Legislature(2005 - 2006)HOUSE FINANCE 519
04/06/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB307 | |
| HB493 | |
| HCR30 | |
| HB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 488 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HCR 30 | TELECONFERENCED | |
| += | HB 307 | TELECONFERENCED | |
| += | HB 493 | TELECONFERENCED | |
| += | HB 105 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 6, 2006
1:46 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:46:34 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Beth Kerttula
Representative Carl Moses
Representative Bruce Weyhrauch
MEMBERS ABSENT
None
ALSO PRESENT
Pete Ecklund, Staff, Representative Kevin Meyer; Suzanne
Cunningham, Staff, Representative Kevin Meyer; Mikayla
Saito, Staff, Representative Reggie Joule; Ben Mulligan,
Staff, Representative Bill Stoltze; Eddy Jeans, Director,
Education Support Services, Department of Education and
Early Development; Janet Clarke, Assistant Commissioner,
Division of Finance and Management Services, Department of
Health and Social Services; Bill Hogan, Deputy Commissioner,
Department of Health and Social Services; Andy Pope, Juneau;
Mike Ford, Alaska Native Health Board, Juneau; Robert
Howard, Palmer
PRESENT VIA TELECONFERENCE
Dick Mylius, Deputy Director, Division of Mining Land and
Water, Department of Natural Resources, Anchorage; Bob
Swenson, Director, Division of Geophysical & Geological
Surveying, Department of Natural Resources, Anchorage; John
Kreilkamp, Vice President for Land Operations for Cruise
West, Anchorage; Dr. Glenn Juday, University of Alaska,
Fairbanks; Dr. Roland Maw, Upper Cook Inlet Driftnet
Association; Dr. Kathinka White, Alaska Primary Care
Association, Anchorage; Jeff Jesse, Executive Director,
Alaska Mental Health Trust Authority, Anchorage; Carla
Shelton, Parent Advocate; Emily Ennis, Fairbanks Resource
Agency, Fairbanks; Stacy Messerschmidt, Tok; Sydney
Stredicket, Partners in Policy; Pat Lubby, Advocacy
Director, Alaska Association of Retired Persons (AARP),
Anchorage; Meg Mitchell, Homer; Stan Steadman, Executive
Director, Center Peninsula Health Center, Aspen Dental
Center; Jennifer McElroy, Dental Hygienists, Soldotna; Dr.
Marguerite McIntosh, Family Doctor, Soldotna; Pamela Hawk,
Anchorage Neighborhood Health Consortium; Carrie Grey Wolf,
Knik River Watershed Group; Cecile Fritz, Knik River
Watershed Group; Eric Uhde, Alaska Center for the
Environment, Anchorage; Todd Clark, Alaska Outdoor Access
Alliance, Anchorage; Patti Barber, Palmer; Ken Barber,
Palmer; Dick Coutts, Butte Community Council Trail
Committee, Palmer
SUMMARY
HCR 30 Creating an Alaska Climate Impact Assessment
Commission.
CS HCR 30 (FIN) was reported out of Committee with
"individual" recommendations and with
indeterminate note #1 by the Department of Natural
Resources and fiscal note #2 by the Legislative
Affairs Agency.
HB 105 An Act relating to coverage for adult dental
services under Medicaid; and providing for an
effective date.
CS HB 105 (FIN) was reported out of Committee with
a "do pass" recommendation, House Finance
Committee Letter of Intent and with fiscal notes
#1 and #2 by the Department of Education & Early
Development and a new fiscal note by the
Department of Health and Social Services.
HB 307 An Act creating the Knik River Public Use Area.
CS HB 307 (FIN) was reported out of Committee with
a "no" recommendation and with fiscal note #1 by
the Department of Natural Resources.
HB 493 An Act relating to reimbursement of municipal
bonds for school construction.
CS HB 493 (FIN) was reported out of Committee with
"individual" recommendations and with an
indeterminate note by the Department of Education
& Early Development.
1:47:56 PM
HOUSE BILL NO. 307
An Act creating the Knik River Public Use Area.
ROBERT HOWARD, FRIENDS OF RESIDENCE, PALMER, testified
against HB 307. He noted his last two decades seriously
advocating the committing of local resources to responsible
use. [Mr. Howard distributed photographs to the Committee
of the area.]
He said he served with the Trails Committee, the Mat-Su
Trails Council and a founding member of the Knik River
Watershed Group. Mr. Howard believes there are better ways
to address problems of that region. A State recreation
access area could provide a better solution. He thought
that an area accessible to more than 300 thousand people and
riddled with trail services will create undeniable impacts.
Mr. Howard stressed the need for a management plan including
a Citizen's Advisory Board. He urged that HB 307 contain
stated deadlines.
1:52:12 PM
CARRIE GREY WOLF, (TESTIFIED VIA TELECONFERENCE), WILDLIFE
BIOLOGIST, PALMER, testified in opposition to the
legislation. She pointed out that birds and waterfowl do
not have the option to leave; the Valley is part of a
critical migration route. Bird watching in Alaska is a
multi million-dollar business. If the bill passes, she
urged that the Commissioner have the authority to restrict
the type of weapons used in the critical habitat area and
regulate the time of discharge in the wetlands. She
advocated for sufficient funding for education, enforcement,
habitat protection, sanitary facilities and trail
maintenance.
1:54:57 PM
CECILY FRITZ, (TESTIFIED VIA TELECONFERENCE), KNIK RIVER
WATERSHED GROUP, PALMER, thanked Representative Stoltze for
initiating a plan that would help bring people together to
accommodate all users and the resources in the area. She
urged effective enforcement, asking how the enforcement will
happen.
Ms. Fritz recommended the Committee amend Page 2, Section
41-23-190 - to include a Citizen's Advisory Board. She
stated that Page 3, Lines 13-18, does not allow management
of the trails near residential areas, in the dunes, or
consideration of motorized use of the upland trails during
the winter season.
Ms. Fritz pointed out that swans are present near that
trail. She urged that the bill be amended on Line 13,
inserting language "as compatible with the purposes of that
section and ending the sentence after the word "ariel". She
noted that with good legislation, their group could work
effectively with the various agencies.
1:58:42 PM
ERIC UHDE, (TESTIFIED VIA TELECONFERENCE), ALASKA CENTER FOR
THE ENVIRONMENT (ACE), ANCHORAGE, testified in opposition to
HB 307, noting that it does nothing to help manage
activities. ACE recommends a local management style for the
area, managed as a recreation area. The Knik River is
notorious for being a dangerous place and the legislation
fails to tackle those problems. HB 307 limits the
Commissioner of the Department of Natural Resources to
manage the resources and does not provide for any "on the
ground enforcement". HB 307 allows, "grand fathering" of
all existing trails; he recommended that section be deleted.
The planning process is the best place to address trail
issues for critical habitat areas.
Mr. Uhde recommended that a Citizen's Advisory Board be
established to compliment the Department of Natural
Resources management. In any event, proper funding is the
key. He pointed out that the fiscal note does not address
enforcement and funding that is essential. In conclusion,
the local population should be the ones to determine the use
of management areas.
2:02:05 PM
TODD CLARK, (TESTIFIED VIA TELECONFERENCE), ALASKA OUTDOOR
ACCESS ALLIANCE (AOAA), ANCHORAGE, discussed the goals of
AOAA to maximize the largest use of the public resources.
In South-central Alaska, there needs to be a place
designated for use by motorized vehicles. HB 307 provides
the opportunity for education, protection and management
enforcement. He suggested that HB 307 could help solve the
problems, reiterating that enforcement is the key issue.
2:05:47 PM
PATTI BARBER, (TESTIFIED VIA TELECONFERENCE), PALMER, voiced
appreciation for HB 307, which protects motor home users.
She agreed there needs to be greater funding for the Alaska
State Troopers for proper enforcement.
2:06:43 PM
KEN BARBER, (TESTIFIED VIA TELECONFERENCE), PALMER, voiced
100% support for HB 307 and recommended no changes to the
bill. Mr. Barber agreed that enforcement is essential.
2:08:05 PM
DICK COUTTS, (TESTIFIED VIA TELECONFERENCE), BUTTE COMMUNITY
COUNCIL TRAIL COMMITTEE, PALMER, noted support for HB 307.
He explained the need for public use designation for the
Knik River valley. The traditions and rural lifestyles must
be protected - hunting, fishing, prospecting & trapping.
There are other parts of Alaska that offer areas of no
motorized vehicles. Tourism is a choice of economic
viability in the Butt area. Offering a public use
designation is an option for everyone. Mr. Coutts
acknowledged the need for more law enforcement but not a lot
of new restrictions. There are approximately 72 public
agencies that have regulations in place already for such an
infrastructure.
2:11:09 PM
DICK MYLIUS, (TESTIFIED VIA TELECONFERENCE), DEPUTY
DIRECTOR, DIVISION OF MINING LAND AND WATER, DEPARTMENT OF
NATURAL RESOURCES, ANCHORAGE, commented that the Department
of Natural Resources has worked closely with Representative
Stoltze & Senator Huggins on the legislation. He thought
the changes made have been good. The legislation sets aside
264 thousand acres as a public use area; there is general
support for addressing the concerns. The management plan
offers a good opportunity to address the issues. Another
key point of the bill is that it provides the Department of
Natural Resources enforcement authority along with the
Alaska State Troopers for citing violations. Current
enforcement is not working on the ground.
2:13:12 PM
REPRESENTATIVE BILL STOLTZE, SPONSOR, thanked the Department
of Natural Resources for the proposed enforcement language.
He appreciated the direction the bill has moved; he pointed
out he is working on an amendment that would allow groups
outside government, to provide resources for organizational
costs. He highlighted long-term issues of the area.
2:15:06 PM
Representative Kerttula voiced her appreciation with the
proposed cleaning up; she asked how the public process would
include involvement from the Department of Natural
Resources. Mr. Mylius said they intend to follow the
standard public project process, which takes about two years
and involves public meetings to identify issues and
concerns. There were hearings held on the legislation last
summer to focus on the issues. The Department will gather
data to deal with issues such as a public survey regarding
area use. A draft plan would be written, following the
meetings on the plan and then a final plan would be written.
He summarized the three rounds of public meetings. The
planning team would consist of the State agencies involved
in land and resource management and the borough.
2:17:21 PM
Representative Kerttula understood the time and effort put
into planning, and asked if at some point a more formal
group could happen. Mr. Mylius responded that had occurred
from time to time in the planning efforts. Initially, there
was a formal advisory board - a group that was useful but
added time and expense to the process. It is known who the
prime usury groups will be.
2:18:56 PM
Representative Kerttula pointed out that the enforcement
section appears to be broader than normal and asked what it
encompasses. Mr. Mylius replied at this time, the only ones
authorized to issue warrants are the Alaska State Troopers,
which includes employees from the Department of Fish and
Game and State Rangers.
Representative Kerttula agreed there needs to be a "show of
enforcement and commitment" to deal with the seriousness of
the legislation. Mr. Mylius pointed out that the fiscal
note contains funding for a position that would be
responsible for patrolling the area and that the use is
somewhat seasonal.
2:21:32 PM
Representative Kerttula inquired how the public use area
could interact with the adjacent land. Mr. Mylius replied
that most of the Bureau of Land Management (BLM) lands do
not see much intensive public use. The BLM used to have a
few parcels closer to the road system but most of those have
been transferred to the State.
2:22:20 PM
Representative Kerttula referenced the section of the bill
that addresses recognition of the existing off-road motor
vehicle trails and asked if that meant "consideration". Mr.
Mylius understood that it meant, "recognized". Some of
those trails might need to be rerouted; the current language
provides that flexibility.
Representative Kerttula asked if some of those trails were
creating more debilitation, would the Department have the
authority to rehabilitate the area to bring them back. Mr.
Mylius replied they have that authority.
2:24:28 PM
Representative Weyhrauch MOVED to ADOPT New Amendment #1,
#24-LS0737\S.2, Bullock, 4/6/06. Co-Chair Meyer OBJECTED.
Representative Weyhrauch explained the amendment clarifies
that the Commissioner cannot prohibit hunting within a
marine park-system. He noted the language came from
Representative Kerttula's bill, which creates a marine park
in Southeast Alaska. He thought the provision fit well in HB
307.
2:25:37 PM
Representative Kelly pointed out it restates the existing
wording. Representative Weyhrauch clarified that one
restricts while the other prohibits. Representative Kelly
asked if it would affect fishing and trapping.
Representative Weyhrauch said it could not. Representative
Kelly countered that it could reduce restrictions on
hunting. Discussion between Representative Weyhrauch and
Representative Kelly took place on the verbiage addressing
hunting restrictions.
2:27:53 PM
Representative Kerttula clarified that the reason for the
language in her bill was to address concerns brought forward
by the territorial sportsman. She did not believe there
were concerns regarding hunting but thought the issues
brought forward by Representative Kelly were worth
consideration.
Representative Weyhrauch WITHDREW the MOTION on Amendment
#1. There being NO OBJECTION, it was withdrawn.
2:29:49 PM
Vice Chair Stoltze commented that the amendment deals mostly
with Southeast park issues and does not address land and
management concerns that the Knik public use area has.
2:30:22 PM
Mr. Mylius pointed out the fiscal note addresses two
components:
· A two year planning process effort, and
· A long-term position for a manager to that area
Co-Chair Meyer noted the two employees hired for FY07 & FY08
and then one position in FY09. Mr. Mylius replied that was
correct, as the first two years require funding for the
planning effort. The long-term manager hired in the first
two years would be involved in the planning effort. The
planning position would exist only as long as the planning
efforts continue. Mr. Mylius said the planning position
would be placed in Anchorage; the Valley position funding
would be through the State Agriculture Office, the cost
covered in the fiscal note.
2:34:11 PM
Co-Chair Chenault inquired if the position could help the
State Troopers. Mr. Mylius replied that it was the other
way around and that they would be assisting the Alaska State
Troopers. The area has become a dump ground for many stolen
vehicles and requires State Trooper involvement.
Enforcement will have several purposes for patrolling those
grounds. Co-Chair Chenault appreciated that the hired
person would be working in the field, not in an office.
Representative Kelly emphasized the area clearly is not a
park. Mr. Mylius understood that; there are a few public
use areas managed by the Division of Mining, Land & Water.
2:37:44 PM
Representative Weyhrauch asked if it was a critical habitat
area. Vice Chair Stoltze said not as a whole but that part
of the process is to identify such areas. Creating a
multiple use area is the intent.
2:38:58 PM
Representative Foster MOVED to REPORT CS HB 307 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 307 (FIN) was reported out of Committee with a "no"
recommendation and with fiscal note #1 by the Department of
Natural Resources.
2:39:30 PM
HOUSE BILL NO. 493
An Act relating to reimbursement of municipal bonds for
school construction.
Co-Chair Meyer pointed out that Amendment #1 had been
adopted at the previous hearing.
Representative Joule WITHDREW Amendment #2.
Representative Joule MOVED to ADOPT Amendment #3 for
discussion purposes. Co-Chair Meyer OBJECTED.
Representative Joule explained that the amendment would
provide a limit of the total amount of the debt
reimbursement to $400 thousand dollars, to be allocated
between districts based on their size, as done in previous
years. Co-Chair Meyer noted his intent there be no 60% cap,
as it would not be as attractive with the 70% amount.
PETE ECKLUND, STAFF, REPRESENTATIVE KEVIN MEYER, explained
that from 2002 to 2004, there was an open-ended 70% approved
and 60% non-approved reimbursement rate. Under that
program, there was $699 million dollars authorized for
bonds. Last year, $177 million dollars for bonds was
authorized with a cap structure.
Representative Joule WITHDREW Amendment #3.
Representative Joule MOVED to ADOPT conceptual Amendment #4.
Co-Chair Meyer OBJECTED.
Representative Joule explained that conceptual Amendment #4
would provide an effective date. Representative Joule
observed that last time bonds were issued, it included a
provision for rural development. Co-Chair Meyer agreed that
HB 202 added funding for rural schools; he observed the
importance of keeping the balance between rural and urban
schools. He pointed out that rural needs have been
addressed partly through the major maintenance lists.
Representative Joule WITHDREW Amendment #4.
Representative Joule MOVED to ADOPT Amendment #5, a
conceptual amendment which would add an effective date
clause. Co-Chair Meyer OBJECTED.
2:45:39 PM
Representative Joule explained that Amendment #5 allows
rural school districts to participate in the debt
reimbursement program. The amendment is technical in
nature, addressing the North Slope Borough School District.
Co-Chair Meyer clarified that the amendment would allow the
North Slope Borough School District to participate in the
st
current 70/30 program, in effect until October 1, 2006. He
asked if it was intended they be included in the 60/40
reimbursement after that date. Representative Joule did not
know about that eligibility.
Co-Chair Meyer asked if it would be possible to provide for
Representative Joule's request.
EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, explained that the
proposed legislation is open to all school districts & the
North Slope would qualify under the proposal. He stated
that Amendment #5 would reallocate funds approved in SB 73,
by taking $2 million out of the allocation for the Anchorage
School District for the North Slope Borough School District.
Mr. Jeans noted that the Borough had passed the school bond
package, so they would fit within the timeline but they
would not be eligible for any reimbursements in the FY07
budget since they did not notify the Department of Education
of their intended debt.
Co-Chair Meyer maintained his opposition to Amendment #5.
2:50:04 PM
Co-Chair Meyer pointed out that the Anchorage bonds failed,
but through the new election, they would qualify.
Co-Chair Meyer questioned if the North Slope Borough School
District understood that they would be responsible for 100%.
2:51:00 PM
Mr. Ecklund explained that the list at the time crafted, did
not include projects for the North Slope Borough.
Representative Joule WITHDREW Amendment #5. Co-Chair Meyer
said he would support the amendment if it did not take funds
away from other school districts. Mr. Jeans pointed out
that under the debt program, districts have to submit their
projects separately.
2:52:41 PM
Co-Chair Meyer acknowledged disappointment that Anchorage
voters did not approve the 70/30-school bond reimbursement.
He hoped at the 60/40 level, the district would bond without
a cap be in place.
2:54:54 PM
]
Representative Weyhrauch indicated his support for the
legislation & the proposed mechanism. Co-Chair Meyer
pointed out that the legislation is a form of municipal
revenue sharing. Representative Hawker offered full
endorsement for financing in the proposed legislation.
Vice Chair Stoltze asked clarification regarding
reimbursement. Co-Chair Meyer stated that the current 70%
is in effective until October 2006.
Representative Foster MOVED to REPORT CS HB 493 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 493 (FIN) was reported out of Committee with
"individual" recommendations and with an indeterminate note
by the Department of Education & Early Development.
2:57:06 PM
HOUSE CONCURRENT RESOLUTION NO. 30
Creating an Alaska Climate Impact Assessment
Commission.
Co-Chair Meyer MOVED to ADOPT work draft #24-LS1605\L, Kane,
4/06/06, as the version of the bill before the Committee.
There being NO OBJECTION, it was so ordered.
REPRESENTATIVE REGGIE JOULE, SPONSOR, spoke in support of
the legislation. He stated that the Resolution attempts to
create an Alaska climate impact assessment commission to
identify and address issues relating to climate changes.
There are already economic impacts to the infrastructure.
The legislation places a group together to bring greater
understanding in planning for the anticipated changes. The
Commission would consist of two members from each body and
11 public participants.
JOHN KREILKAMP, (TESTIFIED VIA TELECONFERENCE), VICE
PRESIDENT FOR LAND OPERATIONS FOR CRUISE WEST, ANCHORAGE,
voiced support for the legislation. Cruise West is a small
ship cruise line with 9 vessels in operation in Alaska that
travels to 23 statewide communities. The vessels have seen
damage from back-to-back storms in the Nome area. He
pointed out that the ice gap has been shrinking, requiring
an additional day to be reached by ship. He suggested that
the Commission look at the affects on docks, bridges and
roads. A changing climate affects travelers coming to
Alaska, and the future of tourism to Alaska.
3:07:25 PM
DR. GLENN JUDAY, (TESTIFIED VIA TELECONFERENCE), PROFESSOR
OF ECOLOGY, SCHOOL OF NATURAL RESOURCES, UNIVERSITY OF
ALASKA, FAIRBANKS, noted he has been involved in accessing
climate change for over a quarter century. He mentioned a
series of papers he published in 1982 providing important
criteria regarding serious information on climate change.
He was happy that considerations were being made and that
there is a process now happening. The real question is what
can be done now. There are many questions on the issues
coming.
He said the fiscal note is modest given the intention of the
legislation to assist in the process of transferring
information. He urged that the bill pass from Committee.
3:12:19 PM
DR. ROLAND MAW, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, UNITED COOK INLET DRIFTNET ASSOCIATION, testified
in support for HCR 30. He complimented the sponsor of the
legislation, noting that he fully supports previous
testimony. The Cook Inlet area is currently struggling with
salmon returns into the upper Inlet. There is a lack of
rainfall from the 50-year norm and water temperatures are up
to the limit for salmon survival. Kenai supports the bill,
having great concerns regarding the issues. Dr. Maw looked
forward to serving on the Commission.
3:14:47 PM
BOB SWENSON, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF GEOPHYSICAL & GEOLOGICAL SURVEYING, DEPARTMENT
OF NATURAL RESOURCES, ANCHORAGE, offered to answer questions
of the Committee.
3:15:15 PM
Representative Weyhrauch questioned why retreating sea-ice
could affect polar navigation and raise security concerns.
MIKAYLA SAITO, STAFF, REPRESENTATIVE REGGIE JOULE, responded
that the receding sea ice is opening up polar-regions and
that passage for the vessels is of concern. The security
revolves around the many docks and ports for the foreign
entry.
Representative Joule discussed the possibility of the North
West Passage opening up with increased traffic.
3:18:10 PM
Representative Kerttula MOVED to ADOPT to Amendment #1,
amending Page 2, Line 30, Subsection (d) to read:
(d) A member that is knowledgeable in the area of and
management and restoration of wildlife and natural
resources.
Co-Chair Meyer OBJECTED.
Representative Kerttula pointed out a technical change,
deleting "that" and inserting "who". The Department of Law
advised that the Legislative Branch couldn't mandate the
participation of the Executive Branch. The Department of
Natural Resources is comfortable with the amended language.
Vice Chair Stoltze questioned the request. Representative
Kerttula stated it could be placed in the intent language
that someone from the Department of Natural Resources is
involved on the Commission. Vice Chair Stoltze indicated he
has served on various commissions and had not heard that
objection. Representative Kerttula pointed out that the
issue deals with the separation of powers.
3:21:12 PM
Representative Joule commented that in earlier testimony, it
was suggested some departments could serve in an ex officio
capacity and hoped the legislation would reach a broader
audience.
3:22:16 PM
Representative Kelly commented on the composition of
membership. Representative Joule clarified that the
language of the bill addresses membership changes.
3:26:11 PM
Co-Chair Meyer WITHDREW his OBJECTION to Amendment #1.
There being NO further OBJECTION, it was adopted.
3:26:43 PM
Representative Weyhrauch noted his appreciation to
Representative Joule for introducing the legislation.
Representative Kerttula MOVED to REPORT CS HCR 30 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HCR 30 (FIN) was reported out of Committee with
"individual" recommendations and with indeterminate note #1
by the Department of Natural Resources and fiscal note #2 by
the Legislative Affairs Agency.
3:29:09 PM
HOUSE BILL NO. 105
An Act relating to coverage for adult dental services
under Medicaid; and providing for an effective date.
Representative Foster MOVED to ADOPT work draft #24-GH108\F,
Mischel, 4/5/06, as the version of the bill before the
Committee. There being NO OBJECTION, it was adopted.
3:30:03 PM
BILL HOGAN, DEPUTY COMMISSIONER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, explained that the Department is proposing
changes to the range of adult dental services allowed in the
Medicaid program. The adult dental coverage currently
provides only emergency dental care. The legislation would
enhance the existing emergency dental program to include
preventive and restorative care. The expanded program would
benefit those most in need as well as Alaskan seniors. A
proposed cap of $1150 per year would allow for a full set of
dentures over a two-year period.
3:33:15 PM
Mr. Hogan continued, infections of the mouth can result in
all sorts of physical problems. Dental infections can be
passed to unborn infants and can keep a person unemployed
given the decayed teeth. The Alaska Mental Health Trust
(AMHT) has a mini grant program, annually dispersing over
$700 thousand dollars on dental care programs for their
beneficiaries. If the bill passes, those Medicaid dollars
could be used.
The Division of Vocational Rehabilitation has noted they
spend annually about $100 thousand dollars to help people
with dental concerns, increasing the possibility they can
become employed.
3:34:31 PM
JANET CLARKE, ASSISTANT COMMISSIONER, DIVISION OF FINANCE
AND MANAGEMENT SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, pointed out that the revised fiscal note was based
on the committee substitute and was reduced from the
original note. FY07 number reduction of $3.5 million
dollars estimate to $2.6 million dollars providing a
reduction to general funds. The fiscal note request for the
first year assumes coverage for 25% of a full year.
Ms. Clarke explained how the fiscal note had been reduced.
She mentioned the utilization assumptions. In looking back
at those assumptions, it was changed to a 15% utilization
the first year, 25% the second year and then up to 35% the
following year, which reduces some costs.
She indicated how much the State spends on emergency dental
coverage, factoring in the savings. When HB 105 was
introduced last year, it was based on a federal-Medicaid
percentage of 50%; our congressional delegation was able to
change that to 57.5% federal participation, saving in the
General Fund requirement. The Alaska Mental Health Trust
Authority has agreed to maintain their funding level. AMTA
will be investing significant dollars during the next four
years.
Ms. Clarke pointed out that the committee substitute sunsets
after FY09. She offered to answer questions of the
Committee.
3:37:44 PM
Representative Kelly inquired about the reallocation of
funding within the Department. Ms. Clarke advised that
making cuts to the Medicaid program is complicated and
difficult. She stated that if the Department is not aligned
with the Legislature on what direction it is going into the
Medicaid program, there will be many criticisms for making
such reductions. To find money internally would be
difficult.
3:39:14 PM
Representative Kerttula inquired if most similar programs
begin with a sunset. Ms. Clarke replied that there have
been programs with a sunset such as Senior Care; sunsets are
becoming a trend of this Legislature. Representative Kelly
was not comforted with the sunset concept, realizing the
enormity of the Department's budget.
3:41:24 PM
Representative Hawker disagreed. The point of establishing
a short windowed sunset, offers the Legislature the option
of making a policy call, rather than creating it into
perpetuity; the sunset offers a trial time. He noted that
the bill has been restructured to avoid concerns of
continued growth.
3:43:22 PM
ANDY POPE, JUNEAU, spoke in support of the legislation. He
noted that he represented the seniors at Mountain View
Senior Center, many of whom are low-income and have fallen
through the cracks of dental care reimbursement. He
commented that the $1100 dollar threshold would help
tremendously for initial dental care expenses and then the
seniors could pay the rest with their Permanent Fund
Dividend (PFD). He urged passage of HB 105.
3:46:17 PM
MIKE FORD, ALASKA NATIVE HEALTH BOARD, JUNEAU, stated that
they completely support HB 105. The committee substitute
provides a cautious approach and allows taking a look at the
program. The proposed legislation is a prudent, practical
and critical for many residents of the State. He urged that
it pass quickly from Committee.
3:47:15 PM
DR. KATHINKA WHITE, (TESTIFIED VIA TELECONFERENCE),
REPRESENTATIVE FOR THE ALASKA PRIMARY CARE ASSOCIATION,
ANCHORAGE, testified in strong support of the proposed
legislation. Dental infections of the tooth, gums, tissue
and bone are infectious diseases. Dental problems, except
in early stages, are irreparable and cumulative.
Dr. White stated that oral disease is associated with many
other problems. As many as 80% of the premature infants
born in the United States can be attributed to the
infectious oral diseases. Providing emergency dental care
may relieve acute symptoms. She urged passage of the bill,
stressing the need to address oral health and improved
access to dental care.
3:51:04 PM
JEFF JESSE, (TESTIFIED VIA TELECONFERENCE), CEO, ALASKA
MENTAL HEALTH TRUST AUTHORITY, ANCHORAGE, reiterated support
for HB 105. He mentioned the seriousness of the sunset
provision and offered to answer questions of the Committee.
3:52:09 PM
CARLA SHELTON, (TESTIFIED VIA TELECONFERENCE), PARENT
ADVOCATE, emphasized the importance of adult dental services
and urged passage of the bill.
3:55:05 PM
EMILY ENNIS, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, FAIRBANKS RESOURCE AGENCY, FAIRBANKS, testified in
support of dental care for adults & children with
developmental disabilities. Preventative dental care is a
necessary investment that goes hand-in-hand with the other
disability services offered by the State. She urged the
Committee's support in passage of the legislation.
3:56:23 PM
STACY MESSERSCHMIDT, (TESTIFIED VIA TELECONFERENCE), TOK,
spoke in support of HB 105.
3:56:50 PM
SYDNEY STREDICKET, (TESTIFIED VIA TELECONFERENCE), PARTNERS
IN POLICY, spoke in strong support of HB 105.
3:58:00 PM
PAT LUBBY, (TESTIFIED VIA TELECONFERENCE), ADVOCACY
DIRECTOR, ALASKA ASSOCIATION OF RETIRED PERSONS (AARP),
ANCHORAGE, noted that Medicaid has never provided any dental
care coverage and consequently, some older people stay away
from dentists because they cannot afford it. The result is
bad oral health, which adds to other physical health
concerns. He stressed it is a real concern faced by real
Alaskans. He urged passage of HB 105, because it is good
public health legislation.
MEG MITCHELL, (TESTIFIED VIA TELECONFERENCE), HOMER, cited
her experience in working with individuals with
disabilities, noting the need for adults on Medicaid to
receive dental care. She expressed strong support of the
legislation, pointing out there are 40,000 adults in Alaska
that need the coverage but cannot afford it. She urged
passage of HB 105.
STAN STEADMAN, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, CENTER PENINSULA HEALTH CENTER, ASPEN DENTAL
CENTER, KENAI, stated that his clinic has seen many patients
that desperately need such services. He urged passage of HB
105.
JENNIFER MCELROY, (TESTIFIED VIA TELECONFERENCE), DENTAL
HYGENIST, SOLDOTNA, noted the great need for adult Medicaid
recipients to receive dental benefits and echoed support for
passage of the legislation.
DR. MARGUERITE MCINTOSH, (TESTIFIED VIA TELECONFERENCE),
FAMILY DOCTOR, SOLDOTNA, testified in support of the
legislation. As a family practioner in private practice,
she noted costs for medical concerns that begin with dental
issues. She pointed out incidents of adults contracting
lung infections resulting from a lack of dental care over
the years. She urged passage of HB 105.
PAMELA HAWK, (TESTIFIED VIA TELECONFERENCE), DENTAL
OPERATIONS MANAGER FOR ANCHORAGE NEIGHBORHOOD HEALTH CENTER,
ANCHORAGE, noted that she had seen many patients suffering
from dental infections, and that those people can only
receive tooth extractions. She noted, many individuals
would like to receive preventative care prior to the
extraction. She addressed the high cost for root canals and
restorative treatments; she stated that dental care is
completely prohibitive for anyone that does not have dental
health benefits and insurance. Ms. Hawk thanked the
Committee for consideration of the bill and urged passage.
PUBLIC TESTIMONY CLOSED.
Co-Chair Meyer MOVED to ADOPT Amendment #1. Vice Chair
Stoltze OBJECTED.
SUZANNE CUNNINGHAM, STAFF, REPRESENTATIVE KEVIN MEYER,
explained that the amendment was brought forward at the
request of the Department of Health and Social Services,
because the wording in the draft committee substitute was of
concern. The proposed change to Page 2, Line 6, clarifies
that the Department will pay for preventive and restorative
dental services as well as minimum treatment.
The second change on Page 2, Lines 16-18, instead of only
palliative treatment, the Department requests "immediate
relief of pain and/or the spreading of infection and
provided by a licensed dentist". Janet Clarke acknowledged
they had requested the change for clarity purposes.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
Representative Weyhrauch MOVED to ADOPT Amendment #2. Vice
Chair Stoltze OBJECTED.
Representative Weyhrauch explained that amendment would
remove the initial portion of the bill, making it into
intent language and putting it into a House Finance
Committee Letter of Intent.
Representative Hawker indicated his support of the
amendment, pointing out the precedent to include intent in a
Letter of Intent rather than in the bill itself.
4:12:57 PM
Vice Chair Stoltze REMOVED his OBJECTION to the amendment.
There being NO further OBJECTIONS, conceptual Amendment #2
was adopted.
In response to Co-Chair Meyer, Representative Hawker noted
that a great deal of time was spent on the revised fiscal
note, which adequately reflects an excellent return on the
investment.
4:14:32 PM
Representative Kelly asked clarification between emergency
and continuing care.
Ms. Clarke responded that the statute clarifies emergency
dental care very well as the "immediate relief of pain and
acute infection". That definition is maintained in the
legislation. She noted that other services were defined as
"preventative and restorative" and that restorative services
were being added in the legislation, while emergency
services remain in tact. She reiterated that there is a cap
of $1,150 for total restorative services each year.
4:17:18 PM
Representative Hawker addressed the criticism of the bill as
a "new program". He emphasized that dental services were
provided under the existing Medicaid program; he explained
that the readjusted program toward preventative maintenance,
in the hope that emergency services would then be reduced in
the new model. He stressed the cap as being unique to the
program, which allows his strong support of the bill.
Representative Kelly noted he too supports the bill,
however, expressed concern regarding the sustainability of
the program within the Department's budget. He noted the
escalation of that Department's budget in addition to what
is going on with the public employee retirement system.
Representative Weyhrauch MOVED to REPORT CS HB 105 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal notes. There being NO OBJECTION, it
was so ordered.
CS HB 105 (FIN) was reported out of Committee with a "do
pass" recommendation, House Finance Committee Letter of
Intent and with fiscal notes #1 and #2 by the Department of
Education & Early Development and a new fiscal note by the
Department of Health and Social Services.
ADJOURNMENT
The meeting was adjourned at 4:22 P.M.
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