Legislature(2023 - 2024)ADAMS 519

04/26/2024 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 6:00 pm --
-- Delayed to 3:00 PM --
+ HB 260 CATASTROPHIC ILLNESS/MEDICAL ASSISTANCE TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 368 ELECTRICAL ENERGY & ENERGY PORTFOLIO STDS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 174 STATE FUND FIDUC DUTY:SOCIAL/POL INTEREST TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 169 FISHERIES REHABILITATION PERMIT/PROJECT TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 232 DISABLED VETERANS: RETIREMENT BENEFITS TELECONFERENCED
Heard & Held
HOUSE BILL NO. 232                                                                                                            
                                                                                                                                
     "An Act  relating to  retirement benefits  and military                                                                    
     service."                                                                                                                  
                                                                                                                                
4:32:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GEORGE RAUSCHER, SPONSOR, read the sponsor                                                                       
statement (copy on file):                                                                                                       
                                                                                                                                
     House  Bill 232  allows  Veterans who  are totally  and                                                                    
     permanently  disabled  to  access  their  accrued  PERS                                                                    
     retirement  benefits  without   penalty.  HB  232  also                                                                    
     allows military  service, which  has been  purchased in                                                                    
     accordance  with the  PERS standards  to count  towards                                                                    
     the   credited   service    requirements   for   normal                                                                    
     retirement.                                                                                                                
                                                                                                                                
     Veterans  who  are  totally  and  permanently  disabled                                                                    
     struggle  to work  and keep  gainful employment  due to                                                                    
     their  service-connected  disabilities. As  such,  this                                                                    
     class   of  veterans   often   struggles  with   income                                                                    
     stability.  If  HB 232  becomes  law,  it will  provide                                                                    
     disabled veterans with access  to their PERS retirement                                                                    
     benefits at a time when they need it most.                                                                                 
                                                                                                                                
     HB 232 does not  provide any additional benefits beyond                                                                    
     those  rightfully  earned  by  veterans  through  their                                                                    
     dedicated public service.                                                                                                  
                                                                                                                                
     By passing  HB 232,  the Legislature will  help provide                                                                    
     stability to  our disabled veterans  when they  need it                                                                    
     most.                                                                                                                      
                                                                                                                                
Representative Rauscher asked his staff to review the                                                                           
sectional analysis.                                                                                                             
                                                                                                                                
4:34:31 PM                                                                                                                    
                                                                                                                                
RYAN MCKEE, STAFF, REPRESENTATIVE GEORGE RAUSCHER, went                                                                         
through the sectional analysis (copy on file):                                                                                  
                                                                                                                                
     Section 1: AS 39.35.370(a)                                                                                                 
     This section  amends AS 39.35.370(a) to  add additional                                                                    
     language  related to  eligibility  requirements when  a                                                                    
     terminated   employee   is   eligible  for   a   normal                                                                    
     retirement    benefit.    Specifically    adding    new                                                                    
     subsections, A and B to section 1, lines 7 through 10.                                                                     
                                                                                                                                
     Section 2:                                                                                                                 
     Repeals three statutes.                                                                                                    
                                                                                                                                
Mr. McKee believed there was an individual online to                                                                            
provide invited testimony.                                                                                                      
                                                                                                                                
MARK WHISENHUNT, SELF, PALMER (via teleconference), spoke                                                                       
in support of the legislation and provided prepared                                                                             
remarks:                                                                                                                        
                                                                                                                                
     I am advocating  for disabled veterans. I  hope you all                                                                    
     support  HB 232  for  the  following reasons.  Disabled                                                                    
     veterans often face  challenges like limited employment                                                                    
     opportunities,   difficulties   in  accessing   quality                                                                    
     healthcare, and  higher rates  of mental  health issues                                                                    
     such as  PTSD. The transition  to civilian life  can be                                                                    
     particularly  challenging.  Some service  members  find                                                                    
     themselves  contributing to  their communities  through                                                                    
     state and local government roles.                                                                                          
                                                                                                                                
     As  they  make  the  transition  from  active  duty  to                                                                    
     civilian life, veterans often  downplay the physical or                                                                    
     emotional  impact   of  their  service;   however,  its                                                                    
     important  to recognize  that for  some, these  impacts                                                                    
     simply cannot  be ignored. There's a  class of veterans                                                                    
     who are totally and  permanently disabled and they face                                                                    
     even greater struggles for  work and gainful employment                                                                    
     due to  their service connected disabilities.  As such,                                                                    
     this  class  of  veteran often  struggles  with  income                                                                    
     stability.                                                                                                                 
                                                                                                                                
     I  am one  of  those veterans  who  is now  permanently                                                                    
     disabled.  I served  my country  for five  years and  I                                                                    
     would do it  again without hesitation. I  did not fully                                                                    
     realize  the  impact  of service  connected  conditions                                                                    
     when I first finished my  active duty time. Through the                                                                    
     years,  not only  have I  personally experienced  these                                                                    
     challenges, but I  have watched many of  those I served                                                                    
     with face  similar obstacles. I recently  realized that                                                                    
     something could be  done to help and that  you all have                                                                    
     the power and ability to make a difference.                                                                                
                                                                                                                                
     HB 232  could serve  a crucial  role in  addressing the                                                                    
     unique needs  of disabled veterans  in state  and local                                                                    
     government  service. Your  support  and advocating  for                                                                    
     and  ensuring the  implementation  of this  legislation                                                                    
     emphasizes  our unwavering  support to  those who  have                                                                    
     devoted  their lives  to serving  our  country and  our                                                                    
     community with  pride and distinction. HB  232 provides                                                                    
     a means  for totally and permanently  disabled veterans                                                                    
     to access  the retirement benefits they  earned through                                                                    
     their state and local service  at a time when they need                                                                    
     it most. It offers vital  support and truly serves as a                                                                    
     lifeline  for disabled  veterans as  they navigate  the                                                                    
     financial,    physical,   and    emotional   challenges                                                                    
     associated with their service-connected disability.                                                                        
                                                                                                                                
     Inaction on this  matter would not only  run counter to                                                                    
     our  shared values,  but it  would be  a disservice  to                                                                    
     those  who  have given  so  much  for our  nation,  our                                                                    
     state,  and our  local communities.  I'd like  to share                                                                    
     some statistics  in response to  the fiscal  note. Less                                                                    
     than  4  percent  of  all  veterans  have  been  deemed                                                                    
     totally and  permanently disabled by the  Department of                                                                    
     Veterans Affairs (VA). The VA  authored a study in 2019                                                                    
     on the mortality rate  of 100 percent service-connected                                                                    
     disabled veterans.  The study revealed the  small group                                                                    
     of U.S.  veterans have a significantly  diminished life                                                                    
     expectancy when compared to  the civilian population of                                                                    
     the  United States.  Women veterans  have a  22 percent                                                                    
     reduced  life expectancy  and men  have  an 11  percent                                                                    
     reduced  life expectancy.  It means  that our  disabled                                                                    
     veterans  are dying  on average,  15 years  sooner than                                                                    
     their civilian counterparts.                                                                                               
                                                                                                                                
     So  how many  disabled veterans  currently have  a PERS                                                                    
     account? The Retirement Division  does not collect that                                                                    
     data, but  in the makeup  of our  state, we can  get an                                                                    
     estimation.  The estimation  is derived  by looking  at                                                                    
     the number of applicable  members and program, which is                                                                    
     currently 13,338.  You multiply that by  the percent of                                                                    
     residents who  are veterans, which is  approximately 10                                                                    
     percent. Finally, you multiply  the percent of veterans                                                                    
     who  are permanently  and  totally  disabled, which  is                                                                    
     about  3.6 percent.  After doing  so, one  can estimate                                                                    
     the total  number of  totally and  permanently disabled                                                                    
     veterans  with a  PERS account  to be  approximately 48                                                                    
     people.                                                                                                                    
                                                                                                                                
     It's my belief that  allowing approximately 48 disabled                                                                    
     veterans   who  have   a  significantly   reduced  life                                                                    
     expectancy  to  access  their  hard  earned  retirement                                                                    
     funds, will  in no way  cause an undue hardship  on the                                                                    
     PERS system.  In conclusion, I  humbly ask each  of you                                                                    
     to stand united and vote  in favor of HB 232. Remember,                                                                    
     it's  less than  4 percent  of all  veterans that  have                                                                    
     that designation  of totally and  permanently disabled.                                                                    
     Yet  this  modest  change will  be  very  impactful  in                                                                    
     supporting their wellbeing.                                                                                                
                                                                                                                                
Mr. Whisenhunt  was available for questions  and thanked the                                                                    
committee for its service.                                                                                                      
                                                                                                                                
4:40:35 PM                                                                                                                    
                                                                                                                                
Representative Hannan  thanked Mr. Whisenhunt for  doing the                                                                    
math. Her  primary concern  was about  the number  of people                                                                    
the bill impacted because the  definitions were very narrow.                                                                    
She looked at  the fiscal note and  stated her understanding                                                                    
that the bill allowed a  veteran to use the military service                                                                    
time if they were fully disabled  due to combat time to draw                                                                    
their  Public Employees'  Retirement System  (PERS) benefit.                                                                    
She  observed that  the fiscal  note  seemed to  say that  a                                                                    
health benefit  was not included.  She asked  if individuals                                                                    
with  a service  related  full disability  would already  be                                                                    
eligible for full medical coverage through the VA.                                                                              
                                                                                                                                
Mr. Whisenhunt responded affirmatively.                                                                                         
                                                                                                                                
Co-Chair  Foster asked  for closing  remarks  from the  bill                                                                    
sponsor.                                                                                                                        
                                                                                                                                
Representative  Rauscher thanked  the committee  for hearing                                                                    
the legislation.  He stated  that it  was tough  for service                                                                    
men and  women who  defend Americans'  lives to  get through                                                                    
some of  the things  people took for  granted such  as jobs,                                                                    
income,  and providing  for their  families. He  appreciated                                                                    
the committee's consideration of the bill.                                                                                      
                                                                                                                                
Co-Chair  Foster  set  an amendment  deadline  for  Tuesday,                                                                    
April 30 at 5:00 p.m.                                                                                                           
                                                                                                                                
HB  232  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB260 Additional Documents-January 2024 Dept of Health 01.31.2024.pdf HFIN 4/26/2024 1:30:00 PM
HB 260
HB260 Sectional Analysis 02.01.2024.pdf HFIN 4/26/2024 1:30:00 PM
HB 260
HB260 FY25 Gov Operating Budget for DOH 02.01.2024.pdf HFIN 4/26/2024 1:30:00 PM
HB 260
HB260 Sponsor Statement 02.01.2024.pdf HFIN 4/26/2024 1:30:00 PM
HB 260
HB 368 Legal Memo 042424.pdf HFIN 4/26/2024 1:30:00 PM
HB 368