Legislature(2015 - 2016)BUTROVICH 205

01/27/2016 01:30 PM HEALTH & SOCIAL SERVICES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= SB 145 DAY CARE ASSISTANCE & CHILD CARE GRANTS
Heard & Held
+= SB 147 SENIOR BENEFITS PROG. ELIGIBILITY TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
+= HB 8 POWERS OF ATTORNEY TELECONFERENCED
Moved SCS CSHB 8(HSS) Out of Committee
+= SB 98 PRESCRIPTION WITHOUT PHYS. EXAM. TELECONFERENCED
Heard & Held
+= HB 76 GOV COUNCIL ON DISABILITIES/SPECIAL ED TELECONFERENCED
Moved HB 76 Out of Committee
-- Public Testimony --
**Streamed live on AKL.tv**
         SB 145-DAY CARE ASSISTANCE & CHILD CARE GRANTS                                                                     
                                                                                                                                
1:53:17 PM                                                                                                                    
CHAIR STEDMAN announced the consideration  of SB 145. He noted it                                                               
is the first  hearing on the bill and is  sponsored by the Office                                                               
of the Governor.                                                                                                                
                                                                                                                                
SEAN  O'BRIEN, Director,  Division  of  Public Assistance  (DPA),                                                               
Department  of  Health  and  Social  Services  (DHSS),  presented                                                               
information on  SB 145.  He related that  the Child  Care Program                                                               
Office administers  the federal  Child Care  Development Program,                                                               
which  provides  child  care funding  for  qualified  low  income                                                               
individuals. It  offers temporary assistance programs  to support                                                               
those individuals so  they can return to work.  He explained that                                                               
SB 145  would allow  for the collection  of overpayments  and the                                                               
garnishment  of  PFDs  when  necessary.  There  is  currently  no                                                               
garnish option, only voluntary repayment.                                                                                       
                                                                                                                                
MR.  O'BRIEN stated  that  the bill  addresses  four aspects:  it                                                               
supports the  compliance with the Child  Care Development Program                                                               
to recover  improper or fraudulent  payments and addresses  a gap                                                               
in  DPA's  authority  to  refute   those  payments,  it  provides                                                               
consistency  of  collection  and practices  within  DPA  programs                                                               
streamlining the  collection process  and releasing an  amount of                                                               
staff  time in  collection  attempts, it  enables an  alternative                                                               
source  of recruitment  when the  recipient does  not voluntarily                                                               
repay the overpayment, and it  allows the division to leverage an                                                               
estimated $500,000 in  the future to help cover the  cost of this                                                               
effort.                                                                                                                         
                                                                                                                                
1:56:28 PM                                                                                                                    
MR.  O'BRIEN reported  that Section  1 of  the bill  contains the                                                               
statutes that would  allow the division to move  forward. He said                                                               
the bill provides for a  long-needed change. He noted an attached                                                               
zero fiscal note.                                                                                                               
                                                                                                                                
1:57:00 PM                                                                                                                    
SENATOR STOLTZE  asked how  far the reach  back to  recover funds                                                               
goes.                                                                                                                           
                                                                                                                                
MR. O'BRIEN said the effectual date of the bill is July 1, 2016.                                                                
                                                                                                                                
SENATOR STOLTZE asked if the bill reaches back to FY 15.                                                                        
                                                                                                                                
MR. O'BRIEN deferred to Ms. Kraly to answer.                                                                                    
                                                                                                                                
1:58:45 PM                                                                                                                    
                                                                                                                                
STACIE   KRALY,  Assistant   Attorney  General,   Human  Services                                                               
Section,  Department of  Law, answered  questions  related to  SB                                                               
145. She  said the effective date  is July 1, 2016,  which allows                                                               
the  Division to  garnish  the  2016 PFD  and  also collect  past                                                               
debts.                                                                                                                          
                                                                                                                                
SENATOR STOLTZE asked  if collected funds go back  to the general                                                               
fund.                                                                                                                           
                                                                                                                                
MR. O'BRIEN  explained that  the monies  collected would  go back                                                               
into the federal fund account.                                                                                                  
                                                                                                                                
2:00:41 PM                                                                                                                    
JANICE  BRADEN,  Program  Manager;  Child  Care  Program  Office,                                                               
Division  of Public  Assistance (DPA),  Department of  Health and                                                               
Social  Services (DHSS),  answered questions  related to  SB 145.                                                               
She  agreed that  all collected  funds would  be returned  to the                                                               
federal account.                                                                                                                
                                                                                                                                
SENATOR STOLTZE asked for the method of appropriation.                                                                          
                                                                                                                                
MS. BRADEN offered to get back to the committee on that.                                                                        
                                                                                                                                
2:02:08 PM                                                                                                                    
SENATOR  GIESSEL referred  to page  2, line  2, of  the bill  and                                                               
inquired how far back the recovery process could go.                                                                            
                                                                                                                                
MR. O'BRIEN  understood that  the program  would have  a one-year                                                               
look back period from July 1, 2016.                                                                                             
                                                                                                                                
CHAIR  STEDMAN requested  more information  about  the amount  of                                                               
unpaid monies looking back.                                                                                                     
                                                                                                                                
SENATOR  STOLTZE  asked whether  a  federal  audit initiated  the                                                               
bill.                                                                                                                           
                                                                                                                                
2:04:15 PM                                                                                                                    
MS. BRADEN  explained that the  Child Care Assistance  Program is                                                               
funded  through the  Child Care  and Development  Fund and  has a                                                               
requirement to recoup improper or  fraudulent payments. There are                                                               
regulations in  place that support that  policy. Currently, there                                                               
is no ability for anything but a voluntary repayment.                                                                           
                                                                                                                                
SENATOR STOLTZE asked what caused the overpayments.                                                                             
                                                                                                                                
CHAIR   STEDMAN  requested   that  the   division  provide   that                                                               
information at a later date.                                                                                                    
                                                                                                                                
2:06:15 PM                                                                                                                    
SENATOR  ELLIS provided  a  brief history  of  the program  under                                                               
Governor Wally Hickel. He shared  a story about Governor Hickel's                                                               
plan to  get rid of  day care  assistance and child  care grants.                                                               
The  legislature informed  Governor Hickel  that the  monies were                                                               
primarily  federal funded.  Senator Ellis  described a  button he                                                               
made that said "Day Care  Prevents Welfare," which was noticed by                                                               
Mrs.  Hickel  who  then influenced  the  Governor's  decision  to                                                               
continue to  accept federal funding  for day care  assistance and                                                               
child care.                                                                                                                     
                                                                                                                                
2:07:57 PM                                                                                                                    
CHAIR STEDMAN  opened public hearing,  and seeing  no testifiers,                                                               
closed public hearing.                                                                                                          
                                                                                                                                
CHAIR STEDMAN held SB 145 in committee.                                                                                         
                                                                                                                                
MR. O'BRIEN offered  to provide the requested  information to the                                                               
committee at the next hearing.                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 145 ver A.pdf SHSS 1/27/2016 1:30:00 PM
SB 145
SB 145 Sectional Analysis.pdf SHSS 1/27/2016 1:30:00 PM
SB 145
SB 145 Governor Transmittal Letter.pdf SHSS 1/27/2016 1:30:00 PM
SB 145
SB 147 version A.pdf SHSS 1/27/2016 1:30:00 PM
SB 147
SB 147 Sectional Analysis.pdf SHSS 1/27/2016 1:30:00 PM
SB 147
SB 147 Governor Transmittal Letter.pdf SHSS 1/27/2016 1:30:00 PM
SB 147
SCS CSHB 8(HSS) changes to ver G 1-25-2016.pdf SHSS 1/27/2016 1:30:00 PM
HB 8
SCS CSHB 8(HSS).pdf SHSS 1/27/2016 1:30:00 PM
HB 8
SB 147 Fiscal Note HSS 1-23-16.pdf SHSS 1/27/2016 1:30:00 PM
SB 147
SB 98 Amendment from Giessel.pdf SHSS 1/27/2016 1:30:00 PM
SB 98
SB 98 Letter of Support Board of Marital and Family therapy.PDF SHSS 1/27/2016 1:30:00 PM
SB 98
HB 8 Supporting Documents - AMAC.pdf SHSS 1/27/2016 1:30:00 PM
HB 8
HB 8 Supporting Documents - Com on Aging letter.pdf SHSS 1/27/2016 1:30:00 PM
HB 8
HB 8 Supporting Documents - LTCO.pdf SHSS 1/27/2016 1:30:00 PM
HB 8
HB 8 Supporting Documents - AARP letter.pdf SHSS 1/27/2016 1:30:00 PM
HB 8