SB 184-SETTLEMENT TRUSTS & BENEFITS ELIGIBILITY  2:15:37 PM CHAIR WILSON reconvened the meeting and announced the consideration of SENATE BILL NO. 184 "An Act relating to Alaska Native settlement trusts and eligibility for adult public assistance, senior benefits, and the Alaska Pioneers' Home." 2:16:02 PM SENATOR TOM BEGICH, Alaska State Legislature, Juneau, Alaska, speaking as sponsor, stated SB 184 is simple legislation based on a constituent's hardship. He read the following: It is often that we receive personal accounts from our residents and constituents, sharing their hardships or experiences. Often, we work to address these issues and in some cases, we introduce legislation to rectify and error or unintended consequence of the application of law. In this case, we received a request from our congressional delegation, specifically Congressional Aide Kellie Cordelia, to address an issue that may affect only a handful of folks but has a disproportioned effect on these individuals. SB 184 is a bill to address how benefits or distributions from a settlement trust like ANCSA affects an Alaska Native or their descendant's eligibility for other state and federal services. Part of the settlement includes distributions or benefits to 1971 enrolled tribal members, compensating them for their portion of historic land ownership and in recognition that financial resources may be needed to preserve indigenous cultures and ensure Alaska Natives and their descendants are able to contribute to live in indigenous communities. Distributions or benefits from ANCSA settlements are meant to compensate Alaska Natives and their descendants for indigenous land claims and are separate from other benefits an individual may receive due to disability or age. Unfortunately, the law as it currently is written does not guarantee an Alaska Native can and will receive their rightful distribution as well as other benefits available to all Alaskans due to qualifying circumstances. Senate Bill 184 seeks by statute to exclude certain payments to aged or disabled Alaska Natives or their descendants from being used to determine eligibility for adult public assistance, senior benefits, and the Alaska Pioneers' Home. A similar bill, S.2524, introduced on July 28, 2021, to exclude interest or distributions from a Settlement Trust for an Alaska Native or descendant of an Alaska Native who is aged, blind, or disabled from eligibility for certain programs (like Medicaid) is currently being considered in the United States Congress, introduced by Senator Murkowski and co-sponsored by Senator Sullivan. 2:21:19 PM LOKI TOBIN, Staff, Senator Tom Begich, Alaska State Legislature, Juneau, Alaska, read the sectional analysis for SB 184: Section 1. Amends AS 47.25.435, pertaining to Adult Public Assistance, to exclude any interest or distribution from a settlement trust made to an Alaska Native or their descendant who is aged, blind, or disabled as defined by 42 U.S.C. 1382c(a)(1). Section 2. Inserts a new subsection under AS 47.45.302, pertaining to Senior Benefits Payment Program, to exclude from calculations of household income any interest or distribution from a settlement trust made to an Alaska Native or their descendant who is aged, blind, or disabled as defined by 42 U.S.C. 1382c(a)(1). Section 3. Amends AS 47.55.020, pertaining to Alaska Pioneers' Home and Alaska Veterans' Home, by inserted a new subsection to exclude any interest or distribution from a settlement trust to an Alaska Native or their descendant who is aged, blind, or disabled as defined by 42 U.S.C. 1382c(a)(1). 2:23:29 PM SENATOR REINBOLD said she would like a sustainable long-term program without loopholes. She asked that definitions for aged and disabled be provided as they pertain to SB 184. MS. TOBIN stated that the code for a person aged, blind and disabled is approximately four pages long. It is a comprehensive definition within US code. She will send a copy to committee members. SENATOR REINBOLD stated that if the definition is more complicated than providing an age limit, it is important to read the code since it is central to SB 184. SENATOR BEGICH reiterated that the code is complex for the precise reason of not letting someone slip through an open door. The committee will receive the definitions given in the Federal code, which are relatively clear. 2:24:55 PM SENATOR REINBOLD stated she has been working with an Americans with Disabilities Act (ADA) lawyer and learned there are thousands of ways to be disabled. She opined that there would never be a sustainable program if a grand door were left open for everyone to slip through. She understands how being blind would qualify individuals for assistance. It is critical to define disabled and aged to keep Medicaid from becoming diluted and unsustainable. 2:25:39 PM SENATOR BEGICH said he would provide a copy of Senator Murkowski's bill S. 2524 to the committee along with Section 1614(a) of the Social Security Act since it is mentioned in S. 2524 on page 2, lines 9-11. 2:26:02 PM SENATOR COSTELLO referred to SB 184, Section 3, page 2, line 12, that addressed AS 47.55.020, Alaska Pioneer Homes. She asked whether any thought was given to the hold harmless provisions also being applied to non-Pioneer Homes. MS. TOBIN stated that in alignment with requests made by Senator Murkowski, state-funded programs were excluded, and the purview of the legislation was not extended. 2:26:54 PM SENATOR COSTELLO asked if SB 184 only applies to individuals in pioneer homes with all other home and living environments excluded. SENATOR BEGICH stated that a separate mention was made for Pioneer Homes because of a unique relationship shared with the state. Pioneer Homes have a tiered benefit system, so SB 184 would keep a resident from being knocked into a higher tier. SB 184 would keep any aged, blind, or disabled individual living in a home from being made Medicaid ineligible due to the historic payments they receive based on the Alaska Native Claims Settlement Act (ANCSA) of 1971. 2:29:30 PM CHAIR WILSON asked for an estimate on how many Alaskans SB 184 would affect. 2:29:43 PM SHAWNDA O'BRIAN, Director, Division of Public Assistance, Department of Health and Social Services (DHSS), Juneau, Alaska, replied that the Department of Health and Social Services (DHSS) does not have that data available. Eligibility is determined at the point of application or recertification, and the information needed to provide an estimate is not currently collected. A way to extract an estimate from the information available is being investigated. 2:30:24 PM SENATOR HUGHES stated her belief that the number of people SB 184 may affect could impact Medicaid because it includes people over the age of 65, not just the blind and disabled. She expressed concerned that Medicaid expansion could crowd out the elderly and truly vulnerable. She requested an estimate and suggested working with the Department of Labor and Statistics. 2:32:09 PM SENATOR BEGICH stated that Senator Murkowski's office and DHSS were asked to estimate the number of people the bill would assist. He opined that the number of qualified people would be few. SENATOR HUGHES stated that the bill has federal bi-partisan support and asked if there is an estimated timeline for it to pass in Congress. SENATOR BEGICH stated it is difficult to know when or if a congressional bill will pass. However, it was reported by Senator Joe Manchin as having moved through committee without amendment on February 10, indicating that it would be on the fast track for passage. 2:34:26 PM SENATOR HUGHES asked if SB 184 must pass at the state level for aged, blind, or disabled Alaska Natives to take advantage of its passing at the federal level. SENATOR BEGICH stated his belief that based on correspondence with Senator Murkowski, SB 184 would need to pass at the local level to take advantage of the federal change. CHAIR WILSON said he would also need to know the number of people SB 184 would affect. There is a huge difference between ten people and thousands of people. SENATOR BEGICH agreed that it is important to have an estimate to determine whether Alaska can afford it. He stated he would work to provide the committee with an estimate. 2:36:08 PM SENATOR HUGHES commented that she would be okay with the estimate being in the thousands if Medicaid expansion were rolled back because Alaskans should take care of the elderly. 2:36:35 PM CHAIR WILSON opened public testimony on SB 184; he found none and closed public testimony. 2:36:50 PM CHAIR WILSON held SB 184 in committee.