03/20/2013 04:03 PM House L&C

          HB 102-RETIREMENT PLANS; ROTH IRAS; PROBATE                                                                       
                                                                                                                                
4:03:27 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL NO.  102, "An Act relating to  property exemptions for                                                               
retirement plans, individual retirement  accounts, and Roth IRAs;                                                               
relating to  transfers of  individual retirement  plans; relating                                                               
to  the  rights  of  judgment creditors  of  members  of  limited                                                               
liability   companies   and   partners   of   limited   liability                                                               
partnerships;  relating to  the Uniform  Probate Code,  including                                                               
pleadings,  orders,  liability,  and notices  under  the  Uniform                                                               
Probate  Code  and  the  Alaska Principal  and  Income  Act,  the                                                               
appointment  of  trust  property,   the  Alaska  Uniform  Prudent                                                               
Investor Act, co-trustees, trust  protectors, and trust advisors;                                                               
relating to the Alaska Principal  and Income Act; relating to the                                                               
Alaska  Uniform   Transfers  to  Minors  Act;   relating  to  the                                                               
disposition of  human remains;  relating to  the tax  on insurers                                                               
for life insurance policies; relating  to insurable interests for                                                               
certain   insurance  policies;   relating   to  restrictions   on                                                               
transfers   of  trust   interests;   relating  to   discretionary                                                               
interests  in  irrevocable  trusts;  relating  to  the  community                                                               
property of married  persons; and amending Rule  64, Alaska Rules                                                               
of Civil Procedure, and Rule 301(a), Alaska Rules of Evidence."                                                                 
                                                                                                                                
4:03:52 PM                                                                                                                    
                                                                                                                                
ERNEST  PRAX,  Staff,  Representative Wes  Keller,  Alaska  State                                                               
Legislature,  on  behalf  of   the  sponsor,  Representative  Wes                                                               
Keller, stated  that the proposed  committee substitute  (CS) for                                                               
HB 102,  Version U,  will be before  the committee  for adoption.                                                               
This  bill  would  incorporate  two  changes  from  the  previous                                                               
meeting.   The first change incorporates  an amendment, Amendment                                                               
1, previously adopted by the  committee that corrected a drafting                                                               
error.   The  second change  would  remove language  on page  35,                                                               
lines 18-31, and  page 36, lines 1-4, which is  Section 38 of the                                                               
original bill.                                                                                                                  
                                                                                                                                
4:04:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD moved  to adopt  the proposed  committee                                                               
substitute,  (CS), labeled  28-LS-0335\U, Bannister,  2/26/13, as                                                               
the working document.                                                                                                           
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
4:05:12 PM                                                                                                                    
                                                                                                                                
MR.  PRAX explained  that Section  38 pertains  to the  allowable                                                               
time for an  insurable interest and as he  recalled the committee                                                               
held a discussion  on whether it was needed since  it was more of                                                               
a  technical legal  question.   He related  that the  parties the                                                               
sponsor was working with decided the language was not necessary.                                                                
                                                                                                                                
4:06:28 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  removed  his  objection.  There  being  no  further                                                               
objection, Version U was before the committee.                                                                                  
                                                                                                                                
4:08:39 PM                                                                                                                    
                                                                                                                                
BETH  CHAPMAN,  Attorney,  Faulkner Banfield,  P.C.,  stated  she                                                               
previously testified in  support of the bill.  She  said she also                                                               
supported  the  proposed   amendments,  including  the  technical                                                               
amendment.                                                                                                                      
                                                                                                                                
4:09:16 PM                                                                                                                    
                                                                                                                                
JONATHAN  BLATTMACHR, Attorney,  President  &  CEO, Alaska  Trust                                                               
Company,  testified in  support of  HB 102,  which he  said could                                                               
create jobs and bring revenue into the state.                                                                                   
                                                                                                                                
4:10:22 PM                                                                                                                    
                                                                                                                                
DAVID SHAFTEL, Attorney,  Shaftel Law Offices, PC, said  he is an                                                               
attorney  in  trust and  estates  and  is  one  of the  group  of                                                               
attorneys  that worked  on  HB 102  for about  three  years.   He                                                               
characterized the  bill as containing  provisions that  will help                                                               
all  of Alaska's  residents.    He urged  the  committee to  give                                                               
serious consideration to the bill.                                                                                              
                                                                                                                                
4:11:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON understood he  does probate practice and                                                               
is familiar with probate practice and the probate bar.                                                                          
                                                                                                                                
MR. SHAFTEL confirmed that to be the case.                                                                                      
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked whether  those in probate practice                                                               
like the bill.                                                                                                                  
                                                                                                                                
MR. SHAFTEL  replied yes, and  noted that a number  of provisions                                                               
in HB  102 will make  it easier  for the attorneys  to administer                                                               
estates and trusts as well as  to plan for Alaska residents.  The                                                               
provisions,  he related,  were discussed  among the  probate bar,                                                               
which  is   a  relatively  small  group   that  meets,  discusses                                                               
problems,  and  when  statute  changes   are  necessary  ask  the                                                               
legislature for assistance.                                                                                                     
                                                                                                                                
4:13:02 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 102.                                                                                     
                                                                                                                                
[HB 102 was held over.]