Legislature(2021 - 2022)BUTROVICH 205
02/03/2022 01:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| SB132 | |
| HB133 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 132 | TELECONFERENCED | |
| *+ | HB 133 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 133-AK ED SAVINGS PROGRAMS/ELIGIBILITY
2:41:34 PM
CHAIR WILSON reconvened the meeting and announced the
consideration of SENATE BILL NO. 133 "An Act relating to the
sale or lease of state land for remote recreational sites;
relating to permits for remote recreational sites; and providing
for an effective date."
2:41:54 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislator, Juneau,
Alaska, speaking as co-chair of the House Labor and Commerce
Standing Committee, described HB 133 as a team effort. He
advised that the presentation would include the substance as
well as related history of the legislation.
REPRESENTATIVE FIELDS explained that ABLE is the acronym for
Achieving a Better Life Experience Act. An ABLE account is a
tax-free savings account for individuals with qualifying
disabilities. Funds deposited to the account may be used to pay
for items such as disability expenses, education, housing, and
transportation. Further, deposits into the account are not
counted against an individual in determining eligibility for
Medicaid and needs-based assistance programs. The intention is
to help people with disabilities work, support themselves, and
live as independently as possible.
2:42:51 PM
REPRESENTATIVE FIELDS stated that the ABLE Act of 2013 was
signed into federal law in December 2014. Thereafter,
Representative Saddler and Senator Giessel introduced
legislation to establish ABLE accounts in Alaska. He reported
that since the legislation passed [in 2016], 787 Alaska families
have established ABLE accounts. About 180 of those accounts were
opened since HB 133 was heard last, and the assets in all the
accounts totals $7 million. He recognized Pam Leary with the
Department of Revenue (DOR) who has overseen the program since
its inception.
REPRESENTATIVE FIELDS relayed that since the initial law passed,
the federal government updated and expanded ABLE authorities. He
noted that one of the changes increased the contribution level
[for employed beneficiaries] from $15,000 to [$27,060]. The
federal law also allowed college saving account funds [529
accounts] to roll over into ABLE accounts. Additionally, the age
of eligibility for an ABLE account was increased from 26 to 46.
He described the latter change as sensible because a disability
can occur at any time.
2:45:14 PM
REPRESENTATIVE FIELDS summarized that updates proposed in HB 133
conform to federal law by: expanding the age eligibility limits;
allowing greater flexibility in using funds to pay for
educational expenses; allowing 529 program accounts to roll into
an ABLE account; and aligning with federal regulations regarding
program savings accounts
2:46:08 PM
CHAIR WILSON noted who was available to answer questions. He
asked Mr. Walsh to walk through the sectional analysis.
2:46:29 PM
TRISTAN WALSH, Staff, Representative Zack Fields, Alaska State
Legislature, Juneau, Alaska, provided a summary of the sectional
analysis for HB 133. The full analysis read as follows:
[Original punctuation provided with some formatting changes.]
Section 1 Establishes AS 06.65.020(b).
Directs the Department of Health and Social Services
to consult with the Governor's Council on Disabilities
and Special Education when overseeing the Alaska
Savings Program.
Section 2 Amends AS 06.65.100.
Expands the age of eligibility for a program account
from age 26 to match that in the federal authorizing
law. This effectively removes an age cap that
prevented those who became disabled after 26 years of
age from being eligible.
2:47:40 PM
Section 3 Amends AS 06.65.160(a).
Expands the rules allowing a person to make a
contribution for a designated beneficiary to match the
guidelines in AS 14.40.802(f)(3).
Section 4 Amends AS 06.65.160(c).
Expands the rules regarding who is eligible to make a
program account contribution to match the guidelines
in AS 14.40.802(f)(3).
Section 5 Amends AS 06.65.200(a).
Specifies that rollover may occur between a program
account to another account as long as the new account
is authorized by federal law.
Section 6 Amends AS 09.38.015(a)(8).
Replaces "higher education" savings account with
"education savings account".
Section 7 Amends AS 14.10.170(a).
Replaces "postsecondary education" with "education"
when referring to an education savings account and
renames the "Alaska Higher Education Savings Trust" to
the "Education Trust of Alaska".
Section 8 Amends AS 14.40.802(a).
Renames the "Alaska Higher Education Savings Trust" to
the "Education Trust of Alaska" and replaces
"postsecondary education" with "education" when
referring to education savings accounts. Removes the
allowance that education savings accounts can be used
to pay for room and board when using funds for
education costs as this language is included already
included federal law.
Section 9 Establishes AS 14.40.802(f)(3).
Allows a participant of an account to change the
beneficiary of their account to any individual, not
just a family member. Allows participants to transfer
all or a portion of their account as a contribution to
another account if it does not exceed federal limits
when added to any other contributions and is for the
beneficiary of that new account or for a family member
who is an eligible individual as well.
Section 10 Amends AS 14.40.802(g).
Makes transfers between accounts limitable or deniable
if the transfer does not meet the guidelines
established in AS 14.40.802(f)(3).
2:48:26 PM
Section 11 Amends AS 14.40.802(j).
Removes the restriction that when a beneficiary
designates a successor participant to their account
the change cannot take effect until after the death or
mental incapacity of the beneficiary.
Section 12 Amends AS 14.40.802(n)(2).
Redefines "beneficiary" to match what is defined under
federal law.
Section 13 Amends AS 14.40.802(n)(7).
Replaces "qualified higher education expenses" with
"qualified education expenses" and redefines the
phrase to mean qualified higher education expenses as
defined in federal law.
Section 14 Amends AS 14.40.802(n)(8).
Redefines "trust" to reflect the name change of
"Alaska Higher Education Savings Trust" to the
"Education Trust of Alaska".
Section 15 Amends AS 14.40.809(b).
Renames the "Alaska Higher Education Savings Trust" to
the "Education Trust of Alaska".
Section 16 Amends AS 40.25.120(a).
Renames the "Alaska Higher Education Savings Trust" to
the "Education Trust of Alaska".
Section 17 Amends AS 47.10.093(b).
Removes the distinction of higher education when
referring to the Alaska education savings program.
Section 18 Amends AS 47.12.310(b).
Removes the distinction of higher education when
referring to the Alaska education savings program.
Section 19 Amends AS 47.14.400(a).
Removes the distinction of higher education when
referring to an education investment program and
replaces "University of Alaska college savings plan"
with "education savings plan".
Section 20 Amends AS 47.14.400(b).
Removes the distinction of higher education when
referring to an education investment program.
Section 21 Amends AS 47.14.400(c).
Replaces "college savings plan" with "education
savings plan" and replaces "University of Alaska
College savings plan" with "education savings plan".
Section 22 Amends AS 47.14.400(e)(3). Replaces "higher
education savings program" with "education savings
program" and "college savings account" with "education
savings plan".
Section 23 Establishes AS 47.14.400(e)(5). Defines
"education savings plan" to mean an education savings
program.
Section 24 Repeals AS 47.14.400(e)(2).
2:49:25 PM
CHAIR WILSON turned to invited testimony.
2:49:55 PM
CATHY TAYLOR, Board Member, Alaska Behavioral Health, Kenai,
Alaska, stated that she has served on the board for more than
ten years. She has two sons with disabilities and the ABLE
program has been very beneficial but the $2,000 limit on
resources has made it difficult for family and friends to offer
support to help her sons be more self-sufficient.
2:51:36 PM
MS. TAYLOR stated that raising the contribution level from
$15,000 to $27,060 has been helpful for one of her sons who
experiences mental illness and finds it difficult to maintain
employment. With the higher limit, he will be able to put
additional funds aside when he is working so he can draw on them
in the future if he is no longer employed. It will help him
maintain a measure of independence.
She stated support for the provision that allows rolling college
savings into an ABLE account. She explained that the onset of
mental illness often is in a person's 20s when they are in
college. If their college funds are rolled into an ABLE account,
they will be able to use them to help stabilize their life and
get back on their education track if that is what they want to
do.
MS. TAYLOR agreed with the sponsor that it made sense to
increase the age of eligibility for an ABLE account from 26 to
46 because disability can strike at any time. She mentioned the
flexibility to pay for higher education and offered her view
that it may be easier to get one's arms around vocational or
associate degree programs than a four-year degree program. But
in any event, the flexibility allows someone to keep their
resources then use them when they get back on their feet.
MS. TAYLOR shared that she has been able to incorporate the ABLE
accounts for her sons into her estate planning and the changes
reflected in SB 133 will make the program even better for people
experiencing disability to improve their life situation.
2:56:12 PM
DAN SADLER, former Representative, Alaska State Legislature,
Eagle River, Alaska, reminded the committee that he sponsored
the original legislation in 2016 that authorized ABLE accounts.
He shared that he supported ABLE as a legislator and a parent.
His son Danny has autism and at age 23 is transitioning into
adult life. He needs special behavioral support, special
equipment for his physical needs, supplementary educational
services, employment support services, and healthy recreational
outlets. He said these are qualified disability expenses that
will help him achieve a better life experience. He highlighted
how important it is that deposits into an ABLE account would not
disqualify his son from Medicaid or Supplemental Social Security
(SSI) benefits, because both are critical in meeting his life
needs.
MR. SADDLER opined that that ABLE accounts clearly have been
successful in Alaska. According to a report in the bill packets,
there are 787 ABLE accounts in Alaska and the private
distributions to those accounts totals $7 million. He posited
that this has kept many individual from seeking support from the
state. He mentioned the other conforming changes and described
HB 133 as legislation that makes the existing law better.
MR. SADDLER concluded his comments with the observation that
legislators often are faced with how to allocate limited public
assets among limitless needs. The value of HB 133 is that it
empowers private citizens to use their own money to take better
care of loved ones without cost or burden to the state.
CHAIR WILSON thanked former Representative Saddler for his
service to the state and his testimony.
3:00:14 PM
CHAIR WILSON held HB 133 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 133 Summary of Changes ver B to ver I 1.19.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 Supporting Document - 10 Things You Should Know About ABLE 1.19.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 Sponsor Presentation UPDATED 2.1.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 Supporting Document - IRS ABLE Accounts Info 1.19.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 Supporting Document - UA Press Release 1.19.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 ver I Sponsor Statement 1.19.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 Version I 1.19.2022.PDF |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| HB 133 ver B 1.19.2022.PDF |
SHSS 2/3/2022 1:30:00 PM |
HB 133 |
| SB 132 AKVMA White Paper.pdf |
HHSS 4/19/2022 3:00:00 PM HL&C 5/13/2022 9:00:00 AM SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Fiscal Notes DCCED 2.1.22.pdf |
HHSS 4/19/2022 3:00:00 PM SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 FN DCCED.pdf |
HHSS 4/19/2022 3:00:00 PM SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Legislation version A.PDF |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Sectional Analysis.pdf |
SFIN 3/17/2022 9:00:00 AM SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Sponsor Statement.pdf |
SFIN 3/17/2022 9:00:00 AM SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Support Flyer.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Testimony 1- Received 2.1.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Testimony 2 Flyer PDMP 2.1.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Testimony 3 PDMP Flyer - Received 2.1.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Testimony 4- Recieved 1.23.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Testimony 5 -Received 2.1.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB132 Testimony 1.28.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| CSHB 133 Fiscal Note UA-SYSBRA 1.19.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| CSHB 133 Sectional Analysis Ver I 1.31.2022.pdf |
SHSS 2/3/2022 1:30:00 PM SHSS 2/8/2022 1:30:00 PM |
HB 133 |
| SB 132 Testimony Will McKenna, MD- Received 2.2.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 ppt.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |
| SB 132 Testimony Bundle Received 2.2.22.pdf |
SHSS 2/3/2022 1:30:00 PM |
SB 132 |