05/05/2006 09:00 AM Senate FINANCE

9:39:07 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 399(STA)                                                                               
     "An Act establishing the office of elder fraud and                                                                         
     assistance; and relating to fraud involving older                                                                          
     Alaskans."                                                                                                                 
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
9:39:40 AM                                                                                                                    
                                                                                                                                
SUE  WRIGHT, Staff  to  Representative  Mike Chenault,  testified                                                               
that this bill  is "event driven". She told of  the instance of a                                                               
distant  cousin  to  the  McDowell   Family  of  Sterling  taking                                                               
"egregious" advantage of  the elderly couple. As a  result of the                                                               
cousin's  actions,  the  McDowell's  home  was  "gutted"  to  the                                                               
"studs".  Ultimately  the couple  lost  between  $750,000 and  $2                                                               
million   in  real   property  and   bank   accounts.  This   was                                                               
accomplished  through quit  claim deeds,  powers of  attorney and                                                               
other  documents,  which  were  signed  while  the  victims  were                                                               
hospitalized and in a medicated state.                                                                                          
                                                                                                                                
Ms.  Wright reported  the  efforts  of Representative  Chenault's                                                               
staff to obtain  assistance from a State agency  for this family,                                                               
with only  the Office  of Public  Advocacy (OPA)  responding. The                                                               
family has recently obtained stays  on eviction notices and has a                                                               
guardian appointed to fairly represent the couple's interests.                                                                  
                                                                                                                                
Ms.  Wright  stated that  the  legislation  before the  Committee                                                               
would allow OPA to investigate cases  such as this. She was aware                                                               
of only one other similar  investigation; however, it was pursued                                                               
by federal  officials. She  was aware  that many  complaints have                                                               
been filed, although none that were investigated.                                                                               
                                                                                                                                
9:43:15 AM                                                                                                                    
                                                                                                                                
Co-Chair Green announced that one of  the victims in this case is                                                               
Sam McDowell, who is renown in Alaska.                                                                                          
                                                                                                                                
9:43:38 AM                                                                                                                    
                                                                                                                                
DAN  MCDOWELL   testified  via  teleconference  from   an  offnet                                                               
location that  his father and  mother are the victims  Ms. Wright                                                               
spoke  of.  A  distant  relative  had  convinced  his  mother  to                                                               
authorize access  to the couple's  assets. Mr. McDowell  had made                                                               
many  attempts  to obtain  assistance  to  stop this  abuse.  His                                                               
parents  are now  "penniless" and  residing in  separate assisted                                                               
living facilities.  The perpetrator  has been  utilizing multiple                                                               
social security  numbers and  had attempted  to evict  the family                                                               
from  their  homestead  riverfront property.  Luckily,  this  was                                                               
averted.                                                                                                                        
                                                                                                                                
Mr.  McDowell stressed  that with  an  aging population,  efforts                                                               
must be undertaken to prevent such abuse of elderly Alaskans.                                                                   
                                                                                                                                
9:47:43 AM                                                                                                                    
                                                                                                                                
Senator Dyson requested  input from OPA, as he  had been informed                                                               
that  the  appropriation  listed  in the  fiscal  note  would  be                                                               
insufficient to establish the program.                                                                                          
                                                                                                                                
9:48:24 AM                                                                                                                    
                                                                                                                                
Co-Chair Green requested the sponsor to speak to this matter.                                                                   
                                                                                                                                
9:48:27 AM                                                                                                                    
                                                                                                                                
Ms.  Wright acknowledged  concerns about  the establishment  of a                                                               
new program. Because the number  of cases could not be accurately                                                               
predicted, a  determination was made to  provide adequate funding                                                               
for OPA  to start the  program with  minimal number of  cases. If                                                               
the  costs   exceed  the  appropriation,   the  issue   would  be                                                               
readdressed.  Mr.  Fink, Director  of  OPA  has made  significant                                                               
progress in  streamlining the agency  and making  operations more                                                               
efficient.                                                                                                                      
                                                                                                                                
9:49:55 AM                                                                                                                    
                                                                                                                                
Senator Dyson  appreciated Mr. Fink's efforts.  Senator Dyson was                                                               
aware of other  instances of elder abuse. He posed  a scenario of                                                               
an elderly  man falling in  love with  his nurse, who  then takes                                                               
advantage of the situation.                                                                                                     
                                                                                                                                
9:50:52 AM                                                                                                                    
                                                                                                                                
Senator Hoffman asked why the  fiscal note only reflected funding                                                               
for the upcoming fiscal year.  He asked whether the program would                                                               
only be in operation for one year.                                                                                              
                                                                                                                                
9:51:05 AM                                                                                                                    
                                                                                                                                
Ms.  Wright explained  that the  cost to  operate the  program in                                                               
future years was unknown. Therefore,  the fiscal note contained a                                                               
conservative amount  for the  first year  of operation.  Once the                                                               
estimated  number   of  cases   was  determined,   more  accurate                                                               
appropriations could be made. As  many as 500 complaints could be                                                               
filed annually.                                                                                                                 
                                                                                                                                
9:51:53 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  offered  a  motion  to  report  the  bill  from                                                               
Committee  with   individual  recommendations   and  accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
Without objection  SCS CS  HB 399(STA)  was MOVED  from Committee                                                               
with  zero fiscal  notes #1  from  the Department  of Health  and                                                               
Social  Services, #2  from the  Department  of Law,  #3 from  the                                                               
Department of Public Safety, and fiscal  note #4 in the amount of                                                               
$189,000 from the Department of Administration.                                                                                 
                                                                                                                                
Ms.  Wright  thanked the  Committee  on  behalf of  the  McDowell                                                               
family.