Legislature(2015 - 2016)SENATE FINANCE 532

04/04/2016 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 91 OMNIBUS CRIM LAW & PROCEDURE; CORRECTIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 145 DAY CARE ASSISTANCE & CHILD CARE GRANTS TELECONFERENCED
Heard & Held
+= SB 147 SENIOR BENEFITS PROG. ELIGIBILITY TELECONFERENCED
Moved CSSB 147(HSS) Out of Committee
+= SB 170 DNR FEES FOR GEOLOGICAL SERVICES TELECONFERENCED
Moved CSSB 170(RES) Out of Committee
+= SB 174 REG. OF FIREARMS/KNIVES BY UNIV. OF AK TELECONFERENCED
Moved CSSB 174(FIN) Out of Committee
SENATE BILL NO. 145                                                                                                           
                                                                                                                                
     "An Act relating to the recovery of overpayments of                                                                        
     day care assistance and child care grants; and                                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
9:12:50 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly MOVED to  ADOPT proposed committee substitute                                                                    
for SB 145, Work Draft 29-GS2769\W (Glover, 3/24/16).                                                                           
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
ERIN  SHINE, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
change  in the  CS. She  detailed that  previously the  bill                                                                    
allowed  Permanent  Fund   Dividend  (PFD)  garnishment  for                                                                    
daycare  assistance and  childcare grants  overpayments. She                                                                    
elaborated that  during a hearing  of the companion  bill in                                                                    
the other body  [House] it had come to light  there were two                                                                    
other benefit  programs (Senior Benefits Program  and Alaska                                                                    
Heating  Assistance Program)  under  public assistance  that                                                                    
did not  have the  ability. The CS  allowed the  Division of                                                                    
Public  Assistance  to  garnish for  all  public  assistance                                                                    
programs.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
9:14:32 AM                                                                                                                    
                                                                                                                                
SEAN  O'BRIEN,  DIRECTOR,  DIVISION  OF  PUBLIC  ASSISTANCE,                                                                    
DEPARTMENT OF  HEALTH AND SOCIAL  SERVICES (DHSS),  spoke in                                                                    
support  of  the change  in  the  CS.  He explained  it  was                                                                    
primarily to ensure the option  for PFD garnishment was made                                                                    
available  across   all  public  assistance   programs.  The                                                                    
division felt the consistency was  important for the sake of                                                                    
equity and for administering the program.                                                                                       
                                                                                                                                
Co-Chair MacKinnon  asked if the  fiscal notes needed  to be                                                                    
updated.  Mr.  O'Brien  replied that  the  $500,000  receipt                                                                    
recovery was  probably still very  close [to  accurate]. The                                                                    
department had  not submitted a revised  fiscal note because                                                                    
the vast  majority of anticipated  funds would  come through                                                                    
the childcare program. The other  two programs that would be                                                                    
impacted by  the amendment were the  Senior Benefits Program                                                                    
and the Alaska Heating  Assistance Program. The department's                                                                    
analysis  had not  seen an  appreciable  change. The  fiscal                                                                    
note  currently showed  an  anticipated  recovery period  of                                                                    
$500,000, which DHSS  felt would cover all  of its programs.                                                                    
He reiterated the amount was an estimate.                                                                                       
                                                                                                                                
Senator Olson  observed that  there had  been a  change from                                                                    
federal  funds to  general  funds in  the  fiscal note.  Mr.                                                                    
O'Brien responded  that childcare funds were  federal funds.                                                                    
He specified  if the department  was unable to  recoup those                                                                    
funds  the difference  would have  to be  paid with  general                                                                    
funds.  If  the department  recouped  the  federal funds  it                                                                    
would  offset the  cost  "and transfer  those  that way"  as                                                                    
opposed to  potentially losing the general  funds, which the                                                                    
department would have  to pay back if it did  not recoup the                                                                    
federal funds.                                                                                                                  
                                                                                                                                
9:17:35 AM                                                                                                                    
                                                                                                                                
Senator  Olson believed  the fiscal  note showed  a cost  of                                                                    
$500,000 in general funds. Mr.  O'Brien answered the General                                                                    
Fund could take a hit of  $500,000 if the department did not                                                                    
have the ability to recoup the federal funding.                                                                                 
                                                                                                                                
Senator Olson  asked for verification the  department looked                                                                    
at the  issue as  positive. Mr.  O'Brien responded  that the                                                                    
department looked at the item as a neutral offset.                                                                              
                                                                                                                                
Co-Chair MacKinnon  asked for a  review of the  three fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
Vice-Chair Micciche relayed he had  two fiscal notes for the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:18:24 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:21:34 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon   explained  that  Fiscal  Note   3  had                                                                    
replaced Fiscal Note 1.                                                                                                         
                                                                                                                                
Vice-Chair  Micciche  addressed  Fiscal   Note  2  from  the                                                                    
Department of  Revenue, which  included zero  fiscal impact.                                                                    
Fiscal note  3, which  had replaced Fiscal  Note 1  from the                                                                    
Department  of Health  and  Social  Services showed  federal                                                                    
receipts  of  $500,000 per  year  and  General Fund  program                                                                    
authority  of  $500,000.  He understood  the  committee  had                                                                    
questions  about  the  absolute  impact  of  the  particular                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  clarified the  note showed  reduction of                                                                    
$500,000  in  federal  receipts and  a  new  expenditure  of                                                                    
$500,000 in  general funds.  She asked  for the  accuracy of                                                                    
her statement.                                                                                                                  
                                                                                                                                
Vice-Chair Micciche  replied he  believed the note  showed a                                                                    
wash of federal receipts offsetting [general funds].                                                                            
                                                                                                                                
Co-Chair  MacKinnon   conveyed  she   would  speak   to  the                                                                    
Legislative Finance  Division about zeroing out  the general                                                                    
funds associated with the note.                                                                                                 
                                                                                                                                
SB  145  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 91 CS SS SB 91 (FIN) ver F.pdf SFIN 4/4/2016 9:00:00 AM
SB 91
SB 174 CS SB 174(FIN) ver I - Summary of Changes.pdf SFIN 4/4/2016 9:00:00 AM
SB 174
CS SB 174(FIN) ver I.pdf SFIN 4/4/2016 9:00:00 AM
SB 174
CS SB 145 (FIN) ver W.pdf SFIN 4/4/2016 9:00:00 AM
SB 145