Legislature(1995 - 1996)

03/15/1995 09:00 AM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
          HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                          
                      SUBCOMMITTEE MEETING                                     
                         March 15, 1995                                        
                           9:00 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Con Bunde, Co-Chair                                            
 Representative Cynthia Toohey, Co-Chair                                       
 Representative Gary Davis                                                     
 Representative Caren Robinson                                                 
 Representative Mark Hanley                                                    
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All subcommittee members present.                                             
                                                                               
 OTHER HOUSE MEMBERS PRESENT                                                   
                                                                               
 Representative Tom Brice                                                      
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 HOUSE BILL NO. 78                                                             
 "An Act relating to the maximum amount of assistance that may be              
 granted under the adult public assistance program and the program             
 of aid to families with dependent children; proposing a special               
 demonstration project within the program of aid to families with              
 dependent children and directing the Department of Health and                 
 Social Services to seek waivers from the federal government to                
 implement the project."                                                       
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 CURTIS LOMAS, Welfare Reform Program                                          
 Division of Public Assistance                                                 
 Department of Health and Social Services                                      
 P.O. Box 110640                                                               
 Juneau, Alaska 99811-0640                                                     
 Telephone:  (907) 465-3382                                                    
  POSITION STATEMENT:   Commented on HB 78.                                    
                                                                               
 JIM NORDLUND, Director                                                        
 Division of Public Assistance                                                 
 Department of Health and Social Services                                      
 P.O. Box 110640                                                               
 Juneau, Alaska 99811-0640                                                     
 Telephone:  (907) 465-3347                                                    
  POSITION STATEMENT:   Commented on HB 78.                                    
                                                                               
                                                                               
 GLENDA STRAUBE, Director                                                      
 Child Support Enforcement Division                                            
 Department of Revenue                                                         
 550 West 7th Avenue, Suite 312                                                
 Anchorage, Alaska 99501                                                       
 Telephone:  (907) 269-6753                                                    
  POSITION STATEMENT:   Commented on HB 78.                                    
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB  78                                                               
 SHORT TITLE: CHILD SUPPORT & AFDC PROGRAMS                                    
 SPONSOR(S): REPRESENTATIVE(S) HANLEY, Bunde                                   
                                                                               
 JRN-DATE  JRN-PG   ACTION                                                     
 01/06/95        41    (H)   PREFILE RELEASED                                  
 01/16/95        41    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/16/95        41    (H)   HES, FIN                                          
 01/19/95        91    (H)   COSPONSOR(S): BUNDE                               
 03/09/95              (H)   HES AT 02:00 PM CAPITOL 106                       
 03/09/95              (H)   MINUTE(HES)                                       
 03/15/95              (H)   HES AT 09:00 AM CAPITOL 106                       
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 95-21, SIDE A                                                            
 Number 000                                                                    
 HB  78 CHILD SUPPORT & AFDC PROGRAMS                                         
                                                                              
 The House Health, Education and Social Services subcommittee on HB
 78 was called to order by Co-Chair Con Bunde.  Subcommittee members           
 present at the call to order were Davis, Toohey, and Robinson.                
                                                                               
 CO-CHAIR CON BUNDE said he viewed this meeting as a work session              
 and the challenge for the subcommittee was to create a composite of           
 the Governor's and Representative Mark Hanley's version of HB 78.             
 He announced Glenda Straube, Director, Child Support Enforcement              
 Division, Department of Revenue, via teleconference from Anchorage,           
 was available for questions.  Representative Hanley's Aide was also           
 present for questions.  However, no public testimony would be                 
 accepted today and thanked those who came anyway.                             
                                                                               
 Number 095                                                                    
                                                                               
 REPRESENTATIVE CAREN ROBINSON asked if other similar bills would be           
 looked at today.                                                              
                                                                               
 Number 138                                                                    
                                                                               
 CO-CHAIR BUNDE stated the work session would only focus on the two            
 bills before them.  He said at some future time the subcommittee              
 would look at other related bills.                                            
                                                                               
 Number 162                                                                    
                                                                               
 CO-CHAIR CYNTHIA TOOHEY asked if there was any funding on the                 
 Governor's bill yet.                                                          
                                                                               
 Number 196                                                                    
                                                                               
 CURTIS LOMAS, Welfare Reform Program, Division of Public                      
 Assistance, Department of Health and Social Services, responded by            
 referring the subcommittee members to a comparison chart in a                 
 packet of information prepared by Representative Hanley and his               
 staff.                                                                        
                                                                               
 Number 225                                                                    
                                                                               
 CO-CHAIR BUNDE commented that Representative Hanley should speak on           
 the comparison chart himself. The challenge for the subcommittee              
 was to look at the juncture of the two bills before them.  He also            
 announced the work session would be short due to a majority caucus            
 meeting at 9:45 a.m.                                                          
                                                                               
 Number 262                                                                    
                                                                               
 REPRESENTATIVE MARK HANLEY started by presenting to the                       
 subcommittee a comparison spreadsheet of Senator Lyda Green's, the            
 Governor's and his bill.  The spreadsheet compared the different              
 sections contained in each bill.  He cited the "100-hour" rule, and           
 the auto allowance were in all three bills but in different                   
 sections.  He suggested the subcommittee compare and discuss the              
 differences.  The Governor included four basic work projects in his           
 bill, whereas Representative Hanley included only one workfare                
 section.  He suggested the subcommittee hear from the department              
 before proceeding.                                                            
                                                                               
 Number 438                                                                    
                                                                               
 C0-CHAIR BUNDE agreed with the comparison and contrast process                
 presented by Representative Hanley.  He further suggested the                 
 duplicated sections between the bills should be left alone.                   
                                                                               
 Number 486                                                                    
                                                                               
 REPRESENTATIVE HANLEY responded there were two duplicated sections.           
 He further stated he was interested in asking the Governor why the            
 "100-hour" rule did not apply to all sections.  He also questioned            
 the work program that allowed participants to keep only $50 of                
 anything they made after the first three months.  He alluded this             
 was a disincentive to make more money.  In his bill, he raised it             
 to $200 and allowed the participants to keep one-third of                     
 everything made after that.  He again suggested testimony from the            
 department.                                                                   
                                                                               
 Number 587                                                                    
                                                                               
 CO-CHAIR BUNDE invited Curtis Lomas and Jim Nordlund both from the            
 Department of Health and Social Services to join them at the table.           
 He also recognized Representative Tom Brices's attendance.  He                
 posed the question to the department guests why the "100-hour" rule           
 was not waived in some sections.                                              
                                                                               
 Number 641                                                                    
                                                                               
 JIM NORDLUND, Director, Division of Public Assistance, Department             
 of Health and Social Services, said he was not sure about the                 
 thinking that went behind the various projects in the Governor's              
 bill.  Mr. Nordlund further said he was interested in                         
 Representative Hanley's approach of mixing and matching the similar           
 areas in all three bills.                                                     
                                                                               
 Number 672                                                                    
                                                                               
 CO-CHAIR BUNDE reiterated this was a short meeting and he did not             
 expect all questions to be answered immediately.  He suggested Mr.            
 Lomas address the above posed question regarding the "100-hour"               
 rule.                                                                         
                                                                               
 Number 706                                                                    
                                                                               
 CURTIS LOMAS, Welfare Reform Program, Division of Public                      
 Assistance, Department of Health and Social Services, responded to            
 the "100-hour" rule question.  He explained the Governor's bill               
 contained two statewide projects - the unemployed parent and the              
 self-employed programs; and two local projects - the work                     
 experience and the AFDC (Aid to Families with Dependent Children)             
 diversion programs.  The four projects would work concurrently but            
 tracked separately.  However, in the areas where community work               
 projects were operating, the "100-hour" rule would apply on a                 
 select basis.                                                                 
                                                                               
 Number 783                                                                    
                                                                               
 CO-CHAIR BUNDE questioned if it was because of fiscal restraints or           
 to simply make a research project.                                            
                                                                               
 MR. LOMAS responded it was to make a research project which matched           
 federal guidelines.  The federal government only allowed the policy           
 waivers the Governor asked for in an experimental design.  The                
 approach of an on-site random selection and assignment was one of             
 the requirements.                                                             
                                                                               
 Number 806                                                                    
                                                                               
 REPRESENTATIVE TOOHEY asked how the rules and regulations would be            
 affected if the government went to a block grant approach.                    
                                                                               
 Number 827                                                                    
                                                                               
 MR. NORDLUND responded that Congress allowed extreme flexibility to           
 the states, however, there were some mandates regarding benefits to           
 teen parents, for example.  He noted it was still being worked out.           
                                                                               
 CO-CHAIR BUNDE said he wanted to run the subcommittee meeting                 
 informally so if anybody wanted to say something speak up and                 
 identify yourself.                                                            
                                                                               
 Number 864                                                                    
                                                                               
 REPRESENTATIVE HANLEY said the subcommittee should implement the              
 things that it wanted to whether or not there was a waiver.  If the           
 restrictions were uplifted, we probably would not implement the               
 "100-hour" rule.  He suggested a monitored test project was needed.           
 He said the maximum percentage under the waiver is 70/30, but if              
 the restrictions were pulled, the department would implement within           
 the restraints of the dollar amount.                                          
                                                                               
 Number 953                                                                    
                                                                               
 CO-CHAIR BUNDE recognized Representative Hanley's comments and                
 further stated we were aiming at a "moving target."  He asked if              
 Glenda Straube via teleconference in Anchorage had any comments.              
                                                                               
 GLENDA STRAUBE, Director, Child Support Enforcement Division,                 
 Department of Revenue, said, no.                                              
                                                                               
 Number 974                                                                    
                                                                               
 C0-CHAIR BUNDE suggested the subcommittee address the areas where             
 the bills were different, such as, the workfare requirement                   
 sections.  He asked Mr. Lomas if he was opposed to the workfare.              
                                                                               
                                                                               
 Number 1010                                                                   
                                                                               
 REPRESENTATIVE HANLEY said he wanted to respond to that first.  He            
 stated he looked at the Governor's community work project section             
 and he did not have a problem with it.  He said it was similar to             
 his workfare section.  His bill, however, included those exempted             
 from mandatory work.  Whereas, the Governor's bill required the               
 establishment of a community work pilot project and did not address           
 numbers such as the 70/30 waiver.                                             
                                                                               
 Number 1095                                                                   
                                                                               
 MR. LOMAS responded the Governor's community work provisions                  
 subsumed workfare and broadened the concept beyond the requirement            
 to work without compensation for a specific number of hours.  He              
 further stated the Governor built in a range of activities that met           
 the workfare requirements including paid employment and rural                 
 community activities.  Also included was a provision for a private            
 contractor to implement the program and take on some functions now            
 performed by the Division of Public Assistance.  The common                   
 contractor, he alluded, created a potential to evaluate current               
 service level on a family-by-family basis.  This in turn might                
 highlight areas where service in kind was more appropriate than               
 cash benefits.                                                                
                                                                               
 Number 1173                                                                   
                                                                               
 REPRESENTATIVE CYNTHIA TOOHEY asked if wood or fish was an example            
 of a service in kind.                                                         
                                                                               
 MR. LOMAS answered yes and further expressed paying utility bills             
 was another possibility.  Rural leaders in particular were fond of            
 a service in kind rather than a cash benefit because it represented           
 a more traditional rural lifestyle.  The cash was used                        
 inappropriately, he said, and rural leaders would like more                   
 control. He further stated, the Governor did not specify the                  
 exemptions in the statute to allow for criteria tailored to the               
 community.  Mr. Lomas asserted the idea was an alternative to the             
 AFDC program.                                                                 
                                                                               
 Number 1292                                                                   
                                                                               
 CO-CHAIR BUNDE said the Governor wanted to maintain maximum                   
 flexibility.  He further asked what was meant of a private                    
 contractor.                                                                   
                                                                               
 Number 1309                                                                   
                                                                               
 MR. LOMAS answered he would invite anyone to come forth and offer             
 a competitive bid process giving preference to tribal entities.               
                                                                               
 Number 1335                                                                   
                                                                               
 CO-CHAIR BUNDE asked if there was an envisioned right of appeal               
 system for disagreements between the families and the system.  He             
 gave the example of a family believing they were entitled to cash             
 benefits rather than credit at a cooperative store.                           
                                                                               
 Number 1353                                                                   
                                                                               
 MR. LOMAS answered there would be a considerable amount of                    
 regulations under which the programs would operate in specific                
 areas.  The Governor's bill built in a right of appeal.  The appeal           
 would be created to meet the special projects in the community.               
                                                                               
 Number 1380                                                                   
                                                                               
 CO-CHAIR BUNDE said he had always been an advocate of electronic              
 transfer so that cash was not used inappropriately.  He cited this            
 was a good example of a human transfer rather than an electronic              
 transfer and thought it was an interesting concept.                           
                                                                               
 Number 1407                                                                   
                                                                               
 REPRESENTATIVE ROBINSON asked if Mr. Lomas knew of any reference to           
 noncustodial parents and their participation in the workfare                  
 program.                                                                      
                                                                               
 Number 1440                                                                   
                                                                               
 MR. LOMAS said he was aware of a few programs available to                    
 noncustodial parents.  There was enthusiasm in his department to              
 put together something that looked like JOBS participation and make           
 it available to noncustodial parents.  However, noncustodial                  
 parents were not clients of the Division of Public Assistance.                
 Consequently, he said, the division could not attach sanctions.  He           
 further alluded if the Governor's budget were fully funded as,                
 submitted, there would be enough slots available in the JOBS                  
 Program to be used in that manner.                                            
                                                                               
 Number 1488                                                                   
                                                                               
 MS. STRAUBE said she was aware of one program called the Minnesota            
 Parent Care Share that related to noncustodial parents.  She felt             
 it was a great idea because it would eliminate gender                         
 discrimination issues by promoting both parents to participate.               
                                                                               
 Number 1537                                                                   
                                                                               
 REPRESENTATIVE TOM BRICE said leverage could be provided to                   
 noncustodial parents to make sure they participated through                   
 increased child support responsibilities, for instance.                       
                                                                               
 Number 1555                                                                   
                                                                               
 REPRESENTATIVE ROBINSON said neither bills addressed the issue of             
 noncustodial parents or fathers paying child support.  She                    
 suggested they incorporate these issues into the bill.                        
                                                                               
 Number 1585                                                                   
                                                                               
 MR. NORDLUND responded that child support was not addressed because           
 of the constitutional single-subject rule.  He suggested the                  
 subcommittee look at the entire package of related bills and move             
 them concurrently.                                                            
                                                                               
 Number 1616                                                                   
 REPRESENTATIVE ROBINSON agreed with Mr. Nordlund and reiterated her           
 suggestion the subcommittee look at other bills that make the                 
 package work.                                                                 
                                                                               
 CO-CHAIR BUNDE responded that the subcommittee was bound by                   
 practicalities and time restraints.  The subcommittee was aware of            
 other bills but suggested they focus on composing the two bills               
 before them.                                                                  
                                                                               
 Number 1662                                                                   
                                                                               
 REPRESENTATIVE BRICE took exception to Mr. Nordlund's previous                
 testimony.  He suggested the subcommittee expand the title of the             
 bill and design it so that it does not go against the                         
 constitutional single-subject standard.                                       
                                                                               
 Number 1693                                                                   
                                                                               
 CO-CHAIR BUNDE reminded Ms. Straube in Anchorage to participate               
 when she felt like it.                                                        
                                                                               
 Number 1700                                                                   
                                                                               
 REPRESENTATIVE TOOHEY suggested to the subcommittee to include the            
 teen father more directly in the bill when discussing teen                    
 pregnancy.  The bill so far tends to focus on the teen mother.                
                                                                               
 Number 1757                                                                   
                                                                               
 REPRESENTATIVE ROBINSON agreed with Representative Toohey.  She               
 said there was a tendency to focus on the mother since she was the            
 one carrying the child.                                                       
                                                                               
 Number 1763                                                                   
                                                                               
 CO-CHAIR BUNDE said there was a vehicle that passed last year where           
 paternity was required to be established shortly after birth.  He             
 also said some mothers were resistant to provide a name.                      
                                                                               
 Number 1780                                                                   
                                                                               
 REPRESENTATIVE ROBINSON asked Ms. Straube if it was taking up to              
 two years to establish paternity.                                             
                                                                               
 MS. STRAUBE answered yes.                                                     
                                                                               
 REPRESENTATIVE ROBINSON responded we must keep in mind the process            
 should be such that we do not punish the children.  She cited an              
 example of a young woman who was raped and ultimately took her own            
 life because of the process she had to go through after the                   
 incident.                                                                     
                                                                               
 Number 1803                                                                   
                                                                               
 REPRESENTATAIVE HANLEY said he did not have a problem with                    
 Representative Robinson's concerns.  He directed the subcommittee             
 to the spreadsheet explaining the assistance to minors with kids              
 section included in Senator Green's and the Governor's bill.  He              
 suggested modifications were necessary.  He announced he would talk           
 to the department regarding the workfare section and the community            
 work project to combine the two including fiscal guidelines.  He              
 further announced he liked the approach of using AFDC benefits in             
 place of wages, especially in the rural communities, to help                  
 problems such as alcoholism.  He alleged money was being used to              
 buy alcohol rather than necessities such as food.  Representative             
 Hanley lastly asserted he wanted to focus on the workfare section             
 and the earned income rule.  The auto allowance and the "100-hour"            
 rule applied to all sections in his bill and he would like to see             
 those included.                                                               
                                                                               
 Number 1949                                                                   
                                                                               
 MR. LOMAS replied the auto allowance was part of the unemployed               
 parent project.                                                               
                                                                               
 Number 1956                                                                   
                                                                               
 REPRESENTATIVE HANLEY concluded when writing his bill his approach            
 was to eliminate disincentives, and to provide incentives and                 
 accountability where possible.                                                
                                                                               
 Number 1988                                                                   
                                                                               
 CO-CHAIR BUNDE shared Representative Hanley's concerns.  He                   
 concluded the challenge was to provide enough flexibility and                 
 guidelines to allow appropriate funding.                                      
                                                                               
 Number 2012                                                                   
                                                                               
 REPRESENTATIVE ROBINSON suggested the subcommittee keep in mind the           
 urban role and to try and expand the pilot programs state-wide.               
                                                                               
 Number 2037                                                                   
                                                                               
 CO-CHAIR BUNDE agreed with Representative Robinson's comment                  
 regarding a wider application.  He concluded by asking all members            
 to continue to compare and contrast the two bills and called for              
 another meeting in one week.                                                  
                                                                               
 Number 2058                                                                   
                                                                               
 MR. LOMAS before adjournment explained there were two amended                 
 fiscal notes as a result of a few oversights to HB 78.  He asked              
 the subcommittee to watch for them.                                           
 Number 2080                                                                   
                                                                               
 CO-CHAIR BUNDE responded the subcommittee would not make decisions            
 based on the current fiscal note in light of the new amended notes.           
 ADJOURNMENT                                                                   
                                                                               
 CO-CHAIR BUNDE adjourned the meeting at 9:45 a.m. and stated                  
 everyone would be notified of the next scheduled meeting.                     
                                                                               
                                                                               

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