02/08/2022 01:30 PM Senate HEALTH & SOCIAL SERVICES

           HB 133-AK ED SAVINGS PROGRAMS/ELIGIBILITY                                                                        
                                                                                                                                
2:04:37 PM                                                                                                                    
CHAIR   WILSON  reconvened   the   meeting   and  announced   the                                                               
consideration of CS FOR HOUSE  BILL NO. 133(L&C) "An Act relating                                                               
to the Alaska savings program  for eligible individuals; relating                                                               
to education  savings programs; relating  to the  Education Trust                                                               
of  Alaska;  relating  to  the  Alaska  advance  college  tuition                                                               
savings fund;  relating to the  Alaska education  savings program                                                               
for  children;   and  relating  to  the   Governor's  Council  on                                                               
Disabilities and Special Education."                                                                                            
                                                                                                                                
2:05:26 PM                                                                                                                    
REPRESENTATIVE  ZACK FIELDS,  Alaska  State Legislature,  Juneau,                                                               
Alaska,  stated that  an update  to the  Achieving a  Better Life                                                               
Experience  (ABLE)  Act  was necessary  because  federal  changes                                                               
occurred  after the  program was  established in  Alaska. Federal                                                               
changes  included  the  potential   to  increase  account  sizes,                                                               
account flexibility, and age limit.                                                                                             
                                                                                                                                
2:06:08 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
2:06:41 PM                                                                                                                    
CHAIR WILSON reconvened the meeting.                                                                                            
                                                                                                                                
SENATOR HUGHES  asked for the  new federal disability  age limit.                                                               
She  recalled  hearing  49  but  could  only  find  documentation                                                               
stating age 26.                                                                                                                 
                                                                                                                                
REPRESENTATIVE FIELDS responded  that the age is  46; however, HB
  was  written  with  conforming   language.  If  the  federal                                                               
government makes  changes in the  future, the age in  Alaska will                                                               
automatically change.                                                                                                           
                                                                                                                                
2:07:57 PM                                                                                                                    
SENATOR HUGHES asked if the age change might be in regulation.                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS deferred the question to his staff.                                                                       
                                                                                                                                
2:08:20 PM                                                                                                                    
TRISTAN WALSH,  Staff, Representative  Zack Fields,  Alaska State                                                               
Legislature, Juneau, Alaska, replied  that federal legislation to                                                               
raise  the onset  age of  disability to  46 was  debated but  not                                                               
finalized.  HB 133  will keep  state  statutes mirroring  federal                                                               
law.                                                                                                                            
                                                                                                                                
2:08:57 PM                                                                                                                    
SENATOR HUGHES reiterated  that the federal age is  still 26, but                                                               
the federal government is considering 46.                                                                                       
                                                                                                                                
SENATOR  BEGICH sought  clarification  that HB  133 would  follow                                                               
federal regulatory changes.                                                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS stated that is correct.                                                                                   
                                                                                                                                
2:09:39 PM                                                                                                                    
CHAIR WILSON opened invited testimony.                                                                                          
                                                                                                                                
2:09:54 PM                                                                                                                    
PATRICK  STOCKS,  Attorney,  Disability  Law  Center  of  Alaska,                                                               
Anchorage,  Alaska,  stated that  the  Disability  Law Center  of                                                               
Alaska is  the Protection  and Advocacy  System (P&A's)  agent in                                                               
Alaska. In 2016 it advocated for the passage of the ABLE Act.                                                                   
                                                                                                                                
ABLE accounts  have been the  solution that allows  many disabled                                                               
individuals  to   go  to  school,  maintain   housing  or  obtain                                                               
employment while still receiving benefits.  The account is a tax-                                                               
preferred  savings  vehicle  that   essentially  does  not  count                                                               
against asset  limits for Medicaid, Financial  Services Institute                                                               
(FSI), and public assistance programs.                                                                                          
                                                                                                                                
MR. STOCKS explained that HB  133 would allow rollovers from ABLE                                                               
and  529 accounts,  giving disabled  individuals greater  control                                                               
over saving and spending for  disability-related expenses. HB 133                                                               
also  ties   ABLE  state  requirements  to   controlling  federal                                                               
requirements,  allowing  federal   changes  to  immediately  take                                                               
effect at the state level, saving the agency time and resources.                                                                
                                                                                                                                
2:13:30 PM                                                                                                                    
CHAIR WILSON opened public testimony on HB 133; he found none,                                                                  
and closed public testimony.                                                                                                    
                                                                                                                                
2:13:48 PM                                                                                                                    
SENATOR HUGHES suggested Alaska's congressional delegation be                                                                   
encouraged to support an increase in the onset age of                                                                           
disability.                                                                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS agreed.                                                                                                   
                                                                                                                                
2:14:23 PM                                                                                                                    
CHAIR WILSON held HB 133 in committee.