Legislature(1999 - 2000)
04/11/2000 03:11 PM House HES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HB 355 - STATE COMMUNITY SERVICE PROGRAM Number 1500 CHAIRMAN DYSON announced the next order of business as House Bill No. 355, "An Act establishing a state community service program; establishing by statute the Alaska State Community Service Commission; and providing for an effective date." Number 1520 REPRESENTATIVE ALLEN KEMPLEN, Alaska State Legislature, sponsor, came forward to present HB 355. He has become increasingly concerned about the lack of participation in the civic sector by the citizens. Before he became a legislator, he was very active in his neighborhood and community, and he found it increasingly difficult to get people to participate in volunteer activities. He discovered that volunteerism is an essential trait of the American character and has always been powerful in American culture. He told the committee members there are several articles in their packets that addressed the diminishing character trait. Technology has played a great role in this. One of the articles maintained that television is drawing people away from participating in the community, faith organizations and community service organizations. The Internet is also keeping people isolated from their neighbors. With this increasing isolation of individuals, the community needs are not being addressed. REPRESENTATIVE KEMPLEN explained that in the past, many of the social problems were dealt with in the civic sector by social and community organizations. House Bill 355 provides incentives for people to participate in civic sector organizations and do some good for their neighborhood and the community at large. The Department of Education & Early Development has provided a zero fiscal note for HB 355. The Alaska Housing Finance Corporation said it foresees no increased cost for the housing voucher. It would be treated as a component of its portfolio. REPRESENTATIVE KEMPLEN noted that the community service program that was created by executive order is lodged in the Department of Education & Early Development (EED). It was created to channel the Americorps grants from the federal government, and HB 355 moves that commission to Alaska statutes and gives it some additional responsibilities. The commission will take the initiative to create an Alaska-based community service program instead of just monitoring the Americorps pass-through grants. The EED feels it can do that with existing staff. Number 1797 REPRESENTATIVE COGHILL asked Representative Kemplen if this was a prototype, or if it was patterned after things existing in other states or communities. REPRESENTATIVE KEMPLEN answered that the community service program is something already in place. This bill makes it Alaska-specific and strengthens it. Number 1835 REPRESENTATIVE WHITAKER asked Representative Kemplen how HB 355 revamps the existing Community Service Commission. REPRESENTATIVE KEMPLEN replied it doesn't revamp the commission itself, it just moves it into Alaska statutes. It makes it an official state-sponsored program and gives it some additional responsibilities. REPRESENTATIVE WHITAKER asked how exactly it enhances the commission. REPRESENTATIVE KEMPLEN said it enhances it by giving the commission members a greater charge. It strengthens their mission so they become responsible for laying out an Alaska- specific community service program. The commission will write administrative procedures and regulations on how this Alaska program would be implemented, what would qualify an organization to receive the designation of an official Alaska community service program, and what type of criteria it would have to meet in order to justify the housing or education voucher. It gives the commission work. Number 1934 REPRESENTATIVE COGHILL asked Representative Kemplen what he envisioned as part of the community service specific to a community; what kinds of logistical things was he thinking people would do. REPRESENTATIVE KEMPLEN suggested a number of things could qualify, but the Community Service Commission would set those parameters. That would be the commission's charge to define exactly what the sideboards are that qualify for community service. It will be structured. It will have to be an established civic organization. There are already a number of civic organizations that provide community service, and those organizations could apply to participate in this Alaska community service program. CHAIRMAN DYSON commented that this group will be doing a lot of work. If it can do it without existing cost, he wondered what is being done now that the commission will quit doing. REPRESENTATIVE KEMPLEN said his impression from talking to the members of the Community Service Commission, is that they don't do too much now besides approve the federal pass-through dollars. House Bill 355 will tap into that potential. Number 2048 CHAIRMAN DYSON asked where the money is going to come from for the vouchers. REPRESENTATIVE KEMPLEN answered that the housing voucher becomes part of the portfolio of the Alaska Housing Finance Corporation (AHFC). The AHFC is guaranteeing a 100 percent mortgage loan. That is carried on the AHFC's books so there is no additional cost to the AHFC. The educational vouchers could come from either the university as a line item in its budget or from federal funds. CHAIRMAN DYSON referred to page 3 of HB 355 and asked about the faith based organizations. REPRESENTATIVE KEMPLEN answered Catholic Community Services does social service activities and would be eligible for this type of activity because it is separate from the other part of the organization. It basically precludes preaching of a specific faith. REPRESENTATIVE BRICE explained that this commission wouldn't draw from the EED's current resources, it just is putting what it does now into statute. Number 2199 REPRESENTATIVE WHITAKER asked Representative Kemplen if he had given thought to the notion that the volunteer efforts of the individuals, who might qualify for either the educational voucher or the housing voucher, would now be no longer voluntary, but there would be remuneration considered for that time. Therefore, it may have an implication with regard to federal income taxes. REPRESENTATIVE KEMPLEN said it may. Often most people who do volunteer activities don't make very much money. Young people out of high school or recent college graduates are not making very much money. REPRESENTATIVE WHITAKER said because the individuals may not have substantial earnings, they may essentially be taxed for $2500 credit referred to on page 6, line 14. The volunteers may be taxed on revenue, but this is a credit so it could have a substantial negative effect on their tax situation. He recommended that Representative Kemplen look into that. REPRESENTATIVE COGHILL asked Representative Kemplen if he thought about putting this commission into the Department of Health & Social Services. Number 2310 REPRESENTATIVE KEMPLEN replied he did not consider that. The current commission is lodged in EED and the administration was comfortable in keeping it there. The programs that will be eligible have yet to be defined by the commission. If there is a heavy social services orientation to it, that may be something to address down the road. REPRESENTATIVE COGHILL asked if Representative Kemplen studied or knew of any studies on the structure for community volunteerism in Alaska. He commented that there are a lot of nonprofit or civic minded organizations that are probably doing this, and it seems that this could insert a community in areas where nonprofit and other civic organizations have already asserted themselves. TAPE 00-44, SIDE B Number 2351 REPRESENTATIVE KEMPLEN answered he hasn't done a systematic analysis but in conversations with people who are active in the civic sector, they tell him this is great; it would make it easier to get people to participate in the different organizations, and it would make the organization do a better job. REPRESENTATIVE WHITAKER asked Representative Kemplen if the commission would pay pass-through dollars to the university for the educational voucher and the same then would be true for the recipient of the housing voucher to pay for mortgage insurance no matter who the mortgage holder may be. REPRESENTATIVE KEMPLEN explained if a participant were to complete the defined length of community service, he/she would be eligible for a voucher, either housing or education. It would be very similar to the GI [Government Issue] bill. As a veteran, he received a housing voucher from the Veterans Administration which guaranteed his loan at 100 percent so he can purchase a home for zero down payment. This would be very similar. The actual details would have to be worked out by the commission; this bill just gives the commission the authority to move forward. A participant would receive a certificate from the Community Service Commission with the backing of AHFC. When the participant applies for a housing loan, the certificate is presented to the loan officer, and the loan officer knows it is guaranteed 100 percent by the portfolio held by AHFC, and the participant doesn't have to put anything down. The biggest obstacle to moving someone into home ownership is the down payment. This becomes a great incentive for people. Number 2191 REPRESENTATIVE WHITAKER said in going back to the full faith and credit of AHFC, he asked if that would then be subsidized by the pass-through dollars as attributable to the commission from the federal government. REPRESENTATIVE KEMPLEN answered it would not be subsidized. REPRESENTATIVE WHITAKER asked if that would be a cost borne by AHFC. REPRESENTATIVE KEMPLEN explained that AHFC would guarantee that loan. If someone pays on time and doesn't default, there is no cost to AHFC. REPRESENTATIVE WHITAKER said the problem with that is it is on the wrong side of the ledger of the portfolio; that is a liability and that could be problematic, and he suspects that will be reflected in a fiscal note of an appropriate amount. The same question would be appropriate with regard to the university. There is no pass-through funding from the commission; it is simply the responsibility of the university given this voucher as a result of HB 355. REPRESENTATIVE KEMPLEN explained that employees of the university now can take classes at no cost. CHAIRMAN DYSON temporarily suspended the hearing on HB 355 in order to take testimony for a confirmation hearing. HB 355 - STATE COMMUNITY SERVICE PROGRAM Number 2071 CHAIRMAN DYSON reopened the hearing on HOUSE BILL NO. 355, "An Act establishing a state community service program; establishing by statute the Alaska State Community Service Commission; and providing for an effective date." Number 2056 MATTHEW TURNER, Big Brothers/Big Sisters, came forward to testify in support of HB 355. The entire product of Big Brothers/Big Sisters is entirely dependent upon adult volunteers who work with children. If there is a commission in place that sets certain standards for both an agency and the volunteer, it seems like the question of liability is pretty low risk. The volunteer proves himself/herself by showing up on time, doing the service, and basically following a contract with an agency for no payment. He wondered if the question of liability would take a lower mark because of that. MR. TURNER noted that this is a good step in the direction of legislation impacting culture because it raises the bar for volunteers and agencies that are part of this program. The commission is going to expect that certain commitments are met. It will be an asset to the agencies to know there is enough of an incentive to know there will be follow through on what a volunteer says he/she will do and follow through on those commitments over the course of a year. Another positive outcome of HB 355 would be the impact on agencies. In order to qualify, agencies are going to have to meet certain performance standards. There will be some accountability without a lot of penalty. MR. TURNER noted that many people are imported from other states, and this bill will encourage more volunteerism in Alaska. Number 1896 YVONNE CHASE, Deputy Commissioner, Department of Education & Early Development (EED), testified via teleconference from Anchorage. The Alaska State Community Service Commission resides within the EED. She researched what other states have done and said many states are in the process of moving their respective commissions into statute, and ten states already have moved to establish their commissions in statute. Establishing the commission in statute formalizes the commitment to volunteer services. The EED did submit a zero fiscal note because the department saw the bill, with the exception of the section on the housing vouchers, as actually taking the functions that were presently outlined for the commission and moving them into statute. The commission has two staff people, and the department doesn't anticipate more staffing would be necessary with these changes. A good deal of the work in reviewing proposals and determining community needs is done by the commission members in a volunteer capacity. The department sees this as a workable bill in statute. Number 1815 CHAIRMAN DYSON asked Ms. Chase if organizations like Alcoholics Anonymous or Boy Scouts are disqualified because of their religious affiliation or orientation. MS. CHASE answered no they wouldn't be disqualified because of a religious orientation. She believes the issue is not of the organization's religious orientation but rather that the organization will serve individuals regardless of their religious orientation. REPRESENTATIVE COGHILL asked Ms. Chase how the commission came to be in the Department of Education & Early Education. He asked if it was there originally or did it go through HB 40 under reorganization. Number 1766 MS. CHASE answered that the commission was moved under HB 40. Initially, the commission was in the Department of Labor & Workforce Development, as a result of the changes in HB 40. The commission members at the time felt that the commission's placement fit better in the Department of Education & Early Development. Number 1730 ROBERT C. BASSETT, Coordinator, Spirit of Community Initiative, Volunteers of America, Alaska, testified via teleconference from Anchorage in favor of HB 355. He has experience with state commissions in other states, most notably New York, and the function and role of the state Community Service Commission is a wonderful and critical part of the strategy for developing human resources in any state. He has followed the development of the Alaska Community Service Commission, and it is at an exciting stage right now. He believes that to codify the state commission and also to establish a state community service program would be a wonderful strategy to keep people engaged, especially young Alaskans who are frankly facing disengagement, either because they are dropping out of school or don't necessarily see a worker career path, or possibly don't see themselves going on to higher education. MR. BASSETT likes the fact that the proposed bill seems to emphasize disadvantaged youth and young people who may not be on the fast track to success. By providing some additional state leadership through the EED, the state is doing a great service. It increases the emphasis on volunteerism. It connects volunteerism to educational development. All experiences out in the community that are structured, mentored and supervised provide great education and in some cases, better education than what is going on in a classroom. It also focuses on citizenship at a time when young people and adults are questioning what their role is in the community. This bill says it is important to be a citizen, and that is going to be recognized through a system of incentives that are tied to higher education. Education is the key. MR. BASSETT noted lastly the bill focuses on motivation. If the young people are not motivated in school, and if they don't feel there is an opportunity for them in the community, there is direction to be motivated if they find an opportunity to get involved in a community activity in service or volunteerism that is meaningful to them where they feel valued and have some sense of success. That leads to building on to a career path or higher education. It is a great proposal to have the state commission become formally part of the EED. CHAIRMAN DYSON closed the public testimony. Number 1577 REPRESENTATIVE BRICE made a motion to move HB 355 from committee with individual recommendations and attached fiscal note. REPRESENTATIVE COGHILL objected. He said the idea sounds good, but he has not had time to think about ramifications. He doesn't want to see civic organizations get crowded by a governmental organization in volunteerism. He would like to do more research because it is not clear to him that this type of commission isn't going to overshadow some of the community efforts. He might be mistaken, and he is open to discussion on it. However, he is not ready to move the bill out of committee. REPRESENTATIVE BRICE said, to alleviate Representative Coghill's concerns, this bill enhances civic organizations' volunteer efforts. It provides a stream of volunteers for those organizations to use to work within the community, and that is why he supports it. Anything that can be done to encourage more volunteerism in the community is a good thing, and thus establishing the commission in statute is appropriate and timely. The commission is not competing. It is cooperating with volunteer organizations. Number 1469 REPRESENTATIVE WHITAKER said he likes the idea, and it has tremendous merit, but he has some practical concerns. He is not going to oppose the bill moving on. However, he is concerned with what the university and AHFC may have to say, and with the tax and wage concerns. He offered to work with the sponsor in the interim to advance something like this. A roll call vote was taken. Representatives Kemplen, Whitaker, Green, Brice and Dyson voted in favor of moving the bill. Representative Coghill voted against it. Representative Morgan was absent. Therefore, HB 355 moved from the House Health, Education and Social Services Standing Committee by a vote of 5- 1.
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