Legislature(2021 - 2022)DAVIS 106
04/20/2021 03:00 PM House HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| HB133 | |
| HB145 | |
| HB58 | |
| HB153 | |
| HB58 | |
| HB153 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 133 | TELECONFERENCED | |
| + | HB 145 | TELECONFERENCED | |
| += | HB 58 | TELECONFERENCED | |
| *+ | HB 153 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 133-AK ED SAVINGS PROGRAMS/ELIGIBILITY
3:09:29 PM
CO-CHAIR ZULKOSKY announced that the first order of business
would be HOUSE BILL NO. 133, "An Act relating to the Alaska
savings program for eligible individuals; relating to education
savings programs; relating to the Education Trust of Alaska;
relating to the Alaska advance college tuition savings fund;
relating to the Alaska education savings program for children;
and relating to the Governor's Council on Disabilities and
Special Education."
3:09:43 PM
REPRESENTATIVE FIELDS presented HB 133, as prime sponsor. He
offered a PowerPoint presentation, entitled "HB 133: Able
Update." He began on slide 1, "What is an Able Account?" which
read as follows [original punctuation provided]:
? ABLE: "Achieving a Better Life Experience"
? Tax-free savings account for individuals with
qualifying disabilities
? Funds may be used to pay for items such as
disability expenses, education, housing,
transportation
? Distributions into accounts are not counted against
individual in determining eligibility for Medicaid and
needs-based assistance programs
REPRESENTATIVE FIELDS proceeded to slide 4, "ABLE Act of 2013,"
which read as follows [original punctuation provided]:
Signed into federal law in December 2014 as part of
the Tax Extenders package
? Established 529A (ABLE) savings account exclusively
for individuals with disabilities
REPRESENTATIVE FIELDS noted that former Alaska State Senator
Cathy Giessel and former Alaska State Representative Dan Saddler
championed the Alaska ABLE Act two years after it was signed
into federal law which authorized a state ABLE program through
the Department of Revenue (DOR). This allowed Alaska to join
the National ABLE Alliance, which is a group of states that work
together on supporting the ABLE accounts. He shared his
understanding that the ABLE program has been successful in
Alaska considering the number of individuals that have ABLE
accounts.
REPRESENTATIVE FIELDS advanced to slide 7, "ABLE to Work Act,"
which read as follows [original punctuation provided]:
? Signed into law in 2017 as part of the Tax Cuts and
Jobs Act
? Increased annual contributions levels
? Incentivized employment by increasing the
contribution level for employed beneficiaries from
$15,000 to $27,060
REPRESENTATIVE FIELDS advanced to slide 9, "ABLE Age Adjustment
Act," which read as follows [original punctuation provided]:
? Will increase the age of eligibility from 26 to 46
? Will allow more participation in ABLE accounts
3:13:40 PM
REPRESENTATIVE FIELDS continued on slide 10, "HB 133 Proposed
Updates," which read as follows [original punctuation provided]:
? Reassigns department responsibility
? Expands age eligibility limits
? Allows greater flexibility in using funds to pay for
education expenses
Allows 529 program accounts to roll into an ABLE
account
? Aligns with federal regulations regarding program
savings accounts
REPRESENTATIVE FIELDS noted that former State of Alaska Senator
Cathy Giessel and her staff did most of the work on HB 133, and
he said he suspects it would have passed in 2020 had COVID-19
not intervened.
3:15:15 PM
CATHY GIESSEL, former State of Alaska Senator, testified in
support of HB 133. She reminded the committee that the ABLE Act
was signed into federal law in 2014, and wanted to ensure that
committee members are aware that the members of U.S. Congress
who originally put the bill forward originally on the federal
level were family members of individuals with disabilities, and
she presumed that these Congress members understood the
financial burden for individuals with disabilities, as well as
the constraints placed on these individuals. She shared her
understanding that these members of Congress wanted to create a
program that would increase the opportunities for financial
independence and greater self-sufficiency for individuals with
disabilities. She explained that this program allows a 529-A
ABLE savings account for individuals with disabilities, which
she said is a "game changer." She shared that, a few years ago,
it was estimated that about 13,000 Alaskans were eligible for
this type of account. She said that one of the things that she
tries to achieve when speaking with individuals with
disabilities is to make them aware of 529-A ABLE accounts. She
expressed her enthusiastic support for raising the age of onset
of disability from 26 to 46 years. She said that HB 133 would
comply with the new federal guidelines that allow even more
people to participate in ABLE accounts. She added that former
State of Alaska Representative, Dan Saddler had a family member
who had a disability, and she shared her understanding that this
meant that he knew what the costs associated with having a
disability were, and the limited opportunities available to
individuals with disabilities. She shared that about a year and
a half after the bill had passed and was signed, her sixth
grandson was born with significant disabilities, and she now
understands firsthand how easy it is for her to contribute to
her grandson's ABLE account. She expressed that this is a bi-
partisan "win-win" piece of legislation that would be
significant in helping individuals with disabilities and the
families of those individuals.
3:19:12 PM
REPRESENTATIVE KURKA asked Senator Giessel for clarification as
to the state's role in ABLE accounts. He opined that it sounded
like a "tax shield" due to it starting out as a federal program.
REPRESENTATIVE FIELDS responded that the 529 accounts are not
for tax shielding but for assisting people experiencing
disabilities to be as self-sufficient as possible. The accounts
allow those individuals and family members to save money on
qualifying expenses such as education, transportation, and
housing, he said, without making these individuals ineligible
for Medicaid. He made note of Medicaid's low wealth limit of
$2,000. He said it would be counterproductive to, for example,
bump someone off Medicaid due to an increased money stream that
is going to housing or college expenses.
REPRESENTATIVE KURKA asked Representative Fields for
confirmation that it was not for tax deduction, but instead
about preventing the recipient from being precluded from
Medicaid benefits.
REPRESENTATIVE FIELDS concurred and, regarding Representative
Kurka's earlier question about the state's role, explained that
the state has to participate in order for Alaskans to be able to
participate in the program.
3:21:54 PM
REPRESENTATIVE SPOHNHOLZ added that HB 133 would not simply
prevent people from losing Medicaid coverage, but would also
prevents people from losing access to other programs, such as
Social Security Disability Income. She added that some of these
programs can take many years to get into, and HB 133 would
prevent individuals with disabilities from being kicked out of
these programs as well, and would help improve the financial
independence of these individuals. She explained that this
increased level of independence would prevent
institutionalization, or the necessity for these individuals to
turn to more expensive levels of care.
3:23:26 PM
CO-CHAIR ZULKOSKY opened public testimony on HB 133. After
ascertaining that there was no one who wished to testify, she
closed public testimony.
CO-CHAIR ZULKOSKY announced that HB 133 was held over.