Legislature(2003 - 2004)
04/30/2004 09:12 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 376(HES) "An Act relating to public assistance and subpoena powers; and relating to the permanent fund dividend and subpoena powers." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill, sponsored by the Senate Health, Education and Social Services Committee, "authorizes the commissioners of the Department of Health and Social Services and the Department of Revenue to issue subpoenas to compel the production of records needed to investigate cases of suspected fraud." JASON HOOLEY, Staff to Senator Dyson, stated this legislation would assist the Department of Health and Social Services and the Department of Revenue to "combat fraud". Currently when public assistance fraud or permanent fund dividend fraud is suspected, the departments typically request additional documentation or information from the applicants. However, these requests are often unheeded or ignored. The departments must then engage the judicial system to acquire subpoenas to obtain the information from the applicants to determine eligibility. Engaging the judicial system is time consuming and expensive in the use of State resources. Allowing these departments to acquire subpoenas would enable the State to more efficiently combat fraud and subsequently serve the people of Alaska. Senator Olson asked the number of cases of suspected fraud of public assistance benefits occur annually. Mr. Hooley deferred to the Department of Health and Social Services. TONY LOMBARDO, Director, Division of Public Assistance, Department of Health and Social Services, testified via teleconference from Anchorage to introduce Mr. Marley. JAY MARLEY, Program Manager, Fraud Control Unit, Division of Public Assistance, Department of Health and Social Services, testified via teleconference from Anchorage told of two types of cases the Division tracks: applicant fraud and recipient fraud. The Division attempts to stop applicant fraud before benefits are distributed. Last year, the Division investigated 595 applicant fraud cases and 698 recipient fraud cases. Senator Olson asked the number of these investigations would require subpoena power. Mr. Marley replied the number varies and averages one-quarter of the number of investigations. The subpoenas are not necessarily issued to recipients or applicants, but rather to employers, banks, and other institutions that would have information regarding the applicants and recipients' employment and financial status. Co-Chair Green offered a motion to report the bill from Committee with individual recommendations and accompanying fiscal notes. There was no objection and CS SB 376 (HES) MOVED from Committee with fiscal note #1 for $5,500 and fiscal note #2 for -$25,100 from the Department of Health and Social Services and a new zero fiscal note dated 4/21/04 from the Department of Revenue.
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