Legislature(1997 - 1998)

04/21/1997 02:05 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL 153                                                               
                                                                               
       "An Act relating to the eligibility of aliens for state                 
       public  assistance  and  medical   assistance  programs                 
       affected  by federal  welfare  reform legislation;  and                 
       providing for an effective date."                                       
                                                                               
  JAY LIVELY,  DEPUTY COMMISSIONER, DEPARTMENT  OF HEALTH  AND                 
  SOCIAL  SERVICES,  explained the  differences  between legal                 
  immigrants  and qualified  aliens under Public  Law 104-193.                 
  Regarding a definition  for a  "legal immigrant", there  are                 
  two issues to consider.  The definition of a legal immigrant                 
  before the passage of  P.L. 104-193 and the definition  of a                 
  "qualified alien" under P.L. 104-193.                                        
                                                                               
  Prior  to  passage   of  P.L.  104-193,  an   immigrant  was                 
  considered eligible for  state and federal  welfare benefits                 
  if they met  the definition of a legal immigrant.   For this                 
  purpose,  a   "legal  immigrant"  included   all  immigrants                 
  lawfully  admitted for  permanent residence,  and immigrants                 
  permanently residing under  color of  law (PRUCOL).   Prucol                 
  aliens are considered legal permanent  residents of the U.S.                 
  even though they did not go  through the process of applying                 
  for  and  being admitted  for  permanent residence.   Prucol                 
  aliens  are aliens living in the  country with the knowledge                 
  and permission of the Immigration and Naturalization Service                 
  (INS)   whose  departure  the   INS  does   not  contemplate                 
  enforcing.                                                                   
                                                                               
  For public assistance  purposes, P.L. 104-193 created  a new                 
  category  of  immigrants called  "qualified  aliens".   Most                 
  "qualified aliens" are  ineligible for public assistance  or                 
  are  only  eligible  if  the  state   opts  to  cover  them.                 
  Immigrants who  are  not "qualified  aliens" are  immigrants                 
  lawfully   admitted   for  permanent   residence,  refugees,                 
  individuals  paroled into  the U.S.  for a  least  one year,                 
  immigrants whose  deportation  is  being  withheld,  certain                 
  immigrants granted  conditional entry, and  certain battered                 
  spouses and children.                                                        
                                                                               
  Mr. Lively continued, under P.L. 104-193, certain categories                 
  of "qualified aliens" remain  eligible for public assistance                 
                                                                               
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  regardless  of   their  immigrant  status.    The  exception                 
  categories   are:  refugees   and   certain  persons   whose                 
  deportation is being withheld for their first  five years in                 
  the U.S., individuals who have 40 quarters of coverage under                 
  the Social  Security system, and veterans and members of the                 
  armed forces and their spouses and dependent children.                       
                                                                               
  Immigrants  who  become  U.S. citizens  are  not  subject to                 
  immigrant restrictions on public assistance eligibility.                     
                                                                               
  Mr. Lively  pointed out the  Work Opportunity Reconciliation                 
  Act  (WORA)   of  1996,  significantly   impacted  immigrant                 
  eligibility for public  assistance.  Recent  federal changes                 
  reduce or deny benefits to many  legal aliens already in the                 
  country as well as new  arrivals.  Alaska has the  option of                 
  continuing federal state assistance programs for  aliens who                 
  were in the United States before August 22, 1996.                            
                                                                               
  Co-Chair  Therriault explained  the effect  of Amendment  #1                 
  provided by the  Governor.  [Copy  on file].  The  amendment                 
  would include certain  battered aliens as qualified  aliens.                 
  The illegal Immigration Reform  and Immigrant Responsibility                 
  Act of 1996 contains a provision that amended the "qualified                 
  alien"  definition to  include  certain  battered aliens  by                 
  adding a new  subsection, 8  U.S.C. 164(c).   The  amendment                 
  would  incorporate   the  additional  provision   and  avoid                 
  inconsistencies with federal guidelines.                                     
                                                                               
  KRISTEN BOMENGEN, ASSISTANT ATTORNEY GENERAL, DEPARTMENT  OF                 
  LAW, stated  that  the 1996  Act included  a provision  that                 
  added another group to be considered as qualified aliens  in                 
  a separate subsection (c).   The amendment would incorporate                 
  that language with  federal law.  She  added that currently,                 
  there is a pending technical amendment  on the federal level                 
  which is being considered.                                                   
                                                                               
  Co-Chair Therriault asked if the Governor's  amendment would                 
  affect  the  fiscal  note.   Mr.  Lively  replied  that  the                 
  Department does not know how  many current aliens there  are                 
  in the program that have been victims of domestic  violence.                 
  The Department can not make that prediction as this time.                    
                                                                               
  Mr.  Lively  noted  that  each  members  packet  includes  a                 
  demographic  chart indicating the  alien population  and age                 
  break down.    He explained that a  legal alien was a person                 
  who resides in  the country legally  and has arrived in  the                 
  U.S. through some kind of status.                                            
                                                                               
  (Tape Change HFC 97-108, Side 2).                                            
                                                                               
  Ms. Bomengen added  that there  is a group  residing in  the                 
  United States under  a "color  of law", existing  in a  gray                 
                                                                               
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  zone.  They do not have a green card, although, these people                 
  are U.S. citizens.                                                           
                                                                               
  Co-Chair Hanley disclosed that his  sister-in-law is a legal                 
  alien.   He  understood  that  legal  aliens  would  not  be                 
  eligible for benefits for five years.  After that time, they                 
  would be eligible.  To become a legal alien, one must have a                 
  sponsor who will  certify that the  person is able to  get a                 
  job or is willing to provide the job.  He suggested  that If                 
  a person  had a  sponsor, they  would not  be  on a  welfare                 
  program.   The  proposed  legislation will  grand-father  in                 
  those persons who arrived in  the country before August  22,                 
  1996.                                                                        
                                                                               
  Mr. Lively  explained the chart  which had been  prepared by                 
  the  Department  for  the  Committee  meeting.    The  chart                 
  identified fiscal  impacts with  passage of  the legislation                 
  and its' affect to the Adult Public Assistance (APA) portion                 
  of  the  program.    As  of  August, there  were  800  legal                 
  immigrants in that program.  With passage of the bill, those                 
  persons would be grand-fathered in.  In future fiscal years,                 
  there would be attrition  with that group and the  costs for                 
  the  APA  program  will decline.    Without  passage  of the                 
  legislation,  the Alaska  State Statutes  would not  exclude                 
  legal aliens from  Adult Public Assistance.   The Department                 
  would remain responsible for covering those individuals.                     
                                                                               
  The effect to the Alaska Temporary Assistance Program (ATAP)                 
  would  be the same  as the  net effect  to the  APA program.                 
  There  are currently 820  people on  that program.   Without                 
  passage  the legislation,  legal immigrants  would still  be                 
  eligible for the program.  Because  of the federal five year                 
  ban, there exists a complicating factor which would increase                 
  the general fund  expenditure.  The federal  government will                 
  not participate for five years.                                              
                                                                               
  Mr.  Lively  spoke to  the  Medicaid  program.    State  law                 
  statutes work conversely  for Medicaid than they  do for the                 
  other  two  programs.   In Medicaid,  a  person needs  to be                 
  written  into  the  statute  to  be  eligible.    State  law                 
  currently  does  not  have  legal  immigrants  written  into                 
  statute.  These people have  always been eligible because of                 
  their  relationship  to the  federal  program.   The federal                 
  government,  through the immigration  laws has  severed that                 
  relationship.  If HB 153 passes, the State would continue to                 
  cover legal  immigrants who  arrived in  the country  before                 
  August 22, 1996.                                                             
                                                                               
  JOHN  SHERWOOD,  DIRECTOR, DIVISION  OF  MEDICAL ASSISTANCE,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, commented that the                 
  Department's  budget  currently  includes the  spending  for                 
  legal immigrants.  If the bill  passes, the Department would                 
                                                                               
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  continue to cover qualified aliens.  There will be some case                 
  load reductions over-  time with that group  as people newly                 
  arriving  in  this  country  will  experience  a  period  of                 
  ineligibility time.  Because  of the way in which  State law                 
  is written, this would occur whether  or not the bill passes                 
  due to the change in federal law.                                            
                                                                               
  If a choice is made to not cover qualified legal aliens, the                 
  State would  be required  to continue  to provide  emergency                 
  services through the Medicaid program.  In addition, certain                 
  aliens with specific health care needs would be eligible for                 
  general medical  assistance, State General Funds,  an action                 
  which would  create a cost  shift from a 50/50  program to a                 
  general fund program.                                                        
                                                                               
  (Tape Change HFC 97-109, Side 1).                                            
                                                                               
  Mr.  Lively  noted  that if  the  bill  does  not pass,  the                 
  Department  would   quit  serving   all  the   aliens  being                 
  administered by Medicaid.  There  would be a savings off-set                 
  indicated in the fiscal  note.  The State would  continue to                 
  serve  the  legal  immigrants for  emergency  services.   He                 
  concluded that it is important that bills already accrued be                 
  paid for services rendered.                                                  
                                                                               
  Mr.  Sherwood  explained  that  the  legal aliens  would  be                 
  subject  to the  same five  year  bar in  receiving Medicaid                 
  benefits.   The exception with  Medicaid would be that those                 
  persons who were not eligible for regular Medicaid benefits,                 
  may   still  qualify  for   coverage  of  emergency  medical                 
  services.   The  legal aliens arrived  before the  date will                 
  continue to receive benefits as they previously had.                         
                                                                               
  Co-Chair  Hanley  asked  if  the  federal  government  would                 
  continue to  provide matching funds  for these people.   Mr.                 
  Lively stated that the federal  government would continue to                 
  pay their share of that  cost for all those in  this country                 
  before August 22, 1996.                                                      
                                                                               
  Co-Chair Hanley  asked why there would be  an attrition rate                 
  in the Medicaid portion of the proposed bill, observing that                 
  there  had  not been  a reduction  in  the general  fund for                 
  Medicaid.  Mr. Sherwood  advised that the reduction  was not                 
  indicated on the fiscal note and would not be related to the                 
  passage of the  legislation.  State Statute  stipulates that                 
  money for  new  immigrants  can not  be  spent  through  the                 
  regular Medicaid program.                                                    
                                                                               
  Mr.  Sherwood  continued, because  of  timing uncertainties,                 
  there  are questions  as to  when the provisions  would take                 
  affect.   The  fact  that the  Department  will continue  to                 
  experience   substantial   costs   in  providing   emergency                 
                                                                               
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  services, the decision was made to  include that data in the                 
  low growth assumptions  developed.   Mr. Lively pointed  out                 
  that thirty-five states  have opted  into a similar  welfare                 
  program that Alaska created with the welfare reform.                         
                                                                               
  SUZANNE GOODRICH, (TESTIFIED VIA  TELECONFERENCE), EXECUTIVE                 
  DIRECTOR,  CATHOLIC  SOCIAL   SERVICES,  ANCHORAGE,   shared                 
  observations  of  the  effect  on  immigrants  with  welfare                 
  reform.  She noted that there  are two different groups that                 
  would  be  affected.   The first  group  are those  that are                 
  currently receiving some form of public assistance and whose                 
  benefits will be  cut off.  The  second are those who  enter                 
  the country  after August  22nd,  and would  not qualify  to                 
  receive any assistance for five years.                                       
                                                                               
  She  emphasized  that  it  is  important to  know  that  the                 
  immigrants  being  cut  off   of  assistance  are  full-time                 
  permanent residents.   They are in the country  lawfully and                 
  have paid  into social  security but  are not yet  citizens.                 
  Ms.  Goodrich emphasized  that citizenship is  an emotional,                 
  lengthy and difficult process, especially for someone with a                 
  language barrier, disability or other challenges.                            
                                                                               
  Currently, there are 3,105 individuals  who will be affected                 
  because they are  receiving assistance.  Within  that group,                 
  430 are  children under the age of eighteen and 631 are over                 
  the  age of sixty-four.  There are  801 needy people who are                 
  aged, blind or  disabled.   Catholic Community Services  has                 
  been assisting  the municipality  in providing  a survey  of                 
  immigrants  who  will  be  loosing  their assistance.    She                 
  stressed that when considering  legislation that will affect                 
  immigrants, it  is also critical  to consider the  impact of                 
  welfare reform.  She stressed that the local communities can                 
  not do all the work and  urged Committee members to consider                 
  passage  of HB 153 and the  full impact of welfare reform on                 
  the Alaskan immigrants.                                                      
                                                                               
  Co-Chair Hanley asked if  a person had been residing  in the                 
  United States for  seventeen years, would they  then qualify                 
  under the five year federal guideline.  Ms. Goodrich replied                 
  that  would  depend upon  if they  had  worked.   Mr. Lively                 
  stated that if you were an alien who had been in  the states                 
  and had exemptions from  being excluded, and if  that person                 
  had been a veteran, or worked  for forty quarters, then they                 
  would continue to receive benefits even if the five year ban                 
  was imposed.                                                                 
                                                                               
  ROBIN  BROWN,  (TESTIFIED  VIA   TELECONFERENCE),  DIRECTOR,                 
  CATHOLIC SOCIAL SERVICES,  ANCHORAGE, added, that there  was                 
  an  initial  five  year  ban  which  would  prohibit  lawful                 
  permanent residents from receiving public assistance.  After                 
  the first five  years, an  additional provision would  apply                 
                                                                               
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  and  the  sponsor's   income  would   then  be  taken   into                 
  consideration.   If that  income was  above the  established                 
  income standard,  the immigrant  would not  be eligible  for                 
  public assistance.                                                           
                                                                               
  She pointed out  that a new  affidavit of support form  will                 
  create a contract between the sponsor, the immigrant and the                 
  government.   If  the  immigrant seeks  to apply  for public                 
  assistance, the government would then pursue collection from                 
  the sponsor.                                                                 
                                                                               
  Co-Chair Hanley asked if someone who has been in the country                 
  for  twenty years  would  be  able  to continue  to  receive                 
  benefits with this legislation.   Ms. Brown replied that  it                 
  would  depend  on whether  or not  they  had worked  for the                 
  specified  amount  of time.    Mr. Sherwood  clarified, that                 
  should the  legislation not pass,  that alien would  need to                 
  fall into one of the exempt categories.                                      
                                                                               
  SYLVIA  CARVAJAL,  (TESTIFIED  VIA TELECONFERENCE),  PROJECT                 
  COORDINATOR, DISABILITY  LAW CENTER, ANCHORAGE,  stated that                 
  her firm was attempting to identify individuals who would be                 
  loosing their federal benefits.  The firm was also providing                 
  assistance for those  that qualify for naturalization.   The                 
  time frame for naturalization exceeds six months.  She urged                 
  Committee members to move the bill from Committee.                           
                                                                               
  Co-Chair  Therriault  MOVED to  adopt  Amendment #1.   There                 
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Co-Chair  Hanley  MOVED to  report CS  HB  153 (FIN)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS  HB 153 (FIN)  was reported out  of Committee with  a "do                 
  pass"  recommendation  and  with four  fiscal  notes  by the                 
  Department of Health of Social Services dated 2/24/97.                       

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