Legislature(1997 - 1998)

04/30/1997 02:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 30, 1997                                        
                            2:00 P.M.                                          
                                                                               
  TAPE HFC 97 - 117, Side 1, #000 - end.                                       
  TAPE HFC 97 - 117, Side 2, #000 - end.                                       
  TAPE HFC 97 - 118, Side 1, #000 - #071.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Gene Therriault called the House Finance  Committee                 
  meeting to order at 2:00 P.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Therriault           Representative Kohring                         
  Representative Davies         Representative Martin                          
  Representative Davis          Representative Moses                           
  Representative Foster         Representative Mulder                          
  Representative Grussendorf    Representative Kelly                           
                                                                               
  Representative Hanley was not present for the meeting.                       
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative    Joe    Ryan;    Patti   Swenson,    Staff,                 
  Representative Con Bunde;  Mark Rosen, Staff, Representative                 
  Joe   Ryan;   Catherine  Reardon,   Director,   Division  of                 
  Occupational Licensing, Department of Commerce and  Economic                 
  Development;  Connie  Sipe,  Director,  Division  of  Senior                 
  Services, Department of  Administration; Katherine  Tibbles,                 
  Social  Services  Program  Coordinator,  Family  and   Youth                 
  Services, Department of Health & Social Services; Ron Cowan,                 
  (Testified  via  teleconference), Department  of  Health and                 
  Social Services, Anchorage.                                                  
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 29     An Act relating  to certain programs of  state aid                 
            to   municipalities   and   recipients    in   the                 
            unorganized   borough;   and   providing  for   an                 
            effective date.                                                    
                                                                               
            HCS  CS SB 29 (FIN) was  reported out of Committee                 
            with a "do pass" recommendation  and with a fiscal                 
            note by the Senate Finance Committee dated 2/6/97.                 
                                                                               
  HB 127    An Act relating  to the  citizen review board  and                 
            panels   for   permanency  planning   for  certain                 
            children in state custody; renaming the  Citizens'                 
            Review  Panel  For   Permanency  Planning  as  the                 
            Citizens' Foster Care Review  Board; extending the                 
                                                                               
                                1                                              
                                                                               
                                                                               
            termination  date  of  the  Citizens' Foster  Care                 
            Review Board; and providing for an effective date.                 
                                                                               
            HB   27   was   placed    in   Subcommittee   with                 
            Representative Mulder  as Chair  and with  members                 
            Representative J. Davies and Representative Kelly.                 
                                                                               
  HB 217    An  Act  relating  to certified  nurse  aides; and                 
            providing for an effective date.                                   
                                                                               
            CS HB 217 (FIN) was reported out of Committee with                 
            a "do  pass" recommendation and with  fiscal notes                 
            by  the  Department   of  Commerce  and   Economic                 
            Development  and  the  Department  of  Health  and                 
            Social Services dated 4/17/97.                                     
  HOUSE BILL 127                                                               
                                                                               
       "An Act relating to the citizen review board and panels                 
       for permanency planning  for certain children  in state                 
       custody;  renaming  the   Citizens'  Review  Panel  For                 
       Permanency Planning as the Citizens' Foster Care Review                 
       Board; extending the termination date of  the Citizens'                 
       Foster  Care   Review  Board;  and  providing   for  an                 
       effective date."                                                        
                                                                               
  PATTI SWENSON, STAFF,  REPRESENTATIVE CON BUNDE  stated that                 
  HB 127 would  change existing state  laws for the  Citizens'                 
  Foster  Care Review  Panel which  are  currently inadequate.                 
  The existing statutes do not give  enough power to the local                 
  panels.                                                                      
                                                                               
       *    Existing  statutes  make  foster care  review                      
            panels look like  a weak duplication  of some                      
            Division   of   Family   and  Youth   Service                      
            functions.                                                         
                                                                               
       *    Existing  statutes do  not  permit the  local                      
            panel's recommendations to be placed into the                      
            court  records  for   consideration  in   the                      
            disposition of a case.                                             
                                                                               
       *    Existing  statutes  do   not  require   state                      
            departments  to  supply  necessary  aggregate                      
            data.  Specific data is needed to measure the                      
            performance of the child protection system.                        
                                                                               
       *    Existing  statutes do  not give  local panels                      
            the authority to  develop priority for  early                      
            reviews of the worst cases.                                        
                                                                               
       *    Existing statutes require the  current foster                      
                                                                               
                                2                                              
                                                                               
                                                                               
            care  review  system  to sunset  on  June 30,                      
            1997.                                                              
                                                                               
  HB 127 would correct the weaknesses in our current  statutes                 
  and would  give a strong  independent voice to  local review                 
  panels.  The legislation would establish local review panels                 
  throughout the State which will advocate for children, their                 
  families  and  for needed  changes  in our  child protection                 
  system.                                                                      
                                                                               
  The  National Association  for  Foster Care  Reviewers  will                 
  guide the implementation of the  Alaska program.  There  are                 
  26 states with  active state review  boards and foster  care                 
  review panels.  Those who have  served on foster care review                 
  panels throughout the  United States  have found the  effort                 
  worth their time.  All state  boards and local review panels                 
  share the same goal to decrease  the amount of time children                 
  linger in out-of-home  care.  Ms. Swenson stressed  that the                 
  legislation is needed  by everyone  who deals with  Alaska's                 
  child  protection  system.     She  urged   the  Committee's                 
  favorable consideration of HB 127.                                           
                                                                               
  Co-Chair  Therriault questioned the  increased the number of                 
  voting number  to the  newly established  State board.   Ms.                 
  Swenson   replied   that   originally    there   were   four                 
  administrative  types  on  the board;  the  Commissioner  of                 
  Health  and Social Services,  the Director of  the Office of                 
  Public Advocacy (OPA),  the Attorney General and  a designee                 
  from  the  Public Defenders  office.   Those  positions were                 
  deleted and the State board was increased from seven to nine                 
  members;  public  board members  were  also increased.   The                 
  increased  number   will  expand  the   representation  each                 
  district has in the four judicial districts.                                 
                                                                               
  Representative Martin asked if there  would be a distinction                 
  between  public board members and voting board members.  Ms.                 
  Swenson  explained  that  in  the  initial legislation,  the                 
  administrative members were also voting members; in the next                 
  version of  the bill,  they were  advisory only  and in  the                 
  following version,  those members  were completely  removed.                 
  All nine public members are voting members.                                  
                                                                               
  Co-Chair  Therriault   pointed  out  that  the  State  panel                 
  previously met twice a year.  The new legislation recommends                 
  that  the  State panel  meet  at least  twice a  year.   Ms.                 
  Swenson pointed  out that  some of  the meetings could  take                 
  place telephonically, although, initially, when the board is                 
  formed,  it will be  important that they  meet when creating                 
  policy and regulations.                                                      
                                                                               
  Co-Chair  Therriault referenced  Section  #13, pointing  out                 
  that the program  coordinator position would be  replaced by                 
                                                                               
                                3                                              
                                                                               
                                                                               
  an  executive  director at  a  greater fiscal  impact.   Ms.                 
  Swenson  advised  that an  executive  director would  not be                 
  required to be a  social service person.  The  $139 thousand                 
  dollar request currently in the FY98 budget would cover  one                 
  full-time administrative  clerk, one  30 hour  social worker                 
  coordinator,  and  one  full-time  social  worker II.    The                 
  additional funding request in  the fiscal note would  add an                 
  executive  director who would work with  the State board and                 
  would be responsible for grant writing.  That position would                 
  interface with all local panels to effectively implement the                 
  program.                                                                     
                                                                               
  Representative  Mulder  suggested  that  if  the  board  was                 
  assuming some of the functions of the Division of Family and                 
  Youth Services, the  fiscal note should indicate  a negative                 
  amount.  Ms. Swenson  replied that when the  board initially                 
  forms, they will not be entitled to any of the federal Title                 
  IVE fund.   Down the line, the board  would be able to apply                 
  for federal funds under Title IV.                                            
                                                                               
  Ms.  Swenson noted that  the Anchorage  program has  been in                 
  existence for  four years.   Co-Chair  Therriault felt  that                 
  Anchorage should be able to fulfill the federal requirements                 
  to qualify for some  of those funds.  Ms.  Swenson explained                 
  that the panel has been operating on a very low budget, with                 
  capabilities of  reviewing only  one-third of  the Anchorage                 
  cases.    In order  to reorient,  a  State board  is needed.                 
  Increasing the number  of cases will require a larger number                 
  of volunteers.   The  panel, with  current funding,  has not                 
  been able to adequately train volunteers.                                    
                                                                               
  Co-Chair  Therriault  questioned  the  $29  thousand  dollar                 
  travel component of the fiscal  note.  Ms. Swenson responded                 
  that amount would cover costs for  the executive director to                 
  provide the training and allow a board member from each area                 
  to participate.  Co-Chair Therriault  questioned if the full                 
  amount was warranted.                                                        
                                                                               
  CONNIE   SIPE,  DIRECTOR,   DIVISION  OF   SENIOR  SERVICES,                 
  DEPARTMENT OF ADMINISTRATION, commented that forming a state                 
  board  would provide  the benefits  of tapping upon  a large                 
  group of volunteers  throughout the State.   Currently, only                 
  one-third of the  total Anchorage cases are  being reviewed.                 
  It would take an active, trained group of  80-100 volunteers                 
  to address the cases only in Anchorage.  Most volunteers can                 
  hear one case per month.  A State board would be providing a                 
  constant recruitment and training of volunteer panel members                 
  which would hear foster care child cases.                                    
                                                                               
  Ms. Sipe stressed  that "volunteerism" must be  managed well                 
  or a  poor  system will  result.   The State  board will  be                 
  responsible for a  positive functioning group.   She pointed                 
                                                                               
                                4                                              
                                                                               
                                                                               
  out that the  consideration before the Committee  would leap                 
  from  one-third of  one  city's foster  child  group to  the                 
  State's entire population.  Until the burden is removed from                 
  Division of Family and Youth Services (DFYS), there will  be                 
  duplication of services.   The  State board will  be a  very                 
  busy operation.  They will be  trying to make maximum use of                 
  citizen volunteers.                                                          
                                                                               
  Co-Chair Therriault asked  the amount of federal  funds that                 
  the State brings in for the IVE match.                                       
                                                                               
  KATHERINE  TIBBLES,  SOCIAL  SERVICES  PROGRAM  COORDINATOR,                 
  DIVISION OF FAMILY AND YOUTH  SERVICES, DEPARTMENT OF HEALTH                 
  AND  SOCIAL  SERVICES,  advised  that  the  requirement  for                 
  getting  any  IVE dollars  is  that  six month  reviews  are                 
  provided on all  kids in out-of-home  care.  The $7  million                 
  dollar federal funding would be reduced when the service was                 
  not done effectively.   Co-Chair Therriault asked if  it was                 
  reasonable  to  think that  a  volunteer panel  could assume                 
  these  responsibilities  and  functions  in  relieving   the                 
  Department from their effort.                                                
                                                                               
  Ms. Sipe explained  that Title  IV requirements include  the                 
  180 day review.  If that requirement and all  the others are                 
  met by the State,  the State will  then be given $7  million                 
  dollars  to help  pay  for foster  care for  those children.                 
  DFYS currently attempts to get citizens from outside to help                 
  review cases.  Twenty-six other states throughout the nation                 
  currently use the State board panel to tap those funds.  Ms.                 
  Tibbles added, an additional function of the  panel would be                 
  to develop packets.  The panels are not funded at this time.                 
                                                                               
                                                                               
  Co-Chair Therriault asked  if a  certain level of  expertise                 
  and  education  would   be  necessary  before  the   federal                 
  government would allow the IVE monies  to be disbursed.  Ms.                 
  Tibbles  said no, although,  there are specific requirements                 
  which must be met:                                                           
                                                                               
       *      The review must occur  within six months of                      
       removal   of a child;                                                   
                                                                               
       *    The process  must be open to participation of                      
            the parents; and                                                   
                                                                               
       *    The Court  reviews must  occur within  twelve                      
            months.                                                            
                                                                               
  Beyond  that,  there are  an additional  eighteen procedural                 
  protection steps.  She stressed that the system develops the                 
  "expertise" not  the "agency".   The panels could  take over                 
  the functions.                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  (Tape Change HFC 97-117, Side 2).                                            
                                                                               
  Co-Chair Therriault observed that the  initial intent was to                 
  cover the Anchorage area.  He pointed out the frustration in                 
  the rest of the  State that their foster care  concerns also                 
  be met.  Ms.  Sipe commented that at this time,  there is no                 
  State  board, only an Anchorage panel.   The Anchorage panel                 
  does not have voting  powers and can not set  policy for the                 
  new panels.  There is  a lot of work which needs  to be done                 
  in  the  first year.    The  phase-in will  be  expensive in                 
  establishing  a  State  board  responsible  for  policy  and                 
  regulations.   Implementing one-third  of one  town is  very                 
  different  than  implementing the  entire State.   Providing                 
  service for part of  the cases would be difficult  and would                 
  result in duplication of services with DFYS.                                 
                                                                               
  She added, the legislative intent would be to bring one town                 
  up to 100%, so the entire system could see how well it works                 
  and then, as quickly as possible,  begin to up-date the rest                 
  of  the State.   She  stressed  that the  intent  is not  to                 
  discriminate.    Current  recommendations   are  to  stagger                 
  implementation of the  program and then begin  with start-up                 
  grants for all regions.                                                      
                                                                               
  Ms. Sipe  stressed the  need for  adequate program  funding.                 
  Historically, when the bill was passed in 1991, it carried a                 
  $750 thousand dollar  fiscal note.  The suggested new fiscal                 
  note  could  max   out  at  $550  thousand   dollars.    She                 
  summarized, no one wants to live with the constant criticism                 
  that  the   Legislature  has  established  a   goal  without                 
  providing the proper resources.                                              
                                                                               
  Representative Mulder inquired if there was a less expensive                 
  alternative to the  proposed program.   Co-Chair  Therriault                 
  asked if  there was  something in the  public agency  system                 
  which would  make more  sense.   Ms. Sipe  replied that  the                 
  Governor  supports the  concept  that  whenever the  reviews                 
  occur in  the agency only, all  of the parties of  that case                 
  witness it  as an  administrative  function.   The value  of                 
  getting away from the  agency, and using citizens that  care                 
  about kids would  be valuable.   Over the  long term,  there                 
  will be maximum  savings, money  and advocacy  on behalf  of                 
  kids.  This is  a complex system, and the  volunteerism must                 
  be handled carefully as it is a delicate issue.                              
                                                                               
  Ms.  Sipe  responded  to  Representative  Mulder's  repeated                 
  concern regarding fiscal  costs.  She reminded  members that                 
  most states do  not realize  cost savings in  the first  two                 
  years.  The Commission  on Justice pinpointed this as  their                 
  prime recommendation.  It will save money in the long-run.                   
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  Co-Chair Therriault agreed that in  the out-years the budget                 
  subcommittees will  look at  the effort  and determine  if a                 
  shift of monies could be made.  He placed the legislation in                 
  a Subcommittee with Representative Mulder  as Chair and with                 
  members Representative  J. Davies and  Representative Kelly.                 
  He asked  the  Subcommittee  to  address  the  legislation's                 
  wording and the fiscal note phase-in.                                        
                                                                               
  HB 127 was HELD in Committee for further consideration.                      
  SENATE BILL 29                                                               
                                                                               
       "An Act relating  to certain programs  of state aid  to                 
       municipalities  and  recipients   in  the   unorganized                 
       borough; and providing for an effective date."                          
                                                                               
  Senator  John Torgerson  noted  that  the legislation  would                 
  change  the name of the Revenue Sharing program to "priority                 
  Revenue  Sharing  for   Municipal  Services",  changes   the                 
  Municipal Assistance Fund  to the Safe Communities  Fund and                 
  would require that  payments from the Safe  Communities Fund                 
  be used for  specific prioritized purposes.   The intent  of                 
  these changes is to more accurately reflect the purposes for                 
  which payments received are used.   These programs appear to                 
  have fostered the  perception that  it is a  type of  "slush                 
  fund"  for  communities.    The  change  in  name   and  the                 
  requirements for  use  of the  monies  help to  dispel  that                 
  notion.                                                                      
                                                                               
  He  noted  that  communities  are  required to  spend  funds                 
  received from the Safe Communities Fund on specific purposes                 
  in the following priorities:                                                 
                                                                               
       1.   Police protection and  related public  safety                      
            services;                                                          
       2.   Fire   protection   and   emergency   medical                      
            services;                                                          
       3.   Water and  sewer services not offset  by user                      
            fees;                                                              
       4.   Solid waste management; and                                        
       5.   Other services the governing  body determines                      
            to have the highest priority.                                      
                                                                               
  Communities are not, however, required  to fund all requests                 
  for  services  in  a  category  before funding  services  in                 
  another  category.    Communities  that  levy  and   collect                 
  property taxes are required to  list the allocation received                 
  from the Safe Communities Fund and it's equivalent will rate                 
  on the "Notice to Taxpayers".                                                
                                                                               
  Senator Torgerson noted that the  bill also would revise how                 
  appropriations continue  to be reduced, allocations  to, and                 
                                                                               
                                7                                              
                                                                               
                                                                               
  the  resulting  payments  from the  base  amount  account be                 
  proportionately reduced.  In the past, the account was "held                 
  harmless" and  appropriation reductions were  taken entirely                 
  from the per capita account which resulted in an inequitable                 
  reduction of payments to communities.                                        
                                                                               
  The minimum entitlement  to communities is increased  to $40                 
  thousand  dollars  based  on the  FY97  appropriation.   If,                 
  however,  appropriations continue  to decline,  this minimum                 
  entitlement  may  be  proportionately   reduced  along  with                 
  payments from the base amount and the per capita accounts.                   
                                                                               
  Senator Torgerson  concluded that  the date  of payment  was                 
  changed so that  communities receive  entitlement from  both                 
  Priority Revenue Sharing  and the  Safe Communities Fund  on                 
  July 31st.   Previously, payments from revenue  sharing were                 
  made on  July 31st  and municipal  assistance payments  were                 
  made on February 1st.                                                        
                                                                               
  Representative Mulder MOVED that 0-LS02181\H, Cook, 4/28/97,                 
  be  the  version  before  the  Committee.   There  being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative Mulder MOVED to report HCS CS SB 29 (FIN) out                 
  of Committee  with individual recommendations  and with  the                 
  accompanying fiscal note.  There being NO OBJECTION,  it was                 
  so ordered.                                                                  
                                                                               
  HCS CS SB  29 (FIN) was reported out of Committee with a "do                 
  pass"  recommendation and with  a fiscal note  by the Senate                 
  Finance Committee dated 2/6/97.                                              
  HOUSE BILL 217                                                               
                                                                               
       "An  Act  relating   to  certified  nurse  aides;   and                 
       providing for an effective date."                                       
                                                                               
  MARK ROSEN,  STAFF, REPRESENTATIVE  JOE RYAN,  introduced HB
  217 which would give  the Board of Nursing the  authority to                 
  oversee   the   training,   supervision,   utilization   and                 
  registration of Certified Nurse Aides.                                       
                                                                               
  CATHERINE  REARDON,  DIRECTOR,   DIVISION  OF   OCCUPATIONAL                 
  LICENSING, DEPARTMENT OF COMMERCE AND ECONOMIC  DEVELOPMENT,                 
  explained  there are  2,800 Certified  Nurses Aides  (CNA's)                 
  working  in  Alaska's  long-term  care  facilities  and home                 
  health agencies.   These  aides provide  care to  those most                 
  unable to care for themselves, the aged and the infirm.                      
                                                                               
  The Certified  Nurse Aides work  under the supervision  of a                 
  nurse  licensed  by the  Board  of Nursing,  performing only                 
  those  duties  specifically delegated  by  that nurse.   The                 
                                                                               
                                8                                              
                                                                               
                                                                               
  Omnibus Budget Reconciliation Act of 1987 (federal) required                 
  that states establish Nurse Aide Certification  programs for                 
  aides working  in long-term  care and  home health  agencies                 
  receiving Medicare and  Medicaid funding.   Since 1989,  the                 
  responsibility for the Certified Nurse Aide program has been                 
  divided between the Department of Health and Social Services                 
  (DHSS), Division  of Medical  Assistance, Health  Facilities                 
  and  Licensing  and  Department  of  Commerce  and  Economic                 
  Development   (DCED),   Occupational  Licensing,   Board  of                 
  Nursing.                                                                     
                                                                               
  The legislation would delineate responsibility for oversight                 
  of Certified Nurse  Aides clearly to  the Board of  Nursing.                 
  The Board of  Nursing has been responsible  for establishing                 
  minimum  training standards,  approval of  training programs                 
  and maintenance of the Certified Nurses Aide registry.                       
                                                                               
  HB  217  protects  Alaska's  most  vulnerable  population by                 
  insuring  that the  people who  care for  them  are properly                 
  trained and that  oversight of that  care be provided.   She                 
  proceeded to explain the differences between the Finance and                 
  Labor & Commerce Committees version of the bill.                             
                                                                               
  Representative Martin recommended that  the Board of Nursing                 
  screen themselves at their own expense.  Ms. Reardon replied                 
  that  the  program  was  required  by  State  statute to  be                 
  financially self- sufficient.  The fees charged to the nurse                 
  aides must cover those costs.  The Board of Nursing is aware                 
  that the fees will increase as  a result of the legislation.                 
  She  pointed out that  this would be  a general fund/program                 
  receipts.                                                                    
                                                                               
  Ms. Reardon  spoke to  the fiscal  note which  indicates new                 
  State  expenditures.   The  way to  calculate fees  for each                 
  occupation is through audits.  Part  of the costs of running                 
  the board are shared by spreading the costs on a per  capita                 
  basis.   Any direct  costs caused  by nurse  aides would  be                 
  included  as   would  the  administrative   indirect  costs.                 
  Representative G. Davis  asked if  there was an  established                 
  indirect cost rate.  Ms. Reardon replied that the cost would                 
  be $35 dollars.  All costs are related to license processing                 
  and billings.                                                                
                                                                               
  (Tape Change HFC 97-118, Side 1).                                            
                                                                               
  RON  COWAN,  (TESTIFIED VIA  TELECONFERENCE),  DEPARTMENT OF                 
  HEALTH AND SOCIAL SERVICES, ANCHORAGE, offered to answer any                 
  questions of the Committee, noting that the Department fully                 
  supports the proposed legislation.                                           
                                                                               
  Representative  Martin  MOVED  that 0-LS0737\L,  Lauterbach,                 
  4/30/97, be the version  before the Committee.   There being                 
                                                                               
                                9                                              
                                                                               
                                                                               
  NO OBJECTION, it was adopted.                                                
                                                                               
  Representative J. Davies MOVED to report CS HB 217 (FIN) out                 
  of Committee  with individuals recommendations  and with the                 
  accompanying fiscal  notes.  Co-Chair Therriault  noted that                 
  he would like to change the DCED fiscal note to reflect that                 
  the  funds  are  program  receipts.    Following  discussion                 
  between Co-Chair  Therriault and Representative J. Davies on                 
  the effect of that  intent, there was NO OBJECTION,  and the                 
  bill was moved from Committee.                                               
                                                                               
  CS HB 217  (FIN) was reported  out of  Committee with a  "do                 
  pass" recommendation and with fiscal notes by the Department                 
  of  Health  and  Social  Services   dated  4/17/97  and  the                 
  Department of Commerce and Economic Development.                             
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:40 P.M.                                           
                                                                               
                                                                               
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