03/07/1996 04:12 PM House HES

 HB 515 - USE OF YOUTH SERVICES GRANTS                                       
                                                                               
 Number 1469                                                                   
                                                                               
 CO-CHAIRMAN BUNDE announced that the next order of business to come           
 before the committee was HB 515.                                              
                                                                               
 KYLE JOHANSEN, staff to Representative Bill Williams, stated that             
 a hand-out on the bill had been delivered to each committee                   
 member's office, and that Tom Lane, of the Department of Health &             
 Social Services, was available to answer questions.                           
                                                                               
 Number 1580                                                                   
                                                                               
 DIANE WORLEY, Director, Division of Family & Youth Services,                  
 Department of Health, Education, & Social Services, State of                  
 Alaska, stated that the division supports HB 515.  She previously             
 worked for a direct service provision agency.  Because the agency             
 was prohibited from using grant funds to purchase a building, they            
 had to move frequently.  This resulted in confusion for clients.              
 To remedy the situation, her organization established a private,              
 non-profit foundation, which purchased the building, and then                 
 rented it to the agency.  This was appropriate and legal, but a               
 direct route would have been much easier.  Ms. Worley emphasized              
 that the proposed legislation would strengthen client services by             
 providing consistency, and represents good business practice for              
 nonprofit organizations.  She invited questions from the committee.           
                                                                               
 Number 1659                                                                   
                                                                               
 CO-CHAIRMAN BUNDE asked for further testimony.  There being no                
 further testimony, public testimony on HB 515 was closed.                     
                                                                               
 REPRESENTATIVE ROBINSON asked if previous problems relating to the            
 bill had been solved.                                                         
                                                                               
 CO-CHAIRMAN BUNDE replied that they had.                                      
                                                                               
 Number 1707                                                                   
                                                                               
 REPRESENTATIVE BRICE stated that this bill would actually result in           
 a reduction in costs to the state.  He moved HB 515 with zero                 
 fiscal notes and individual recommendations be passed out of the              
 committee.                                                                    
                                                                               
 REPRESENTATIVE ROBINSON asked how maintenance needs would be dealt            
 with, once a building was purchased.                                          
                                                                               
 CO-CHAIRMAN BUNDE responded that whether a building is purchased or           
 rented, there are still maintenance needs.  There being no                    
 objections, House Bill 515 with zero fiscal notes and individual              
 recommendations was passed out of the House Health, Education &               
 Social Services Committee.