Legislature(2015 - 2016)BARNES 124
03/18/2016 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB188 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 313 | TELECONFERENCED | |
| += | HB 188 | TELECONFERENCED | |
| += | HB 214 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 18, 2016
3:19 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Mike Chenault (alternate)
MEMBERS ABSENT
Representative Jim Colver
Representative Sam Kito
COMMITTEE CALENDAR
HOUSE BILL NO. 188
"An Act relating to financial accounts for persons with
disabilities; relating to financial institutions; relating to
property exemptions; relating to securities; and providing for
an effective date."
- MOVED CSHB 188(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 313
"An Act relating to the public construction contracts, including
the application of prevailing wage rates."
- SCHEDULED BUT NOT HEARD
HOUSE BILL NO. 214
"An Act repealing the Workers' Compensation Appeals Commission;
relating to decisions and orders of the Alaska Workers'
Compensation Board; relating to superior court jurisdiction over
appeals from Alaska Workers' Compensation Board decisions and
orders; repealing Rules 201.1, 401.1, and 501.1, Alaska Rules of
Appellate Procedure, and amending Rules 202(a), 204(a) - (c),
210(e), 508(g), 601(b), 602, and 603, Alaska Rules of Appellate
Procedure; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 188
SHORT TITLE: PERSON W/DISABILITY SAVINGS ACCOUNTS
SPONSOR(s): REPRESENTATIVE(s) SADDLER
04/11/15 (H) READ THE FIRST TIME - REFERRALS
04/11/15 (H) L&C, FIN
03/09/16 (H) L&C AT 3:15 PM BARNES 124
03/09/16 (H) Heard & Held
03/09/16 (H) MINUTE(L&C)
03/16/16 (H) L&C AT 3:15 PM BARNES 124
03/16/16 (H) Heard & Held
03/16/16 (H) MINUTE(L&C)
03/18/16 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor, answered questions
during the hearing on HB 188.
JEFF JESSEE, Chief Executive Officer
Alaska Mental Health Trust Authority
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 188.
STUART SPIELMAN, Senior Policy Advisor and Counsel
Autism Speaks
Washington, District of Columbia
POSITION STATEMENT: Answered questions during the hearing on HB
188.
KIM SKIPPER, Staff
Representative Dan Saddler
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Saddler,
sponsor, answered questions during the hearing on HB 188.
ACTION NARRATIVE
3:19:42 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives Olson,
LeDoux, Tilton, Hughes, Josephson, and Chenault were present at
the call to order.
HB 188-PERSON W/DISABILITY SAVINGS ACCOUNTS
3:19:59 PM
CHAIR OLSON announced that the only order of business would be
HOUSE BILL NO. 188, "An Act relating to financial accounts for
persons with disabilities; relating to financial institutions;
relating to property exemptions; relating to securities; and
providing for an effective date." Without objection, the
committee substitute for HB 188, labeled 29-LS0787\E, Bannister,
3/9/16, was adopted at the meeting on 3/16/16. Version E was
before the committee.
3:20:34 PM
REPRESENTATIVE DAN SADDLER, Alaska State Legislature, speaking
as the sponsor of HB 188, reported that the fiscal note attached
to Version E, Identifier: HB188-DOR-TRS-3-16-16, indicates
costs of $60,000 in fiscal year 2018 (FY 18), and $40,000 in FY
19; however, the Alaska Mental Health Trust Authority has agreed
to provide funds to defray those costs, thus the cost to the
state would be zero.
3:22:05 PM
JEFF JESSEE, Chief Executive Officer, Alaska Mental Health Trust
Authority (Trust), Department of Revenue, informed the committee
that the bill offers the Trust's beneficiaries an opportunity to
become more self-sufficient and less dependent on government
programs. From the perspective of the Trust, this is a great
one-time investment over two fiscal years, and he said the
trustees are pleased to fund the setup costs.
CHAIR OLSON added that the testimony heard by the committee in
support of the bill was extremely helpful.
REPRESENTATIVE LEDOUX directed attention to proposed Section
06.65.260 which read:
Sec. 06.65.260. Exemption from creditor claims. The
money in a program account and money paid out of a
program account are exempt from a claim by the
creditors of the designated beneficiary of the program
account during the life of the designated beneficiary.
REPRESENTATIVE LEDOUX observed that $400,000 is a lot of money
to be exempt from claims.
3:24:03 PM
STUART SPIELMAN, Senior Policy Advisor and Counsel, Autism
Speaks, directed attention to his written testimony dated
3/17/16, and provided in the committee packet, which addressed
the questions raised at the last hearing. He added that
contributions to the [Stephen Beck, Jr., Achieving a Better Life
Experience (ABLE) Act of 2014] accounts are limited to $14,000
per year, and therefore, very large account balances are not
possible for many years.
CHAIR OLSON asked for the average account balance of current
ABLE accounts.
MR. SPIELMAN said currently, no ABEL programs are in operation;
however, accounts in 529 college savings and prepaid tuition
plans are similar, and the average 529 account balance is
$20,000. The population of those who qualify for ABLE accounts
are individuals with severe disabilities who have many expenses,
and he opined that their accounts will be rather small.
REPRESENTATIVE LEDOUX pointed out that even if accounts are
small initially, potentially $400,000 will be subject to
exemption from claims.
REPRESENTATIVE SADDLER restated that just because the maximum
contribution is $400,000, the balance is not likely to be
$400,000; in fact, poverty rates for individuals with
disabilities are high, and it would take 28 years of $14,000
contributions to add up to the maximum, assuming there were no
withdrawals.
REPRESENTATIVE LEDOUX suggested that the aforementioned section
could exempt claims up to a certain amount, which would not
affect the maximum amount of money in the account, but would put
a cap on the exemption.
REPRESENTATIVE SADDLER surmised that this provision is based on
the Alaska college savings plan.
3:29:26 PM
KIM SKIPPER, Staff to Representative Saddler, Alaska State
Legislature, agreed that the bill is based on the Alaska college
savings plan, and added that most other states enacting ABEL
account legislation are using the same language. She said it is
anticipated that the balances of the proposed accounts would go
up and down, without a great deal of growth.
REPRESENTATIVE LEDOUX noted that she would have a similar
concern of the Alaska college savings plan.
REPRESENTATIVE JOSEPHSON gave an example of a person who could
buy a car with a down payment, finance the remainder, and then
walk away from the balance of the loan, fully protected from
repossession of the vehicle. He cautioned that this situation
may create a disincentive to approve a loan to holders of this
type of account.
MR. SPIELMAN said he is not familiar with the mechanisms
potential creditors might use to protect their interests. He
restated that in his review of federal and state sources, 529
and ABEL assets are often protected. The proposed legislation
follows a federal template for this and related legislation. He
returned attention to further information provided in his
written testimony.
REPRESENTATIVE SADDLER offered to work with legislators to
address their concerns in the next committee of referral, the
House Finance Committee.
3:34:26 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 188, Version 29-LS0787\E, Bannister, 3/9/16, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no opposition, CSHB 188(L&C) was
reported out of the House Labor and Commerce Standing Committee.
3:34:56 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:34 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB188 Supporting Documents-Letter Stuart Spielman-03-17-16.pdf |
HL&C 3/18/2016 3:15:00 PM |
HB 188 |
| HB214 Fiscal Note-ACS-TRC-03-17-16.pdf |
HL&C 3/18/2016 3:15:00 PM |
HB 214 |
| HB214 Draft Proposed Blank CS ver N.pdf |
HL&C 3/18/2016 3:15:00 PM |
HB 214 |
| HB214 Sectional Analysis Draft Proposed Blank CS ver N.pdf |
HL&C 3/18/2016 3:15:00 PM |
HB 214 |
| HB214 Summary of Changes ver E to ver N.pdf |
HL&C 3/18/2016 3:15:00 PM |
HB 214 |
| HB313 Opposing Documents-Assorted Written Testimony-03-15-16.PDF |
HL&C 3/18/2016 3:15:00 PM |
HB 313 |
| HB188 Fiscal Note-DOR-TRS-03-16-16.pdf |
HL&C 3/18/2016 3:15:00 PM |
HB 188 |