Legislature(2003 - 2004)
05/10/2004 11:20 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 376(HES) am An Act relating to public assistance and subpoena powers; and relating to the permanent fund dividend and subpoena powers. JASON HOOLEY, STAFF, SENATOR FRED DYSON, noted that SB 376 would allow the commissioners for the Department of Health & Social Services and the Department of Revenue to issue subpoenas to compel the production of records needed to investigate cases of suspected fraud. The Department of Labor & Workforce Development currently has that type of subpoena power, as do many agencies in other states. The Division of Public Assistant Fraud Control Unit reported that records such as rental agreements, utility billings or health care information are often used to verify information provided by public assistance applicants or recipients. Simple requests for these items often go unheeded due to concerns about exposure to litigation. Currently, the cost of going to court to get subpoenas for that type of record makes investigating "smaller" fraud cases prohibitively expensive. By allowing these departments to issue their own subpoenas, the costs of going to court would be eliminated, and the department could cost-effectively investigate more cases of suspected fraud. The result will be additional recovery of welfare overpayments. The one-person staff working to combat Permanent Fund Dividend fraud has begun an aggressive fraud program, aimed to assure that fraud is identified, prosecuted, and deterred to the greatest extent possible. Representative Foster MOVED to report CS SB 376 (HES)am out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Chenault OBJECTED to make a comment. He voiced concern with who would be in charge with the subpoena ballot. He stated that it is important that the Legislature indicate who they would want to see it be. Representative Chenault WITHDREW his OBJECTION. JAY MARLEY, (TESTIFIED VIA TELECONFERENCE), PUBLIC ASSISTANCE FRAUD CONTROL UNIT MANAGER, DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT, ANCHORAGE, stated that within the Department of Labor & Workforce Development, the subpoena power went down to the investigator level. With the number of subpoenas currently being investigated by the Department, it would be extremely burdensome to have to wait for the commissioner, deputy commissioner or the deputy director of any division's signature. Representative Stoltze could not believe that it would be a "burden" to get the signature of the commissioner. ANTHONY LOMBARDO, DIRECTOR, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH & SOCIAL SERVICES, noted that there had been discussion in the Senate regarding potential abuse. As a result, there was language proposed by Senator French that it be limited to the commissioner's or director's level. Essentially, the decisions need to be made on an executive level where there is some accountability in the issuance. Department of Health & Social Services agreed that would be an appropriate limitation. There being NO further OBJECTION, CS SB 376 (HES)am was reported out of Committee with "no recommendation" and with fiscal note #1 & #2 by the Department of Health & Social Services and zero note #3 by the Department of Revenue.
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