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Enrolled HB 188: Establishing a program for financial accounts for individuals with disabilities; exempting the procurement of contracts for the program from the State Procurement Code; exempting certain information on participants in the program from being subject to inspection as a public record; providing that an account under the program for an individual with a disability is not a security; allowing a state to file a claim against an individual's financial account under the program to recover Medicaid payments after the individual's death; and providing for an effective date.

00 Enrolled HB 188                                                                                                         
01 Establishing a program for financial accounts for individuals with disabilities; exempting the                          
02 procurement of contracts for the program from the State Procurement Code; exempting                                     
03 certain information on participants in the program from being subject to inspection as a public                         
04 record; providing that an account under the program for an individual with a disability is not a                        
05 security; allowing a state to file a claim against an individual's financial account under the                          
06 program to recover Medicaid payments after the individual's death; and providing for an                                 
07 effective date.                                                                                                         
08                           _______________                                                                               
09    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
10 to read:                                                                                                                
11       SHORT TITLE. AS 06.65, enacted by sec. 2 of this Act, may be cited as the Alaska                                  
12 ABLE Savings Program Act.                                                                                               
13    * Sec. 2. AS 06 is amended by adding a new chapter to read:                                                        
01            Chapter 65. Alaska Savings Program for Eligible Individuals.                                               
02            Sec. 06.65.010. Program authorized. The Alaska savings program for eligible                                
03       individuals is created in the department. The department shall implement and                                      
04       administer the program under this chapter and as required by the federal authorizing                              
05       law.                                                                                                              
06            Sec. 06.65.020. General department duties. To implement and administer the                                 
07       program, the department shall, in addition to the other powers and duties provided to                             
08       the department under this chapter,                                                                                
09                 (1)  develop, set, and approve the terms and conditions of the program,                                 
10       consistent with this chapter and the federal authorizing law, including limiting the                              
11       nature and amount of contributions that may be made to a program account;                                         
12                 (2)  supervise the decisions about the investment of contributions to a                                 
13       program account;                                                                                                  
14                 (3)  seek required federal, state, and other regulatory agency rulings and                              
15       exemptions;                                                                                                       
16                 (4)  arrange for the timely filing of required regulatory notices,                                      
17       disclosure documents, and reports;                                                                                
18                 (5)  arrange for the program to be audited annually; and                                                
19                 (6)  take other action that is not specifically identified in this section but                          
20       that is necessary to                                                                                              
21                      (A)  obtain and maintain the tax benefits allowed under the                                        
22            federal authorizing law; and                                                                                 
23                      (B)  maintain favorable treatment for designated beneficiaries                                     
24            under state and federal programs that use a means test for eligibility.                                      
25            Sec. 06.65.030. Modification of program. Consistent with this chapter and                                  
26       the federal authorizing law, the department may modify the terms and conditions of                                
27       the program as the department considers necessary or desirable for the effective and                              
28       efficient operation of the program.                                                                               
29            Sec. 06.65.040. Additional department powers. The department may                                           
30                 (1)  set fees the department considers necessary or desirable for                                       
31       program transactions and services; and                                                                            
01                 (2)  develop marketing plans and materials to promote the benefits of                                   
02       the program that are available to contributors under the program and to beneficiaries                             
03       under the program.                                                                                                
04            Sec. 06.65.050. Contracting authority; procurement exemption. (a) The                                      
05       department may contract with a person to advise and assist in the implementation and                              
06       operation of the program.                                                                                         
07            (b)  The department may contract with a person to provide services for the                                   
08       program.                                                                                                          
09            (c)  The department may enter into a contract with other states to obtain or                                 
10       provide the services for implementing the program. The contract may include                                       
11       cooperative procurement by the states of a person to provide services for the program,                            
12       including investment and record-keeping services.                                                                 
13            (d)  Notwithstanding the other provisions of this chapter, the department may                                
14       enter into a contract with another state to allow the residents of                                                
15                 (1)  this state to participate in a program established by another state                                
16       under the federal authorizing law, instead of establishing the program in this state;                             
17                 (2)  that contracting state to participate in the program in this state.                                
18            (e)  The procurement of contracts for the program, including procurement of                                  
19       services under a contract with other states, is exempt from AS 36.30 (State                                       
20       Procurement Code).                                                                                                
21            Sec. 06.65.060. Investment oversight. The department shall                                                 
22                 (1)  oversee and approve the selection of investment managers and                                       
23       advisors for the program;                                                                                         
24                 (2)  oversee all aspects of the program's investments and investment                                    
25       performance and decisions regarding the investment of program assets; and                                         
26                 (3)  oversee all investment disclosure documents and regulatory filings                                 
27       related to program investments.                                                                                   
28            Sec. 06.65.070. Financial contractor obligations. In addition to any other                                 
29       obligations imposed by the contract with the department, if the department enters into                            
30       a contract with a person to provide program accounts, the financial contractor shall                              
31                 (1)  provide program accounts that comply with the federal authorizing                                  
01       law;                                                                                                              
02                 (2)  take the action necessary to keep the program in compliance with                                   
03       the requirements of this chapter and to manage the program accounts in compliance                                 
04       with the federal authorizing law;                                                                                 
05                 (3)  keep adequate records of each program account and keep each                                        
06       program account segregated from other program accounts;                                                           
07                 (4)  as requested by the department, compile the information contained                                  
08       in statements required to be prepared under AS 06.65.210 and provide the statements                               
09       and the compiled material to the department;                                                                      
10                 (5)  provide the department with access to the books and records of the                                 
11       financial contractor to the extent needed to determine compliance with the contract,                              
12       this chapter, and the federal authorizing law;                                                                    
13                 (6)  hold program accounts for the benefit of the program account                                       
14       owner;                                                                                                            
15                 (7)  be audited, at least annually, by a firm of certified public                                       
16       accountants acceptable to the department and provide the results of the audits to the                             
17       department;                                                                                                       
18                 (8)  upon request of the department, provide the department with copies                                 
19       of all filings and reports related to the program made by the financial contractor during                         
20       the contract or while the financial contractor holds program accounts;                                            
21                 (9)  upon request of the department, make available to the department                                   
22       for review the results of periodic examinations of the financial contractor by a state or                         
23       federal banking, insurance, or securities agency, except to the extent that the report is                         
24       confidential under state or federal law; and                                                                      
25                 (10)  ensure that the descriptions of the program in the media that the                                 
26       financial contractor uses to promote the program are consistent with a marketing plan                             
27       developed for the program.                                                                                        
28            Sec. 06.65.080. Additional audits. In addition to the annual audit required by                             
29       AS 06.65.020(5), the department may require a financial contractor to have an audit                               
30       conducted of the financial contractor's operations and financial position when the                                
31       department is concerned about the financial position, the record-keeping practices, or                            
01       the status of the program accounts of the financial contractor.                                                   
02            Sec. 06.65.090. Contract termination; nonrenewal. The department may                                       
03       terminate or fail to renew a financial contract. If the department terminates or does not                         
04       renew a contract with a financial contractor, the department shall take custody of the                            
05       program accounts held by the financial contractor and transfer the program accounts to                            
06       another financial contractor as soon as possible and into program accounts that are as                            
07       similar as possible to the types of program accounts being transferred.                                           
08            Sec. 06.65.100. Eligible individuals. To be eligible for a program account,                                
09       when an individual or the individual's representative establishes the program account                             
10       or makes a distribution to another program account under AS 06.65.200, the individual                             
11       shall be an individual                                                                                            
12                 (1)  who is entitled to benefits based on blindness or disability under 42                              
13       U.S.C. 401 - 434 or 42 U.S.C. 1381 - 1383f, and the blindness or disability occurred                              
14       before the date on which the individual reached 26 years of age; or                                               
15                 (2)  for whom a disability certification that satisfies the secretary and                               
16       the federal authorizing law is filed with the secretary for the calendar year in which the                        
17       eligible individual or the eligible individual's representative opens the program                                 
18       account.                                                                                                          
19            Sec. 06.65.110. Representative of eligible individual. (a) A person may act as                             
20       the representative of an eligible individual under this chapter if the eligible individual                        
21       is a minor or lacks decision-making capacity and if the person is                                                 
22                 (1)  a parent, guardian, or conservator of the eligible individual; in this                             
23       paragraph,                                                                                                        
24                      (A)  "conservator" has the meaning given in AS 13.06.050;                                          
25                      (B)  "guardian" has the meaning given in AS 13.06.050;                                             
26                      (C)  "parent" includes a stepparent; or                                                            
27                 (2)  a trustee of the property of the eligible individual.                                              
28            (b)  The representative of an eligible individual may establish a program                                    
29       account for the eligible individual, and the eligible individual is the designated                                
30       beneficiary of the program account. The representative shall manage the program                                   
31       account for the benefit of the designated beneficiary.                                                            
01            (c)  In this section, "decision-making capacity" means the ability to understand                             
02       and appreciate the nature and consequences of a decision and the ability to reach and                             
03       communicate an informed decision.                                                                                 
04            Sec. 06.65.120. Program account ownership. (a) The owner of a program                                      
05       account is the designated beneficiary of the program account.                                                     
06            (b)  If a representative of an eligible individual establishes a program account                             
07       for an eligible individual, the representative is not an owner of the program account                             
08       and does not have or acquire an interest in the assets of the program account.                                    
09            Sec. 06.65.130. Number of program accounts. An eligible individual may                                     
10       not be the designated beneficiary on more than one program account.                                               
11            Sec. 06.65.140. Program account application. The application for a program                                 
12       account must be in the form established by the department and contain                                             
13                 (1)  the name, address, and social security number of the program                                       
14       account owner and, if applicable, the representative who opens the program account                                
15       for the eligible individual; and                                                                                  
16                 (2)  additional information that the department and the secretary                                       
17       determine is necessary.                                                                                           
18            Sec. 06.65.150. Program account establishment fee. The financial contractor                                
19       may charge an eligible individual a nonrefundable fee for establishing a program                                  
20       account. The department shall establish the amount of the fee by contract with the                                
21       financial contractor or by regulation.                                                                            
22            Sec. 06.65.160. Program account contributions. (a) As provided by the                                      
23       federal authorizing law, a person may make a contribution to a program account for                                
24       the designated beneficiary.                                                                                       
25            (b)  A person may not make a contribution to open or add to a program account                                
26       unless the person makes the contribution by using a method of payment acceptable to                               
27       the department.                                                                                                   
28            (c)  Any person may make a contribution to a program account, but the amount                                 
29       that the person may contribute is subject to the limits set by the federal authorizing law                        
30       or the department.                                                                                                
31            (d)  The department or the financial contractor shall reject or withdraw from a                              
01       program account                                                                                                   
02                 (1)  that part of a contribution that exceeds the limit established under                               
03       (c) of this section; or                                                                                           
04                 (2)  the total amount of a contribution, if the department or the financial                             
05       contractor determines that the                                                                                    
06                      (A)  value of the program account without the contribution is                                      
07            equal to or greater than the maximum limit established by the federal                                        
08            authorizing statute for the program account; or                                                              
09                      (B)  designated beneficiary is not an eligible individual during                                   
10            the calendar year in which the contribution is made.                                                         
11            (e)  If a person makes a distribution from a program account during a calendar                               
12       year, the financial contractor shall report the distribution to the federal Internal                              
13       Revenue Service and to the account owner or the representative of the account owner.                              
14            (f)  The report under (e) of this section must include the distribution                                      
15       information required by state and federal law.                                                                    
16            Sec. 06.65.170. Limited investment direction. A designated beneficiary or                                  
17       the designated beneficiary's representative may not, directly or indirectly, direct the                           
18       investment of a program account, including the earnings on the program account,                                   
19       more than twice in one calendar year.                                                                             
20            Sec. 06.65.180. Change of designated beneficiary. A designated beneficiary                                 
21       or the designated beneficiary's representative may change the designated beneficiary                              
22       of a program account to an eligible individual who is a member of the family of the                               
23       previous designated beneficiary.                                                                                  
24            Sec. 06.65.190. Distributions for qualified expenses. Except as allowed                                    
25       under AS 06.65.200, a designated beneficiary or the representative of the designated                              
26       beneficiary may not make a withdrawal or other distribution from a program account                                
27       unless the withdrawal or other distribution is used to pay for the qualified expenses of                          
28       the designated beneficiary.                                                                                       
29            Sec. 06.65.200. Rollover distribution. (a) Subject to the restrictions in the                              
30       federal authorizing law for rollover distributions, a designated beneficiary or the                               
31       designated beneficiary's representative may make a distribution of the money in a                                 
01       program account to another program account if the designated beneficiary of the                                   
02       program account to which the distribution is being made is                                                        
03                 (1)  the same eligible individual; or                                                                   
04                 (2)  an eligible individual who is a member of the family of the                                        
05       designated beneficiary from whom the distribution is made.                                                        
06            (b)  To qualify as a distribution allowed under (a) of this section, the                                     
07       designated beneficiary or the designated beneficiary's representative shall make the                              
08       distribution to the other program account before the 60th day after the designated                                
09       beneficiary or the designated beneficiary's representative makes the distribution from                            
10       the program account.                                                                                              
11            Sec. 06.65.210. Statements. (a) A financial contractor shall provide program                               
12       account statements to the designated beneficiary or the designated beneficiary's                                  
13       representative of each program account established with the financial contractor at                               
14       least four times each year and at the times the department establishes.                                           
15            (b)  A financial contractor shall provide the department with the reports and                                
16       information that the department requests that are related to the program account                                  
17       statements.                                                                                                       
18            Sec. 06.65.220. Preparation and filing. In addition to the other reporting                                 
19       requirements of this chapter, a financial contractor shall prepare and file the                                   
20       statements, program account information, and other information as required by state                               
21       and federal law and state and federal agencies.                                                                   
22            Sec. 06.65.230. Separate accounting. A financial contractor shall provide                                  
23       separate accounting for each program account established with the financial                                       
24       contractor.                                                                                                       
25            Sec. 06.65.240. Annual fee. A financial contractor may impose an annual fee                                
26       as may be established by the department on the program account owner for the                                      
27       maintenance of a program account.                                                                                 
28            Sec. 06.65.250. Use as security. A person may not use a program account or                                 
29       an interest in a program account as security for a loan. If a person pledges a program                            
30       account or an interest in a program account as security for a loan, the pledge is void.                           
31            Sec. 06.65.260. No state obligation. (a) This chapter may not be construed to                              
01       create an obligation of the state, the department, or an agency or instrumentality of the                         
02       state to guarantee for the benefit of a designated beneficiary                                                    
03                 (1)  the return of the principal deposited in the program account;                                      
04                 (2)  a rate of interest or other return on the principal in a program                                   
05       account; or                                                                                                       
06                 (3)  the payment of interest or other return on the principal in a program                              
07       account.                                                                                                          
08            (b)  Every contract, application, and other document that may be used in                                     
09       connection with opening a program account must clearly state that the state does not                              
10       insure a program account or guarantee the items described in (a) of this section.                                 
11            Sec. 06.65.270. Confidentiality. The department, the Department of Health                                  
12       and Social Services, and another state agency that receives information under                                     
13       AS 06.65.280 shall maintain the confidentiality of the information they receive or                                
14       exchange under this chapter about eligible individuals, designated beneficiaries, and                             
15       program accounts as required by state and federal law.                                                            
16            Sec. 06.65.280. Exchange of information. The department may exchange                                       
17       information with the Department of Health and Social Services and other state                                     
18       agencies to determine whether an individual is an eligible individual.                                            
19            Sec. 06.65.290. Treatment under means test programs. (a) Notwithstanding                                   
20       a contrary provision of law, a state agency may not consider a program account                                    
21       amount in this or another state when determining the eligibility of the designated                                
22       beneficiary of the program account to receive state assistance or state benefits or when                          
23       determining the amount of state assistance or state benefits to be received by the                                
24       designated beneficiary of the program account.                                                                    
25            (b)  In this section, "program account amount" means a contribution to a                                     
26       program account, earnings on the contribution, or a distribution for a qualified                                  
27       expense.                                                                                                          
28            Sec. 06.65.300. Deposit from permanent fund dividend. A person who is                                      
29       eligible under AS 43.23 to receive a permanent fund dividend may make a deposit into                              
30       the program account of a designated beneficiary from and up to the amount of the                                  
31       person's permanent fund dividend.                                                                               
01            Sec. 06.65.310. Program expense fund. (a) The program expense fund is                                      
02       established as a separate fund of the state in the general fund.                                                  
03            (b)  The program expense fund consists of money appropriated to the fund to                                  
04       pay the expenses of the program.                                                                                  
05            (c)  The department shall pay the expenses incurred by the department to                                     
06       implement and administer the program from the program expense fund.                                               
07            (d)  The department shall manage the fund.                                                                   
08            (e)  Except as provided otherwise by the appropriation for the money, the                                    
09       money remaining in the program expense fund at the end of a fiscal year does not                                  
10       lapse and remains available for expenditure under this section in successive fiscal                               
11       years.                                                                                                            
12            Sec. 06.65.320. Medicaid claims. This state or another state may file a claim                              
13       against the amount remaining in the program account of a deceased designated                                      
14       beneficiary to recover medical assistance payments if the payments were made for the                              
15       designated beneficiary, were made under that state's Medicaid program authorized by                               
16       42 U.S.C. 1396 - 1396p (Title XIX, Social Security Act), and were made after the                                  
17       program account of the designated beneficiary was established. The application of this                            
18       section is subject to the requirements of 26 U.S.C. 529A(f) (Internal Revenue Code).                              
19            Sec. 06.65.330. Governing law. If a provision of this chapter conflicts with                               
20       the requirements of the federal authorizing law for the program, the federal                                      
21       authorizing law governs to the extent of the conflict.                                                            
22            Sec. 06.65.340. Regulations. The department may adopt regulations under                                    
23       AS 44.62 (Administrative Procedure Act) to implement this chapter.                                                
24            Sec. 06.65.350. Annual report. The department shall evaluate the program                                   
25       each year. The department shall submit an annual report containing the evaluation to                              
26       the senate secretary and chief clerk of the house of representatives on or before the                             
27       first day of each regular session of the legislature and shall notify the legislature that                        
28       the report is available.                                                                                          
29            Sec. 06.65.390. Definitions. In this chapter,                                                              
30                 (1)  "department" means the Department of Revenue;                                                      
31                 (2)  "designated beneficiary" means the eligible individual for whom a                                  
01       program account for qualified expenses is established under this chapter;                                         
02                 (3)  "eligible individual" means an individual who is eligible under                                    
03       AS 06.65.100;                                                                                                     
04                 (4)  "federal authorizing law" means 26 U.S.C. 529A (Internal Revenue                                   
05       Code) and the regulations issued under that statute;                                                              
06                 (5)  "financial contractor" means a person that enters into a contract                                  
07       with the department under this chapter to provide program accounts;                                               
08                 (6)  "member of the family" has the meaning given in the federal                                        
09       authorizing statute;                                                                                              
10                 (7)  "program" means the Alaska savings program for eligible                                            
11       individuals established under AS 06.65.010;                                                                       
12                 (8)  "program account" means a savings account used by the program                                      
13       to meet the qualified disability expenses of the designated beneficiary of the account;                           
14                 (9)  "program account owner" means the designated beneficiary of a                                      
15       program account;                                                                                                  
16                 (10)  "qualified expense" means a qualified disability expense as                                       
17       defined by the federal authorizing law;                                                                           
18                 (11)  "representative" means a person who is a representative of an                                     
19       eligible individual under AS 06.65.110(a);                                                                        
20                 (12)  "savings account" means a financial account;                                                      
21                 (13)  "secretary" means the United States Secretary of the Treasury.                                    
22    * Sec. 3. AS 36.30.850(b) is amended by adding a new paragraph to read:                                            
23                 (47)  a contract under AS 06.65.                                                                        
24    * Sec. 4. AS 40.25.120(a) is amended to read:                                                                      
25            (a)  Every person has a right to inspect a public record in the state, including                             
26       public records in recorders' offices, except                                                                      
27                 (1)  records of vital statistics and adoption proceedings, which shall be                               
28       treated in the manner required by AS 18.50;                                                                       
29                 (2)  records pertaining to juveniles unless disclosure is authorized by                                 
30       law;                                                                                                              
31                 (3)  medical and related public health records;                                                         
01                 (4)  records required to be kept confidential by a federal law or                                       
02       regulation or by state law;                                                                                       
03                 (5)  to the extent the records are required to be kept confidential under                               
04       20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure                              
05       or retain federal assistance;                                                                                     
06                 (6)  records or information compiled for law enforcement purposes, but                                  
07       only to the extent that the production of the law enforcement records or information                              
08                      (A)  could reasonably be expected to interfere with enforcement                                    
09            proceedings;                                                                                                 
10                      (B)  would deprive a person of a right to a fair trial or an                                       
11            impartial adjudication;                                                                                      
12                      (C)  could reasonably be expected to constitute an unwarranted                                     
13            invasion of the personal privacy of a suspect, defendant, victim, or witness;                                
14                      (D)  could reasonably be expected to disclose the identity of a                                    
15            confidential source;                                                                                         
16                      (E)  would disclose confidential techniques and procedures for                                     
17            law enforcement investigations or prosecutions;                                                              
18                      (F)  would disclose guidelines for law enforcement                                                 
19            investigations or prosecutions if the disclosure could reasonably be expected to                             
20            risk circumvention of the law; or                                                                            
21                      (G)  could reasonably be expected to endanger the life or                                          
22            physical safety of an individual;                                                                            
23                 (7)  names, addresses, and other information identifying a person as a                                  
24       participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the                                
25       advance college tuition savings program under AS 14.40.803 - 14.40.817;                                           
26                 (8)  public records containing information that would disclose or might                                 
27       lead to the disclosure of a component in the process used to execute or adopt an                                  
28       electronic signature if the disclosure would or might cause the electronic signature to                           
29       cease being under the sole control of the person using it;                                                        
30                 (9)  reports submitted under AS 05.25.030 concerning certain                                            
31       collisions, accidents, or other casualties involving boats;                                                       
01                 (10)  records or information pertaining to a plan, program, or                                          
02       procedures for establishing, maintaining, or restoring security in the state, or to a                             
03       detailed description or evaluation of systems, facilities, or infrastructure in the state,                        
04       but only to the extent that the production of the records or information                                          
05                      (A)  could reasonably be expected to interfere with the                                            
06            implementation or enforcement of the security plan, program, or procedures;                                  
07                      (B)  would disclose confidential guidelines for investigations or                                  
08            enforcement and the disclosure could reasonably be expected to risk                                          
09            circumvention of the law; or                                                                                 
10                      (C)  could reasonably be expected to endanger the life or                                          
11            physical safety of an individual or to present a real and substantial risk to the                            
12            public health and welfare;                                                                                   
13                 (11)  the written notification regarding a proposed regulation provided                                 
14       under AS 24.20.105 to the Department of Law and the affected state agency and                                     
15       communications between the Legislative Affairs Agency, the Department of Law, and                                 
16       the affected state agency under AS 24.20.105;                                                                     
17                 (12)  records that are                                                                                  
18                      (A)  proprietary, privileged, or a trade secret in accordance with                                 
19            AS 43.90.150 or 43.90.220(e);                                                                                
20                      (B)  applications that are received under AS 43.90 until notice is                                 
21            published under AS 43.90.160;                                                                                
22                 (13)  information of the Alaska Gasline Development Corporation                                         
23       created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development                                      
24       Corporation that is confidential by law or under a valid confidentiality agreement;                               
25                 (14)  information under AS 38.05.020(b)(11) that is subject to a                                        
26       confidentiality agreement under AS 38.05.020(b)(12);                                                          
27                 (15)  names, addresses, and other information identifying a person                                  
28       as a participant in the Alaska savings program for eligible individuals under                                 
29       AS 06.65.                                                                                                     
30    * Sec. 5. AS 45.55.990(32) is amended to read:                                                                     
31                 (32)  "security" means a note; stock; treasury stock; bond; debenture;                                  
01       evidence of indebtedness; certificate of interest or participation in any profit-sharing                          
02       agreement; limited liability company interest under AS 10.50, notwithstanding the                                 
03       limitations of AS 45.08.103(c); collateral-trust certificate; preorganization certificate                         
04       or subscription; transferable share; investment contract; voting-trust certificate;                               
05       certificate of deposit for a security; viatical settlement interest; certificate of interest or                   
06       participation in an oil, gas, or mining title or lease or in payments out of production                           
07       under the title or lease or in any sale of or indenture or bond or contract for the                               
08       conveyance of land or any interest in land; an option on a contract for the future                                
09       delivery of agricultural or mineral commodities or any other commodity offered or                                 
10       sold to the public and not regulated by the Commodity Futures Trading Commission;                                 
11       however, the contract or option is not subject to the provisions of AS 45.55.070 if it is                         
12       sold or purchased on the floor of a bona fide exchange or board of trade and offered or                           
13       sold to the public by a broker-dealer or agent registered under this chapter; investment                          
14       of money or money's worth including goods furnished or services performed in the                                  
15       risk capital of a venture with the expectation of some benefit to the investor where the                          
16       investor has no direct control over the investment or policy decision of the venture; or,                         
17       in general, any interest or instrument commonly known as a "security," or any                                     
18       certificate of interest or participation in, temporary or interim certificate for, receipt                        
19       for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing;                         
20       "security" does not include a participation agreement entered into under AS 14.40.802,                        
21       a program account established under AS 06.65, or an insurance or endowment                                    
22       policy or annuity contract under which an insurance company promises to pay a fixed                               
23       or variable sum of money either in a lump sum or periodically for life or for some                                
24       other specified period;                                                                                           
25    * Sec. 6. AS 47.07.055 is amended by adding a new subsection to read:                                              
26            (h)  In addition to the claims allowed under the other provisions of this section,                           
27       the state may file a claim under AS 06.65.320 against the amount in an individual's                               
28       program account after the individual dies. Notwithstanding the other provisions of this                           
29       section, the claim is subject to the requirements of 26 U.S.C. 529A(f) (Internal                                  
30       Revenue Code). In this subsection, "program account" has the meaning given in                                     
31       AS 06.65.390.                                                                                                     
01    * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to                          
02 read:                                                                                                                   
03       TRANSITION. The Department of Revenue shall file its first report required by                                     
04 AS 06.65.350, added by sec. 2 of this Act, on or before the first day of the Second Regular                             
05 Session of the Thirtieth Alaska State Legislature.                                                                      
06    * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to                          
07 read:                                                                                                                   
08       TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations                                          
09 authorized by AS 06.65.340, added by sec. 2 of this Act. The regulations take effect under                              
10 AS 44.62 (Administrative Procedure Act), but not before the effective date of sec. 2 of this                            
11 Act.                                                                                                                    
12    * Sec. 9. Section 8 of this Act takes effect immediately under AS 01.10.070(c).