Legislature(2001 - 2002)

05/11/2002 05:50 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                          May 11, 2002                                                                                          
                           5:50 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Norman Rokeberg, Chair                                                                                           
Representative Jeannette James                                                                                                  
Representative John Coghill                                                                                                     
Representative Kevin Meyer                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Scott Ogan, Vice Chair                                                                                           
Representative Ethan Berkowitz                                                                                                  
Representative Albert Kookesh                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 369(RLS)                                                                                                 
"An Act  relating to trusts, including  trust protectors, trustee                                                               
advisors,  and transfers  of trust  interests, and  to creditors'                                                               
claims against  property subject to  a power of  appointment; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HCS CSSB 369(JUD) OUT OF COMMITTEE                                                                                 
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: SB 369                                                                                                                  
SHORT TITLE:POWERS OF APPOINTMENTS/TRUSTS/CREDITORS                                                                             
SPONSOR(S): JUDICIARY                                                                                                           
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/29/02     3024       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/29/02     3024       (S)        JUD                                                                                          
05/01/02                (S)        JUD AT 3:30 PM BELTZ 211                                                                     
05/01/02                (S)        Moved Out of Committee --                                                                    
                                   Time Change --                                                                               
05/01/02                (S)        MINUTE(JUD)                                                                                  
05/02/02     3101       (S)        JUD RPT 2DP 1NR                                                                              
05/02/02     3101       (S)        DP: TAYLOR, COWDERY; NR:                                                                     
                                   THERRIAULT                                                                                   
05/02/02     3101       (S)        FN1: ZERO(LAW)                                                                               
05/07/02                (S)        RLS AT 9:30 AM FAHRENKAMP 203                                                                
                                   MINUTE(RLS)                                                                                  
05/09/02     3260       (S)        RULES TO CALENDAR W/CS 5/9                                                                   
                                   SAME TITLE                                                                                   
05/09/02     3260       (S)        FN1: ZERO(LAW)                                                                               
05/09/02     3267       (S)        READ THE SECOND TIME                                                                         
05/09/02     3268       (S)        RLS CS ADOPTED UNAN CONSENT                                                                  
05/09/02     3268       (S)        ADVANCED TO 3RD READING FLD                                                                  
                                   Y14 N6                                                                                       
05/09/02     3268       (S)        ADVANCED TO THIRD READING                                                                    
                                   5/10 CALENDAR                                                                                
05/10/02     3312       (S)        READ THE THIRD TIME CSSB
                                   369(RLS)                                                                                     
05/10/02     3312       (S)        PASSED Y19 N- A1                                                                             
05/10/02     3312       (S)        EFFECTIVE DATE(S) SAME AS                                                                    
                                   PASSAGE                                                                                      
05/10/02     3321       (S)        TRANSMITTED TO (H)                                                                           
05/10/02     3321       (S)        VERSION: CSSB 369(RLS)                                                                       
05/11/02     3510       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
05/11/02     3510       (H)        JUD                                                                                          
05/11/02                (H)        JUD AT 5:45 PM CAPITOL 120                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SUSAN SULLIVAN, Child Support Enforcement Division (CSED)                                                                       
Department of Revenue                                                                                                           
550 West 7th Avenue, Suite 310                                                                                                  
Anchorage, Alaska  99501                                                                                                        
POSITION STATEMENT:  During the discussion of SB 369, expressed                                                                 
a concern and suggested the adoption of proposed Amendment 1.                                                                   
                                                                                                                                
HEATHER M. NOBREGA, Staff                                                                                                       
to Representative Norman Rokeberg                                                                                               
House Judiciary Standing Committee                                                                                              
Alaska State Legislature                                                                                                        
Capitol Building, Room 118                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Responded to questions during discussion of                                                                
SB 369.                                                                                                                         
                                                                                                                                
DIANE WENDLANDT, Assistant Attorney General                                                                                     
Collections and Support Section                                                                                                 
Civil Division (Anchorage)                                                                                                      
Department of Law (DOL)                                                                                                         
1031 West 4th Avenue, Suite 200                                                                                                 
Anchorage, Alaska  99501-1994                                                                                                   
POSITION STATEMENT:  During discussion  of SB 369, indicated that                                                               
she had reviewed proposed Amendment 1.                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-65, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  NORMAN  ROKEBERG  called   the  House  Judiciary  Standing                                                               
Committee  meeting  to  order  at   5:50  p.m.    Representatives                                                               
Rokeberg, James, Coghill,  and Meyer were present at  the call to                                                               
order.                                                                                                                          
                                                                                                                                
SB 369 - POWERS OF APPOINTMENTS/TRUSTS/CREDITORS                                                                              
                                                                                                                                
[Contains mention of the companion bill, HB 316.]                                                                               
                                                                                                                                
Number 0026                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  announced that  the committee  would hear  CS FOR                                                               
SENATE BILL NO.  369(RLS), "An Act relating  to trusts, including                                                               
trust  protectors,  trustee  advisors,  and  transfers  of  trust                                                               
interests, and  to creditors' claims against  property subject to                                                               
a power  of appointment;  and providing  for an  effective date."                                                               
He noted that  there is a proposed  amendment, hereafter referred                                                               
to as Amendment 1, which read [original punctuation provided]:                                                                  
                                                                                                                                
     Page 4, Line 4:                                                                                                            
          Delete: "or"                                                                                                          
          Insert: [or]                                                                                                          
     Page 4, Line 6:                                                                                                            
          Delete: [.]                                                                                                           
          Insert; ;                                                                                                           
     Page 4, Line 7:                                                                                                            
        Insert: (5) the creditor is seeking to satisfy a                                                                    
     claim for child support.                                                                                               
     Page 5, Line 25, after "except," through line 30:                                                                          
          Delete all material.                                                                                                  
          Insert:                                                                                                               
        (a) to the extent that a donee of an inter vivos                                                                        
     or testamentary power of appointment                                                                                       
           (1) is permitted by the donor of the power                                                                           
      to appoint the property to the donee's estate or to                                                                       
     the creditors of the donee's estate; and                                                                                   
             (2) effectively exercises the power of                                                                             
       appointment in favor of the donee's estate or the                                                                        
     creditors of the donee's estate; or                                                                                        
         (b) when the creditor is seeking to satisfy a                                                                          
     claim of child support.                                                                                                    
                                                                                                                                
Number 0057                                                                                                                     
                                                                                                                                
SUSAN  SULLIVAN,  Child   Support  Enforcement  Division  (CSED),                                                               
Department of Revenue, testified  via teleconference and said the                                                               
CSED's concern with SB  369 and its companion bill -  HB 316 - is                                                               
that there  will be an  unintended consequence.  She  warned that                                                               
certain provisions of  this legislation would make  it easier for                                                               
an unscrupulous parent  to avoid supporting his  or her children.                                                               
She  offered  that  Amendment  1  would  resolve  this  potential                                                               
problem.                                                                                                                        
                                                                                                                                
Number 0147                                                                                                                     
                                                                                                                                
HEATHER  M. NOBREGA,  Staff  to  Representative Norman  Rokeberg,                                                               
House Judiciary Standing Committee,  Alaska State Legislature, in                                                               
response to a question, indicated  that she had drafted Amendment                                                               
1.                                                                                                                              
                                                                                                                                
Number 0155                                                                                                                     
                                                                                                                                
DIANE  WENDLANDT,  Assistant  Attorney General,  Collections  and                                                               
Support Section,  Civil Division  (Anchorage), Department  of Law                                                               
(DOL), testified via teleconference,  stating simply that she has                                                               
reviewed Amendment 1.                                                                                                           
                                                                                                                                
MS.  NOBREGA, in  response to  a question,  pointed out  that the                                                               
portion of  Amendment 1 that will  alter page 5 of  SB 369 begins                                                               
after the word "except" on line 25.                                                                                             
                                                                                                                                
MS. SULLIVAN remarked  that Ms. Wendlandt has  suggested that the                                                               
last line of Amendment 1 be amended  to read:  "(b) to the extent                                                               
that  the  creditor  is  seeking  to satisfy  a  claim  of  child                                                               
support."                                                                                                                       
                                                                                                                                
MS. NOBREGA  noted that  such an  amendment would  merely involve                                                               
deleting "when" and inserting "to the extent that".                                                                             
                                                                                                                                
CHAIR ROKEBERG  indicated that  Amendment 1  would be  amended to                                                               
incorporate that suggestion.                                                                                                    
                                                                                                                                
Number 0360                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES made  a  motion to  adopt  Amendment 1  [as                                                               
amended].   There being  no objection,  Amendment 1,  as amended,                                                               
was adopted.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JAMES  pointed  out  that Section  1  contains  a                                                               
reference to another  statute - AS 47.07.020(f) -  and asked what                                                               
that statute is.                                                                                                                
                                                                                                                                
CHAIR ROKEBERG surmised  that the "trust boys"  probably made the                                                               
suggestion to add  that language to SB 369,  thereby creating one                                                               
of the differences between SB 369 and HB 316.                                                                                   
                                                                                                                                
MS. NOBREGA  noted that  AS 47.07.020(f),  which says,  "A person                                                               
may not be  denied eligibility for medical  assistance under this                                                               
chapter  on  the basis  of  a  diversion  of income,  whether  by                                                               
assignment  or after  receipt  of the  income,  into a  Medicaid-                                                               
qualifying  trust", can  be found  in the  chapter pertaining  to                                                               
medical assistance for needy persons.                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES  indicated that the  reference in SB  369 to                                                               
that statute is appropriate.                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG  agreed.    He  then  suggested  that  the  House                                                               
Judiciary Standing  Committee's [draft minutes] regarding  HB 316                                                               
be included as part of the record for SB 396.                                                                                   
                                                                                                                                
Number 0547                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES  moved to report CSSB  369(RLS), as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying zero  fiscal note.   There  being no  objection, HCS                                                               
CSSB  369(JUD) was  reported from  the  House Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
Number 0575                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  announced at 6:00  p.m. that the  House Judiciary                                                               
Standing  Committee would  be recessed  to a  call of  the chair.                                                               
[This meeting was never reconvened.]                                                                                            

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