HB 242-EXTEND SENIOR BENEFITS PAYMENT PROGRAM  3:05:03 PM CHAIR PRAX announced that the first order of business would be HOUSE BILL NO. 242, "An Act extending the Alaska senior benefits payment program; and providing for an effective date." 3:05:25 PM REPRESENTATIVE VANCE, Alaska State Legislature, as prime sponsor, presented HB 242. She explained that HB 242 would extend the sunset date on the Senior Benefits Payment Program by 10 years until June 2034. Alaska has a long-standing commitment to its senior population, and this bill is especially crucial as the cost of living rises. The support of seniors dates back to 1915. In 1950 Alaska paid bonuses of 12 dollars a year for those who had lived in the state for a decade, acknowledging the pioneers who had contributed to the building of the state. With the oil boom in the 1970s, the longevity bonus program was introduced. In 2003 the program changed to a needs-based program with additional changes in 2004 and in 2007. The income-based eligibility is tied to the federal poverty guidelines, and the program addresses the rising costs to seniors on fixed incomes. This program reaffirms the state's dedication to assisting those who have contributed to Alaska's rich history. 3:08:40 PM REPRESENTATIVE FIELDS asked whether payment amounts would be adjusted with inflation if the date is extended by 10 years. REPRESENTATIVE VANCE explained that adjusting for inflation is already part of the program. 3:09:19 PM REPRESENTATIVE SADDLER inquired about the net result for the state of Alaska. REPRESENTATIVE VANCE explained that as a fiscal conservative, she believes every dollar counts. However, with the rising cost of food and medical services, this specifically would go to low- income elders who need an extra hand. She referred the committee to the packet which shows the level of payment depending on income which provides extra assistance for the purchase of food or medicine. She explained that in her district a third of her constituents are seniors, a majority of whom rely on social security. Legislators consistently agree on this program. 3:11:20 PM REPRESENTATIVE SADDLER commented that this program is one of several and that most of the recipients are likely to qualify for Medicaid and additional low-income benefits. This is not the only support for Alaska seniors. 3:11:40 PM REPRESENTATIVE MINA asked whether there are other states that have state-funded senior benefit programs similar to Alaska's. ROBERT BALLINGER, Staff, Representative Sarah Vance, Alaska State Legislature, on behalf of Representative Vance, prime sponsor of HB 242, explained that there are no other states with a program exactly like Alaska's although three other states have similar programs. 3:12:14 PM REPRESENTATIVE VANCE, in response to questions from the committee, explained that 10 years was chosen as a surety to the seniors that the program would not go away. The Senate bill has an eight-year extension, she noted. 3:13:39 PM CHAIR PRAX announced that HB 242 was held over.