences have increased over the years so have the number of individuals who live outside of Alaska and continue to receive a PFD.

But how many of the individuals who leave temporarily and continue to receive a PFD actually return to live in Alaska? According to a ten-year review of those receiving PFD's who are out of state, most recipients, in fact, never return. Individuals collecting dividends out of state leave little in net return to Alaska. Permanent Fund Dividend Division research indicates that in the last ten years over 97 thousand dividends totaling 136 million dollars were paid to out of state individuals who never returned to live in Alaska.

To encourage those who live out of state, and receive PFD checks, to return to the state, HB 273 simply asks individuals to return in order to collect their dividends.

Distributing dividends in Alaska through HB 273's requirement for return, suggests more money will be spent in Alaska. Knowing that a sizable nest egg had accrued in their absence, HB 273 might encourage college students and our valuable military personnel to return to Alaska. By distributing more dividends in state, HB 273 seeks to remedy the situation where a person collects Alaska PFD checks but doesn't live here, and will not be returning. Those who do return will receive all dividends that have been held for them while away from Alaska for an allowable absence.

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