04/12/2024 01:30 PM House FINANCE

HOUSE BILL NO. 219                                                                                                            
                                                                                                                                
     "An Act repealing the assistive technology loan                                                                            
     guarantee and interest subsidy program; and providing                                                                      
     for an effective date."                                                                                                    
                                                                                                                                
1:37:08 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  asked  the  bill  sponsor  to  review  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAN  SADDLER, SPONSOR, thanked  the committee                                                                    
for  hearing  the  bill  that  would  repeal  the  Assistive                                                                    
Technology  Loan Fund.  He  explained  that the  legislation                                                                    
would  eliminate a  well-intentioned loan  program that  was                                                                    
instituted many years ago but  had not had its intended use.                                                                    
The  bill  would  end  the loan  fund  and  appropriate  the                                                                    
funding to  a nonprofit that  could make the grants  and use                                                                    
the  funds as  originally intended  to assist  Alaskans with                                                                    
disabilities  with obtaining  assistive technology  allowing                                                                    
them to live, work, and go to school in Alaska.                                                                                 
                                                                                                                                
Representative  Saddler explained  that  a two-step  process                                                                    
was needed  to implement the  intent of the bill.  The first                                                                    
was to  appropriate the approximately $446,000  remaining in                                                                    
the  Assistive Technology  Loan  Fund to  the Department  of                                                                    
Labor   and   Workforce    Development   (DLWD)   Vocational                                                                    
Rehabilitation Special  Projects Section, which  would occur                                                                    
in the  final passage of  the operating budget.  He detailed                                                                    
that  the action  was contingent  on the  passage of  HB 218                                                                    
[219], which would repeal the fund.                                                                                             
                                                                                                                                
Co-Chair Foster noted that the  committee had heard the bill                                                                    
once before.                                                                                                                    
                                                                                                                                
1:39:05 PM                                                                                                                    
                                                                                                                                
Representative Hannan  remarked that the bill  number before                                                                    
the   committee   specified   HB   219.   She   noted   that                                                                    
Representative  Saddler had  referred to  HB 218.  She asked                                                                    
for verification that she was looking at the correct bill.                                                                      
                                                                                                                                
Representative Saddler confirmed it was HB 219.                                                                                 
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
JAMIE KOKOSZKA,  PROGRAM COORDINATOR, GOVERNOR'S  COUNCIL ON                                                                    
DISABILITIES   AND    SPECIAL   EDUCATION,    WASILLA   (via                                                                    
teleconference),  thanked  the  committee  for  hearing  the                                                                    
bill. She spoke in support  of the legislation. She detailed                                                                    
that  the Governor's  Council  on  Disabilities and  Special                                                                    
Education  (GCDSE)  along  with  the  Statewide  Independent                                                                    
Living Council (SILC) presented  a position paper in support                                                                    
of  the   recommendations  from   the  Alaska   Division  of                                                                    
Vocational   Rehabilitation   (DVR)    and   the   Assistive                                                                    
Technology  of   Alaska  (ATLA).  She  relayed   that  GCDSE                                                                    
believed   assistive  technology   (AT)  was   critical  for                                                                    
Alaskans with  disabilities to  live a  productive, healthy,                                                                    
independent,   and  dignified   life.   She  detailed   that                                                                    
assistive technology  allowed individuals to  participate in                                                                    
education and the  labor market. She reported  that the need                                                                    
for assistive technology had only  increased as the internet                                                                    
and   other  technologies   had   become  indispensable   to                                                                    
accessing services and participating in work and community.                                                                     
                                                                                                                                
Ms. Kokoszka  stated that GCDSE  believed ATLA was  the best                                                                    
organization  to  take  over  the  remaining  funds  of  the                                                                    
restricted  Title 1  funding. She  detailed that  it aligned                                                                    
with  ATLA's current  AT Act  services, which  could include                                                                    
developing   new   programs   that   adhered   to   AT   Act                                                                    
requirements. Additionally,  ATLA had a proven  track record                                                                    
of  responsibly managing  the funding  for this  purpose and                                                                    
getting AT  into the hands  of Alaskans that needed  it. She                                                                    
noted  that  the council's  position  paper  (copy on  file)                                                                    
included  additional   information  about   why  individuals                                                                    
needed the  technology. She highlighted that  the individual                                                                    
in the photo  shown on the council's position  paper was one                                                                    
of  the council's  staff members  and  he was  using a  one-                                                                    
handed keyboard. She thanked the  committee for its time and                                                                    
consideration.                                                                                                                  
                                                                                                                                
MYSTIE  RAIL, EXECUTIVE  DIRECTOR,  ASSISTIVE TECHNOLOGY  OF                                                                    
ALASKA,  ANCHORAGE (via  teleconference),  relayed that  she                                                                    
was available for questions.                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
1:43:23 PM                                                                                                                    
                                                                                                                                
Representative Coulombe referenced  a memorandum provided by                                                                    
Representative   Saddler  in   response  to   House  Finance                                                                    
Committee member  questions (copy  on file). She  noted that                                                                    
one of  the answers specified  that the funds  avoided being                                                                    
swept  because   they  consisted   of  federal   funds.  She                                                                    
highlighted  a  sentence  in the  document  specifying  that                                                                    
earnings on  the fund  were restricted.  She asked  if there                                                                    
were any issues  with moving the money  because it contained                                                                    
federal funds. She  asked if the interest was  allowed to be                                                                    
used for the purpose identified in the bill.                                                                                    
                                                                                                                                
Representative Saddler answered that  because the origins of                                                                    
the fund were  kind of "lost in the mists  of time" he could                                                                    
not give a clear answer  or cite a federal chapter; however,                                                                    
he believed  the fact that  the fund  had not been  swept in                                                                    
its lifetime of 20 or  more years was tertiary evidence that                                                                    
the fund was  not sweepable. He stated that  the best answer                                                                    
he could provide was that  the funds were restricted and not                                                                    
sweepable.                                                                                                                      
                                                                                                                                
Representative  Coulombe asked  if there  was an  issue with                                                                    
doing what the sponsor wanted due to the federal funds.                                                                         
                                                                                                                                
Representative  Saddler deferred  the  question  to the  Mr.                                                                    
Mayes with department.                                                                                                          
                                                                                                                                
Co-Chair Foster noted that the individual was not online.                                                                       
                                                                                                                                
Representative Saddler deferred the question to his staff.                                                                      
                                                                                                                                
MELODIE WILTERDINK,  STAFF, REPRESENTATIVE DAN  SADDLER (via                                                                    
teleconference),  replied  that  DVR   reached  out  to  the                                                                    
appropriate  federal department  and  had received  approval                                                                    
for the funds to be moved  to the nonprofit ATLA in order to                                                                    
achieve the original purpose of the funds.                                                                                      
                                                                                                                                
1:46:20 PM                                                                                                                    
                                                                                                                                
DAVID KIRSTIEN, ADMINISTRATIVE  OPERATIONS MANAGER, DIVISION                                                                    
OF  VOCATIONAL  REHABILITATION,   DEPARTMENT  OF  LABOR  AND                                                                    
WORKFORCE   DEVELOPMENT,   confirmed    that   the   federal                                                                    
government   had  given   authorization   to  transfer   the                                                                    
Assistive Technology Grant Fund balance to ATLA.                                                                                
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal note.                                                                          
                                                                                                                                
Mr. Kirstien reviewed the DLWD  fiscal note. He relayed that                                                                    
the fund was established in  1997 with federal receipts from                                                                    
the  assistive   technology  federal  grants.   The  program                                                                    
allowed  for loans  from a  commercial  bank to  be made  to                                                                    
qualified  individuals for  assistive technology  equipment.                                                                    
The fund had not been utilized  since 2014 and was no longer                                                                    
used  by  the department.  The  bill  would make  the  funds                                                                    
available to the non-state entity  ATLA to provide assistive                                                                    
technology  equipment  to  Alaskans  with  disabilities.  He                                                                    
added  that the  fiscal  note  was zero.  The  bill did  not                                                                    
modify the loan fund and it did not impact any regulations.                                                                     
                                                                                                                                
Representative Galvin asked if any  past loans made from the                                                                    
fund had  already been  cleared. She  wondered if  there was                                                                    
any money  owed that may  come in  and what would  happen to                                                                    
it.                                                                                                                             
                                                                                                                                
Mr.  Kirstien answered  that there  were no  remaining loans                                                                    
outstanding. The  last loan  was in 2014  and had  been paid                                                                    
off in 2018 or 2019.                                                                                                            
                                                                                                                                
Representative  Galvin wanted  to ensure  there would  be no                                                                    
further payments  on any  loans coming  in because  they had                                                                    
all been cleared.                                                                                                               
                                                                                                                                
Mr.  Kirstien replied  affirmatively.  He  relayed that  the                                                                    
fund  had   been  used  to   guarantee  loans   through  the                                                                    
commercial  bank; therefore,  there had  not been  any funds                                                                    
going in for the loan.                                                                                                          
                                                                                                                                
Co-Chair Foster  noted that no amendments  had been received                                                                    
on the bill.                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon MOVED  to REPORT  HB 219  out of  committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 219  was REPORTED  out of committee  with nine  "do pass"                                                                    
recommendations and  one "no  recommendation" recommendation                                                                    
and with one previously published zero note: FN1 (LWF).                                                                         
                                                                                                                                
Representative Saddler thanked the committee.