Legislature(2023 - 2024)ADAMS 519

03/22/2024 01:30 PM House FINANCE



* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 115 NATUROPATHS: LICENSING; PRACTICE TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 219 REPEAL ASSISTIVE TECHNOLOGY LOAN PROGRAM TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 219                                                                                                            
                                                                                                                                
     "An Act repealing the assistive technology loan                                                                            
     guarantee and interest subsidy program; and providing                                                                      
     for an effective date."                                                                                                    
                                                                                                                                
1:38:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN SADDLER,  SPONSOR, introduced  the bill.                                                                    
He  stated that  one  of  the best  things  about living  in                                                                    
Alaska  were the  great  people  who had  big  hearts and  a                                                                    
willingness to  help every Alaskan  enjoy life in  the state                                                                    
to the maximum,  including individuals experiencing physical                                                                    
or  mental  disabilities. For  example,  in  1995 the  state                                                                    
sought and received a $500,000  grant aimed at backing loans                                                                    
for  individuals with  disabilities.  He  detailed that  the                                                                    
loans helped  people buy assistive  technology (AT)  to help                                                                    
them  get  or  keep  a  job, attend  school,  or  live  more                                                                    
independently.   He  provided   examples  of   AT  including                                                                    
wheelchairs,  computers,  sleep  synthesizers,  prosthetics,                                                                    
hearing   aids,  and   other   communication  devices.   The                                                                    
legislature  had established  the Assistive  Technology Loan                                                                    
Guarantee Fund  intended to  guarantee the  principal amount                                                                    
of the loans  to Alaskans in order to purchase  AT. He noted                                                                    
the funds  could also be  used to subsidize  interest rates.                                                                    
He relayed  that despite the legislature's  good intentions,                                                                    
few people  had taken advantage  of the program.  The intent                                                                    
of HB 219  was to repeal the grant fund  and direct the fund                                                                    
balance   of  approximately   $460,000   to  the   Assistive                                                                    
Technology  of  Alaska  (ATLA),  a  nonprofit  empowered  to                                                                    
administer the grants.  He explained that the  repeal of the                                                                    
underlying  statute would  only  happen  if the  legislature                                                                    
reappropriated  the funds  through separate  legislation. He                                                                    
believed members' bill packets  included the draft language.                                                                    
He elaborated  that passing  HB 219  to repeal  AS 23.15.125                                                                    
would remove  outdated statutory barriers that  were keeping                                                                    
Alaskans  with disabilities  from  taking  advantage of  the                                                                    
funds.  He  noted his  staff  was  available to  review  the                                                                    
sectional analysis.                                                                                                             
                                                                                                                                
Co-Chair Foster asked to  hear from Representative Saddler's                                                                    
staff.                                                                                                                          
                                                                                                                                
1:40:22 PM                                                                                                                    
                                                                                                                                
MELODIE    WILTERDINK,   STAFF,    REPRESENTATIVE   SADDLER,                                                                    
ANCHORAGE  (via   teleconference),  offered   the  sectional                                                                    
analysis of the bill (copy on file):                                                                                            
                                                                                                                                
     Section 1  Page 1, Line 4                                                                                                  
     Section  1   repeals  AS  23.15.125      the  assistive                                                                    
     technology loan guarantee  and interest subsidy program                                                                    
        which  established  the "assistive  technology  loan                                                                    
     guarantee fund." The fund can  be used to guarantee the                                                                    
     principal amount  or subsidize  the interest rate  of a                                                                    
     loan for  purchasing assistive technology  that enables                                                                    
     an individual to obtain or  maintain employment or live                                                                    
     more independently.                                                                                                        
                                                                                                                                
     Section 2  Page 1, Lines 5-9                                                                                               
     Section  2   adds  conditional  language   to  Alaska's                                                                    
     uncodified  law stipulating  that this  act only  takes                                                                    
     effect  if the  Legislature reappropriates  the balance                                                                    
     of the  assistive technology loan fund  for the purpose                                                                    
     of improving access to assistive technology.                                                                               
                                                                                                                                
     Section 3  Page 1, Line 10                                                                                                 
    Section 3 provides for an immediate effective date.                                                                         
                                                                                                                                
Co-Chair  Foster  observed  that  the law  would  only  take                                                                    
effect if the legislature  reappropriated the balance of the                                                                    
AT  fund. He  asked  if the  adjustment  was something  that                                                                    
would  happen at  the very  end of  session when  bills were                                                                    
rolled  into  the  conference committee.  Alternatively,  he                                                                    
wondered  if  the operating  budget  co-chair  needed to  do                                                                    
something in the meantime.                                                                                                      
                                                                                                                                
Ms.  Wilterdink responded  that there  was drafted  language                                                                    
and the  amendment to the  operating budget could  happen in                                                                    
the  House Finance  Committee  during  the budget  amendment                                                                    
process,  on the  House floor,  or  at a  later time  during                                                                    
conference  committee. She  noted  that  ideally the  change                                                                    
would take place prior to conference committee.                                                                                 
                                                                                                                                
1:43:16 PM                                                                                                                    
                                                                                                                                
Representative Josephson  asked how  the fund  avoided being                                                                    
swept over the past several years.                                                                                              
                                                                                                                                
Representative   Saddler  deferred   the  question   to  the                                                                    
Department of Labor and Workforce Development (DLWD).                                                                           
                                                                                                                                
DUANE    MAYES,    DIRECTOR,    DIVISION    OF    VOCATIONAL                                                                    
REHABILITATION,   DEPARTMENT   OF    LABOR   AND   WORKFORCE                                                                    
DEVELOPMENT (via  teleconference), replied  that he  did not                                                                    
have the  details to  answer the  question. He  relayed that                                                                    
the funding had  been a one-time allocation  to the Division                                                                    
of Vocational  Rehabilitation (DVR)  in 1995. He  offered to                                                                    
follow up with the information.                                                                                                 
                                                                                                                                
Representative  Saddler speculated  that the  fact that  the                                                                    
funding   was   still   available   30   years   after   the                                                                    
establishment of the  fund was some indication  it had found                                                                    
a niche to be safe from the sweep.                                                                                              
                                                                                                                                
Co-Chair Foster  suggested a follow-up on  the question with                                                                    
the information  to be provided  at the next hearing  on the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative Hannan asked how  much money was available in                                                                    
the  fund.  She  understood  the  fund  had  initially  been                                                                    
capitalized with federal money and  $100,000 had been put in                                                                    
a couple of  years later. She remarked that  the fiscal note                                                                    
did not address how much  money would be reappropriated. She                                                                    
asked if  none of the  money had ever  been spent and  if it                                                                    
earned interest in the fund.                                                                                                    
                                                                                                                                
Representative Saddler deferred to Mr. Mayes.                                                                                   
                                                                                                                                
Mr. Mayes  responded that  the current  balance of  the fund                                                                    
was $447,000.  He estimated  that over  the 30-year  life of                                                                    
the  fund, around  10 loans  had been  provided. He  relayed                                                                    
that there had been no loans in the past six years.                                                                             
                                                                                                                                
Representative Saddler  added that  there had been  a period                                                                    
of very  low interest rates and  because part of the  aim of                                                                    
the federal grant  money was to subside loans  it was rather                                                                    
difficult to  find a way  in which a  subsidy was much  of a                                                                    
benefit.  He stated  it  was  one of  the  reasons the  loan                                                                    
program had been moribund.                                                                                                      
                                                                                                                                
Representative Hannan  asked if there were  any restrictions                                                                    
on reappropriation  tied to the initial  $291,000 in federal                                                                    
funds.                                                                                                                          
                                                                                                                                
Representative Saddler  deferred the question to  Mr. Mayes.                                                                    
He believed there were some restrictions.                                                                                       
                                                                                                                                
Mr.  Mayes answered  that ATLA  was the  implementing agency                                                                    
and  store  front in  terms  of  technology. There  were  no                                                                    
restrictions  on  the funds.  The  change  in statute  would                                                                    
enable the state to allocate  the funding to ATLA, which was                                                                    
better positioned to promote the  program and the funds. The                                                                    
department  had  been  talking   with  its  federal  funding                                                                    
partner and there  were many other states that  had done the                                                                    
same thing because they were  experiencing the same thing as                                                                    
Alaska.                                                                                                                         
                                                                                                                                
1:49:09 PM                                                                                                                    
                                                                                                                                
Representative  Hannan  provided   a  hypothetical  scenario                                                                    
where  the legislature  wanted to  move  the initial  amount                                                                    
that  was  capitalized  and  to  reappropriate  $100,000  to                                                                    
senior and disability services technology.  She asked if the                                                                    
scenario would be allowed. She  noted the reappropriation in                                                                    
the scenario would be a  different action from the bill. She                                                                    
wondered  whether the  legislature could  only reappropriate                                                                    
the funds  to one thing or  if it had carte  blanche through                                                                    
its  appropriation  power  to  put  the  funds  towards  any                                                                    
disability services.                                                                                                            
                                                                                                                                
Mr. Mayes  responded that ATLA  was the  implementing agency                                                                    
that  DLWD   worked  with.  The  department's   Division  of                                                                    
Vocational  Rehabilitation  had   a  set  of  rehabilitation                                                                    
counselors  who may  use ATLA  to  assess technology  needs.                                                                    
There was  no other entity  in the  state that he  was aware                                                                    
of. He  explained that ATLA  was federally  recognized under                                                                    
the 21st Century Assistive Technology Act.                                                                                      
                                                                                                                                
Representative Saddler  added that it was  his understanding                                                                    
that with  funds established through  law, often  the lender                                                                    
specified the  fund balance included  original appropriation                                                                    
plus earnings.  He would look  into HB 65, the  1995 vehicle                                                                    
that established the fund.                                                                                                      
                                                                                                                                
Co-Chair  Foster thought  it was  a good  question asked  by                                                                    
Representative  Hannan  about   whether  $100,000  could  be                                                                    
reappropriated to another program. He  would be happy with a                                                                    
simple yes or no answer.                                                                                                        
                                                                                                                                
Representative  Galvin  thanked Representative  Saddler  for                                                                    
finding money that  was not being spent and was  meant to be                                                                    
spent  on behalf  of  individuals who  need  the funds.  She                                                                    
referenced  support  letters  included in  members'  packets                                                                    
(copy on file). She looked  at language specifying that ATLA                                                                    
remained one of  the only nonprofits to  provide services to                                                                    
all  Alaskans  regardless  of   age,  location,  income,  or                                                                    
diagnosis. She  stated that the  language "one of  the only"                                                                    
made her  wonder if  there were others.  She asked  if there                                                                    
had been  a process  in which the  department had  chosen to                                                                    
focus on ATLA.                                                                                                                  
                                                                                                                                
Representative Saddler  asked which letter and  location she                                                                    
was referencing.                                                                                                                
                                                                                                                                
Representative  Galvin  referred  to paragraph  three  of  a                                                                    
letter  from the  Association  of  Assistive Technology  Act                                                                    
(copy on file). She noted that  the sentence was in a couple                                                                    
of  the letters.  She referenced  a  letter from  Articulate                                                                    
Speech  and  Language  Therapy (copy  on  file)  as  another                                                                    
example.                                                                                                                        
                                                                                                                                
Representative Saddler responded that  ATLA and DVR had made                                                                    
him  aware of  the  issue  and had  suggested  the bill.  He                                                                    
believed  ATLA was  one of  a few  nonprofits providing  the                                                                    
services,  but ATLA  was the  primary entity  with the  most                                                                    
experience  and  efficacy.  He thought  ATLA  was  the  only                                                                    
agency that  had every facilitated the  grants. He concluded                                                                    
that  ATLA  was in  the  best  position and  best  nonprofit                                                                    
available to  deliver the  money to people  who need  it. He                                                                    
deferred  to the  executive director  of ATLA  to answer  if                                                                    
there were other agencies that may qualify.                                                                                     
                                                                                                                                
1:54:42 PM                                                                                                                    
                                                                                                                                
MYSTIE  RAIL, EXECUTIVE  DIRECTOR,  ASSISTIVE TECHNOLOGY  OF                                                                    
ALASKA, ANCHORAGE  (via teleconference), answered  that ATLA                                                                    
was  the only  agency in  the state  dealing with  assistive                                                                    
technology  and  it  was  the  implementing  agency  of  the                                                                    
federal AT Act.                                                                                                                 
                                                                                                                                
Representative Galvin stated that  all of her questions were                                                                    
answered if  the grant  was single  sourced toward  only one                                                                    
purpose.                                                                                                                        
                                                                                                                                
Co-Chair Foster noted  that Mr. Mayes was  listed as invited                                                                    
testimony. He asked if Mr. Mayes had additional comments.                                                                       
                                                                                                                                
Mr. Mayes shared that he had  worked in the state system for                                                                    
35  years. He  started  out in  1989  as the  rehabilitation                                                                    
counselor for  the deaf and  hard of hearing and  had worked                                                                    
in the  position for  nine years. He  relayed that  ATLA was                                                                    
with  him at  the  time, and  he often  used  the agency  to                                                                    
identify  technology  needs  for  deaf, blind,  or  hard  of                                                                    
hearing. He  relayed that with  the exception of  senior and                                                                    
disability   services   and   the  Governor's   Council   on                                                                    
Disabilities  and  Special  Education,  ATLA  was  the  sole                                                                    
agency the rehabilitation counselors  worked for. He relayed                                                                    
that   the  skill   set  counselors   needed  to   have  was                                                                    
complicated and it was rare  to find someone with that level                                                                    
of skill.  He stated that  ATLA had  been around for  a long                                                                    
time and was the lifeline for DVR.                                                                                              
                                                                                                                                
1:57:17 PM                                                                                                                    
                                                                                                                                
Representative Hannan  remarked that DVR had  previously had                                                                    
an assistive  program to  help deaf  individuals, but  it no                                                                    
longer existed.  She wondered if  some of the  funding could                                                                    
be  used to  reinstate  such a  program. Alternatively,  she                                                                    
wondered if  the funding  was constrained  and could  not be                                                                    
used for that purpose.                                                                                                          
                                                                                                                                
Mr. Mayes deferred the question to Ms. Rail.                                                                                    
                                                                                                                                
Ms. Rail  responded that she  was not aware of  the specific                                                                    
program that  had previously existed under  DVR. She relayed                                                                    
that ATLA  was a  community rehabilitation provider  for the                                                                    
division.  She   explained  that  the   division  counselors                                                                    
referred individuals  to ATLA for  a full assessment  and to                                                                    
provide recommendations on the right assistive technology.                                                                      
                                                                                                                                
Representative Hannan  shared that she had  some active deaf                                                                    
constituents who had  repeatedly told her they  used to have                                                                    
supports  at  DVR,  but  the  programs  had  been  cut.  She                                                                    
elaborated that  they found it  very hard to find  access to                                                                    
services  and supports  within  state  agencies to  interact                                                                    
with  state agencies.  She  explained  that the  individuals                                                                    
continually asked  when the  positions could  be reinstated.                                                                    
She was trying  to determine whether the  funding could only                                                                    
be  directed  to individuals  or  if  it  could be  used  to                                                                    
provide a deaf  assistance person at the  division that deaf                                                                    
Alaskans could contact for a variety of supports.                                                                               
                                                                                                                                
Co-Chair Foster  thought it sounded  like some  research and                                                                    
follow up was needed.                                                                                                           
                                                                                                                                
Representative Saddler  stated that  he had  some difficulty                                                                    
understanding  Ms. Rail  possibly  due  to speakerphone.  He                                                                    
believed Ms. Rail  had said that if someone  was referred to                                                                    
ATLA,  the  agency  would  conduct   an  assessment  of  the                                                                    
person's  disabilities and  would  be able  to help  provide                                                                    
assistive  technology  if  a  person was  deaf  or  hard  of                                                                    
hearing.                                                                                                                        
                                                                                                                                
2:01:07 PM                                                                                                                    
                                                                                                                                
Ms. Rail agreed. She detailed  that ATLA provided AT and the                                                                    
associated services.  The agency had additional  programs it                                                                    
was able to administer to  provide specific types of devices                                                                    
for  deaf or  hard  of hearing  individuals and  individuals                                                                    
experiencing  speech  impairment.  She speculated  that  the                                                                    
constituents  that  Representative  Hannan was  speaking  of                                                                    
were   likely   looking   for  services   beyond   assistive                                                                    
technology and the services provided  by ATLA. She explained                                                                    
that  ATLA  was  very  focused   on  providing  AT  and  the                                                                    
surrounding services.                                                                                                           
                                                                                                                                
Co-Chair Foster  asked Ms. Rail  to provide any  comments as                                                                    
an invited testifier.                                                                                                           
                                                                                                                                
Ms. Rail  shared that  ATLA had become  a 501(c)(3)  in 1994                                                                    
and  the  implementing  agency   of  the  federal  Assistive                                                                    
Technology Act  under the direction  of DVR. She  noted that                                                                    
the federal  funds went directly  to DVR and were  passed on                                                                    
to ATLA. The agency's mission  was to enhance the quality of                                                                    
life for Alaskans through  assistive technology. She relayed                                                                    
that  ATLA  was  the state's  only  comprehensive  assistive                                                                    
technology resource center  that provided services statewide                                                                    
to  Alaskans at  any  age with  any  disability, injury,  or                                                                    
illness. She noted that most  other nonprofits were specific                                                                    
to certain  ages, disabilities, or  areas within  the state.                                                                    
She  explained  that  ATLA  partnered   with  all  of  those                                                                    
agencies.                                                                                                                       
                                                                                                                                
Ms. Rail  supported the activities outline  in the Assistive                                                                    
Technology Act.  She detailed that assistive  technology was                                                                    
defined as  any item, piece of  equipment, software program,                                                                    
or  product system  used to  increase, maintain,  or improve                                                                    
the  functional capabilities  of  people with  disabilities.                                                                    
She explained  that AT could  be as  simple and low  tech as                                                                    
putting rubberized grips on a  pen for a person experiencing                                                                    
arthritis or  as high tech  as a device called  Eyegaze that                                                                    
enabled a  person to control  a computer or iPad  using only                                                                    
their  eyes.  She  elaborated  that   AT  could  range  from                                                                    
solutions made  ourselves to  specialized equipment  from AT                                                                    
manufacturers  to  everyday  off-the-shelf devices  like  an                                                                    
iPad or Amazon's  Alexa. She stressed that AT was  not a one                                                                    
size  fits  all  solution.  She  relayed  that  devices  and                                                                    
services were  unique to each  person ATLA worked  with. She                                                                    
provided  examples   of  individuals   receiving  assistance                                                                    
through ATLA. She  highlighted an elder in  rural Alaska who                                                                    
was losing his vision and was  now able to read his own mail                                                                    
with the assistance of a  digital magnifier. Another example                                                                    
was a  non-verbal six-year-old with autism  in Ketchikan who                                                                    
had recently  told her  mom "thank you"  for the  first time                                                                    
using a symbol-based communication device.                                                                                      
                                                                                                                                
Ms. Rail stated  that AT devices and  services were critical                                                                    
to  ensure Alaskans  with disabilities  were  able to  live,                                                                    
work, and participate in their communities independently.                                                                       
                                                                                                                                
2:06:27 PM                                                                                                                    
                                                                                                                                
Ms.  Rail  continued  to provide  details  about  ATLA.  She                                                                    
relayed  that as  the implementing  agency of  the Assistive                                                                    
Technology Act, ATLA provided  demonstrations of the devices                                                                    
to offer opportunities for Alaskans  to become familiar with                                                                    
the different types of technology  that could help them. She                                                                    
explained that it  offered Alaskans a chance  to compare and                                                                    
contrast the  functions and features of  each device through                                                                    
hands-on exploration by an AT  professional. The agency also                                                                    
allowed  individuals to  borrow  equipment for  two to  four                                                                    
weeks to determine  whether the item would  meet their needs                                                                    
prior to  purchase. The agency  also supported the  reuse of                                                                    
AT in  order for multiple  people to benefit from  a device.                                                                    
The  AT  Act  did  not allow  ATLA  to  purchase  technology                                                                    
directly  for a  person, but  it  allowed ATLA  to do  state                                                                    
financing  activities to  administer  other initiatives  for                                                                    
funding resources  that did support  the acquisition  of the                                                                    
AT for  consumers at no  cost using dollars from  non-AT Act                                                                    
sources.  The agency  also used  AT Act  dollars to  provide                                                                    
outreach  and  awareness  and to  collaborate  with  partner                                                                    
agencies across the state. The intent  of HB 219 would be to                                                                    
support the activities already provided  by ATLA through the                                                                    
AT Act.                                                                                                                         
                                                                                                                                
Ms. Rail  stressed that technology  was rapidly  changing as                                                                    
were the needs of Alaskans  served by the agency. She stated                                                                    
that the  funds received  by the agency  through the  AT Act                                                                    
did not  begin to  cover the  need to  purchase more  AT for                                                                    
demonstration centers  or to be  able to  provide short-term                                                                    
loans. She stated that the  funds [that would result from HB
219] would ensure ATLA could  meet the increased urgency for                                                                    
AT and to  help improve and continue to  improve the quality                                                                    
of  life  for  Alaskans with  disabilities.  The  additional                                                                    
funds  would  also  strengthen   and  sustain  the  gaps  in                                                                    
services  or   in  devices  that  were   needed  to  support                                                                    
Alaskans. She  thanked the committee for  the opportunity to                                                                    
speak.                                                                                                                          
                                                                                                                                
Co-Chair  Foster  thanked Ms.  Rail  for  her testimony.  He                                                                    
asked Representative Saddler for any closing comments.                                                                          
                                                                                                                                
2:09:30 PM                                                                                                                    
                                                                                                                                
Representative  Saddler   thanked  the  committee   and  was                                                                    
available for questions.                                                                                                        
                                                                                                                                
Representative Tomaszewski  asked if the fund  had collected                                                                    
any interest over its 30-year lifespan.                                                                                         
                                                                                                                                
Representative Saddler deferred the question to Mr. Mayes.                                                                      
                                                                                                                                
Mr. Mayes  confirmed that  there was  some interest  made on                                                                    
the funding,  but he  did not have  the specific  numbers on                                                                    
hand. He would follow up with the information.                                                                                  
                                                                                                                                
Co-Chair  Foster  set  the amendment  deadline  for  Friday,                                                                    
March 29 at 5:00 p.m.                                                                                                           
                                                                                                                                
HB 219 was HEARD and HELD for further consideration.                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HB 219 Sponsor Statement 2.6.24.pdf HFIN 3/22/2024 1:30:00 PM
SFIN 5/1/2024 9:00:00 AM
HB 219
HB 219 Sectional Analysis ver B 2.6.24.pdf HFIN 3/22/2024 1:30:00 PM
SFIN 5/1/2024 9:00:00 AM
HB 219
HB219 NEW FN DOLWD-SP-03-15-24.pdf HFIN 3/22/2024 1:30:00 PM
HB 219
HB 219 Public Testimony Rec’d by 3.18.24.pdf HFIN 3/22/2024 1:30:00 PM
HB 219
HB 219 Responses to HFIN Questions 3.22.24.pdf HFIN 3/22/2024 1:30:00 PM
HB 219
HB 115 Additional Authorities and Responsibilities 4.3.24.pdf HFIN 3/22/2024 1:30:00 PM
HB 115
HB 115 Follow Up Answers from 3.22.24 (FIN) Mtg..pdf HFIN 3/22/2024 1:30:00 PM
HB 115
HB 115 Public Testimony Rec'd by 040424.pdf HFIN 3/22/2024 1:30:00 PM
HB 115
HB 115 Public Testimony Rec'd by 041724.pdf HFIN 3/22/2024 1:30:00 PM
HB 115