Legislature(1997 - 1998)

04/23/1997 08:04 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                         April 23, 1997                                        
                           8:04 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Ivan Ivan, Chairman                                            
 Representative Fred Dyson                                                     
 Representative Scott Ogan                                                     
 Representative Joe Ryan                                                       
 Representative Jerry Sanders                                                  
 Representative Al Kookesh                                                     
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Reggie Joule                                                   
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 * HOUSE BILL NO. 241                                                          
 "An Act relating to payment assistance for costs of residing in the           
 Alaska Pioneers' Home, and providing that certain income and assets           
 of a resident shall be disregarded in determining payment                     
 assistance, including income from any source in an amount up to               
 $100, cash dividends and other income up to $2,000 received under             
 the Alaska Native Claims Settlement Act, a permanent fund dividend,           
 an amount for burial expenses of the resident, the resident's                 
 spouse and dependents of the resident, the primary residence of the           
 resident's spouse or a dependent of the resident, and other                   
 property up to a total value of $5,000; and providing for an                  
 effective date."                                                              
                                                                               
      - MOVED HB 241 OUT OF COMMITTEE                                          
                                                                               
 * HOUSE BILL NO. 162                                                          
 "An Act relating to the sale or purchase of authentic Native                  
 handicrafts on certain licensed premises; and providing for an                
 effective date."                                                              
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 * HOUSE BILL NO. 38                                                           
 "An Act relating to Statehood Act land selection conveyances to               
 boroughs and unified municipalities."                                         
                                                                               
      - SCHEDULED BUT NOT HEARD                                                
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL: HB 241                                                                
 SHORT TITLE: PAYMENT OF COSTS ALASKA PIONEERS' HOME                           
 SPONSOR(S): REPRESENTATIVE(S) CROFT, Brice, Nicholia                          
                                                                               
 JRN-DATE      JRN-PG         ACTION                                           
 04/09/97      1041    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 04/09/97      1042    (H)   CRA, STATE AFFAIRS, FINANCE                       
 04/23/97              (H)   CRA AT  8:00 AM CAPITOL 124                       
                                                                               
 BILL: HB 162                                                                
 SHORT TITLE: BAN CRAFT BUYING ON LIQUOR PREMISES                              
 SPONSOR(S): REPRESENTATIVE(S) NICHOLIA                                        
                                                                               
 JRN-DATE      JRN-PG         ACTION                                           
 02/27/97       509    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/27/97       509    (H)   CRA, JUDICIARY, FINANCE                           
 04/23/97              (H)   CRA AT  8:00 AM CAPITOL 124                       
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 REPRESENTATIVE ERIC CROFT                                                     
 Alaska State Legislature                                                      
 State Capitol, Room 430                                                       
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-4998                                                    
 POSITION STATEMENT:  Sponsor of HB 241.                                       
                                                                               
 JAMES L. KOHN, Director                                                       
 Division of Alaska                                                            
   Longevity Programs                                                          
 Department of Administration                                                  
 P.O. Box 110211                                                               
 Juneau, Alaska  99811-0211                                                    
 Telephone:  (907) 465-4400                                                    
 POSITION STATEMENT:  Testified on HB 241.                                     
                                                                               
 TOM WRIGHT, Legislative Assistant                                             
   to Representative Ivan Ivan                                                 
 Alaska State Legislature                                                      
 State Capitol, Room 418                                                       
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-3882                                                    
 POSITION STATEMENT:  Testified on HB 241.                                     
                                                                               
 ANN ZENSON, Resident, Sitka                                                   
   Pioneer Home and;                                                           
 President, Resident Council                                                   
 Sitka Pioneer Home                                                            
 Sitka, Alaska  99835                                                          
 Telephone:  (907) 747-2105                                                    
 POSITION STATEMENT:  Testified on HB 241.                                     
                                                                               
 ALTHEA BUCKINGHAM, Resident                                                   
 Sitka Pioneer Home                                                            
 Sitka, Alaska  99835                                                          
 Telephone:  (907) 747-8534                                                    
 POSITION STATEMENT:  Testified on HB 241.                                     
                                                                               
 MARK NIELSON, Resident                                                        
 Sitka Pioneer Home                                                            
 Sitka, Alaska  99835                                                          
 Telephone:  Unavailable                                                       
 POSITION STATEMENT:  Testified on HB 241.                                     
                                                                               
 MARRY SINGER, Citizen                                                         
 2144 Third Avenue                                                             
 Ketchikan, Alaska  99901                                                      
 Telephone:  (907) 225-4683                                                    
 POSITION STATEMENT:  Testified on HB 241.                                     
                                                                               
 KATTARYNA BENNETT, Researcher                                                 
    for Representative Irene Nicholia                                          
 Alaska State Legislature                                                      
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-5025                                                    
 POSITION STATEMENT:  Testified on HB 162.                                     
                                                                               
 DOUG GRIFFIN, ABC Board                                                       
 550 West 7th Avenue, Number 350                                               
 Anchorage, Alaska  99501                                                      
 Telephone:  (9907) 277-8638                                                   
 POSITION STATEMENT:  Testified on HB 162.                                     
                                                                               
 DON DAPCEVICH, Executive Director                                             
 Citizen's Advisory Board on                                                   
   Alcoholism and Drug Abuse                                                   
 Box 110608                                                                    
 Juneau, Alaska  99811                                                         
 Telephone:  (907) 465-4410                                                    
 POSITION STATEMENT:  Testified on HB 162.                                     
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-19, SIDE A                                                            
 Number 016                                                                    
                                                                               
 CHAIRMAN IVAN IVAN called the House Community and Regional Affairs            
 Standing Committee meeting to order at 8:04 a.m.  Members present             
 at the call to order were Representatives Dyson, Sanders and Ryan.            
 Representatives Ogan and Kookesh arrived at 8:05 a.m. and 8:14 a.m.           
 Representative Joule was absent.                                              
                                                                               
 HB 241 - PAYMENT OF COSTS ALASKA PIONEERS' HOME                             
                                                                               
 CHAIRMAN IVAN indicated the committee would consider HB 241, "An              
 Act relating to payment assistance for costs of residing in the               
 Alaska Pioneers' Home, and providing that certain income and assets           
 of a resident shall be disregarded in determining payment                     
 assistance, including income from any source in an amount up to               
 $100, cash dividends and other income up to $2,000 received under             
 the Alaska Native Claims Settlement Act, a permanent fund dividend,           
 an amount for burial expenses of the resident, the resident's                 
 spouse and dependents of the resident, the primary residence of the           
 resident's spouse or a dependent of the resident, and other                   
 property up to a total value of $5,000; and providing for an                  
 effective date."                                                              
                                                                               
 Number 082                                                                    
                                                                               
 REPRESENTATIVE ERIC CROFT came forward as sponsor to testify on HB
 241.  He stated that $100 a month is what some residents of the               
 Pioneer Home have to spend.  The Pioneer Home residents have become           
 upset about the increase in fees for the services there.  This                
 legislation doesn't address all the difficulties related to these             
 rising fees, but it does speak to what monies a resident who cannot           
 pay the fees is allowed to keep for their own use.  This is why               
 this legislation is called the "Pioneer's Dignity Act."  It allows            
 Alaskan elderly to keep a certain (not opulent or excessive) bit of           
 property which they've saved.  The most important provisions allow            
 a little bit of property to be retained by a resident, no more than           
 $5,000 worth such as family jewelry, clothing, mementos, etc.  It             
 allows them to keep a certain amount of income they're entitled to            
 such as the permanent fund dividend, native distributions and                 
 veterans distributions.  The status of these income streams is                
 unclear, but certainly the Pioneer Homes would have the right to              
 seize these.  This would be in the face of costs rising at these              
 facilities to ensure that they have a minimal income of their own             
 to spend.                                                                     
                                                                               
 REPRESENTATIVE CROFT continued that the final provision of this               
 legislation deals with a spouse living outside the home.  He didn't           
 believe that the state ever seized this asset, a home, but if one             
 of the spouses needs to live in a Pioneer Home, this legislation              
 allows that the other spouse can maintain their own home.  There              
 was some question as to whether the department could seize this               
 home to satisfy the debt of a spouse living in a Pioneer Home.  A             
 typical situation involves a wife who can continue to take care of            
 herself and a husband who can't.  She can no longer take care of              
 him, he goes into a Pioneer Home.  If they don't have a substantial           
 amount of assets and while she lives in this home, it could be                
 liable for seizure.  This legislation makes clear that the                    
 department cannot seize it.                                                   
                                                                               
 Number 413                                                                    
                                                                               
 JAMES L. KOHN, Director, Division of Alaska Longevity Programs,               
 Department of Administration, came forward to testify on HB 241.              
 This division oversees the Pioneer Homes and the Longevity Bonus              
 Program.  The administration is in favor of this legislation                  
 because it reflects the regulations they are putting forward at the           
 present time.  In fact, they've had regulation hearings on all of             
 the items contained in this bill, as well as many more.  The                  
 testimony which they received on these issues contained in the bill           
 were positive or non-existent.  People tended to testify more on              
 the rate increases rather than on changes in the other sections of            
 the regulations.                                                              
                                                                               
 MR. KOHN noted that some of the provisions in this bill reflect               
 previous regulations in existence for the Pioneer Homes.  Some of             
 the provisions are new.  The purpose of putting these items from              
 regulation in statute is to give Pioneer Home residents, as the               
 rates at the homes increases, stronger confidence that some of                
 their assets and income will be preserved for them.  Last year,               
 Representative Rokeberg sponsored a statute that reflected the                
 division's policies and regulations which prevented the                       
 administration from discharging any resident for an inability to              
 pay.  This reflected their regulations and their long-standing                
 policy.  Putting this into statute brought a certain amount of                
 comfort to the residents.                                                     
                                                                               
 Number 615                                                                    
                                                                               
 REPRESENTATIVE JOE RYAN stated that he was disturbed the state                
 turns people into paupers because of requiring individuals to pay             
 for their care.  He wondered if it was required in statute to take            
 everything people own.                                                        
                                                                               
 MR. KOHN responded that this policy would be changed in these new             
 regulations.  This policy was never in statute or regulation.  Any            
 provisions for a spouse who remains in the community was                      
 nonexistent and they were expected to pay for any costs related to            
 the care of a spouse living in a Pioneer Home.  In their present              
 regulations as put forth on April 16, the spouse in the community             
 is allowed a number of things they weren't allowed in the past,               
 such as keeping the home in which they live.  They are also allowed           
 to have $100,000 in assets beyond the home.  They are able to keep            
 a car and they are able to keep up to $2,000 a month in joint                 
 income.  Many people in the past have stated that the spouse left             
 in the community has been devastated financially by trying to keep            
 up with the costs of the Pioneer Home.                                        
                                                                               
 Number 790                                                                    
                                                                               
 REPRESENTATIVE JERRY SANDERS asked how long does a person have to             
 be a pioneer in order to qualify for residence in a pioneer home.             
                                                                               
 MR. KOHN stated that there have been a number of qualifications               
 over the last 83 years, beginning with 5 years and at one point               
 this requirement hit 25 years, most recently it was 15 years and              
 now it's 1 year because of a legal challenge.  A person needs only            
 to live in the state and become a resident for 1 year before they             
 can get on a waiting list.  However, there are about 2500 people on           
 the waiting list, of which, 200 are on the active waiting list.               
 The latter would like to get into the home within the next 30 days            
 if possible.  Out of the 2500, 94 percent of them have been in the            
 state over 15 years.  Most of them much more than 15 years.  Six              
 percent have been in the state for less than 15 years.  The average           
 of this six percent is between 6 and 7 years they've been in the              
 state.                                                                        
                                                                               
 Number 900                                                                    
                                                                               
 REPRESENTATIVE SCOTT OGAN asked if the rate increases have                    
 contributed in the decline of people wishing to become residents on           
 the residential side, rather than the nursing side.                           
                                                                               
 MR. KOHN responded that what they've experienced in the last four             
 or five years is a great decline in the popularity of the                     
 residential side of the homes.  People tend to want to stay in                
 their own homes if they have no immediate direct care needs.  He              
 noted senior programs, such as Meals On Wheels, which help                    
 facilitate an elderly person staying in their homes.  He also                 
 mentioned "Project Choice," where people are able to get nursing              
 care in their homes.  The residential side of the homes is provided           
 at a bargain rate and the division has tried to staff these areas             
 to make them more desirable.                                                  
                                                                               
 MR. KOHN continued that the most common need people have coming               
 into the homes are related to Alzheimer's disease.  Sixty-one                 
 percent of 600 residents have Alzheimer's disease.  Eighty-eight              
 percent of all the people who are in care areas, non-residential              
 areas, have Alzheimer's disease.  Many of these individuals are               
 unable to do well in residential or basic assisted living.  These             
 services do not have 24 hour oversight.                                       
                                                                               
 Number 1099                                                                   
                                                                               
 REPRESENTATIVE OGAN stated that he wanted to set the record                   
 straight on something.  He was in his district last weekend and a             
 spokesman for the Pioneer Home group was adamant that "you folks              
 were blaming the Legislature for the increases."  Since the budget            
 has been cut the division was forced to raise the rates.  He asked            
 Mr. Kohn to explain this.                                                     
                                                                               
 MR. KOHN responded that the Pioneer Home Advisory Board in 1995,              
 during a tour of the homes, spoke to the residents and their                  
 families about raising the rates to the cost of care.  He added               
 that this was not a new idea and noted a study conducted during the           
 Hickel Administration without conclusion.  The board decided at               
 this time to advise Governor Knowles that the rates should be                 
 raised to the cost of care over a period of time which they                   
 stipulated to be seven years.  The division has been doing this.              
 In FY96, the amount the residents paid was $5.2 million out of an             
 approximately $30 million dollar budget.  In FY97, the residents              
 will pay about $7.9 million dollars out of this same budgeted                 
 amount.  In FY98, the residents are being asked to pay                        
 approximately $9.9 million dollars, about a third of the Pioneer              
 Home budget.                                                                  
                                                                               
 MR. KOHN offered that no one "would deny that the Legislature is              
 looking for the general fund dollars to go down and for other                 
 dollars to come into the system and go up."  He pointed out that it           
 seemed the division did the right thing since the Legislature at              
 this point in FY98 has cut the division's budget a little bit more            
 than the "rock bottom" budget that they put forward in the                    
 governor's budget.  It seems both entities are in close agreement             
 and he didn't think there was anyone to blame.  He stated that the            
 Pioneer Home Board took it upon themselves to make this happen.  He           
 believed there was some complicity on the part of everyone because            
 this shift of funding makes sense.  To credit the idea, it could be           
 attributed to the Pioneer Home Advisory Board because they thought            
 it would be a fair thing to do.                                               
                                                                               
 Number 1274                                                                   
                                                                               
 REPRESENTATIVE OGAN asked if this cut was $50,000 out of how much             
 of a budget.                                                                  
                                                                               
 MR. KOHN responded yes, that this amount was out of approximately             
 $30 million.                                                                  
                                                                               
 Number 1306                                                                   
                                                                               
 REPRESENTATIVE OGAN asked him if he had any idea what kind of                 
 percentage this was.                                                          
                                                                               
 MR. KOHN noted that it was a very small percent, but he pointed out           
 that this was $50,000 on top of a $1.9 million reduction in general           
 funds.  It seemed as if they took an extra $50,000 on top of $1.9             
 million there would be agreement on the $1.9 million figure.                  
                                                                               
 Number 1306                                                                   
                                                                               
 REPRESENTATIVE OGAN asked if this $1.9 million cut was proposed by            
 the governor.                                                                 
                                                                               
 MR. KOHN responded that it wasn't a cut, but a transfer of general            
 funds for program receipts.  He affirmed that this was a governor             
 proposed increase to the rates.                                               
                                                                               
 Number 1326                                                                   
                                                                               
 REPRESENTATIVE FRED DYSON stated that he would like to get an                 
 historical perspective.  He assumed that before the turn-of-the-              
 century there was no governmental care for the elders, but this               
 concept has accelerated since.  He asked for a sketch of this                 
 progression.                                                                  
                                                                               
 MR. KOHN responded that Alaska was ahead of the entire nation by              
 beginning the Pioneer Homes in 1913.  The Pioneer Homes have a                
 wonderful history and they're a model to the nation.  He used to be           
 a nurse in nursing homes before they were regulated which was                 
 before the federal government became involved.  The federal                   
 government became involved in the late 60's, early 70's, when they            
 began to fund things.  Before this it was all private pay but                 
 otherwise people were historically taken care of at home by large,            
 extended families who weren't as mobile.  They were also taken care           
 of in assisted living homes which were non-medical, social model              
 type homes where someone, usually a non-relative, who lived in the            
 home to care for an elderly person.                                           
                                                                               
 MR. KOHN continued that now seniors want to remain as independent             
 as they can within an assisted living environment.  Nursing                   
 facilities are mainly used now because of the focus the federal               
 government has given them through medicaid funding.                           
                                                                               
 Number 1475                                                                   
                                                                               
 REPRESENTATIVE DYSON wondered if there was a disproportionate need            
 for Pioneer Homes because so few folks in Alaska have extended                
 families.  He asked if there was a tradition in regards to Pioneer            
 Homes when there is a family or an estate that either of these two            
 would be responsible for deferring costs.                                     
                                                                               
 MR. KOHN responded that he couldn't speak categorically to this but           
 he did think that this was the case.  He also affirmed                        
 Representative Dyson's summation about the lack of extended                   
 families and noted that the Pioneer Homes were formed mainly for              
 miners who came to Alaska for the gold rush and stayed.  At the               
 present time the people cared for, by and large, in the homes are             
 individuals with Alzheimer's disease.  Families do what they can              
 but there is a point where this situation becomes unmanageable.               
                                                                               
 Number 1558                                                                   
                                                                               
 REPRESENTATIVE DYSON suspected that there was some debate that took           
 place that as a policy decision to care for the elderly must be               
 taken care of by the state.  He asked when this shift took place?             
                                                                               
 MR. KOHN responded that he thought that this took place during the            
 60's of "Johnson's Great Society" with the on-set of medicare and             
 medicaid.  This was when the funding for long term care began in              
 nursing homes.  The federal government is now looking at waivered             
 programs, such as "Project Choice," which is a waivered medicaid              
 program allowing the care provided in a person's home so that they            
 don't have to go into a nursing home.  This has been very                     
 successful with about 300 participants.  For a small amount of                
 money, comparatively, these people are being cared for in their               
 homes where otherwise they would have to be housed in a special               
 facility to hold these 300 people with all the added expenses.                
                                                                               
 Number 1656                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if there was a policy decision                     
 collectively made that when a senior goes into one of these                   
 facilities that the children of the resident have no requirement to           
 support their care financially.                                               
                                                                               
 MR. KOHN noted that in the non-pioneer home facilities, skilled               
 nursing care facilities, these are funded mostly by medicaid.                 
 Eighty-five percent of the people in these facilities are on                  
 medicaid which means they have to "spin-down" all of their assets.            
 Medicaid does not look to the family members of the senior, but to            
 the assets of the individual and it may look at the assets of the             
 spouse, however, many of the "things that I explained to                      
 Representative Ryan that we're doing with the spouse is also done             
 in medicaid."  The answer to the question is "no."  No one goes               
 after the family members for financial support.                               
                                                                               
 Number 1724                                                                   
                                                                               
 REPRESENTATIVE AL KOOKESH thanked the sponsor of this legislation.            
 He thought it was a great bill and one to make Alaskans proud.  One           
 of the things they need to do is recognize the pioneers'                      
 contribution to the state.  He understood that this legislation               
 does two things.  It allows the residents of these homes to keep              
 their permanent fund check which is important to all residents.               
 Every Alaska should be able to keep it.  He noted that some of the            
 committee members might be concerned about the ANSCA distributions            
 that are also allowed to be kept.  Very few residents of the state            
 receive up to $2,000.  This might not be true in Southeast but                
 under federal regulation individuals may receive up to $2,000 but             
 this amount also includes a congressional waiver of up to this                
 amount for food stamps and social services.  Otherwise, very few              
 residents of the state which are ANSCA members will even receive              
 $2,000.                                                                       
                                                                               
 REPRESENTATIVE KOOKESH said that Alaska Natives usually lead in               
 prison population, for example, but this is one of the few areas of           
 the state where Alaska Natives aren't the dominant population in              
 the Pioneer Homes.  One of the nice things about the Alaska Native            
 community is that they take care of their own.  Almost every                  
 community that he's aware of in Southeast has an elderly person at            
 home or a grandparent will stay with children.  Very few Native               
 people use the Pioneer Home unless they have a severe case of                 
 Alzheimers Disease.                                                           
                                                                               
 Number 1855                                                                   
                                                                               
 REPRESENTATIVE RYAN stated that this was fine bill, but noted the             
 lack of a fiscal note.                                                        
                                                                               
 MR. KOHN stated that the fiscal note his department provided had a            
 zero fiscal impact.  This legislation is a reflection of regulation           
 which will be place July 1, therefore, whether this bill is in                
 place or not, the intent of the legislation will be in place                  
 through regulation.  It is very important to also have this concept           
 in statute ensuring a sense of security to the residents of the               
 Pioneer Home.                                                                 
                                                                               
 MR. KOHN continued that if they figured the cost of the regulation,           
 it would be very hard to figure.  Right now they do consider the              
 permanent fund as income.  They have about 130 people who are on              
 the stipend program.  They don't know how many more people they can           
 anticipate as residents.  This legislation will not increase their            
 costs.  The regulations increase their cost though but it will be             
 very minimal.                                                                 
                                                                               
 Number 1944                                                                   
                                                                               
 TOM WRIGHT, Legislative Assistant, Chairman Ivan, stated that they            
 received a memo at the beginning of session regarding the request             
 of fiscal notes which all have to go through the governor's office.           
 What Mr. Wright placed in the committee's packet is the request for           
 a fiscal note.  According to the memo from leadership, this request           
 will suffice until a fiscal note is generated.                                
                                                                               
 Number 1984                                                                   
                                                                               
 REPRESENTATIVE OGAN stated that he had no problem with the ANSCA.             
 This is a settlement which the Native population is entitled to.              
 He thought that the Native people's example of taking care of their           
 elderly should be followed by everyone.  He thought this was a                
 wonderful example to follow.  He asked what the future of the                 
 Pioneer Homes was.  He noted there was an attempt to change the               
 name of these facilities to "Dementia...," he couldn't remember the           
 exact terminology proposed.  It seemed to him that the                        
 administration was setting a policy that they don't want to be in             
 the residential business but essentially into the full-time nursing           
 care business.                                                                
                                                                               
 MR. KOHN responded that the Pioneer Home Advisory Board last                  
 September, in the tour of the homes, heard from a number of people            
 who pointed out the large population of Alzheimers Disease patients           
 in the home now.  They suggested these were no longer Pioneer Home            
 facilities and thought the name should be changed.  When the                  
 Pioneer Advisory Board deliberated on what they'd heard in public             
 hearings, they fairly reluctantly decided that they had better pass           
 onto the governor some advise about what people were saying.  He              
 referred to a letter they wrote the governor regarding the same and           
 recommended over the next few years that thought should be given to           
 possibly changing the name of the Pioneer Homes to reflect what the           
 Pioneer Homes had become.  This paragraph is written in very                  
 hesitant and reluctant terms, but they believed it was their duty             
 to pass on what had been communicated to them.                                
                                                                               
 MR. KOHN continued that a new name had not been suggested.  Many of           
 the people who came forward to suggest a name change after reading            
 the letter to the governor said it was a terrible idea.  He said              
 they would love to bring more clients into the residential program            
 of the homes.  They are very much a business now collecting rent              
 which they base their operation.  This program does not require               
 direct care and people don't want it.  There hasn't been a change             
 in policy.  They must fill the beds in order to operate this                  
 business.  If there is lost revenue they are unable to pay the                
 staff.  It's important that they provide a service to the public              
 that the public wants and this is care.  They are gearing up to use           
 those rooms that are empty for higher levels of care.                         
                                                                               
 Number 2238                                                                   
                                                                               
 REPRESENTATIVE SANDERS voiced his support of this bill and was                
 seriously considering becoming a co-sponsor of it.  He asked about            
 the concept of grand-fathering individuals into the program at a              
 fixed rate.  Many of the individuals who moved into these                     
 facilities did so with a different understanding of what the costs            
 would be.                                                                     
                                                                               
 MR. KOHN responded that there might be some legal problems with               
 allowing various rates of people who enroll into the program at               
 different times.  This would mean two tiers, people who came in               
 before a certain date and then the people on the waiting list would           
 need to be considered but can't because of limited space.  This               
 might create a discrimination problem.  The other consideration is            
 money.  The Pioneer Home system needs the revenue, the residents              
 are earmarked to finance a third of the homes in FY98 and if they             
 grandfather people in this revenue wouldn't be there.  They would             
 be in financial trouble as far as operating the homes.                        
                                                                               
 Number 2317                                                                   
                                                                               
 REPRESENTATIVE OGAN asked what the life span of a person is who               
 moves into these facilities.                                                  
                                                                               
 MR. KOHN responded that the average age of a resident coming into             
 the home is between 83 and 84 years of age.  The average age in the           
 homes is between 86 and 87 years of age.  There is a vacancy rate             
 between 180 and 200 people out of 600 per year.                               
                                                                               
 Number 2341                                                                   
                                                                               
 REPRESENTATIVE RYAN responded to the concept that Pioneer Homes are           
 a business and noted that businesses evaluate themselves and what             
 their overhead is.  He asked if the staff working for the homes               
 receive comparable or better wages than those in the private                  
 sector.                                                                       
                                                                               
 MR. KOHN responded that the Alaska Hospital and Nursing Home                  
 Association does a yearly study on compensation packages for                  
 similar jobs.  They've seen that the management of the Pioneer                
 Homes receive quite a bit less in compensation compared to                    
 administrators of long term care facilities.  He did note that                
 these individuals are a very devoted group, but underpaid.  In                
 regards to nurse and CNA staff who provide direct care, they are              
 about equal to the private sector including benefits.  Their                  
 housekeeping staff is paid in excess of those individuals in the              
 private sector.  They are much more expensive.  Often times people            
 look at this group and then assume that the pay scales go up from             
 here which isn't true.                                                        
                                                                               
 TAPE 97-19, SIDE B                                                            
 Number 028                                                                    
                                                                               
 ANN ZENSON, Resident, Sitka Pioneer Home and; President, Resident             
 Council, testified via teleconference from Sitka on HB 241.  She              
 spoke only for herself.  The area of administrative law has grown             
 enormously as government has grown.  At this time, administrative             
 law performs all of the functions as state government, including              
 legislative, executive, and judicial.  The state officials who make           
 new regulations also establish the rules for carrying out these               
 regulations through the court to whom appeals may be made and as a            
 body enforce rules with penalties.  Since many of these rules and             
 regulations are written in technical and legal language the common            
 person is helpless in many cases unless there is enough money                 
 available to hire a lawyer.  Residents of the Pioneer Homes have              
 watched helplessly these past few years as the mission of their               
 home has changed, as well as the security they had hoped for in               
 their old age has been eroded.  They understand that during a                 
 fiscal crisis, which Alaska now faces, there will be changes.                 
 Within administrative law there are a few people who guide these              
 changes.  This legislation helps to guarantee their dignity and               
 ease the stress under which they now live.                                    
                                                                               
 Number 100                                                                    
                                                                               
 ALTHEA BUCKINGHAM, Resident, Sitka Pioneer Home, testified via                
 teleconference from Sitka on HB 241.  She noted that she couldn't             
 see many difference between the legislation which the                         
 administration provided and that version sponsored by                         
 Representative Croft.  She also shares information regarding                  
 directives given to the Pioneer Home Advisory Board by the                    
 Administration to increase the rates.  She also heard testimony               
 that this increase was motivated by the Advisory Board.  She didn't           
 think the latter was correct.                                                 
                                                                               
 MS. BUCKINGHAM added that she became a resident of the Pioneer Home           
 out of necessity.  She noted that the state would rather show a               
 large profit reflected in permanent fund accounts and mental health           
 trust fund accounts to help defray a service that the state said              
 they wanted to provide their pioneers.  Of the $2 million mental              
 health trust funds spent in the state, most seems allocated to                
 regional and local facilities other than the pioneer homes.  These            
 facilities provide respite, day care, education and collaboration             
 with agencies already providing similar services for non-seniors              
 which goes to the Pioneer Homes, yet they are being designated as             
 the primary service facility for such things as Alzheimers Disease            
 and Related Dementia (ADRD).  Seventy to eighty percent of all                
 residents in the Pioneer Homes would qualify.  She said if this was           
 true, why weren't they going after these types of funds vigorously            
 rather than on the backs of the Pioneer Home residents.                       
                                                                               
 MS. BUCKINGHAM also suggested that with the permanent fund money              
 that everyone receives she thought that if a certain portion from             
 every person who receives this money was put aside for health                 
 benefits they could probably fund a great many things for all of              
 their citizens in the state in regards to health, as well as the              
 Pioneer Homes.                                                                
                                                                               
 Number 249                                                                    
                                                                               
 MARK NIELSON, Resident, Sitka Pioneer Home, testified via                     
 teleconference on HB 241.  He said consideration of the permanent             
 fund as income for Pioneer Home residents was "digging into our               
 pocket money; I wish you folks would leave that alone."                       
                                                                               
 Number 293                                                                    
                                                                               
 MARRY SINGER, citizen, testified via teleconference from Ketchikan            
 on HB 241.  She wished to testify on the new rules and regulations            
 regarding a home resident with a spouse or a dependent in the                 
 community would be allowed $2,000 to live on.  She noted that this            
 would be an ideal arrangement since her income comes just above               
 half of this amount.  She lost her husband since the last hearing             
 so this situation no longer applies.  This definitely applies to              
 others though.  She noted that she has a home that needs to be                
 maintained and it requires utility payments.  She stated that the             
 $2,000 which they planned to allow those spouses left in the                  
 community was a good idea and a great benefit.                                
                                                                               
 Number 432                                                                    
                                                                               
 REPRESENTATIVE RYAN stated that he was concerned about an elderly             
 person, the surviving spouse losing their home.  The provision in             
 this legislation seems to allow them to live in their community               
 residence for the time that a spouse resides in a Pioneer Home and            
 then the residence can be used to satisfy a debt.  He said he was             
 not comfortable with this and wondered if there was any way they              
 could ensure that these homes would stay with the other spouse                
 rather than leaving them destitute without a place to live.                   
                                                                               
 REPRESENTATIVE CROFT responded that they cannot use to satisfy the            
 debt real property, the primary residence of the resident spouse or           
 the dependent of the resident.  He wasn't sure if this meant that             
 they can't capture real property until the community spouse leaves            
 a house or is deceased or whether they can't get it at all.  He               
 said he would check on this.                                                  
                                                                               
 Number 480                                                                    
                                                                               
 REPRESENTATIVE OGAN moved and asked unanimous consent to move HB
 241 out of committee with individual recommendations and                      
 accompanying zero fiscal note.  Hearing no objection, HB 241 was              
 moved out of the House Community and Regional Affairs Committee.              
                                                                               
 HB 162 - BAN CRAFT BUYING ON LIQUOR PREMISES                                
                                                                               
 Number 521                                                                    
                                                                               
 KATTARYNA BENNETT, Researcher for Representative Irene Nicholia,              
 came forward to testify on HB 162,"An Act relating to the sale or             
 purchase of authentic Native handicrafts on certain licensed                  
 premises; and providing for an effective date."  This bill would              
 make it illegal to buy or sell authentic native handicrafts on                
 premises which hold beverage dispensary licenses, in other words,             
 bars.  Bars are often used by native artists to sell their art to             
 local patrons, community members, tourists, and sometimes the bar             
 owner and their employees.  This has been a problem particularly in           
 rural Alaska and in northern communities where carvers or other               
 native artisans under the influence of alcohol may be induced to              
 sell their handicrafts at unreasonably low prices.                            
                                                                               
 MS. BENNETT continued that when people are drinking, their ability            
 to make good decisions on their own behalf is seriously impaired.             
 As a result, people are often persuaded to sell their wares for far           
 less than fair market value.  There are some who will deliberately            
 take advantage of an intoxicated artist to obtain a valuable piece            
 of native art work at an unjustly low cost.  Addiction to drugs,              
 including alcohol, does make people unprotected victims of their              
 own irresponsible acts.  Although these addictions are not fully              
 understood by those of us who are not plagued by such diseases, it            
 is important to understand that this type of activity puts enough             
 money in the intoxicated person's pockets to allow them to continue           
 abusing alcohol.  In addition to supporting a person's continued              
 alcohol abuse this activity is degrading to the cultural,                     
 traditional and aesthetic value of the art and the artist.                    
                                                                               
 MS. BENNETT summed up that they can't stop people from abusing                
 alcohol, but they can however give these individuals the necessary            
 tools to help them help themselves.  This legislation will do that            
 and more.  The Institute of Native Arts, the Alaska State Council             
 on the Arts and the Citizen's Advisory Board on Alcoholism and Drug           
 Abuse support this bill.  She urged the committee members to do the           
 same.                                                                         
                                                                               
 Number 649                                                                    
                                                                               
 REPRESENTATIVE DYSON asked that if this bill passes, how would an             
 owner of a dispensary license purchase native origin art to                   
 decorate their establishment.                                                 
                                                                               
 MS. BENNETT responded that an individual such as this could                   
 purchase Native art work outside the realm of their establishment,            
 off premises.                                                                 
                                                                               
 Number 675                                                                    
                                                                               
 REPRESENTATIVE DYSON asked how this situation would be policed?               
                                                                               
 MS. BENNETT noted that enforcement of a lot of existing laws is               
 very difficult.  For example, in downtown Anchorage, there are                
 community patrols by bicycle police officers.  In rural villages,             
 there are the Village Public Safety Officers who could easily                 
 police this situation.                                                        
                                                                               
 Number 700                                                                    
                                                                               
 REPRESENTATIVE DYSON asked if this legislation provided a course of           
 action for someone who has sold their Native handicrafts to a bar             
 owner under prohibitive circumstances would they have recourse and            
 can they go back afterwards and say, "you ripped me off and under             
 the provisions of this bill I've got a course of action to haul you           
 before a magistrate both for criminal action and to recover damages           
 because you got me when I was snookered."                                     
                                                                               
 MS. BENNETT responded that this bill does not address this, but in            
 her own opinion this would probably not be covered because if the             
 artisan were to make a complaint against a person who bought or               
 sold a piece of art work, they could also be implicated.  This                
 legislation addresses both buyer and seller.                                  
                                                                               
 Number 763                                                                    
                                                                               
 REPRESENTATIVE KOOKESH agreed that this legislation would be a hard           
 law to enforce; however, he wanted to state that it's not so much             
 the buying or the agreement to buy that's going to solve the                  
 problem here, it's the reselling of those items by the person who             
 holds the dispensary license.  It will be hard for a person from a            
 bar to try to sell those goods.  He believed this is where the                
 enforcement will come in.  This legislation would help eliminate              
 those individuals doing so and this will be beneficial for all of             
 Alaskans.  It's not a catch-all and it will probably not answer all           
 of the questions out there but it's a step in the right direction.            
 He thought they should take this step.                                        
                                                                               
 REPRESENTATIVE OGAN asked if a person could lose their license or             
 have a sanction against it if they try to sell handiwork.  He asked           
 about a situation where someone else comes into a bar and the owner           
 has no knowledge about a transaction between buyer and seller.                
                                                                               
 Number 831                                                                    
                                                                               
 MS. BENNETT responded that under this legislation, it is only if an           
 owner is directly involved in a transaction will they be held                 
 accountable.                                                                  
                                                                               
 REPRESENTATIVE OGAN stated for the record that he's traveled                  
 extensively in the bush and he felt that this is a common practice            
 for individuals to sell their art work in bars.  He had concerns              
 about policing these types of situations under these circumstances.           
                                                                               
 Number 913                                                                    
                                                                               
 REPRESENTATIVE RYAN stated that he doesn't oppose this bill but               
 what they're basically addressing is personal responsibility.                 
 "Many a country boy has come to town and got skinned."  If passing            
 this law is going to help this situation and people feel it will              
 help, he doesn't object.  On the other hand, they constantly preach           
 that people have to be responsible for their actions.  In this                
 situation the responsibility shifts.                                          
                                                                               
 REPRESENTATIVE SANDERS asked whether this legislation was aimed               
 primarily at liquor establishment owners who take advantage of this           
 situation or at a bar patron.                                                 
                                                                               
 Number 994                                                                    
                                                                               
 MR. BENNETT responded that it would be fair to say that this                  
 legislation isn't targeted at either party one way or another.                
 This legislation is merely to prevent the buying or selling of                
 Native handicrafts in liquor serving establishments.  The bill                
 wasn't introduced as a result of one particular bar owner, for                
 example, who was taking advantage of an artisan or a particular               
 patron.  This has just been an on-going problem in Alaska.                    
                                                                               
 REPRESENTATIVE SANDERS stated that he would support this                      
 legislation, but questioned the bar owner's ability to stop things            
 like this from happening.  This legislation puts a bar owner in               
 jeopardy over something he has little control over.  One other                
 question he had was if this is good for the individual and the                
 private sector, he asked why does this legislation exempt the                 
 state.  Why are they allowed to do something that's detrimental to            
 the Native community when the private sector can't.                           
                                                                               
 Number 1071                                                                   
                                                                               
 MS. BENNETT clarified that Representative Sanders referred to                 
 Section 1, subparagraph (e).  She stated that she was not exactly             
 certain why this section was included in the bill.                            
                                                                               
 REPRESENTATIVE RYAN explained that there is a presumption in                  
 English Common Law that the King can do no wrong.  Since we don't             
 have a King, government takes his place, the government can do no             
 wrong.  So necessarily, the government is exempt from                         
 responsibility.  This may not be fair, but until such time as we              
 individually address it, this presumption will stay there.                    
                                                                               
 Number 1120                                                                   
                                                                               
 REPRESENTATIVE SANDERS suggested then that the committee should               
 strike this subparagraph (e) as an amendment.  On page two, line              
 10, he suggested they strike this subsection.                                 
                                                                               
 REPRESENTATIVE OGAN pointed out that this amendment might affect              
 Fur Rondy festivities and the convention center functions, for                
 example.  He asked, what if beer was being sold at these places.              
 He also noted the fact that there were lots of Native handicrafts             
 sold at these types of events.  He noted that this legislation is             
 intended to prevent the sale of handicrafts for cheap by someone              
 who needs the money for alcohol but not necessarily at these types            
 of organized shows.                                                           
                                                                               
 Number 1210                                                                   
                                                                               
 REPRESENTATIVE RYAN offered that government has the same                      
 responsibility to act in the same manner as it demands from its               
 citizens.  Exempting government all of the time and allowing them             
 and their employees to do whatever they choose because their exempt           
 from the law doesn't breed responsibility.                                    
                                                                               
 REPRESENTATIVE SANDERS added that people who are authorized to sell           
 in these situations were required to obtain a permit.  He didn't              
 think this legislation was aimed at these types of individuals.               
                                                                               
 Number 1309                                                                   
                                                                               
 CHAIRMAN IVAN stated that more work needed to be done on this                 
 legislation to address all of the concerns raised.  He also                   
 mentioned the artisans in his district who used every opportunity             
 and locales to sell their handicrafts.  He used the example of                
 posting signs about the hazards of drinking alcohol when a woman is           
 pregnant.  He wondered if they should post the same types of signs            
 for the prohibition of the sale of artifacts on particular                    
 premises.                                                                     
                                                                               
 REPRESENTATIVE DYSON stated that these efforts which are well                 
 intended will have unintentional, unfortunate results.  He read a             
 note from an Anchorage individual who is a member of the downtown             
 Community Council.  "As a member of the downtown Community Council            
 that's been dealing with liquor license renewals I am concerned               
 that this bill will give police another reason to be able to hassle           
 Native bar patrons.  We already have quite a problem with unequal             
 and discriminatory ways (of how bars are overseen downtown) and               
 don't need more reasons for police and other authorities to enter             
 bars that serve mostly Native people and hassle and shake down                
 those people in there."  He thought that this was a legitimate                
 concern.  He noted that they didn't want anyone taken advantage of,           
 but he also didn't want police either taking a lot of time to go              
 around and see if anyone's got ivory in their pockets to sell.  He            
 also didn't want overzealous and sometimes "bad attitude" policeman           
 using this law as another excuse to hassle people they consider               
 undesirable.                                                                  
                                                                               
 Number 1565                                                                   
                                                                               
 REPRESENTATIVE SANDERS withdrew his amendment as proposed until               
 further notice.                                                               
                                                                               
 Number 1588                                                                   
                                                                               
 DOUG GRIFFIN, Alcoholic Beverage Control (ABC) Board, testified via           
 teleconference from Anchorage on HB 162.  The board is generally              
 supportive of this bill.  Some of the issues raised regarding                 
 enforcement and whether this legislation would actually work are              
 legitimate but he thought the concept was definitely one that's               
 unique to Alaska.  It's a reality as contributing to alcohol abuse            
 and the taking advantage of people who are in a diminished                    
 capacity.  He suggested that maybe the sponsor or the committee               
 look at also including liquor stores under this provision.  He                
 stated that a more classic example of buying, trading and selling             
 of handicrafts does take place in bars, but he was concerned that             
 if this activity stopped taking place in bars they may see more               
 people directed towards liquor stores instead.  He noted the                  
 section where this language might be inserted, along with reference           
 to other related statutes.  He noted the fiscal note which, from              
 the ABC Board's perspective, would be the cost of printing of signs           
 noticing patrons about this policy.  He also noted the Department             
 of Law was looking for a pass through from the board dealing with             
 administrative actions and explained the remainder of the related             
 costs.                                                                        
                                                                               
 Number 1821                                                                   
                                                                               
 DON DAPCEVICH, Executive Director, Citizen's Advisory Board on                
 Alcoholism and Drug Abuse, came forward to testify on HB 162.  The            
 Citizen's Board is made up Alaskans from all over the state of                
 Alaska.  They've considered this bill and that it's a good piece of           
 legislation.  They have some concerns with targeting Natives.  If             
 the bill is good on its face, then it should be good for arts and             
 handicrafts made by non-Natives as well for the same reasons.                 
 Whether someone is Native or not and selling their art and                    
 handicrafts at a disadvantage bears no race.  The issue of                    
 diminished capacity from alcohol bears no racial designation.                 
                                                                               
 MR. DAPCEVICH continued that in regard to enforcement, having signs           
 located in establishments is preventative.  This is why they want             
 emphasis on prevention.  In regards to enforcement one would assume           
 that only the most egregious cases will be pursued.  These should             
 be, especially those who abuse these situations through purchases             
 in order to re-sell.  This is a real concern in rural Alaska where            
 individuals make it a practice in effect to trade alcohol for                 
 handicrafts and art.  This is no less blatant than years ago when             
 gold was traded for whiskey.  There are families who rely on the              
 proceeds of these sales.  When a person is in the situation of                
 bartering at a diminished capacity, it does the individual or their           
 families no good.                                                             
                                                                               
 CHAIRMAN IVAN stated that more work needed to be done on this                 
 legislation before any action could be taken.  He assigned a                  
 subcommittee to address this work with Representative Sanders as              
 chairman, along with Representatives Kookesh and Dyson.                       
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 Number 2056                                                                   
                                                                               
 CHAIRMAN IVAN adjourned the House Community and Regional Affairs              
 Committee at 9:34 a.m.                                                        
                                                                               

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