Legislature(1995 - 1996)

05/06/1995 01:00 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
       HOUSE BILL NO. 78                                                       
       "An Act relating  to the  maximum amount of  assistance                 
  that may       be granted under the adult public  assistance                 
  program  and  the         program  of  aid to  families with                 
  dependent children; proposing        a special demonstration                 
  project within  the program of  aid to        families  with                 
  dependent  children and  directing the Department         of                 
  Health and Social Services to seek waivers from  the federal                 
       government to implement the project."                                   
                                                                               
                                                                               
  Representative Hanley was invited to join the Committee.  He                 
  stated that  HB 78  was his  version of  the welfare  reform                 
  package.   He briefly went through the bill.  He stated that                 
  the first section of  the bill relates to child  enforcement                 
  division, giving  them tools  to allow  for collecting  more                 
  child support enforcement.   It actually reduces  the amount                 
  of  money  to  be  paid  to   AFDC  since  the  extra  child                 
  obligations  come in and  supplant AFDC payments.   He noted                 
  that this  may be  imposed on  Alaska, on  a federal  level,                 
  since  it  is part  of  the  contract with  America;  and is                 
  involved in  the package  that the  House sent  to the  U.S.                 
  Senate.    The next  major  section dealt  with  minors with                 
  children.   Requiring  them  to live  at  home with  certain                 
  exceptions.  This  section was originally in  the governor's                 
  bill and also  in Senator  Green's bill.   He noted that  he                 
  incorporated this  into  his  bill  as it  was  passed  out.                 
  Basically,  a minor who  has a child, would  have to live at                 
  home  with  their  parents,  unless  there  was  an  abusive                 
  situation or a few other exclusions included in the bill.                    
                                                                               
  Senator Sharp MOVED to ADOPT SCSCSHB 78 (FIN), version  "U".                 
  No objections being heard, the working draft was ADOPTED.                    
                                                                               
  Rep  Hanley  continued through  the  bill.   He  stated that                 
  section 8  is a court rule change. In an attempt to equalize                 
  the situation dealing  with a minor mother required  to live                 
  at home with  her parents, there  is also a requirement  for                 
  the minor father which requires his parents to take monetary                 
  responsibility.                                                              
                                                                               
  Rep Hanley,  in referring to  Section 10, involves  a report                 
  that is required for the Child Support Enforcement Division,                 
  requiring information dealing with occupational and driver's                 
  licenses.  Section 11 makes reference  to the waivers in the                 
  bill.  Whereby the state is required to request waivers from                 
  the  federal  laws to  implement  some of  the demonstration                 
  projects  that are in the bill.   Section 12 starts with the                 
  waiver   process.    It   also  takes   away  some   of  the                 
  disincentives to  work and provides incentives.   Currently,                 
  under federal law  a recipient  of AFDC is  allowed to  keep                 
  only $50  of their  earnings after  the first  three months.                 
  This bill changes that figure to $200, plus one-third of the                 
  remaining  amount,  which  provides  an  incentive  for  the                 
  individual  on  AFDC.  The  state  keeps  two-thirds,  which                 
  actually helps to offset the amount  of money that the state                 
  is  spending  on  the AFDC  program.    It  also allows  the                 
  combined equity  in a motor vehicle used by the family to be                 
  raised from $1500 to $5000.  There is a section dealing with                 
  the waiver for two parent family, whereby the law provides a                 
  100 hour limit per month.   Section 13 concerns the workfare                 
  issue.  This  section deals  with exemptions  but also  says                 
  that if a person is able- bodied,  there is a requirement of                 
  15 hrs a  week of paid employment or 21 hrs of uncompensated                 
                                                                               
                                                                               
  community service work,  if assigned by the department.  The                 
  reason  being  there  may  not  be any  volunteer  services.                 
  Section 14 was originally  in the governor's bill, it  is an                 
  AFDC unemployed parent project  that sets up a 2  year self-                 
  sufficiency  development  program.    Section  15  is  self-                 
  employment project.   It allows individuals on  AFDC to save                 
  money and  not have  that count  against them,  if they  are                 
  going  to use  it to establish  a business.   Section  16 is                 
  called  a diversion project.   It allows  the department the                 
  flexibility to give individuals a one-time lump sum payment.                 
  The dollar amounts  are listed on page 28, lines  3-26.  The                 
  intent is to  find those individuals  and give them the  one                 
  time assistance.   They would not  be eligible for the  AFDC                 
  payments.                                                                    
  Co-chair Halford stated that the bill has received extensive                 
  hearings in the Senate under a senate bill.                                  
                                                                               
  Senator Green was invited to join  the committee.  She began                 
  on  page  13, with  the  senate changes  to  the bill.   The                 
  section deals with ineligibility assistance, making it clear                 
  that  upon  conviction of  welfare  fraud, the  recipient is                 
  ineligible  for welfare  benefits.    She  moved on  to  the                 
  section dealing with benefits for children going on welfare,                 
  page  14, line  6.   She  noted  that  it would  not  impact                 
  medicare or food  stamps, but cash  benefits only.   Another                 
  change  on page  14, line  18, notes  that  a person  is not                 
  eligible to receive  benefits for  more than a  total of  60                 
  months.  There  is a five year time limit  unless the person                 
  is permanently, totally, or physically disabled.   There was                 
  considerable  discussion regarding the  needs for the parent                 
  in this situation.   There was  language developed to  amend                 
  this  portion.   A  motion was  made  to adopt  a conceptual                 
  amendment on page  14, line 20.   No objection being  heard,                 
  the conceptual amendment was ADOPTED into the work draft.                    
                                                                               
  Senator  Green  advanced into section 4, stating the ratable                 
  reduction of 1.7% is  included in this version.   In section                 
  6,  she  noted the  time  limit  on benefits  were  changed.                 
  Section 12 deals with a two-tier system which she explained.                 
  Section  14  which  deals with  the  AFDC  unemployed parent                 
  project,  provides for coordination within 2-years for self-                 
  sufficiency.   The last revision  is in section  26, dealing                 
  with the effective date.                                                     
                                                                               
  Senator Zharoff asked what the process for teen mother would                 
  be under this system?  Rep Hanley responded that teen mother                 
  would have to live at home  with their parents, unless there                 
  was  an abusive situation  or some  of the  other exceptions                 
  provided in the bill.  That was a proposal by the governor's                 
  office  and  Senator Green,  that  he incorporated  into the                 
  original bill, which is still in the current version.                        
                                                                               
  Senator  Zharoff  asked  for  clarity  on the  various  time                 
  limits.  Ms.  Babcock responded  that there is  a five  year                 
                                                                               
                                                                               
  time limit that applies to everyone including those on AFDC,                 
  those  not  permanently  totally,  physically  or   mentally                 
  disabled.    Even if  a  recipient  enters into  a  two year                 
  program,  the  five  year limit  is  still  imposed.   If  a                 
  recipient goes into  a workfare,  training, or jobs  program                 
  and put  on the 24-month  time limit,  once a job  is found,                 
  after  the  24-month, then  the  recipient has  an  84 month                 
  period whereby  you are not eligible to  go back on AFDC. If                 
  the  84 month lapses and  the recipient wants  to go back on                 
  AFDC, they would  have three more years  left on the  5 year                 
  limitation.  The time limits are not retroactive, it becomes                 
  effective March 1, 1996 if not prohibited by federal law.                    
                                                                               
  Senator  Zharoff  asked for  an  explanation on  the ratable                 
  reduction.                                                                   
  Ms. Babcock responded  that the  ratable reduction is  1.7%,                 
  similar to the House bill, that came out of finance and went                 
  to the floor. Page 15, lines 1-12 indicates the impact which                 
  is $102 to  $100; $452  to $451;  $821 to $806  and $514  to                 
  $505.    The average  is $15  month  less with  1.7% ratable                 
  reduction.                                                                   
                                                                               
  Senator Rieger  asked for explanation on language on page 2.                 
  Ms.  Babcock  responded  that the  language  refers  to non-                 
  custodial grandparents, and their obligation to support  the                 
  grandchild, in the same way a  parent would insofar as their                 
  income is concerned.                                                         
  This is in the case where both parents are minors and living                 
  with the parents.                                                            
                                                                               
  Senator Zharoff asked if  money could be set aside  from the                 
  PFD and saved until the child was 18?  Ms. Babcock stated it                 
  could be  done, but it is  currently not being done.   There                 
  were  questions  at the  table  concerning encouragement  of                 
  people to move to Alaska because of the good benefits.                       
                                                                               
  Co-chair Halford MOVED to change all time limits to March 1,                 
  1996. No objection being heard, the conceptual amendment was                 
  ADOPTED.  Section 23 would indicate  that only Section 21 is                 
  immediate.    No  objection   being  heard,  the  conceptual                 
  amendment was ADOPTED.                                                       
                                                                               
  Senator  Zharoff  MOVED to  adopt  a letter  of  intent. The                 
  motion  failed.   With  this,  he  then asked  to  adopt the                 
  original CSHB 78. A motion was made  to rescind the "U" work                 
  draft.   The motion failed by  a show of hands. All opposed:                 
  Co-chair Halford,  and  Senators  Rieger,  Sharp,  Phillips.                 
  Those in favor: Senator Zharoff.                                             
                                                                               
  Senator Zharoff moved to adopt  a conceptual amendment which                 
  deleted those portions  in section 3,  and added to the  CS.                 
  After some discussion, he amended his  motion to include the                 
  deletion of  all  of Section  3.   By a  show  of hands  the                 
  amendment FAILED.   Senator  Zharoff was in  favor, and  Co-                 
                                                                               
                                                                               
  chair Halford, along  with Senators  Sharp, and Rieger  were                 
  opposed.  Senator  Phillips abstained.  The  motion failed 3                 
  to 1.                                                                        
                                                                               
  Senator Zharoff  moved to  remove the  ratable reduction  of                 
  1.7%.   By a show of hands, the  amendment FAILED.  In favor                 
  was Senator Zharoff.   Opposed were Co-chair  Halford, along                 
  with Senators Rieger, Sharp and  Phillips. The motion failed                 
  4 to 1.                                                                      
                                                                               
  Senator Zharoff moved for the removal  of the Time Limits on                 
  Benefits under Section 6, starting on page  16, line 31.  By                 
  a show  of hands,   the  amendment FAILED.     In favor  was                 
  Senator Zharoff.  Opposed were  Co-chair Halford, along with                 
  Senators Rieger, Sharp and Phillips.  The motion failed 4 to                 
  1.                                                                           
                                                                               
  Senator Zharoff moved for the removal of portions of Section                 
  12.  By a show of hands, the amendment FAILED.  In favor was                 
  Senator Zharoff.  Opposed were  Co-chairs Halford and Frank,                 
  along with Senators Sharp, Rieger and Phillips.   The motion                 
  failed 5 to 1.                                                               
                                                                               
  Senator Zharoff  moved to delete  subsection (e) and  (f) on                 
  page 23 of  section 13.  By  a show of hands,  the amendment                 
  FAILED.  In  favor was  Senator Zharoff.   Opposed were  Co-                 
  chairs Halford  and Frank,  along with  Senators Sharp,  and                 
  Rieger.  The motion failed 4 to 1.                                           
  Senator Zharoff  moved to change  years in Section  14, page                 
  24, line 4. Changing 2 years to three years and 24 months to                 
  36 months.   By a show of  hands, the amendment FAILED.   In                 
  favor was Senator  Zharoff.  Opposed were  Co-chairs Halford                 
  and Frank, along  with Senators Phillips, Sharp  and Rieger.                 
  The motion failed 5 to 1.                                                    
                                                                               
  Sherri Gore, representing the Alaska Women's Lobby testified                 
  in  support of  the House version  of the bill.   She stated                 
  that  the  committee  has  adopted   a  new  approach  which                 
  encourages abortions  and limits  those who  are caring  for                 
  totally disabled  children.  She asked to  exempt parents of                 
  the totally disabled.                                                        
                                                                               
  Senator Phillips expressed concern  about the parent  caring                 
  for  the  totally  disabled  and  indicated that  additional                 
  language was needed to  amend this area.    Senator Phillips                 
  MOVED to adopt new language on page 14.  No objections being                 
  heard, an amendment to an earlier amendment was ADOPTED.                     
                                                                               
  Senator  Sharp  MOVED   to  adopt  SCSCSHB  78   (FIN)  with                 
  individual recommendations and the accompanying fiscal notes                 
  as listed.   No objection being  heard SCSCSHB 78 (FIN)  was                 
  REPORTED OUT of  committee with  a "do  pass" from  Co-Chair                 
  Halford and  Senator Sharp.  Senators Rieger  and   Phillips                 
  signed "no  recommendations" and Senator Zharoff  signed "do                 
                                                                               
                                                                               
  not pass". The accompanying fiscal notes are noted below:                    
                                                                               
       No   Dept                     Date           Amount                     
                                                                               
       2    DH&SS (PA-Elg. Deter.)   5/7/95            170.4                   
       3    DH&SS (PA-Admin)         5/7/95            283.0                   
       4    DH&SS (PA-Data Proc.)    5/7/95            972.4                   
                                                                               
       5    DH&SS (Ak. Work Prog.)   5/7/95              - 0 -                 
  394.5                                                                        
                                                                               
  FY-97                                                                        
       6    DH&SS (Child Care)       5/7/95              - 0 -                 
  152.0                                                                        
                                                                               
  FY-97                                                                        
       7    DH&SS (AFDC-Ratable Red.)5/7/95         (1,610.7)                  
       8    DH&SS (PFD Hold Harm.)   5/7/95           (226.9)                  
       9    DH&SS (FYS Central)      4/4/95            113.9                   
       10   DH&SS (Med. Asst. Claims)5/7/95             40.0                   
       17   DH&SS (EMS Training)     3/10/95             1.5                   
       23   DEC (Palmer Lab.)        2/17/95             -0-                   
       24   DH&SS (Med. Facilities)  5/7/95           (116.7)                  
       25   DH&SS (Med. Non-Fac.)    5/7/95           (107.7)                  
       26   DH&SS (AFDC)             5/7/95           (317.9)                  
       27   DOLabor (Mech. Insp.)    3/30/95 & 5/2      53.7                   
       28   DOLabor (Safety & Health)3/30/95 & 5/2      36.1                   
       29   DC&ED (Banking/Corps.)   3/24/95 & 5/1      29.1                   
       30   DC&ED (Occ. Licensing)   3/24/95 & 5/1      83.5                   
       31   DC&ED (Ins. Operations)  3/24/95 & 5/1      26.0                   
       32   DOR (Child Support)      4/4/95 & 5/2      519.4                   
       33   DOE (Teacher Cert.)      3/24/95 & 5/1      20.8                   
       34   DPS (Driver Services)    4/3/95 & 5/1      222.8                   
       35   DOLabor (Wage & Hr. Admin) 5/2/95            -0-                   
       36   Courts                   5/5/95             80.8                   
       NEW  DH&SS (Hearings/Appeals) 5/7/95              -0-                   
  65.6                                                                         
       FY-97                                                                   
                                                                               
  The meeting RECESSED at 2:00 p.m.                                            
                                                                               
  End     Tape #66, Side 1                                                     
  Begin   Tape #68, Side 1                                                     
                                                                               
  The meeting RECONVENED  at 3:45  p.m. Present were  Co-chair                 
  Halford, along with Senators Phillips, Rieger, and Sharp.                    
                                                                               

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