HJR 54 - SUPPORT MEDICAL SAVINGS ACCOUNT LEGISLATION                         
                                                                               
  Number 185                                                                   
                                                                               
  REP. KOTT made a motion to move the Sponsor Substitute for                   
  HJR 54 out of committee with individual recommendations.  He                 
  stated that the joint resolution was a simple measure that                   
  requests Congress to review the tax codes and to make minor                  
  changes to support the medical account savings legislation.                  
  He indicated that the medical savings account is like an IRA                 
  account.  He said the plan has been adopted in 15 other                      
  states and has been very effective.  He explained that                       
  because the other states have income tax they are able to                    
  offer some relief to those that offer a medical savings                      
  program.  He said Alaska does not have income tax and that                   
  is why the legislation requests Congress to change their tax                 
  codes accordingly.                                                           
                                                                               
  Number 259                                                                   
                                                                               
  CHAIR TOOHEY asked if the legislation relates directly with                  
  income tax.                                                                  
                                                                               
  REP. KOTT said it would be beneficial to receive the full                    
  benefit of the resolution.  He said for that to happen,                      
  Congress must adjust the tax codes for those who use the                     
  medical savings accounts.  He said Alaska needs tax deferral                 
  status.  He explained that because the account is similar to                 
  an IRA account there would be a 10% penalty for taking money                 
  from the account if the funds are not used for medical                       
  purposes.                                                                    
                                                                               
  (Chair Toohey stated for the record that Rep. G. Davis                       
  arrived at 3:08 p.m., Representatives Brice and Nicholia                     
  arrived at 3:10 p.m., and Representative B. Davis arrived at                 
  3:05 p.m.)                                                                   
                                                                               
  Number 316                                                                   
                                                                               
  REP. VEZEY stated that the resolve of the resolution would                   
  be one of the most important steps in health care.  He urged                 
  the committee to support the resolution.                                     
                                                                               
  REP. B. DAVIS made a motion to move the sponsor substitute                   
  for HJR 54 out of committee with individual recommendations                  
  and attached zero fiscal note.                                               
                                                                               
  CHAIR TOOHEY, hearing no objections, indicated that SSHJR 54                 
  was so moved.  She then took an at-ease from 3:14 p.m. to                    
  3:16 p.m.