SENATE FINANCE COMMITTEE April 14, 2026 9:00 a.m. 9:00:57 AM CALL TO ORDER Co-Chair Hoffman called the Senate Finance Committee meeting to order at 9:00 a.m. MEMBERS PRESENT Senator Lyman Hoffman, Co-Chair Senator Donny Olson, Co-Chair Senator Bert Stedman, Co-Chair Senator Mike Cronk Senator James Kaufman Senator Jesse Kiehl Senator Kelly Merrick MEMBERS ABSENT None ALSO PRESENT Senator George Rauscher, Sponsor; Mark Whisenhunt, Veteran, United States Army; Hunter Meachum, Staff, Representative Sara Hannan; Maggie Humm, Executive Director, Alaska Legal Services Corporation. PRESENT VIA TELECONFERENCE Christopher Novell, Chief Financial Officer, Division of Retirement and Benefits, Department of Administration, Juneau; Jason Ortiz, Self, Palmer; Austin Flavin, Self, Palmer; James Ross, Self, Yakutat; Lori Proctor, Retired Patient Care Advocate, Alaska Legal Services, Willow; Marge Stoneking, Advocacy Director, AARP Alaska, Anchorage. SUMMARY HB 17 DISABLED VETERANS: RETIREMENT BENEFITS HB 17 was HEARD and HELD in committee for further consideration. HB 48 CIVIL LEGAL SERVICES FUND HB 48 was HEARD and HELD in committee for further consideration. HOUSE BILL NO. 17 "An Act relating to retirement benefits and military service." 9:02:09 AM SENATOR GEORGE RAUSCHER, SPONSOR, introduced the bill. He read from the Sponsor Statement (copy on file): House Bill 17 allows Veterans who are totally and permanently disabled to access their accrued PERS retirement benefits without penalty. HB 17 also allows military service, which has been purchased in accordance with the PERS standards to count towards the credited service requirements for normal retirement. Veterans who are totally and permanently disabled struggle to work and keep gainful employment due to their service-connected disabilities. As such, this class of veterans often struggles with income stability. If HB 17 becomes law, it will provide disabled veterans with access to their PERS retirement benefits at a time when they need it most. Co-Chair Hoffman remarked that it was unusual to hear a House bill introduced by a senator. He stated that the bill was originally introduced when Senator Rauscher was a representative. 9:04:50 AM MARK WHISENHUNT, VETERAN, UNITED STATES ARMY, spoke in support of the legislation. Co-Chair Hoffman listed individuals who were available for questions. Co-Chair Stedman looked at the fiscal note, but remarked that in the definition it said that "this will create an additional unfunded liability to the plan because employer costs are capped at 22 percent, and any access costs would be paid by the State of Alaska." He wondered whether it had been calculated, because that definition did not indicate a zero fiscal impact. 9:09:48 AM CHRISTOPHER NOVELL, CHIEF FINANCIAL OFFICER, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, JUNEAU (via teleconference), agreed that it would have some form of unfunded liability to the plan. He stated that, in providing a fiscal note, there were too many unknowns. Co-Chair Stedman surmised that there were too many unknowns to determine a precise fiscal note. He stated that there was a concern about the non-state employers that fell back to the state. He remarked that not knowing the fiscal impact to any change to the retirement system was not helpful in making a position on the bill. Senator Rauscher replied that there was an estimated impact of 48 possible VA that could take advantage of the program. Senator Kiehl thanked the sponsor for recognizing disabled veterans. He surmised that any PERS member in the defined benefit system who wanted credit for their military time must pay for that time. Senator Rauscher deferred to Mr. Whisenhunt. Mr. Whisenhunt explained that there was a purchase opportunity. 9:15:08 AM Senator Kiehl wondered whether the bill allowed for a disabled service veteran to have the elimination of cost. Mr. Whisenhunt replied that it would not change the purchase process. Senator Kiehl wondered if there would be an unintended consequence of one of the repealers in the bill. Mr. Whisenhunt responded that the language was crafted with the understanding that it was no longer a barrier to count toward the thirty years. Senator Kiehl requested a response from the division on their interpretation of the repealer. Co-Chair Hoffman stated that the response would be given in writing. Senator Kiehl wondered whether the bill allowed for a count toward the vesting process. Mr. Whisenhunt stated that it would not change the vesting process. Senator Kiehl wondered whether that would change for peace officers and firefighters with a different repealer section. Co-Chair Stedman agreed with the concerns related to the repealers. 9:19:58 AM Co-Chair Hoffman OPENED public testimony. 9:20:16 AM JASON ORTIZ, SELF, PALMER (via teleconference), spoke in support of the bill. 9:21:36 AM AUSTIN FLAVIN, SELF, PALMER (via teleconference), testified in support of the legislation. Senator Rauscher thanked the committee. Senator Kiehl explained the fiscal note. Senator Cronk thanked the sponsor. HB 17 was HEARD and HELD in committee for further consideration. HOUSE BILL NO. 48 "An Act relating to appropriations to the civil legal services fund." 9:27:31 AM HUNTER MEACHUM, STAFF, REPRESENTATIVE SARA HANNAN, introduced the bill. 9:29:43 AM MAGGIE HUMM, EXECUTIVE DIRECTOR, ALASKA LEGAL SERVICES CORPORATION, spoke in support of the bill. 9:36:14 AM Co-Chair Hoffman stated that there were individuals available for questions. Co-Chair Hoffman OPENED public testimony. 9:36:38 AM JAMES ROSS, SELF, YAKUTAT (via teleconference), spoke in support of the legislation. 9:37:46 AM LORI PROCTOR, RETIRED PATIENT CARE ADVOCATE, ALASKA LEGAL SERVICES, WILLOW (via teleconference), testified in support of the legislation. 9:39:19 AM MARGE STONEKING, ADVOCACY DIRECTOR, AARP ALASKA, ANCHORAGE (via teleconference), testified in support of the legislation. Co-Chair Hoffman CLOSED public testimony. Senator Kiehl addressed the fiscal notes. HB 48 was HEARD and HELD in committee for further consideration. ADJOURNMENT 9:43:31 AM The meeting was adjourned at 9:43 a.m.