Legislature(2015 - 2016)BUTROVICH 205

04/10/2015 01:30 PM HEALTH & SOCIAL SERVICES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Heard & Held
Bills Previously Heard/Scheduled:
Moved CSSB 74(HSS) Out of Committee
Moved SB 53 Out of Committee
Moved SB 90 Out of Committee
Moved HB 4 Out of Committee
Moved SB 78 Out of Committee
                    HB 8-POWERS OF ATTORNEY                                                                                 
1:39:39 PM                                                                                                                    
CHAIR STEDMAN announced the consideration of HB 8.                                                                              
1:39:47 PM                                                                                                                    
REPRESENTATIVE SHELLEY HUGHES,  Alaska State Legislature, sponsor                                                               
of  HB 8,  related that  the bill  has approval  by AARP  and the                                                               
Association of Mature Americans.  She shared stories of financial                                                               
scams that  targeted vulnerable adults  due to problems  with the                                                               
Power  of   Attorney.  Last  year   there  were  more   than  600                                                               
allegations of  financial exploitation  in Alaska as  reported by                                                               
Adult  Protective   Services,  the   Office  of   Long-Term  Care                                                               
Ombudsman,  and the  Office of  Public Advocacy  and Elder  Fraud                                                               
Unit. She shared statistics related to Power of Attorney abuse.                                                                 
She  stated that  HB  8 strengthens  Alaska's  existing Power  of                                                               
Attorney  statutes  by  clarifying the  responsibilities  of  the                                                               
person receiving  the Power  of Attorney  and approving  the form                                                               
itself.  The statute  remains customized  for  Alaska and  aligns                                                               
some of the  wording with other states, which is  helpful in this                                                               
day and age.                                                                                                                    
She noted  new terminology in  the bill  - the principal,  or the                                                               
person granting the Power of  Attorney, and the agent, the person                                                               
who  is granted  the  Power  of Attorney.  There  is  also a  new                                                               
definition  for   "signing."  The  current  form   instructs  the                                                               
principal to  assign everything to the  agent unless specifically                                                               
crossing out items.  The bill changes that so  the principal must                                                               
mark  yes or  no for  every category.  The bill  separates out  a                                                               
special section  of items deemed  "hot powers,"  more significant                                                               
than  routine  financial  actions.  There is  a  new  section  on                                                               
judicial  relief allowing  a list  of qualified  persons who  can                                                               
petition the court  to review the agent's conduct.  There is also                                                               
a new  section about substitute decision-making  documents, which                                                               
allows  for   recognition  of  documents  between   states  on  a                                                               
temporary basis.                                                                                                                
She  concluded that  HB 8  allows  better definitions,  clarifies                                                               
areas  of  concern,  and  will help  the  principal  make  better                                                               
decisions   when   it   comes  to   assigning   these   important                                                               
responsibilities of  their finances and property  to someone. She                                                               
said  the  bill  will  strengthen  existing  statutes  to  better                                                               
protect  vulnerable adults  and to  better guide  those who  help                                                               
care for them.                                                                                                                  
GINGER  BLAISDELL, Staff,  Representative Shelley  Hughes, Alaska                                                               
State Legislature,  explained the sectional  analysis of HB  8 on                                                               
behalf of the sponsor. She explained version N.A of the bill:                                                                   
Section 1 replaces the current definition of an "agent."                                                                        
Section 2  corrects the  definition of  "state" by  including the                                                               
United States Virgin Islands.                                                                                                   
Section  3  adds  new definitions  for  "durable",  "electronic",                                                               
"power of  attorney", "principal",  "record", and "sign,  as they                                                               
pertain to the Act.                                                                                                             
Section 4 states  that an agent is the person  granted powers and                                                               
the finances  belong to  the principal.  It contains  the agent's                                                               
acceptance  and liability  and describes  the agent's  duties. It                                                               
also  pertains to  the  acceptance and  termination  of Power  of                                                               
1:50:49 PM                                                                                                                    
Section 5  is amended to  recognize a Power of  Attorney executed                                                               
in another state.                                                                                                               
Section 6  edits the actual form  of the Power of  Attorney (POA)                                                               
and requires  the principal to  mark a  box in each  category and                                                               
provides optional  grant of specific authority  to create, amend,                                                               
revoke,  or terminate  a trust;  make  a gift;  create or  change                                                               
beneficiaries;  or revoke  a transfer  on a  death deed.  It also                                                               
deals with how a notary can witness a signature.                                                                                
Section 7 adds additional optional provisions.                                                                                  
1:55:06 PM                                                                                                                    
Section 8 deals with the applicability of provisions.                                                                           
CHAIR  STEDMAN  requested  further  clarification  of  Section  7                                                               
regarding the notary provision.                                                                                                 
REPRESENTATIVE HUGHES  commented that the provision  only applies                                                               
to the notary's signing of this document.                                                                                       
CHAIR STEDMAN said he has concerns about it.                                                                                    
MS.  BLAISDELL said  that  the notary  provision  was brought  to                                                               
attention by the Office of Public Advocacy.                                                                                     
1:56:34 PM                                                                                                                    
She continued:                                                                                                                  
Sections 9 -  11 removes the option to revoke,  create, or modify                                                               
a trust and includes it in a separate selection on the POA form.                                                                
Section 12  allows the agent to  use credit and debit  cards, and                                                               
electronic transactions.                                                                                                        
Section  13 adds  additional  responsibilities and  clarification                                                               
responsibilities  of  the agent  to  manage  the affairs  of  the                                                               
principal's businesses.                                                                                                         
1:59:02 PM                                                                                                                    
Section  14  provides  for  the  exercise  of  investment  powers                                                               
available under a contract of insurance or annuity.                                                                             
Section 15  repealed section with  respect to gifts  and replaced                                                               
with instructions regarding retirement plans.                                                                                   
Section 16  amends the section regarding  personal relationships,                                                               
such as child support under HIPAA rules.                                                                                        
Section  17 amends  the  section  regarding government,  military                                                               
service, or civil service.                                                                                                      
2:02:37 PM                                                                                                                    
Section  18 is  a new  subsection that  gives specific  authority                                                               
with respect to gift transactions.                                                                                              
Section  19 is  amended  to  relieve an  agent  of liability  for                                                               
breach of duty unless it was committed dishonestly.                                                                             
Section  20 replaces  the term  "disability  or incompetence"  to                                                               
Section  23 addresses  judicial  relief and  allows  a number  of                                                               
people to petition the courts to review an agent's actions.                                                                     
2:04:04 PM                                                                                                                    
Section  27  deals   with  substitute  decision-making  documents                                                               
between states.                                                                                                                 
MS.  BLAISDELL  concluded  that   the  statute  was  updated  and                                                               
definitions were  brought current.  HB 8 provides  protection for                                                               
vulnerable adults and judicial relief.                                                                                          
CHAIR STEDMAN requested an update  of the sectional analysis page                                                               
numbers to version N.A.                                                                                                         
REPRESENTATIVE HUGHES noted that HIPAA  is related to payment for                                                               
health care services, not about making health care decisions.                                                                   
2:06:14 PM                                                                                                                    
CHAIR STEDMAN opened public testimony.                                                                                          
2:06:28 PM                                                                                                                    
THERESA  HOPE,  State  Long-term  Care  Ombudsman,  testified  in                                                               
support  of  HB 8.  She  related  that the  Ombudsman  frequently                                                               
investigates cases in  which family members or  others misuse the                                                               
POA document  to exploit  vulnerable adults,  especially seniors.                                                               
HB 8  clarifies and updates  definitions in the statute  and adds                                                               
important protections. She spoke in  favor of the changes made to                                                               
the POA  form. The  bill also provides  for judicial  review when                                                               
there is  suspicion that the  POA is being misused  and clarifies                                                               
when the document can be terminated.                                                                                            
2:08:53 PM                                                                                                                    
DEBORAH BEHR, Chair, Alaska Uniform  Law Commission, testified in                                                               
support of HB 8. She noted that  page 37, to the end of the bill,                                                               
is  a  result  of  the  open public  process  and  is  a  uniform                                                               
recognition of Substitute  Decision-Making Documents across state                                                               
lines. She  provided an example.  She spoke of the  advantages of                                                               
the POA document.                                                                                                               
2:10:45 PM                                                                                                                    
MARIE DARLIN, AARP  of Alaska, testified in support of  HB 8. She                                                               
provided  the  history of  the  development  of  the bill.  HB  8                                                               
continues  the work  that was  started  several years  ago -  the                                                               
Advanced Directive  bill. She said HB  8 is one more  step in the                                                               
right direction  to help protect  vulnerable adults. It is  a way                                                               
to  try and  correct some  of the  problems related  to Power  of                                                               
2:13:03 PM                                                                                                                    
DENISE DANIELLO, Executive Director,  Alaska Commission on Aging,                                                               
testified in support  of HB 8. She said the  bill is important in                                                               
light of  the increasing senior population.  She especially liked                                                               
the fact that the bill conforms  to the Unified Power of Attorney                                                               
Act  and  makes  the  law interstate  compatible.  She  said  she                                                               
supports  increasing the  principal's control  regarding decision                                                               
making. She  suggested that there  be notification to  the public                                                               
to let them know of these changes.                                                                                              
CHAIR STEDMAN closed public testimony.                                                                                          
SENATOR GIESSEL thanked the sponsor.                                                                                            
CHAIR STEDMAN held HB 8 in committee.                                                                                           

Document Name Date/Time Subjects
CSHB8(JUD)am Power of Attorney hearing request 13Mar15.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
CSHB0008(JUD) 27Feb15.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB0008-1-2-022515-DHS-N.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB0008-2-2-022515-LAW-N.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB0008A 27Feb15.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Description of Changes to ver E.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Section Analysis-Power of Attorney.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Sponsor Statement - Power of Attorney.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Supporting Documents - AARP letter.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Supporting Documents - LTCO.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Supporting Documents-Article AARP summary report.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Supporting Documents-Article Remedying Financial Abuse by Agents Under a POA for Finances.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Supporting Documents-Article Uniform Law Commission.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
HB8 Supporting Documents-Articles multiple articles.pdf SHSS 4/10/2015 1:30:00 PM
HB 8
SB72 Backup Article Helping the Helpers.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Backup AARP Survey AKs over 45.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Backup AARP Survey Caregivers.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Backup AARP Survey Independents.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Backup CARE ACT states.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Backup Home Alone Study.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Designated Caregivers vsn P.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Hrg Rqst SHSS.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Sponsor Statement.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Support AARP.pdf SHSS 4/10/2015 1:30:00 PM
SB 72
SB72 Support Am. Lung Assn..pdf SHSS 4/10/2015 1:30:00 PM
SB 72
HB8 Section Analysis-ver N-A Power of Attorney.pdf SHSS 4/10/2015 1:30:00 PM
HB 8