02/18/2025 10:15 AM House MILITARY & VETERANS' AFFAIRS
| Audio | Topic | 
|---|---|
| Start | |
| HB17 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 17 | TELECONFERENCED | |
                       ALASKA STATE LEGISLATURE                                                                               
      HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS                                                               
                          February 18, 2025                                                                                     
                              10:15 a.m.                                                                                        
                                                                                                                                
                                DRAFT                                                                                         
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ted Eischeid, Chair                                                                                              
Representative  Andrew  Gray                                                                                                    
Representative  Carolyn  Hall                                                                                                   
Representative  Zack  Fields                                                                                                    
Representative  Jamie  Allard                                                                                                   
Representative  David  Nelson                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Dan Saddler                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
HOUSE BILL NO. 17                                                                                                               
"An Act relating to retirement benefits and military service."                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  17                                                                                                                  
SHORT TITLE: DISABLED VETERANS: RETIREMENT BENEFITS                                                                             
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER                                                                                          
                                                                                                                                
01/22/25        (H)        PREFILE RELEASED 1/10/25                                                                             
01/22/25        (H)        READ THE FIRST TIME - REFERRALS                                                                      
01/22/25        (H)        MLV, FIN                                                                                             
02/18/25        (H)        MLV AT 10:15 AM BARNES 124                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTIVE GEORGE RAUSCHER                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, introduced HB 17 to the                                                                
committee.                                                                                                                      
                                                                                                                                
CRAIG VALDEZ, Staff                                                                                                             
Representative George Rauscher                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   On  behalf  of Representative  Rauscher,   prime                                                       
sponsor, presented HB 17 to the committee.                                                                                      
                                                                                                                                
MARK WHISENHUNT, representing self                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Gave invited testimony in support of HB 17.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:15:34 AM                                                                                                                   
                                                                                                                                
CHAIR  EISCHEID  called   the  House  Special  Committee  on  Military                                                          
and   Veterans'    Affairs   meeting    to   order   at   10:15    a.m.                                                         
Representatives   Eischeid,  Hall, Allard,  Gray,  Nelson,  and Fields                                                          
were present at the call to order.                                                                                              
                                                                                                                                
CHAIR  EISHEID  offered  the committee   to introduce  themselves   and                                                         
their military backgrounds.                                                                                                     
                                                                                                                                
[As  offered   by  Chair   Eischeid,   committee  members   introduced                                                          
themselves and their military backgrounds.]                                                                                     
                                                                                                                                
             HB 17-DISABLED VETERANS: RETIREMENT BENEFITS                                                                   
                                                                                                                                
10:20:11 AM                                                                                                                   
                                                                                                                                
CHAIR  EISCHEID  announced  that  the  only  order  of business   would                                                         
be  HOUSE  BILL  NO. 17,  "An  Act  relating  to  retirement  benefits                                                          
and military service."                                                                                                          
                                                                                                                                
10:20:43 AM                                                                                                                   
                                                                                                                                
REPRESENTIVE  GEORGE  RAUSCHER,  Alaska  State  Legislature,  as  prime                                                         
sponsor,  introduced   HB  17  to the  committee.   He  read  from  the                                                         
sponsor  statement  [included   in  committee  packet]  which  read  as                                                         
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     House   Bill  17  allows   Veterans  who   are  totally  and                                                               
     permanently    disabled   to  access   their  accrued   PERS                                                               
     retirement   benefits  without  penalty. HB  17 also  allows                                                               
     military    service,    which   has   been    purchased   in                                                               
     accordance   with  the  PERS  standards   to  count  towards                                                               
     the    credited    service     requirements    for    normal                                                               
     retirement.                                                                                                                
                                                                                                                                
     Veterans   who   are  totally   and   permanently   disabled                                                               
     struggle   to  work  and  keep  gainful  employment  due  to                                                               
     their   service-connected   disabilities.    As  such,  this                                                               
     class    of   veterans    often   struggles    with   income                                                               
     stability.   If   HB  17  becomes   law,  it  will   provide                                                               
     disabled  veterans  with  access  to their  PERS  retirement                                                               
     benefits at a time when they need it most.                                                                                 
                                                                                                                                
     HB  17  does not  provide  any  additional  benefits  beyond                                                               
     those   rightfully   earned   by  veterans   through   their                                                               
     dedicated public service.                                                                                                  
                                                                                                                                
     By  passing   HB 17,  the  Legislature   will  help  provide                                                               
     stability   to our  disabled  veterans   when  they need  it                                                               
     most.                                                                                                                      
                                                                                                                                
10:22:50 AM                                                                                                                   
                                                                                                                                
CRAIG   VALDEZ,  Staff,   Representative    George  Rauscher,   Alaska                                                          
State  Legislature,   on behalf   of Representative   Rauscher,   prime                                                         
sponsor,  presented   HB  17 to  the  committee.    He  read  from  the                                                         
sectional   analysis  for   HB  17  [included   in  committee  packet]                                                          
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Section 1: AS 39.35.370(a)                                                                                                 
                                                                                                                                
     This  section  amends  AS  39.35.370(a)  to  add  additional                                                               
     language   related  to  eligibility   requirements   when  a                                                               
     terminated    employee    is    eligible   for    a   normal                                                               
     retirement      benefit.     Specifically     adding     new                                                               
     subsections,   A and B to  section 1,  lines 7 through  10.                                                                
                                                                                                                                
     Section 2:                                                                                                                 
                                                                                                                                
     Repeals three statutes.                                                                                                    
                                                                                                                                
10:24:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ALLARD asked  Representative Rauscher if he  had a legal                                                         
definition for disabled and totally disabled.                                                                                   
                                                                                                                                
MR. VALDEZ,  on behalf  of Representative  Rauscher, answered  that the                                                         
federal government  sets the definition  and standard of what  it means                                                         
to be disabled or totally disabled.                                                                                             
                                                                                                                                
10:25:13 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRAY asked for confirmation  regarding the bill language                                                         
surrounding age  qualifications that  a person  would be  qualified "at                                                         
age  60" or  [emphasis  on "or"]  "permanently  and totally  disabled";                                                         
therefore, they would  not need a disability rating  because they could                                                         
qualify with five years of service at age 60.                                                                                   
                                                                                                                                
MR.  VALDEZ  confirmed  that  is  correct.    In  response  to  another                                                         
question, he offered his understanding  that the bill would affect only                                                         
Tiers I,  II, and III,  not those who began  working in 2006  or later.                                                         
To a follow-up  question, he said he did  not have an answer  as to how                                                         
many would  be able to  take advantage of  the provisions of  the bill;                                                         
however, he  noted that the numbers  of those who retired  reported for                                                         
2023 were two for Tier II and two for Tier III.                                                                                 
                                                                                                                                
10:27:42 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ALLARD asked  why  the bill  would  benefit only  those                                                         
disabled at 100  percent and whether the bill sponsor  would be open to                                                         
an amendment that would qualify all  disabled veterans for the proposed                                                         
benefits of HB 17.                                                                                                              
                                                                                                                                
REPRESENTATIVE RAUSCHER  said that he  is unsure  as to how  a proposed                                                         
amendment like the  one Representative Allard mentioned  would work but                                                         
would be open to suggestions.                                                                                                   
                                                                                                                                
10:30:15 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS asked  what the word "terminated"  referred to as                                                         
it is  used in  HB 17  and asked  if there  is a  legal reason for  not                                                         
allowing employees to  have early access to  their defined contribution                                                         
401(k).                                                                                                                         
                                                                                                                                
MR.  VALDEZ clarified  that  the term  "termination" means  "employment                                                         
ending" and  said that the work  requirement of someone who  is totally                                                         
disabled is going  to be less than  someone who is still  able to work.                                                         
He said that the  office of the bill sponsor would  follow up with more                                                         
information later with regard to the legality of 401(k) spending.                                                               
                                                                                                                                
10:32:10 AM                                                                                                                   
                                                                                                                                
CHAIR  EISCHEID added  his  understanding that  the term  "termination"                                                         
does refer to people who were separated from state service.                                                                     
                                                                                                                                
10:32:49 AM                                                                                                                   
                                                                                                                                
MARK WHISENHUNT, representing  self, gave invited testimony  in support                                                         
of HB 17.   He said that  disabled veterans often face  challenges such                                                         
as limited employment opportunities,  difficulties in accessing quality                                                         
healthcare,  and higher  rates of mental  health issues  such as  post-                                                         
traumatic stress  disorder (PTSD).   He said that many  service members                                                         
transition  from  military  service  by   working  for  the  state  and                                                         
explained that  there is an  entire class  of veterans who  are totally                                                         
disabled  that struggle  with income  stability.   He said  that HB  17                                                         
would support the unique needs of  disabled veterans in Alaska and said                                                         
that  the  proposed  legislation  would provide  a  means  for  totally                                                         
disabled veterans to access retirement  benefits that they earned "at a                                                         
time they need it most."                                                                                                        
                                                                                                                                
10:36:54 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ALLARD asked Mr. Whisenhunt  if he is currently employed                                                         
by the  U.S.  Department  of  Veterans  Affairs  (VA)  or the  State of                                                         
Alaska.  She asked if he was 100 percent disabled.                                                                              
                                                                                                                                
MR. WHISENHUNT  answered that  he is  not representing  any affiliation                                                         
and  said  that  he  would not  be  comfortable  answering  her  second                                                         
question.                                                                                                                       
                                                                                                                                
10:37:50 AM                                                                                                                   
                                                                                                                                
CHAIR EISCHEID  questioned  the statistics  that Mr.  Whisenhunt shared                                                         
regarding disabled veterans.                                                                                                    
                                                                                                                                
MR. WHISENHUNT  affirmed that disabled  veterans do on average  live 15                                                         
years shorter than other Americans.                                                                                             
                                                                                                                                
10:39:05 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ALLARD  shared information that  she found on  her phone                                                         
and  asked  where  Mr.  Whisenhunt's  expertise  lies  with  regard  to                                                         
disabled veterans' affairs.                                                                                                     
                                                                                                                                
MR. WHISENHUNT responded that he is  not an expert on veterans' affairs                                                         
and remarked that he was simply calling in as an invited testifier.                                                             
                                                                                                                                
10:40:43 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE RAUSCHER  thanked the  committee for  hearing HB  17 and                                                         
said that  his office would be  available for questions  and amendments                                                         
regarding HB 17.                                                                                                                
                                                                                                                                
10:41:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS suggested the  bill sponsor consider veterans who                                                         
are currently covered by the 401(k) defined contribution system.                                                                
                                                                                                                                
10:41:41 AM                                                                                                                   
                                                                                                                                
CHAIR EISCHEID announced that HB 17 was held over.                                                                              
                                                                                                                                
10:41:59 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Military and Veteran's Affairs meeting was                                                                 
adjourned at 10:41 a.m.                                                                                                         
| Document Name | Date/Time | Subjects | 
|---|---|---|
| HB 17 Sectional Analysis.pdf | 
                    
HMLV       2/18/2025 10:15:00 AM | 
                
                    
HB  17 | 
            
| HB 17 Sponsor Statement.pdf | 
                    
HMLV       2/18/2025 10:15:00 AM | 
                
                    
HB  17 | 
            
| HB0017A.pdf | 
                    
HMLV       2/18/2025 10:15:00 AM | 
                
                    
HB  17 | 
            
| HB 17 Fiscal Note DOA -DRB-02-13-25.pdf | 
                    
HMLV       2/18/2025 10:15:00 AM | 
                
                    
HB  17 | 
            
| HB 17 Written Testimony 02.18.25.pdf | 
                    
HMLV       2/18/2025 10:15:00 AM | 
                
                    
HB  17 |