Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/19/2020 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) | |
| SB215 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 215 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 215-AK ED SAVINGS PROGRAMS/ELIGIBILITY
2:12:48 PM
CHAIR BISHOP reconvened the meeting and announced the
consideration of SENATE BILL NO. 215, "An Act relating to the
Alaska savings program for eligible individuals; relating to
education savings programs; relating to the Education Trust of
Alaska; relating to the Alaska advance college tuition savings
fund; relating to the Alaska education savings program for
children; and relating to the Governor's Council on Disabilities
and Special Education."
He noted that this was the first hearing for the bill.
2:12:59 PM
At ease
2:13:10 PM
CHAIR BISHOP reconvened the meeting.
2:13:52 PM
EMMY JACKSON, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, introduced herself.
CLARE BALDWIN, Intern, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, introduced SB 215 on behalf of the
sponsor with a PowerPoint: SB 215: ABLE Update Bill.
2:14:11 PM
MS. BALDWIN turned to slide 2, What is an ABLE Account. She
explained that the acronym stands for achieving a better life
experience. ABLE Accounts provide tax-free savings account for
individuals with qualifying physical and mental disabilities and
blindness. Up to $2,000 can be put into an ABLE Account and be
used to pay for housing, education, and transportation. These
funds do not count against eligibility for Medicaid, FAFSA,
Social Security Income, or needs-based income.
2:15:20 PM
MS. BALDWIN explained that the ABLE Act was passed in 2013 and
in July 2016 the Alaska ABLE Act was signed into law largely due
to the efforts of Senator Giessel and Representative Saddler.
The University of Alaska Fairbanks (UAF) helped the sponsors
better understand 529 accounts and the Department of Revenue
provided information on how to set up these accounts. The Alaska
Mental Health Trust Authority provided funding for FY 2017 and
FY 2018. The bill provided start-up funding for outreach to help
inform individuals about the 529 accounts. In 2013, the National
ABLE Alliance helped the program become self-sustaining through
account owner fees and gave account owners in 17 states access
to the alliance's staff and lawyers for help with financial
planning, college savings programs, and health and social
services.
MS. BALDWIN said that in Alaska, the ABLE programming, research,
and outreach is conducted by the Governor's Council on
Disabilities and Special Education.
2:17:23 PM
MS. BALDWIN reviewed the updates to the ABLE Act outlined on
slides 6-7. She advised that the 2017 ABLE to Work Act increased
the annual contribution levels to encourage disabled individuals
to find employment. Contribution levels currently are limited to
$15,000 annually, and this bill expands that amount to $27,060
per year.
MS. BALDWIN said the next update was the 2017 ABLE Financial
Planning Act that allowed individuals who incurred disabilities
after they established 529 college savings plan to roll those
savings into an ABLE account. She relayed that the ABLE Age
Adjustment Act is pending legislation that would increase the
threshold age of eligibility from 26 to 46 to allow more
participation in ABLE accounts.
2:18:53 PM
MS. BALDWIN turned to slide 10 that highlights the updates
proposed in SB 215. It reassigns department responsibility from
the Department of Revenue to the Department of Health and
Social Services. It also expands the age eligibility limits to
match the federal guidelines. the bill also contains matching
federal language so Alaska law will change automatically with
federal changes.
2:19:36 PM
SENATOR STEVENS asked if age 46 is for eligibility but
individuals can keep accounts after that.
MS. BALDWIN answered yes.
2:20:03 PM
MS. JACKSON provided a sectional analysis for SB 215:
Section 1 Establishes AS 06.65.020(b). Requires the
Department of Health and Social Services to consult
with the Governor's Council on Disabilities and
Special Education when overseeing the Alaska Savings
Program.
Section 2 Expands the age of eligibility from 26 to
match proposed federal law age of 46.
Section 7 Removes the distinction of higher education
when referring to an education savings account.
Section 8 Removes the distinction of postsecondary
education when referring to an education savings
account. Renames the "Alaska Higher Education Savings
Trust" to the "Education Trust of Alaska".
Section 10 Establishes AS 14.40.802(f)(3). Expands
options for an account participants to change their
beneficiary to any individual.
Allows account participants to transfer funds between
accounts if the amount transferred does not exceed
federal limits and the contribution is for a new
beneficiary who is a family member who is eligible for
their own account.
Section 12 Allows a program participant to designate a
successor participant to their account and allows
changes to take effect immediately.
2:23:01 PM
At ease
2:23:20 PM
VICE CHAIR STEVENS said he was chairing remainder of the meeting
to allow Chair Bishop to attend another meeting.
He asked if the ABLE program has been successful and the number
of accounts in Alaska.
MS. BALDWIN answered that that currently, there are 365 account
owners. The program is very successful with additions each year.
VICE CHAIR STEVENS moved to invited testimony.
2:24:39 PM
STUART SPIELMAN, Senior Vice President, Autism Speaks Inc.,
Washington, DC, spoke in support of SB 215. He said Autism
Speaks is the largest autism science and advocacy group in the
country and it has been a longstanding proponent of ABLE
accounts. These accounts were established in 2016 and in 2019
the number of accounts had grown to 56,332 with total assets
under management of $354.8 million. These very important
accounts establish equity for people with disabilities that
didn't previously exist.
He relayed that he is the parent of a child with autism and
before ABLE accounts were established, he discouraged people
from making financial contributions to his son out of concern
that it could jeopardize other needed benefits. Because of ABLE
accounts, individuals with disabilities are allowed save for the
future without fear of losing essential benefits like Medicaid.
Autism Speaks and the disability community in general embraces
this program.
VICE CHAIR STEVENS asked him to talk about limits on the way the
funds can be used and whether the account can go to a successor.
MR. SPIELMAN replied there are provisions in law related to
rollovers. The money can be used in broad ways such as to
purchase a speech enhancement device for an autistic person or
it could be used to provide support, such as a job coach. These
accounts are available to people with autism and other
disabilities.
VICE CHAIR STEVENS asked what happens to the funds when the
account holder passes away.
MR. SPIELMAN answered that the statute allows rollovers to other
individuals with disabilities and there is a possibility that
the funds could go into the deceased's estate. It depends on the
money that is available at the time of passing.
VICE CHAIR STEVENS said he was pleased that the funds could go
to another person with a disability.
MR. SPIELMAN agreed that could happen.
2:29:41 PM
SANA ELFIRD, Assistant Commissioner, Department of Health and
Social Services (DHSS), Juneau, Alaska, said she was available
to answer questions related to the provision that transfers the
ABLE program to the Department of Health and Social Services
since the Governor's Council on Disabilities and Special
Education already falls under the DHSS.
VICE CHAIR STEVENS asked if the ABLE program previously was
under the Department of Education and Early Development (DEED).
MS. ELFIRD answered no; it has always been under the Department
of Revenue (DOR) because DOR took the lead to perform the
analysis and establish the financial side of how the accounts
would be managed.
VICE CHAIR STEVENS asked if DHSS was ready to accept or assume
the responsibility.
MS. ELFIRD answered yes.
2:32:14 PM
KRISTIN VANDAGRIFF, Executive Director, Governor's Council on
Disabilities and Special Education, Anchorage, Alaska, stated
that the council commends the sponsor for introducing SB 215 to
align the state's statutes that govern ABLE account programs
with the federal program authorizing the funds. These accounts
provide a valuable tool for Alaskans with disabilities because
ABLE accounts allow a higher cost of living and greater self-
sufficiency and savings for qualifying disability expenses
without jeopardizing vital public benefits such as Social
Security and Medicaid. Many of the amendments in SB 215 will
improve the flexibility of the savings plans including allowing
rolling the 529 college savings accounts into an ABLE account.
The council is ready and willing to provide the lead department
with disability-related consultation and support for the ABLE
account program objective through advocacy and advice, outreach
and training, promotion and marketing, and reports to the
legislature on data and stakeholder input. It is the Governor's
Council on Disabilities and Special Education's understanding
that the DHSS's finance and management services division will
oversee all the financial management and investment aspects of
administering the Alaska ABLE program. The council's executive
committee submitted a letter to the sponsor, in members'
packets, that provides additional details.
VICE CHAIR STEVENS asked if she supports the transfer from the
DOR to the DHSS.
MS. VANDAGRIFF replied the council views this as a positive.
2:35:43 PM
PAMELA LEARY, Director, Treasury Division, Alaska Department of
Revenue (DOR), Juneau, Alaska, stated that she has participated
in the National Alliance of States, now 17 strong, in developing
and procuring a vendor for the ABLE program. It has rapidly
grown to 414 funded accounts in Alaska with $2.4 million in
those accounts as of March 14, 2020. She spoke in support of
transferring the ABLE program from the Department of Revenue to
the Department of Health and Social Services (DHSS). She said
that she has enjoyed being part of the national alliance but the
program will be better served in the DHSS since it has direct
contact with the Governor's Council on Disabilities and Special
Education and the constituents who will receive the direct
benefits of the ABLE program.
2:37:08 PM
TAMMI WEAVER, Chief Treasury Officer, University of Alaska
Fairbanks, Fairbanks, Alaska, stated that the university serves
as the trustee for the Education Trust of Alaska, which
administers Alaska's programs. The bill will allow rollovers of
the current accounts to ABLE accounts.
2:38:00 PM
VICE CHAIR STEVENS determined no one wished to comment and
closed public testimony on SB 215.
2:38:30 PM
VICE CHAIR STEVENS held SB 215 in committee.