Legislature(1993 - 1994)

04/13/1993 01:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 13, 1993                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 104, Side 1, #000 - end.                                       
  TAPE HFC 93 - 104, Side 2, #000 - #548.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 1:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Therriault     Representative Martin                          
  Representative Parnell                                                       
                                                                               
  Representatives Navarre and Hoffman were not present for the                 
  meeting.                                                                     
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Bill   Hudson;   Frank  Dillon,   Executive                 
  Director,  Alaska  Trucking Association,  Anchorage, Alaska;                 
  Juanita  Hensley,  Director,  Division  of  Motor  Vehicles,                 
  Department  of  Public  Safety;  Randy  Welker,  Legislative                 
  Auditor,  Legislative  Audit  Division; Representative  Gary                 
  Davis; Garry Peska, Vice President  on Finance, Alaska State                 
  Hospital  &  Nursing  Home Association,  Anchorage,  Alaska;                 
  Jerry  McCune,  President,   United  Fishermen  of   Alaska,                 
  Cordova, Alaska.                                                             
                                                                               
  SUMMARY INFORMATION                                                          
  HB 155    An Act relating to audits of health facilities.                    
                                                                               
            HB   155  was   held  in  Committee   for  further                 
            discussion.                                                        
  HB 179    An  Act  relating  to  motor  vehicles and  mobile                 
            homes; and providing for an effective date.                        
                                                                               
            CS HB 179 (FIN) was reported out of Committee with                 
  a "do          pass"  recommendation and  with a  new fiscal                 
                 note by the Department of Public Safety.                      
  HB 275    An Act  relating  to salmon  marketing,  a  salmon                 
            marketing tax,  and the  Alaska Seafood  Marketing                 
                                                                               
                                1                                              
                                                                               
                                                                               
            Institute; and providing for an effective date.                    
                                                                               
            CS HB 275 (FIN) was reported out of Committee with                 
            a "do  pass" recommendation and  with fiscal notes                 
            by the Department of Revenue and the Department of                 
            Commerce and Economic Development.                                 
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  Co-Chair Larson explained the changes previously made by the                 
  Committee to the work draft #8-LS0679\K dated 3/30/93.                       
                                                                               
  FRANK   DILLON,   EXECUTIVE   DIRECTOR,    ALASKA   TRUCKING                 
  ASSOCIATION (ATA), ANCHORAGE, ALASKA, stated he  represented                 
  thirty-three companies  in the State  which provide trucking                 
  services.  He  urged the Committee  to delete Sections 10  &                 
  11,  pointing  out that  portion of  the  bill had  not been                 
  publicized nor  had it  been adequately  discussed with  the                 
  municipalities  and  would  adversely  impact  the  trucking                 
  industry.                                                                    
                                                                               
  JUANITA  HENSLEY,  DIRECTOR,  DIVISION  OF  MOTOR  VEHICLES,                 
  DEPARTMENT OF PUBLIC SAFETY, stressed there has not  been an                 
  increase to fees since 1978.  Representative Martin asked if                 
  it  would  be  necessary  for  the municipal  government  go                 
  through the State to change taxes.  Ms. Hensley replied only                 
  the municipalities which  choose to  have the state  offices                 
  collect their  taxes would  be  required to  go through  the                 
  State to  request a statutory  change to increase  taxes and                 
  have the State collect them.                                                 
                                                                               
  The State currently  collects taxes for the  Municipality of                 
  Anchorage, the City of  Bethel, Dillingham, Kenai  Peninsula                 
  Borough, Ketchikan Gateway  Borough, Kodiak Island  Borough,                 
  Matanuska Borough,  Nenanna, Nome, Petersburg,  Unalaska and                 
  if Whittier were required to register by statute, they would                 
  be included.  She added, the list of  exempt cities is sited                 
  in A.S. 28.10.11.  Those areas which are exempt can not have                 
  greater than 499 traffic vehicles on the roadways.                           
                                                                               
  Representative  Brown expressed concern  with the word "tax"                 
  on Page 4, Line  23.  Ms. Hensley agreed a  more appropriate                 
  term would be "fee".                                                         
                                                                               
  Representative  Therriault  MOVED  to  delete  Section  #11.                 
  There being NO  OBJECTION, it  was deleted.   Representative                 
  Hanley  MOVED  to delete  Section  #19 which  corresponds to                 
  Section #11.  There being NO OBJECTION, it was so ordered.                   
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Brown MOVED to change the language on Page 4,                 
  Line  23, the  second  "tax" should  be  deleted and  insert                 
  "fee".  There being NO OBJECTION, it was so ordered.                         
                                                                               
  Representative  Martin  suggested   a  thirty-five   percent                 
  increase was too high.  He recommended that if the municipal                 
  government  does  tax, they  should do  it  by adding  a tax                 
  rather than taxing fees and services.                                        
                                                                               
  Representative Grussendorf  pointed out  that the  fees have                 
  not been increased since 1975.  He MOVED to increase the fee                 
  by 25%.   Representative Martin MOVED  a 10% increase.   Co-                 
  Chair MacLean OBJECTED to the 10% increase.                                  
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hanley,  Martin,   Parnell,  Therriault,                 
                      Grussendorf.                                             
                                                                               
       OPPOSED:       Brown, MacLean, Larson.                                  
                                                                               
  Representatives Hoffman, Navarre and Foster were not present                 
  for the vote.                                                                
                                                                               
  The MOTION PASSED, (5-3).                                                    
                                                                               
  Co-Chair Larson asked that  a vote be taken on  adopting the                 
  main motion to change Section #10 from 35% to 10%.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Martin,   Parnell,  Therriault,   Brown,                 
                      Grussendorf, Hanley, Larson, MacLean.                    
                                                                               
       OPPOSED:       -                                                        
                                                                               
  Representatives Hoffman, Navarre and Foster were not present                 
  for the vote.                                                                
                                                                               
  The MOTION PASSED, (8-0).                                                    
                                                                               
  Representative Brown recommended  that the  fees be  rounded                 
  off  to  the   nearest  dollar.     The  Committee   agreed.                 
  Representative Brown MOVED to report CS  HB 179 (FIN) out of                 
  Committee  with individual  recommendations  and the  fiscal                 
  note.  Representative Therriault OBJECTED.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Hanley, MacLean, Larson.                          
                                                                               
       OPPOSED:       Martin,       Parnell,       Therriault,                 
                                                                               
                                3                                              
                                                                               
                                                                               
                      Grussendorf.                                             
                                                                               
  Representatives Navarre, Foster and Hoffman were not present                 
  for the vote.                                                                
                                                                               
  The MOTION FAILED, (4-4).                                                    
                                                                               
  HB 179 was HELD in Committee for further discussion.                         
  HOUSE BILL 275                                                               
                                                                               
       "An  Act   relating  to  salmon  marketing,   a  salmon                 
       marketing  tax,  and   the  Alaska  Seafood   Marketing                 
       Institute; and providing for an effective date."                        
                                                                               
  REPRESENTATIVE  BILL  HUDSON  provided  the  Committee  with                 
  Amendment #1.  [Attachment #1] and noted that  the amendment                 
  would accomplish what  had previously been requested  by the                 
  Committee to change the  title.  The change is  an mechanism                 
  to provide  for the reduction  of the 3%  Salmon Enhancement                 
  Tax.    It would  require  at  least 25%  of  people in  the                 
  election to approve  the change which  has been reviewed  by                 
  the Commissioners of the Department of Commerce and Economic                 
  Development and the Commissioner of Revenue.  Representative                 
  Hudson urged the Committee to adopt the amendment.                           
                                                                               
  Representative Hanley noted his concern with Page 1, Section                 
  (b) -1 and the 25% present vote.   He thought it should read                 
  25% of the  number of  permits currently used  in a  region.                 
  Representative Hudson replied that the intent language would                 
  indicate the number of people signing the petition.                          
                                                                               
  Representative Brown MOVED to  incorporate Amendment #1 into                 
  HB 275.  Representative Hanley OBJECTED  for the record.  He                 
  remarked that it will change how the system  currently works                 
  by allowing  only qualified regional associations to conduct                 
  an election.   The  change will  require 25%  of the  permit                 
  holders to  submit a  request to  the commissioner  at which                 
  time there can be an election.                                               
                                                                               
  Representative  Hudson understood  the concern.   He pointed                 
  out that  the legislation  has limited  applications to  the                 
  areas that currently  have the  3% taxation.   He urged  the                 
  Committee to  adopt  the amendment.   Representative  Hanley                 
  WITHDREW  THE OBJECTION.   There being NO FURTHER OBJECTION,                 
  the amendment was adopted.                                                   
                                                                               
  Co-Chair  MacLean  questioned  the  increase  to  the  board                 
  membership and quorum.   Representative Hudson advised  that                 
  twenty-four  voting  members  are  necessary  to  adequately                 
  represent all fishing areas in the Alaska.                                   
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  JERRY MCCUNE, UNITED FISHERMEN  OF ALASKA, CORDOVA,  ALASKA,                 
  reiterated Representative  Hudson's reasons  for adding  the                 
  additional members to  the membership  board.  The  increase                 
  would  allow all  seven regions to  have a seat  on the ASMI                 
  Board.    Representative  Hudson pointed  out  an  important                 
  element  to  the legislation  in  allowing harvesters  to be                 
  involved in the marketing.                                                   
                                                                               
  Representative Brown MOVED a language change on Page 3, Line                 
  30, deleting "and"  and insert  after the word  "distribute"                 
  the following  language "and make  available information  to                 
  the public on  prices".   There being NO  OBJECTION, it  was                 
  adopted.                                                                     
                                                                               
  Representative Hanley MOVED to report CS HB 275 (FIN) out of                 
  Committee  with individual recommendations  and with the two                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  CS HB  275 (FIN) was  reported out of  Committee with a  "do                 
  pass" recommendation and with fiscal notes by the Department                 
  of  Revenue  and  the Department  of  Commerce  and Economic                 
  Development.                                                                 
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  Co-Chair  MacLean MOVED to  RESCIND the  action taken  on HB
  179.  There being NO OBJECTION, it was so ordered.                           
                                                                               
  Co-Chair MacLean  MOVED to  report CS  HB 179  (FIN) out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  (Tape Change, HFC 93-104, Side 2).                                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell,  Brown,   Grussendorf,  Hanley,                 
                      Larson, MacLean.                                         
                                                                               
       OPPOSED:       Therriault, Martin.                                      
                                                                               
  Representatives Navarre and Hoffman were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED, (7-2).                                                    
                                                                               
  CS  HB 179 (FIN)  was reported out  of Committee  with a "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Department of Public Safety.                                                 
  HOUSE BILL 155                                                               
                                                                               
       "An Act relating to audits of health facilities."                       
                                                                               
  REPRESENTATIVE GARY DAVIS stated HB  155 addresses hospitals                 
  and nursing homes  throughout the State which  receive large                 
  portions  of their revenue  from the  State/Federal Medicaid                 
  program.    The Alaska  statutes  require that  an  audit be                 
  performed by the Department of Health and Social Services to                 
  determine the rates charged for various medical services.                    
                                                                               
  There  are  27  medical  facilities   in  Alaska  which  the                 
  Department  is  obligated to  perform  an annual  audits on.                 
  When  these  audits  are  completed,  the facility  and  the                 
  Department agree what  rates can   appropriately be  charged                 
  for  the  following  fiscal  year.    The  legislation  adds                 
  clarity, consistency  and timeliness  in the  Medicaid audit                 
  process.                                                                     
                                                                               
  GARRY  PESKA,   VICE  PRESIDENT  OF  FINANCE,  ALASKA  STATE                 
  HOSPITAL  &  NURSING  HOME  ASSOCIATION  (ASHNHA),   JUNEAU,                 
  ALASKA, remarked that ASHNHA and  the Department have worked                 
  together  to address  concerns  contained in  the  committee                 
  substitute.   He added each area  contains deadlines for the                 
  bill completion.                                                             
                                                                               
  Co-Chair MacLean noted her  concerns with conflicts  between                 
  the  regulatory agencies.   Mr. Peska  pointed out  that the                 
  deadline for  the completion of the audit  report extends by                 
  the  same  number of  days in  which  ASHNHA must  file late                 
  reports.                                                                     
                                                                               
  Co-Chair  MacLean   recommended  extending   the  time   for                 
  facilities to complete the paper work due to the Department.                 
  Mr.  Peska  admitted   there  is  a  conflict   between  the                 
  Department of  Health and  Social Services  and the  nursing                 
  homes.  The nursing  homes feel that the process  is broken.                 
  Consequently,  provided  the proposed  legislation  in order                 
  that the guidelines could be clearly defined.                                
                                                                               
  Representative Martin questioned how the  back log of audits                 
  would be  handled.  Mr.  Peska advised that  the legislation                 
  does not address those audits.   Representative Martin asked                 
  the most fair  way to  determine the situation.   Mr.  Peska                 
  stated that passage of the bill would guarantee fairness.                    
                                                                               
  Representative  Hanley  interjected  that   the  Committee's                 
  concerns  have  been  addressed  in  the  work  draft.    He                 
  summarized, the  bill currently is  at a point  of different                 
  opinions between the  Legislature and  the Department.   The                 
                                                                               
                                6                                              
                                                                               
                                                                               
  Supreme Court  ruling states  that the  Department does  not                 
  have the ability  to recoup payments  even if they pass  the                 
  audit if they  have over-paid.  They would  then have to pay                 
  back the federal government the 50%.                                         
                                                                               
  Co-Chair MacLean asked if a consideration was made to change                 
  the auditing procedure to  every other year for  the smaller                 
  facilities.  Representative Gary  Davis responded that  most                 
  states do not perform annual audits  of all facilities.  The                 
  Alaska Department of Health and  Social Services does annual                 
  audits of all  facilities and do  not intent to change  that                 
  policy.                                                                      
                                                                               
  Mr. Peska explained "retroactive" recoupment  in relation to                 
  the federal  governments position.   The federal  government                 
  has  recognized  that  some  states  have  prospective  rate                 
  setting systems.   They have  not taken the  position to  go                 
  back and retroactively  recoup when they have  a prospective                 
  rate setting system in place.                                                
                                                                               
  RANDY   WELKER,   LEGISLATIVE  AUDITOR,   LEGISLATIVE  AUDIT                 
  DIVISION, addressed the HESS committee substitute.  He noted                 
  the  concern  within  the Department  of  Health  and Social                 
  Services to seek recoupment resulting  from overpayment.  An                 
  additional  issue  is the  rigid audit  process.   The House                 
  Finance  Committee  work  draft   addresses  many  of  these                 
  concerns.                                                                    
                                                                               
  Mr. Welker recommended that  language to recoup  overpayment                 
  when  costs have been  clearly determined  be included.   He                 
  acknowledged the frustration of  the nursing home facilities                 
  recoupment process.  Mr. Welker  explained the conditions of                 
  overpayment.                                                                 
                                                                               
  Representative  Hanley  noted  the  two  varying   processes                 
  occurring within the legislation,  the rate setting  process                 
  and the audit  process.  He  thought, the audit process  has                 
  been behind over the years.                                                  
                                                                               
  Representative Hanley recommended that the $4 million dollar                 
  fiscal note  be zeroed out.  The  other fiscal notes for the                 
  additional audits can be met  with staff currently employed.                 
  Representative Davis disagreed and  thought that the  fiscal                 
  notes would be  necessary.  He  said that the original  bill                 
  established a time  line placing  the Department in  stress.                 
  The  Department would  not be  able to  complete  an orderly                 
  audit.    Representative  Davis  recommenced  changing   the                 
  wording in the bill from  "shall" to "may" in order  to meet                 
  to the guidelines.                                                           
                                                                               
  Mr.   Peska  explained  the   audit  process.    Retroactive                 
  recoupment  is   not  provided   for  within   the  proposed                 
                                                                               
                                7                                              
                                                                               
                                                                               
  legislation.    Although,   the  adjustment  accounting   is                 
  itemized.                                                                    
                                                                               
  Representative  Hanley  MOVED to  adopt  the work  draft #8-                 
  LS0451\J,  4/06/93  as  the version  before  the  Committee.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  HB 155 was HELD in Committee for further discussion.                         
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 2:50 P.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 13, 1993                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 104, Side 1, #000 - end.                                       
  TAPE HFC 93 - 104, Side 2, #000 - #548.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 1:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Therriault     Representative Martin                          
  Representative Parnell                                                       
                                                                               
  Representatives Navarre and Hoffman were not present for the                 
  meeting.                                                                     
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Bill   Hudson;   Frank  Dillon,   Executive                 
  Director,  Alaska  Trucking Association,  Anchorage, Alaska;                 
  Juanita  Hensley,  Director,  Division  of  Motor  Vehicles,                 
  Department  of  Public  Safety;  Randy  Welker,  Legislative                 
  Auditor,  Legislative  Audit  Division; Representative  Gary                 
  Davis; Garry Peska, Vice President  on Finance, Alaska State                 
  Hospital  &  Nursing  Home  Association, Anchorage,  Alaska;                 
  Jerry  McCune,   President,  United  Fishermen   of  Alaska,                 
  Cordova, Alaska.                                                             
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 155    An Act relating to audits of health facilities.                    
                                                                               
                                8                                              
                                                                               
                                                                               
            HB   155  was  held   in  Committee   for  further                 
            discussion.                                                        
                                                                               
  HB 179    An  Act  relating  to motor  vehicles  and  mobile                 
            homes; and providing for an effective date.                        
                                                                               
            CS HB 179 (FIN) was reported out of Committee with                 
  a "do          pass"  recommendation and  with a  new fiscal                 
                 note by the Department of Public Safety.                      
                                                                               
  HB 275    An  Act relating  to  salmon  marketing, a  salmon                 
            marketing tax,  and the  Alaska Seafood  Marketing                 
            Institute; and providing for an effective date.                    
                                                                               
            CS HB 275 (FIN) was reported out of Committee with                 
            a "do  pass" recommendation and with  fiscal notes                 
            by the Department of Revenue and the Department of                 
            Commerce and Economic Development.                                 
                                                                               
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  Co-Chair Larson explained the changes previously made by the                 
  Committee to the work draft #8-LS0679\K dated 3/30/93.                       
                                                                               
  FRANK   DILLON,   EXECUTIVE   DIRECTOR,    ALASKA   TRUCKING                 
  ASSOCIATION (ATA), ANCHORAGE,  ALASKA, stated he represented                 
  thirty-three companies  in the State which  provide trucking                 
  services.  He  urged the Committee  to delete Sections 10  &                 
  11,  pointing  out that  portion of  the  bill had  not been                 
  publicized nor  had it  been adequately  discussed with  the                 
  municipalities  and  would  adversely  impact  the  trucking                 
  industry.                                                                    
                                                                               
  JUANITA  HENSLEY,  DIRECTOR,  DIVISION  OF  MOTOR  VEHICLES,                 
  DEPARTMENT OF PUBLIC SAFETY, stressed there has  not been an                 
  increase to fees since 1978.  Representative Martin asked if                 
  it  would  be  necessary  for  the municipal  government  go                 
  through the State to change taxes.  Ms. Hensley replied only                 
  the municipalities which  choose to  have the state  offices                 
  collect  their taxes  would  be required  to go  through the                 
  State  to request a  statutory change to  increase taxes and                 
  have the State collect them.                                                 
                                                                               
  The State currently  collects taxes for the  Municipality of                 
  Anchorage, the City  of Bethel, Dillingham, Kenai  Peninsula                 
  Borough, Ketchikan  Gateway Borough, Kodiak  Island Borough,                 
  Matanuska Borough,  Nenanna, Nome, Petersburg,  Unalaska and                 
  if Whittier were required to register by statute, they would                 
                                                                               
                                9                                              
                                                                               
                                                                               
  be included.  She added, the list  of exempt cities is sited                 
  in A.S. 28.10.11.  Those areas which are exempt can not have                 
  greater than 499 traffic vehicles on the roadways.                           
                                                                               
  Representative Brown  expressed concern with the  word "tax"                 
  on Page 4,  Line 23.  Ms. Hensley agreed  a more appropriate                 
  term would be "fee".                                                         
                                                                               
  Representative  Therriault  MOVED  to  delete  Section  #11.                 
  There being NO  OBJECTION, it  was deleted.   Representative                 
  Hanley  MOVED  to delete  Section  #19 which  corresponds to                 
  Section #11.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  Representative Brown MOVED to change the language on Page 4,                 
  Line  23, the  second  "tax" should  be  deleted and  insert                 
  "fee".  There being NO OBJECTION, it was so ordered.                         
                                                                               
  Representative  Martin  suggested   a  thirty-five   percent                 
  increase was too high.  He recommended that if the municipal                 
  government  does  tax, they  should do  it  by adding  a tax                 
  rather than taxing fees and services.                                        
                                                                               
  Representative  Grussendorf pointed out  that the  fees have                 
  not been increased since 1975.  He MOVED to increase the fee                 
  by 25%.   Representative Martin MOVED  a 10% increase.   Co-                 
  Chair MacLean OBJECTED to the 10% increase.                                  
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hanley,  Martin,   Parnell,  Therriault,                 
                      Grussendorf.                                             
                                                                               
       OPPOSED:       Brown, MacLean, Larson.                                  
                                                                               
  Representatives Hoffman, Navarre and Foster were not present                 
  for the vote.                                                                
                                                                               
  The MOTION PASSED, (5-3).                                                    
                                                                               
  Co-Chair Larson asked that  a vote be taken on  adopting the                 
  main motion to change Section #10 from 35% to 10%.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Martin,   Parnell,  Therriault,   Brown,                 
                      Grussendorf, Hanley, Larson, MacLean.                    
                                                                               
       OPPOSED:       -                                                        
                                                                               
  Representatives Hoffman, Navarre and Foster were not present                 
  for the vote.                                                                
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  The MOTION PASSED, (8-0).                                                    
                                                                               
  Representative Brown  recommended that  the fees  be rounded                 
  off  to  the   nearest  dollar.     The  Committee   agreed.                 
  Representative Brown MOVED to report CS  HB 179 (FIN) out of                 
  Committee  with individual  recommendations  and the  fiscal                 
  note.  Representative Therriault OBJECTED.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Hanley, MacLean, Larson.                          
                                                                               
       OPPOSED:       Martin,       Parnell,       Therriault,                 
                      Grussendorf.                                             
                                                                               
  Representatives Navarre, Foster and Hoffman were not present                 
  for the vote.                                                                
                                                                               
  The MOTION FAILED, (4-4).                                                    
                                                                               
  HB 179 was HELD in Committee for further discussion.                         
                                                                               
  HOUSE BILL 275                                                               
                                                                               
       "An  Act   relating  to  salmon   marketing,  a  salmon                 
       marketing  tax,   and  the  Alaska   Seafood  Marketing                 
       Institute; and providing for an effective date."                        
                                                                               
  REPRESENTATIVE  BILL  HUDSON  provided  the  Committee  with                 
  Amendment #1.  [Attachment #1] and noted  that the amendment                 
  would accomplish what  had previously been requested  by the                 
  Committee to change the  title.  The change is  an mechanism                 
  to provide  for the reduction  of the 3%  Salmon Enhancement                 
  Tax.    It would  require  at  least 25%  of  people  in the                 
  election to  approve the change  which has been  reviewed by                 
  the Commissioners of the Department of Commerce and Economic                 
  Development and the Commissioner of Revenue.  Representative                 
  Hudson urged the Committee to adopt the amendment.                           
                                                                               
  Representative Hanley noted his concern with Page 1, Section                 
  (b) -1 and  the 25% present vote.  He thought it should read                 
  25% of the  number of  permits currently used  in a  region.                 
  Representative Hudson replied that the intent language would                 
  indicate the number of people signing the petition.                          
                                                                               
  Representative Brown MOVED to incorporate Amendment #1  into                 
  HB 275.  Representative Hanley OBJECTED  for the record.  He                 
  remarked that it will change how the  system currently works                 
  by allowing only qualified regional  associations to conduct                 
  an election.   The  change will  require 25%  of the  permit                 
  holders to  submit a  request to  the commissioner  at which                 
  time there can be an election.                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  Representative  Hudson understood the  concern.   He pointed                 
  out that  the legislation  has limited  applications to  the                 
  areas that currently  have the  3% taxation.   He urged  the                 
  Committee  to adopt  the amendment.   Representative  Hanley                 
  WITHDREW THE OBJECTION.    There being NO FURTHER OBJECTION,                 
  the amendment was adopted.                                                   
                                                                               
  Co-Chair  MacLean  questioned  the  increase  to  the  board                 
  membership and  quorum.  Representative Hudson  advised that                 
  twenty-four  voting  members  are  necessary  to  adequately                 
  represent all fishing areas in the Alaska.                                   
                                                                               
  JERRY MCCUNE, UNITED  FISHERMEN OF ALASKA, CORDOVA,  ALASKA,                 
  reiterated  Representative Hudson's  reasons for  adding the                 
  additional members to  the membership  board.  The  increase                 
  would allow  all seven regions  to have  a seat on  the ASMI                 
  Board.    Representative  Hudson  pointed  out  an important                 
  element  to  the legislation  in  allowing harvesters  to be                 
  involved in the marketing.                                                   
                                                                               
  Representative Brown MOVED a language change on Page 3, Line                 
  30, deleting "and"  and insert  after the word  "distribute"                 
  the following  language "and  make available  information to                 
  the public on  prices".   There being NO  OBJECTION, it  was                 
  adopted.                                                                     
                                                                               
  Representative Hanley MOVED to report CS HB 275 (FIN) out of                 
  Committee with individual recommendations  and with the  two                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  CS HB  275 (FIN) was  reported out  of Committee with  a "do                 
  pass" recommendation and with fiscal notes by the Department                 
  of  Revenue  and  the Department  of  Commerce  and Economic                 
  Development.                                                                 
                                                                               
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  Co-Chair MacLean MOVED  to RESCIND  the action  taken on  HB
  179.  There being NO OBJECTION, it was so ordered.                           
                                                                               
  Co-Chair MacLean  MOVED to  report CS  HB 179  (FIN) out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  (Tape Change, HFC 93-104, Side 2).                                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
                               12                                              
                                                                               
                                                                               
       IN FAVOR:      Parnell,  Brown,   Grussendorf,  Hanley,                 
                      Larson, MacLean.                                         
                                                                               
       OPPOSED:       Therriault, Martin.                                      
                                                                               
  Representatives Navarre and Hoffman were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED, (7-2).                                                    
                                                                               
  CS HB 179  (FIN) was reported  out of  Committee with a  "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department of Public Safety.                                                 
                                                                               
  HOUSE BILL 155                                                               
                                                                               
       "An Act relating to audits of health facilities."                       
                                                                               
  REPRESENTATIVE  GARY DAVIS stated HB 155 addresses hospitals                 
  and nursing homes  throughout the State which  receive large                 
  portions of  their revenue  from the State/Federal  Medicaid                 
  program.   The  Alaska  statutes require  that  an audit  be                 
  performed by the Department of Health and Social Services to                 
  determine the rates charged for various medical services.                    
                                                                               
  There  are  27  medical  facilities   in  Alaska  which  the                 
  Department  is  obligated to  perform  an annual  audits on.                 
  When  these  audits  are  completed,  the facility  and  the                 
  Department agree what  rates can   appropriately be  charged                 
  for  the  following  fiscal  year.    The  legislation  adds                 
  clarity, consistency  and timeliness in  the Medicaid  audit                 
  process.                                                                     
                                                                               
  GARRY  PESKA,  VICE  PRESIDENT  OF   FINANCE,  ALASKA  STATE                 
  HOSPITAL  &  NURSING   HOME  ASSOCIATION  (ASHNHA),  JUNEAU,                 
  ALASKA, remarked that ASHNHA and  the Department have worked                 
  together  to address  concerns  contained  in the  committee                 
  substitute.  He added each  area contains deadlines for  the                 
  bill completion.                                                             
                                                                               
  Co-Chair MacLean noted  her concerns with conflicts  between                 
  the regulatory agencies.   Mr.  Peska pointed  out that  the                 
  deadline  for the completion of the  audit report extends by                 
  the  same  number of  days in  which  ASHNHA must  file late                 
  reports.                                                                     
                                                                               
  Co-Chair   MacLean  recommended   extending  the   time  for                 
  facilities to complete the paper work due to the Department.                 
  Mr.  Peska  admitted   there  is  a  conflict   between  the                 
  Department of  Health and  Social Services  and the  nursing                 
  homes.  The nursing  homes feel that the process  is broken.                 
                                                                               
                               13                                              
                                                                               
                                                                               
  Consequently,  provided  the proposed  legislation  in order                 
  that the guidelines could be clearly defined.                                
                                                                               
  Representative Martin questioned how the  back log of audits                 
  would be  handled.  Mr.  Peska advised that  the legislation                 
  does not address those audits.   Representative Martin asked                 
  the most fair  way to  determine the situation.   Mr.  Peska                 
  stated that passage of the bill would guarantee fairness.                    
                                                                               
  Representative  Hanley  interjected  that   the  Committee's                 
  concerns  have  been  addressed  in  the  work  draft.    He                 
  summarized,  the bill currently  is at a  point of different                 
  opinions between the  Legislature and  the Department.   The                 
  Supreme Court  ruling states  that the  Department does  not                 
  have the ability  to recoup payments  even if they pass  the                 
  audit  if they have over-paid.  They  would then have to pay                 
  back the federal government the 50%.                                         
                                                                               
  Co-Chair MacLean asked if a consideration was made to change                 
  the auditing procedure  to every other year  for the smaller                 
  facilities.  Representative  Gary Davis responded that  most                 
  states do not perform annual audits  of all facilities.  The                 
  Alaska Department of Health and  Social Services does annual                 
  audits of all  facilities and do  not intent to change  that                 
  policy.                                                                      
                                                                               
  Mr.  Peska explained "retroactive" recoupment in relation to                 
  the federal governments  position.   The federal  government                 
  has  recognized  that  some  states  have  prospective  rate                 
  setting systems.   They have  not taken the  position to  go                 
  back and retroactively  recoup when they have  a prospective                 
  rate setting system in place.                                                
                                                                               
  RANDY   WELKER,   LEGISLATIVE  AUDITOR,   LEGISLATIVE  AUDIT                 
  DIVISION, addressed the HESS committee substitute.  He noted                 
  the  concern  within  the Department  of  Health  and Social                 
  Services to seek recoupment resulting  from overpayment.  An                 
  additional  issue is  the rigid  audit process.   The  House                 
  Finance  Committee  work  draft  addresses  many  of   these                 
  concerns.                                                                    
                                                                               
  Mr. Welker recommended  that language to recoup  overpayment                 
  when costs have  been clearly  determined be  included.   He                 
  acknowledged the frustration of the nursing  home facilities                 
  recoupment process.  Mr. Welker  explained the conditions of                 
  overpayment.                                                                 
                                                                               
  Representative  Hanley  noted   the  two  varying  processes                 
  occurring within the  legislation, the rate setting  process                 
  and the audit  process.  He  thought, the audit process  has                 
  been behind over the years.                                                  
                                                                               
                                                                               
                               14                                              
                                                                               
                                                                               
  Representative Hanley recommended that the $4 million dollar                 
  fiscal  note be zeroed out.   The other fiscal notes for the                 
  additional audits can be met  with staff currently employed.                 
  Representative Davis  disagreed and thought  that the fiscal                 
  notes would be  necessary.  He  said that the original  bill                 
  established a time  line placing  the Department in  stress.                 
  The  Department  would not  be able  to complete  an orderly                 
  audit.    Representative  Davis  recommenced  changing   the                 
  wording in the bill  from "shall" to "may" in  order to meet                 
  to the guidelines.                                                           
                                                                               
  Mr.  Peska   explained  the  audit  process.     Retroactive                 
  recoupment   is  not   provided  for  within   the  proposed                 
  legislation.     Although,  the  adjustment   accounting  is                 
  itemized.                                                                    
                                                                               
  Representative  Hanley  MOVED to  adopt  the work  draft #8-                 
  LS0451\J,  4/06/93  as  the  version  before  the Committee.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  HB 155 was HELD in Committee for further discussion.                         
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 2:50 P.M.                                           
                                                                               
                                                                               
                               15                                              

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