Legislature(1993 - 1994)
1993-04-23 House Journal
Full Journal pdf1993-04-23 House Journal Page 1460 HB 81 The following was read the second time: HOUSE BILL NO. 81 "An Act relating to the longevity bonus program." with the: Journal Page -2 FNS (ADM) 1/22/93 130 GOVERNOR'S TRANSMITTAL LETTER 130 STA RPT CS(STA) NEW TITLE 4DP 3NR 609 -FISCAL NOTE (ADM) 3/12/93 610 -ZERO FISCAL NOTE (ADM) 3/12/93 610 JUD RPT CS(STA) NEW TITLE 1DP 1DNP 5NR 892 -PREVIOUS FN (ADM) 3/12/93 892 -PREVIOUS ZERO FN (ADM) 3/12/93 892 FIN RPT CS(FIN) 5DP 1DNP 5NR 1426 -3 FISCAL NOTES (ADM,ADM,DHSS) 4/22/93 1427 Representative Phillips moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: CS FOR HOUSE BILL NO. 81(FIN) (same title) There being no objection, it was so ordered. 1993-04-23 House Journal Page 1461 HB 81 Amendment No. 1 was offered by Representative Phillips: Page 1, line 8: After "person's" Insert "original" After "application" Insert "for qualification" Page 1, line 10: After "person's" Insert "original" After "application" Insert "for qualification" Page 1, line 12: After "person's" Insert "original" After "application" Insert "for qualification" Representative Phillips moved and asked unanimous consent that Amendment No. 1 be adopted. There being no objection, it was so ordered. Amendment No. 2 was offered by Representatives Willis, Carney and Brice: Page 1, line 1, through page 3, line 4 (title amendment): Delete all material and insert: ""An Act amending and making effective an annuity program and amendments to the longevity bonus program and the permanent fund dividend program provided for in secs. 2 - 18, ch. 99, SLA 1985; and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. AS 43.23.005(d), as enacted by sec. 3, ch. 99, SLA 1985, is amended to read: (d) A person who is eligible to receive a permanent fund divi- dend under this section, or who is authorized to claim a dividend on behalf of another under (c) of this section, may elect to receive 1993-04-23 House Journal Page 1462 HB 81 the dividend either in cash or as an annuity credit. Alternatively, a person may elect to receive 25 percent, 50 percent, or 75 percent of the dividend in cash and the remainder as an annuity credit. A person who is 65 years of age on or before January1, 1995, [1988] may only receive the permanent fund dividend in cash and may not elect to receive an annuity credit. * Sec. 2. AS43.23.110(a), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: (a) The annuity investment fund is established as a separate fund in the state treasury. The annuity investment fund consists of money transferred from the dividend fund, cash contributions under AS43.23.125, and income earned by the annuity investment fund. Notwithstanding AS37.13.145, an amount equal to the permanent fund dividends taken as annuity credits under this chapter shall be annually transferred from the dividend fund to the annuity investment fund. * Sec. 3. AS 43.23.110(b), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: (b) Money in the annuity investment fund shall be invested under AS37.10.071 by the commissioner of revenue [IN INVESTMENTS AUTHORIZED UNDER AS39.35.110]. The commissioner of administration shall credit the net income of the annuity investment fund to the individual annuity accounts and the annuity reserve account. * Sec. 4. AS43.23 is amended by adding a new section to read: Sec. 43.23.125. CASH CONTRIBUTIONS. An individual who is eligible to receive the permanent fund dividend as an annuity credit under AS43.23.005(d) but does not elect to do so or who elects to receive only a portion of the permanent fund dividend as an annuity credit may make a cash contribution to that individual's annuity account. The cash contribution for a dividend year must be received by the Department of Administration before September30 of the year following that dividend year. The total amount of the annuity credit and the cash contributions to an annuity account for a year may not exceed the amount of the permanent fund dividend for that year. * Sec. 5. AS43.23.130(a), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: (a) An individual with one or more annuity credits or cash contributions under AS43.23.125 may receive an annuity upon reaching the age of 65. 1993-04-23 House Journal Page 1463 HB 81 * Sec. 6. AS 43.23.130(b), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: (b) An annuity under this section is a monthly payment based upon the principal and accrued interest in the person's annuity ac- count. Upon appointment to receive an annuity, the account balance shall be transferred to the annuity reserve account. The [AN] annuity shall be paid from the annuity reserve account as a straight life annuity or other payment plan authorized by the commissioner of administration [THE DEPARTMENT OF ADMINISTRATION]. The size of the annuity may not vary on account of the individual's sex. * Sec. 7. AS 43.23.130(e), as enacted by sec. 16, ch. 99, SLA 1985, is repealed and reenacted to read: (e) If a person elects to credit a permanent fund dividend or make a cash contribution to an annuity account and dies before age 65, a lump sum payment shall be made to that person's designated beneficiary or beneficiaries. The lump sum payment includes all dividends or cash contributions credited to the person's annuity account and interest earned on the account. A person may change or revoke a designation without notice to the beneficiary or beneficiaries at any time. If a person designates more than one beneficiary, each shares equally unless the person specifies a different allocation or preference. The designation, change, or revocation of beneficiary shall be made on a form provided by the commissioner of administration and is not effective until it is filed with the commissioner. If there is no beneficiary designated or surviving, the lump sum payment shall be paid to the (1) surviving spouse; (2) if there is no surviving spouse, in equal parts to the surviving children including adopted children; (3) if there is no surviving spouse or child, in equal parts to the surviving parents; or (4) if there is no surviving spouse, child, or parent, to the estate of the deceased. * Sec. 8. AS43.23 is amended by adding a new section to read: Sec. 43.23.135. EMERGENCY WITHDRAWALS. An individual may make a withdrawal from that individual's annuity account before reaching the age of 65 if the individual establishes to the satisfaction of the commissioner of administration that the withdrawal is necessary to meet an unforeseeable emergency. The 1993-04-23 House Journal Page 1464 HB 81 amount withdrawn may not exceed the total amount in the individual's annuity account or the amount actually necessary to meet the emergency, whichever is less. The commissioner shall define the term "unforeseeable emergency" by regulation. An individual may only make one withdrawal under this section and may pay it back with interest under terms established by the commissioner. An individual who has made a withdrawal under this section may not elect to credit a dividend or make a cash contribution to an annuity account for two years after the withdrawal. * Sec. 9. AS47.45.015, as enacted by sec. 18, ch. 99, SLA 1985, is amended to read: Sec.47.45.015. AMOUNT OF BONUS. (a) Except as provided in (b) of this section, the monthly longevity bonus is equal to $250, minus the maximum possible straight life annuity [FOR A PERSON 65 YEARS OF AGE] under the annuity program (AS43.23.110- 43.23.130), as determined by the commissioner of administration. The maximum possible straight life annuity equals the amount a person would receive if that person became 65 on January2, 1995, and contributed 100 percent of all permanent fund dividends or the cash equivalency to the annuity program for every year after December31, 1993. However, for purposes of this section the maximum possible straight life annuity may not exceed the amount that a person turning 65 in the current year would receive if that person had contributed 100 percent of all permanent fund dividends or the cash equivalency to the annuity program for every year after December31, 1994. (b) A person who is 65years of age on or before January1, 1995 [1988], is entitled to the full longevity bonus payment without reduction for the annuity program. * Sec. 10. AS43.23.110(c), as enacted by sec. 16, ch. 99, SLA 1985, and sec.1, ch. 99, SLA 1985, are repealed. * Sec. 11. Chapter 99, SLA 1985, and secs. 1- 10 of this Act apply only to permanent fund dividends for years beginning after December31, 1993. Notwithstanding the amendments to AS43.23 made by ch. 99, SLA 1985, and this Act, permanent fund dividends for 1993 and prior years shall be made under the law as it existed before the effective date of this Act. * Sec. 12. Nothing in this Act repeals or amends by implication amendments to AS43.23 or AS47.45 enacted after 1985. 1993-04-23 House Journal Page 1465 HB 81 * Sec.13. This Act takes effect immediately under AS01.10.070(c)." Representative Willis moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Bunde objected. Representatives Willis and Carney moved and asked unanimous consent that they be allowed to abstain from voting on CSHB 81(FIN) am due to a conflict of interest. Objections were heard, and the members were required to vote. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 81(FIN) am Second Reading Amendment No. 2 YEAS: 14 NAYS: 26 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Hoffman, Mackie, Menard, Nicholia, Nordlund, Sitton, Willis Nays: Barnes, Brown, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Navarre, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Ulmer, Vezey, Williams And so, Amendment No. 2 was not adopted. Amendment No. 3 was offered by Representatives Willis, Carney and Brice: Page 1, line 7: Delete "1995" Insert "1999" 1993-04-23 House Journal Page 1466 HB 81 After "bonus": Insert "of" Page 1, line 8: Delete "of $225" Insert "$250" Page 1, line 10: Delete "of $150" Insert "$225" Page 1, line 11: Delete "or" Page 1, line 12: Delete "of $100" Insert "$200" Page 1, line 13: Delete "[$250]" Insert "; (4) $175, if the person's application was submitted on or after January1, 1996, but before January1, 1997; (5) $150, if the person's application was submitted on or after January1, 1997, but before January1, 1998; (6) $125, if the person's application was submitted on or after January1, 1998, but before January1, 1999; (7) $100, if the person's application was submitted on or after January1, 1999, but before January1, 2000." Page 2, line 4: Delete "1996" Insert "2000" Page 2, line 26: Delete "1996" Insert "2000" Page 2, line 30: Delete "1996" Insert "2000" 1993-04-23 House Journal Page 1467 HB 81 Page 3, line 1: Delete "(3)" Insert "(7)" Representative Willis moved and asked unanimous consent that Amendment No. 3 be adopted. Objection was heard. Representatives Hudson and Martin moved and asked unanimous consent that they be allowed to abstain from voting due to a conflict of interest. Objections were heard, and the members were required to vote. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 81(FIN) am Second Reading Amendment No. 3 YEAS: 16 NAYS: 24 EXCUSED: 0 ABSENT: 0 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Hoffman, Mackie, Menard, Nicholia, Nordlund, Sitton, Ulmer, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Navarre, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representative Davies: Page 1, line 1, after "program" (title amendment): Insert "; and providing for an effective date" Page 1, line 4, through page 3, line 4: Delete all material. 1993-04-23 House Journal Page 1468 HB 81 Insert "(a) A person who is 65 years of age or over [,] who resides in the state for at least one year immediately preceding application for a longevity bonus under this chapter [,] may apply to the commissioner of administration for qualification to receive a monthly bonus of $250 if, based upon the federal income tax return filed by the person, the person's adjusted gross income for the prior year did not exceed (1) $30,000 for a single return; or (2) $50,000 for a joint return. * Sec. 2. This Act takes effect July1, 1994." Representative Davies moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Bunde objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 81(FIN) am Second Reading Amendment No. 4 YEAS: 11 NAYS: 27 EXCUSED: 0 ABSENT: 2 Yeas: Carney, Davidson, Davies, Finkelstein, Hoffman, Menard, Nicholia, Nordlund, Sitton, Ulmer, Willis Nays: Barnes, Brice, Brown, Bunde, B.Davis, G.Davis, Foster, Green, Hanley, Hudson, James, Kott, Larson, Mackie, Martin, Moses, Mulder, Navarre, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams Absent: Grussendorf, MacLean B.Davis changed from "Yea" to "Nay". And so, Amendment No. 4 was not adopted. 1993-04-23 House Journal Page 1469 HB 81 Amendment No. 5 was offered by Representative Davies: Page 1, line 1, after "program": Insert "; and providing for an effective date" Page 1, line 4, through page 3, line 4: Delete all material. Insert "(a) A person who is 65 years of age or over [,] who resides in the state for at least one year immediately preceding application for a longevity bonus under this chapter [,] may apply to the commissioner of administration for qualification to receive a monthly bonus of $250 if, based upon the federal income tax return filed by the person, the person's adjusted gross income for the prior year did not exceed (1) $30,000 for a single return; or (2) $50,000 for a joint return. * Sec. 2. This Act takes effect July1, 1994." Representative Davies moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Phillips objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSHB 81(FIN) am Second Reading Amendment No. 5 YEAS: 12 NAYS: 24 EXCUSED: 0 ABSENT: 4 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Hoffman, Menard, Nicholia, Nordlund, Sitton, Willis Nays: Barnes, G.Davis, Foster, Green, Hanley, Hudson, James, Kott, Larson, Mackie, MacLean, Martin, Moses, Mulder, Navarre, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Ulmer, Vezey, Williams 1993-04-23 House Journal Page 1470 HB 81 Absent: Bunde, Finkelstein, Grussendorf, Olberg And so, Amendment No. 5 was not adopted. Amendment No. 6 was offered by Representative Nordlund: Page 1, line 8: Delete "225" Insert "250" Representative Nordlund moved and asked unanimous consent that Amendment No. 6 be adopted. Representative Phillips objected. Representative Phillips rose to a point of order stating the amendment was out of order. The Speaker stated the point was well taken but allowed the amendment. Representative Phillips placed a call of the House and lifted the call. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSHB 81(FIN) am Second Reading Amendment No. 6 YEAS: 16 NAYS: 22 EXCUSED: 0 ABSENT: 2 Yeas: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, Grussendorf, Mackie, Menard, Navarre, Nicholia, Nordlund, Sitton, Ulmer, Willis Nays: Barnes, Bunde, Foster, Green, Hanley, Hudson, James, Kott, Larson, MacLean, Martin, Moses, Mulder, Olberg, Parnell, Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams 1993-04-23 House Journal Page 1471 HB 81 Absent: G.Davis, Hoffman And so, Amendment No. 6 was not adopted. Representative Phillips moved and asked unanimous consent that CSHB 81(FIN) am be considered engrossed, advanced to third reading and placed on final passage. Representative Willis objected. The Speaker stated that CSHB 81(FIN) am would be in third reading on the April 24, 1993, calendar.