03/14/2012 03:15 PM House LABOR & COMMERCE

        HB 292-PRINCIP.& INC/PROBATE/UTMA/RETIREMT/ETC.                                                                     
                                                                                                                              
3:21:55 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL NO.  292, "An Act relating to  property exemptions for                                                               
retirement plans;  relating to pleadings, orders,  liability, and                                                               
notices under  the Uniform Probate  Code; relating to  the Alaska                                                               
Principal  and  Income  Act;  relating   to  the  Alaska  Uniform                                                               
Transfers to  Minors Act;  relating to  the disposition  of human                                                               
remains;  relating  to  insurable interests  for  life  insurance                                                               
policies; relating  to transfers of individual  retirement plans;                                                               
relating  to  the  community property  of  married  persons;  and                                                               
amending Rule 301(a), Alaska Rules of Evidence."                                                                                
                                                                                                                                
3:22:08 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  lifted his objection.   He stated that the  issue he                                                               
had has been addressed.                                                                                                         
                                                                                                                                
3:22:47 PM                                                                                                                    
                                                                                                                                
JANE PIERSON, Staff, Representative  Steve Thompson, Alaska State                                                               
Legislature,  related  that  questions   previously  arose  in  a                                                               
Legislative  Legal memo  on the  single-subject rule  and whether                                                               
this   would   violate  the   contracts   clause   of  the   U.S.                                                               
Constitution.   She provided copies of  the memos.  She  said the                                                               
court found  a need to balance  the rule's purpose with  the need                                                               
of efficiency in  the legislative process.  She  pointed out only                                                               
one case arose, which was Croft  v. Parnell) 236 P.3d 369 (Alaska                                                             
2010), but  since it was  a soft dedication  of funds it  did not                                                               
fall  under  the  single-subject   rule.    The  legislature  has                                                               
previously passed  bills having to do  with water or lands.   She                                                               
related one  bill addressed driving while  intoxicated and liquor                                                               
laws  since they  both  pertained  to liquor.    She offered  her                                                               
belief  that  this bill  relates  to  Title  13 and  seems  fine.                                                               
Second,  she   did  not  view   any  impairment   of  contractual                                                               
obligations  with respect  to  the contract  clause  of the  U.S.                                                               
Constitution.   It is permissible  to expand rights and this bill                                                               
does  not  constitute  an  impairment of  contracts.    The  only                                                               
people's rights  constrained by  these provisions  are creditors,                                                               
who  have no  contractual right  to  enforce a  claim against  an                                                               
individual  retirement  account  (IRA)  or  retirement  interest.                                                               
Third,  she  noted  many   modifications  are  to  administrative                                                               
provisions  and it  is  well established  that  changes that  are                                                               
administrative in nature do not  impact the contract clause.  She                                                               
concluded that none of the provisions  in this bill that apply to                                                               
the  existing  retirement  accounts,   trusts,  IRA,  or  uniform                                                               
transfer to  minors account  violate the  contract clause  of the                                                               
U.S. Constitution.                                                                                                              
                                                                                                                                
3:26:30 PM                                                                                                                    
                                                                                                                                
LINDA HALL,  Director, Division  of Insurance,  Anchorage Office,                                                               
Department of  Community &  Economic Development  (DCCED), stated                                                               
she  has  a small  section  of  the  bill  that falls  under  the                                                               
Division  of  Insurance's  title.     She  highlighted  that  one                                                               
provision pertains to trusts and  a trustee's ability to purchase                                                               
insurance for the  trust and to be paid for  that insurance. This                                                               
bill allows  an insurance  contract to  be part of  a trust.   In                                                               
response to a question from Chair  Olson, Ms. Hall agreed she had                                                               
no problems with the bill.                                                                                                      
                                                                                                                                
3:28:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to report  the proposed  committee                                                               
substitute  (CS)  for  HB 292,  labeled  27-LS1232\B,  Bannister,                                                               
2/22/12,  out of  committee with  individual recommendations  and                                                               
the  accompanying fiscal  note.   There being  no objection,  the                                                               
CSHB  292(L&C) was  reported from  the House  Labor and  Commerce                                                               
Standing Committee.                                                                                                             
                                                                                                                              
3:28:47 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:28 p.m. to 3:31 p.m.