Legislature(1993 - 1994)

1993-01-15 House Journal

Full Journal pdf

1993-01-15                     House Journal                      Page 0086
HB 67                                                                        
HOUSE BILL NO. 67 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to eligibility for and payments of public                    
assistance; and providing for effective date."                                 
                                                                               
was read the first time and referred to the Health, Education & Social         
Services, Judiciary and Finance Committees.                                    
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal notes (6), Department of Health & Social Services, 1/15/93             
                                                                               
The Governor's transmittal letter, dated January 15, 1993, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill relating to eligibility for and payments of public         
assistance.  The bill represents the Administration's proposal to control      
the growth of expenditures in formula welfare programs.                        
                                                                               
Section 1 of the bill would amend AS47.25.320(a) to require that the           
maximum monthly amount of aid-to-families-with-dependent-children              
(AFDC) assistance for a second adult in a two-parent AFDC household            
be the same as for a second dependent child in a home where there is           
one adult.  Currently, the monthly amount for a three-person household         
composed of two adults and one child is $88 more than for a three-             
person household composed of one adult and two children; this                  
difference increased to $90 on January1, 1993.  Section 1 also amends          
the standards for families that include one or more dependent children         

1993-01-15                     House Journal                      Page 0087
HB 67                                                                        
living with a nonneedy relative, to bring the AFDC program into                
conformity with federal requirements that the increment for a second           
child be the same as the increment for any additional children.                
                                                                               
The maximum grant amounts in AS47.35.320(a) were last amended                  
in 1982.  However, under AS47.35.320(d) those maximum amounts                  
have been increased a number of times to reflect cost-of-living                
increases.  Section 1 amends the maximum grant amounts, starting               
July1, 1993, to roll back those amounts to the 1991 benefit level.             
Section 2 of the bill amends AS47.25.320(d) to provide that the                
department may not increase those monetary maximums based on an                
increase in benefits that takes effect anytime during the calendar year        
that begins on January 1, 1994, nor on an increase in benefits that took       
effect on or before January 1, 1993.                                           
                                                                               
Section 3 of the bill would allow DHSS to adopt regulations to                 
establish a monthly need standard for AFDC that equals or exceeds the          
monthly payment standard for AFDC.  In combination with the                    
reduction of AFDC grant amounts in sec. 1 of the bill, this provision          
will provide an incentive for an AFDC family to augment its income             
within limits without automatically jeopardizing eligibility.                  
                                                                               
Section 4 would amend AS47.25.430(b), relating to cost-of-living               
increases in the adult public assistance program, to provide that the          
department will not increase the maximum state contribution to                 
recipients by any cost-of-living increase that takes effect during the         
calendar year beginning on January 1, 1994, and to conform to the              
changes made by sec. 5 of the bill.                                            
                                                                               
Section 5 of the bill requires DHSS to reduce the maximum state                
contribution to recipients in the adult public assistance program to the       
1990 level and to adjust monthly grants of assistance accordingly.             
                                                                               
Section 6 of the bill would amend AS47.25.455 to provide for                   
reimbursement for interim assistance and to eliminate retroactive adult        
public assistance payments to interim assistance recipients.  The              
existing statute requires DHSS to pay $280 per month to eligible               
individuals while the Social Security Administration (SSA) is                  
processing their disability applications; once an individual is                
determined eligible, the SSA makes a retroactive payment to that               
person.  With this change in AS 47.25.455, an applicant for interim            

1993-01-15                     House Journal                      Page 0088
HB 67                                                                        
assistance would have to agree at the time of initial application to have      
retroactive SSI benefits paid to DHSS to reimburse the state for the           
interim assistance received by the applicant.                                  
                                                                               
Section 7 repeals AS47.25.320(e) to conform to the change made in              
sec. 1 related to reducing grant amounts for two-parent households.            
                                                                               
Section 8 provides transitional authority to allow DHSS to adopt               
regulations before July 1, 1993, but the regulations cannot take effect        
before that date.  This provision should facilitate timely                     
implementation of the new statutory changes.                                   
                                                                               
Sections 9 and 10 provide for an effective date for the bill.                  
                                                                               
I urge your serious consideration of these proposals to control the            
growth of the state budget.                                                    
                                                                               
           Sincerely,                                                          
           /s/                                                                 
           Walter J. Hickel                                                    
           Governor"