Legislature(2015 - 2016)BELTZ 105 (TSBldg)
02/04/2016 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB69 | |
| HB12 | |
| SB125 | |
| SB148 | |
| SB142 | |
| SB104 | |
| SB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 104 | TELECONFERENCED | |
| *+ | SB 141 | TELECONFERENCED | |
| *+ | SB 142 | TELECONFERENCED | |
| *+ | SB 158 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 69 | TELECONFERENCED | |
| += | HB 12 | TELECONFERENCED | |
| += | SB 125 | TELECONFERENCED | |
| += | SB 148 | TELECONFERENCED | |
SB 104-PERSON W/DISABILITY SAVINGS ACCOUNTS
2:27:20 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 104.
JANE CONWAY, Staff, Senator Cathy Giessel, Alaska State
Legislature, sponsor of SB 104, introduced herself.
EMMIE VAN WYHE, Intern, Senator Cathy Giessel, Alaska State
Legislature, sponsor of SB 104, introduced herself.
SENATOR CATHY GIESSEL, Alaska State Legislature, sponsor of SB
104, stated that this bill is often referred to as the ABLE Act,
which is an acronym for achieving a better life experience. It
provides an opportunity for individuals with disabilities and
their families to create non-taxed savings accounts to help pay
for qualified disability-related expenses.
MS. CONWAY explained that this is a multi-section bill that
outlines the details of establishing and administering the ABLE
Act. While the federal regulations are not complete, it has
created a lot of excitement and 35 state are in some stage of
passing similar legislation. She described the process as
dynamic and related that the sponsor is working on another,
improved rendition of the bill. She asked the chair how she
would like to proceed.
CHAIR COSTELLO asked Sara Race and Kevin Anselm to provide brief
comments on behalf of the administration and highlight any
concerns that could be incorporated into the CS.
SARA RACE, Director, Permanent Fund Division, Department of
Revenue (DOR), said the division sees the ABLE Act as similar to
the University of Alaska College Savings Program, but the
criteria would be different. The selection process for
eligibility for the program would be made on specific
application types.
KEVIN ANSELM, Director, Division of Banking and Securities,
Department of Commerce, Community and Economic Development
(DCCED), stated support for SB 104. The ABLE Program is
important and appears to be set up much like a 529 plan. He
highlighted the issue with the program being administered by
Banking and Securities is that they regulate the banks and the
mutual funds that might be involved in the fund. To avoid a
conflict, the division would have to "wall out" some staff to
deal just with that area. That is reflected in the fiscal note
so everyone is working together to try to find a better place
for the administration of the program.
2:33:52 PM
At ease
CHAIR COSTELLO reconvened the meeting and invited Maggie Winston
to testify.
2:34:24 PM
MAGGIE WINSTON, Alaska Governor's Council for Disability and
Special Education, said she represents people that the ABLE Act
would help. People like her who are on [SSI] benefits can save
less than $2,000 which keeps them on the poverty cycle. This
savings account would allow her to save significantly more than
that to purchase things specifically related to her disability.
This would help to stop the poverty cycle, she said.
CHAIR COSTELLO asked if the savings could only be used only for
certain types of things.
MS. WINSTON answered yes; related to disability.
2:36:40 PM
STEPHAN PATTERSON, representing himself, Palmer, Alaska,
testified in support of SB 104. He related that his nine-year-
old son is autistic and has dyspraxia and one day will be alone.
He said the ABLE savings account will allow him to set aside
funds for his son so he doesn't have to rely on public
assistance later in life.
2:38:35 PM
STUART SPIELMAN, Autism Speaks, Washington, D.C. testified in
strong support of SB 104. Autism Speaks has been working on this
for a decade at the federal level. The legislation was enacted
in 2014 and since then, states across the country have
authorized programs for the reason that the last witness
articulated. He related that he is the parent of a 21-year-old
with autism who wants his child to be self-sufficient and not
have to rely on the kindness of strangers. People in the
disability community believe that the ABLE program is a positive
step in that direction.
2:40:21 PM
AMY SIMPSON, Governor's Council on Disabilities and Special
Education (GCDSE), testified in support of SB 104. She said this
is a group of 24 individuals from across the state who serve the
interests of individuals with disabilities in many venues
statewide. They support the bill wholly.
PATRICK REINHART, Executive Director, Governor's Council on
Disabilities and Special Education, testified in strong support
of SB 104. He said this bill is an opportunity for people with
disabilities to get out of poverty. He described it as the next
step after the Employment First legislation that passed several
years ago. It's an opportunity for people to keep some
healthcare benefits through Medicaid and other programs. They
don't have a reason not to try employment if they can put money
away for expenses related to their disability. In the long run
they hopefully wouldn't be as dependent on government-funded
programs.
CHAIR COSTELLO thanked him for being a stable advocate for
years. The work is incredibly valuable to Alaskans.
SENATOR STEVENS said this is a great idea and the record should
reflect the amount that parents and grandparents can put into
the account and what happens to the money when the person passes
on.
2:45:13 PM
MR. REINHART answered that the annual contribution is $14,000
with a cap of $300,000. When the account totals $100,000 the
person would lose their SSI benefit. When a person passes with
money in their account, the state could recover expenses after
memorial and funeral expenses are paid. He offered to follow up
with more detail.
2:46:17 PM
SENATOR MEYER asked if the contributions are tax deductible.
MR. REINHART answered yes.
SENATOR MEYER described it as a good program that needs to be
implemented without major costs.
SENATOR COSTELLO said she understands that the committee
substitute will move the administration of the program from the
Department of Revenue. She asked Senator Giessel to comment.
SENATOR GIESSEL said it's searching for a home. The Department
of Commerce, Community and Economic Development doesn't feel
that's the appropriate place and neither does the Division of
Banking and Securities. She's currently talking with the
Department of Revenue.
2:48:33 PM
MALLORY HAMILTON, member, Governor's Council on Disabilities and
Special Education, Juneau, Alaska, said she is speaking as a
parent of a child who experiences Down's syndrome and autism,
but first wanted to respond to earlier questions. She said the
$14,000 annual limit is based on the allowable gift tax.
Interest earned is non-taxable the same as the college savings
plan. Upon the death of the individual, the account can be
transferred to a qualified family member. Otherwise, the
Medicaid payback provision applies.
She said her daughter is 19 and can never be without benefits.
If she were to qualify for a job it would be low paying, but if
she reached the $2,000 SSI threshold, she would lose her
benefits. If this bill were to pass, her paychecks and permanent
fund dividend could be deposited directly into the ABLE account,
but withdrawals could only be used for things that allow the
person to live as typical a lifestyle as possible. This would
include purchases for things like glasses, or a wheelchair
accessible van or relief caretakers. "As a parent, it's a
really, really important thing," she said.
SENATOR COSTELLO closed public testimony on SB 104, and held the
bill in committee awaiting a committee substitute.