03/29/2008 09:00 AM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SCR14 | |
| SCR19 | |
| HB422 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SCR 19 | TELECONFERENCED | |
| + | SCR 14 | TELECONFERENCED | |
| *+ | HB 422 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE
March 29, 2008
9:02 a.m.
MEMBERS PRESENT
Representative Peggy Wilson, Chair
Representative Bob Roses, Vice Chair
Representative Wes Keller
Representative Paul Seaton
Representative Sharon Cissna
Representative Berta Gardner
MEMBERS ABSENT
Representative Anna Fairclough
OTHER LEGISLATORS PRESENT
Senator Bill Wielechowski
COMMITTEE CALENDAR
SENATE CONCURRENT RESOLUTION NO. 14
Proclaiming February 4 - 10, 2008, as Perianesthesia Nurses
Week.
- MOVED SCR 14 OUT OF COMMITTEE
SPONSOR SUBSTITUTE FOR SENATE CONCURRENT RESOLUTION NO. 19
Relating to implementation of the recommendations of the
Governor's Summit on Early Learning.
- MOVED SSSCR 19 OUT OF COMMITTEE
HOUSE BILL NO. 422
"An Act repealing the Alaska children's trust; establishing
conditions for a grant to a named recipient of the balance of
the Alaska children's trust; designating certain receipts as
available for a grant to a named recipient for child abuse and
neglect prevention; and providing for an effective date."
- MOVED HB 422 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SCR 14
SHORT TITLE: PERIANESTHESIA NURSES WEEK: FEB 2008
SPONSOR(S): SENATOR(S) GREEN
01/18/08 (S) READ THE FIRST TIME - REFERRALS
01/18/08 (S) HES
03/12/08 (S) HES WAIVED PUBLIC HEARING NOTICE, RULE
23
03/12/08 (S) HES AT 5:00 PM BUTROVICH 205
03/12/08 (S) Moved SCR 14 Out of Committee
03/12/08 (S) MINUTE(HES)
03/14/08 (S) HES RPT 4DP
03/14/08 (S) DP: DAVIS, ELTON, THOMAS, COWDERY
03/14/08 (S) BEFORE THE SENATE ON FINAL PASSAGE
03/14/08 (S) TRANSMITTED TO (H)
03/14/08 (S) VERSION: SCR 14
03/17/08 (H) READ THE FIRST TIME - REFERRALS
03/17/08 (H) HES
03/29/08 (H) HES AT 9:00 AM CAPITOL 106
BILL: SCR 19
SHORT TITLE: GOVERNOR'S SUMMIT ON EARLY LEARNING
SPONSOR(S): SENATOR(S) WIELECHOWSKI
02/19/08 (S) READ THE FIRST TIME - REFERRALS
02/19/08 (S) HES, FIN
03/10/08 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
03/10/08 (S) HES
03/10/08 (S) HES AT 5:00 PM BUTROVICH 205
03/10/08 (S) Moved SSSCR 19 Out of Committee
03/10/08 (S) MINUTE(HES)
03/12/08 (S) HES RPT 4DP
03/12/08 (S) DP: DAVIS, ELTON, THOMAS, DYSON
03/17/08 (S) BEFORE THE SENATE ON FINAL PASSAGE
03/18/08 (S) TRANSMITTED TO (H)
03/18/08 (S) VERSION: SSSCR 19
03/19/08 (H) READ THE FIRST TIME - REFERRALS
03/19/08 (H) HES, FIN
03/29/08 (H) HES AT 9:00 AM CAPITOL 106
BILL: HB 422
SHORT TITLE: CHILDREN'S TRUST GRANT FOR ENDOWMENT
SPONSOR(s): HEALTH, EDUCATION & SOCIAL SERVICES
03/28/08 (H) READ THE FIRST TIME - REFERRALS
03/28/08 (H) HES, FIN
03/29/08 (H) HES AT 9:00 AM CAPITOL 106
WITNESS REGISTER
GINGER BLAISDELL, Staff
to Senator Lyda Green
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SCR 14, on behalf of Senator
Green, sponsor.
MICHELLE SYDEMAN, Staff
to Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SCR 19 on behalf of Senator
Wielechowski, sponsor.
GINGER BLAISDELL, Staff
to Senator Lyda Green
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided remarks on SCR 19.
TIFFANY RYAN, Executive Director
Alaska Association for the Education of Young Children (Alaska
AEYC)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SSSCR 19.
ABBE HENSLEY, Executive Director
Best Beginnings
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on SSSCR 19.
CAROL PRENTICE, Academic Programs
System for Early Education Division (SEED)
University of Alaska Southeast
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SSSCR 19.
LUPITA ALVAREZ, Director
Juneau Montessori Program
Juneau, Alaska
POSITION STATEMENT: Testified in support of SSSCR 19.
REBECCA ROONEY, Staff
to Representative Peggy Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 422, on behalf of
Representative Wilson, chair of the House Health, Education and
Social Services Standing Committee, sponsor.
PANU LUCIER, Executive Director
Alaska Children's Trust; Friends of the Alaska Children's Trust
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
422.
DIANE KAPLAN, Member
Alaska Children's Trust Board of Trustees
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
422.
SAMMYE POKRYFKI, Vice Chair
Friends of the Alaska Children's Trust
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
422.
KARLEEN JACKSON, Commissioner
Department of Health and Social Services (DHSS)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
422.
JERRY BURNETT, Director
Administrative Services Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
422.
JEAN MISCHEL, Attorney
Legislative Legal and Research Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
422.
SALLY SADLER, Legislative Liaison
Department of Commerce, Community, & Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 422.
ACTION NARRATIVE
CHAIR PEGGY WILSON called the House Health, Education and Social
Services Standing Committee meeting to order at 9:02:46 AM.
Representatives Keller, Seaton, Gardner, Roses, and Wilson were
present at the call to order. Representative Cissna arrived as
the meeting was in progress. Representative Fairclough was
excused. Senator Wielechowski was also in attendance.
SCR 14 - PERIANESTHESIA NURSES WEEK: FEB 2008
9:03:43 AM
CHAIR WILSON announced that the first order of business would be
SENATE CONCURRENT RESOLUTION NO. 14, Proclaiming February 4 -
10, 2008, as Perianesthesia Nurses Week.
9:04:14 AM
GINGER BLAISDELL, Staff to Senator Lyda Green, Alaska State
Legislature, speaking on behalf of Senator Green, sponsor,
relayed that SCR 14 recognizes perianesthesia nurses, who are
those who care for patients pre operation and post operation,
and who specialize in pain management and anesthesia. Although
the date for the proclamation has passed, SCR 14 would finalize
the honor.
9:05:34 AM
REPRESENTATIVE GARDNER noted that members' packets do not
contain letters of support or opposition.
MS. BLAISDELL stated that there has not been any opposition.
9:06:28 AM
CHAIR WILSON closed public testimony on SCR 14.
9:06:46 AM
REPRESENTATIVE SEATON moved to report SCR 14 out of committee
with individual recommendations and the accompanying zero fiscal
notes. There being no objection, SCR 14 was reported from the
House Health, Education and Social Services Standing Committee.
SCR 19 - GOVERNOR'S SUMMIT ON EARLY LEARNING
9:07:04 AM
CHAIR WILSON announced that the next order of business would be
SPONSOR SUBSTITUTE FOR SENATE CONCURRENT RESOLUTION NO. 19,
Relating to implementation of the recommendations of the
Governor's Summit on Early Learning.
9:07:21 AM
MICHELLE SYDEMAN, Staff to Senator Bill Wielechowski, Alaska
State Legislature, speaking on behalf of the sponsor, Senator
Wielechowski, informed the committee that SCR 19 relates to the
implementation of the recommendations of the Governor's Summit
on Early Learning. She advised that Alaska was awarded a grant
from the National Governors Association to hold a summit on
early learning and more than 150 statewide leaders participated.
One of the goals of the summit was to ensure that the state's
future economy would be supported by an educated and productive
workforce; therefore, the participants recommended that all
children, especially those in need, have access to quality early
learning opportunities. Ms. Sydeman cited findings that
supported the value of early learning to teach children under
six necessary skills for success later in life. She noted that
one-half of Alaska's children enter kindergarten unprepared to
be successful learners. Moreover, Alaska is one of ten states
without a state funded, statewide, early childhood learning
system. Some of the proven benefits of attending a quality
preschool are: higher achievement test scores, significantly
less grade repetition, reduction in special education placement,
higher rates of high school graduation, increased college
attendance, fewer arrests, and less reliance on public
assistance.
9:10:40 AM
MS. SYDEMAN continued to explain that, according to economists,
the above factors make the return on investments in preschool
far greater than those from most public economic development
projects. In fact, the Federal Reserve Bank reports that for
every dollar spent on early education, society reaps $16 in
benefits. Further, there is strong support by Alaskans for a
voluntary early learning program. Senate Concurrent Resolution
19 calls on Governor Palin to consider the recommendations of
the Summit for Early Education, and to work closely with the
legislature to implement those recommendations.
9:11:49 AM
REPRESENTATIVE GARDNER asked for information on the governor's
funding level for Head Start.
GINGER BLAISDELL, Staff to Senator Lyda Green, Alaska State
Legislature, offered her understanding that the governor
increased funding for Head Start by about $700,000, but she
acknowledged that her information may no longer be accurate.
REPRESENTATIVE GARDNER further asked how many kids, who qualify
for Head Start, will still be wait-listed at the level of
funding currently in the budget.
MS. BLAISDELL recalled that 900 children are on the wait-list
and she estimated that there will still be a substantial number,
even with the addition of $700,000 to the program. Furthermore,
many communities do not have Head Start programs available.
CHAIR WILSON stated that the Department of Health & Social
Services (DHSS) was undecided about the distribution of the
funding.
MS. BLAISDELL advised that there was a commitment by the DHSS to
existing Head Start programs.
9:14:20 AM
REPRESENTATIVE ROSES noted that in the subcommittee hearings on
Head Start members were told that, in some communities, there is
not enough space or staff to expand regardless of how much more
funding becomes available. He pointed out that there are
several issues, such as oversight by the Department of Education
and Early Development (EED), besides the lack of funding.
9:15:27 AM
CHAIR WILSON opined that Head Start is making changes at the
federal level to increase language development.
REPRESENTATIVE ROSES stated his support for the resolution, but
observed that the committee has already moved a bill that allows
the development of an early education program by the EED.
9:16:34 AM
REPRESENTATIVE SEATON expressed his support of the resolution.
He spoke of the variety of ways that early education will
benefit Alaskan society.
9:17:43 AM
REPRESENTATIVE CISSNA stated her support of SSSCR 19 as a
participant of the Summit on Early Learning. She observed that
this is a direction in which the state must go, and go quickly.
She shared her belief that the legislature should fully utilize
programs, such as Head Start, that are already available.
Representative Cissna recommended the passage of SSSCR 19.
9:19:08 AM
TIFFANY RYAN, Executive Director, Alaska Association for the
Education of Young Children (Alaska AEYC), expressed her support
of SSSCR 19. She acknowledged the work that the legislature has
done, such as increasing the child care assistance rate and
increasing funding to Head Start. However, the hope is that,
during the next legislative session, there will increases in
eligibility for child care assistance and further support for
Head Start.
9:20:35 AM
ABBE HENSLEY, Executive Director, Best Beginnings, after
thanking the sponsor for the resolution, relayed that Best
Beginnings worked with the governor's office to put on the
Summit on Early Learning which resulted in the resolution's
recommendations. She stressed the broad-based support in Alaska
for the recommendations and encouraged their review during the
interim and the next session. She pointed out that there are
two other recommendations; the voluntary quality rating and
improvement system, and the comprehensive public engagement
campaign. Both of these recommendations are on-going projects.
9:24:45 AM
CAROL PRENTICE, Academic Programs, System for Early Education
Division (SEED), stated that she was a participant in the
Governor's Summit on Early Learning and echoed the testimony
from the previous speakers. She reinforced the need for the
state to adopt the voluntary quality rating and improvement
system as a way to assure access, affordability, and quality for
all early learning programs. Her role in the System for Early
Education Division (SEED), University of Alaska Southeast (UAS),
is to provide professional development for teachers and
providers who work with young children. Professional
development in this field is provided statewide to related
organizations. Ms. Prentice advised that providers and teachers
are trying to improve the systems of early learning that are
already in existence.
9:28:03 AM
CHAIR WILSON stated her support of the rating of child care
facilities by quality and the educational levels of the
providers.
MS. PRENTICE added that the rating would be a valuable tool for
parents.
9:29:06 AM
LUPITA ALVAREZ, Director, Juneau Montessori Program, informed
the committee that Montessori schools focus on high education
for staff so as to be able to provide children with the best
experience. Montessori schools are a world wide program that
has been in existence for over 100 years. In fact, Head Start
was based on the Montessori model. She described aspects of the
Juneau Montessori Program. Ms. Alverez explained that a highly
educated staff also means a quality program that is difficult
for all families to afford without support from the community.
She expressed her support for child care assistance and noted
that tuition at the Montessori preschool is almost $1,000 per
month. Ms. Alverez stressed that her program wished to expand
to meet the community's need for child care; however, to
accomplish that, she would require funding for a facility and
teacher training.
9:32:59 AM
REPRESENTATIVE CISSNA surmised that the private sector can not
provide services to children in need without government support.
She asked whether Montessori has statistics on student outcomes.
MS. ALVEREZ related that children are better prepared in
reading, writing, and math. In addition, their thinking
abilities are developed. Typically, a child completing
kindergarten in a Montessori program would be reading, would be
able to complete some addition and subtraction, and would have
an understanding of some basic concepts. There is also a focus
on language development. Children at the elementary level are
better able to collaborate and solve problems.
9:35:36 AM
REPRESENTATIVE SEATON asked whether training for the Montessori
program is the sole responsibility of the teacher, or if there
are workforce development or training grants available.
MS. ALVEREZ said that the Montessori community is seeking
various funding. Fundraisers help sponsor teachers so that they
can go outside for training and return to Juneau.
CHAIR WILSON recalled her visit to the Montessori school. She
then closed public testimony.
9:37:32 AM
REPRESENTATIVE ROSES moved to report SSSCR 19 out of committee
with individual recommendations and the accompanying zero fiscal
notes. There being no objection, SSSCR 19 was reported from the
House Health, Education and Social Services Standing Committee.
HB 422 - CHILDREN'S TRUST GRANT FOR ENDOWMENT
9:37:46 AM
CHAIR WILSON announced that the final order of business would be
HOUSE BILL NO. 422, "An Act repealing the Alaska children's
trust; establishing conditions for a grant to a named recipient
of the balance of the Alaska children's trust; designating
certain receipts as available for a grant to a named recipient
for child abuse and neglect prevention; and providing for an
effective date."
CHAIR WILSON noted that HB 422 was sponsored by the House
Health, Education and Social Services Standing Committee. The
purpose of the bill was to transfer funds collected for the
Alaska Children's Trust to a non-profit organization, in order
to foster donations.
9:38:59 AM
REBECCA ROONEY, Staff to Representative Peggy Wilson, Alaska
State Legislature, speaking as the committee aide for the House
Health, Education and Social Services Standing Committee,
sponsor by request, informed the committee that the Alaska
Children's Trust (ACT), was enacted in 1988 and is the second
largest trust of its kind in the U.S. Funded to prevent child
abuse and neglect, the fund presently totals $12 million. She
continued to explain that the trust was established in the
office of the governor and receives grant and contract support
from the U.S. Department of Health and Human Services. The
Friends of the Alaska Children's Trust (FACT) organized as a
non-profit organization to raise funds and advocate for the
mission of the ACT. Funds for the trust have grown through
investment and contributions by FACT, and a small revenue stream
from the sales of license plates, birth certificates, and
marriage certificates. The funds are managed with a principal
account, that must be preserved except for $150,000 in annual
administrative expenses, and an income account. She noted that
the principal can be appropriated by the legislature. Capital
gains and losses remain with the principal and income includes
only interest and dividends. The Department of Revenue is paid
about $35,000 per year to manage the trust. Ms. Rooney pointed
out that the grant making function of the trust uses a portion
of the interest from the earnings by the trust fund to grant
funds to community based prevention programs and services.
Grants are limited to $50,000 per year, per grant, and total
funding for ACT grants in FY08 was about $468,000. In 2006, the
ACT and FACT boards of directors began to assess the
effectiveness of the trust to accomplish its mission by an
independent assessment that ultimately led to the decision to
privatize the ACT with the intent to transfer the trust funds to
a designated fund with the Alaska Community Foundation, and
governed by the gubernatorial appointed ACT board. There were
other options to be considered such as: the elimination of
trust activities with trust funds turned over to the state;
maintain the status quo; negotiate statute and operational
changes; become an Alaska Community Foundation donor advised
fund; utilize the Foraker Group as a fiscal and operation
sponsor; merge with the FACT board; or to create a new
501(c)(3).
9:43:33 AM
MS. ROONEY further explained that the reason the boards choose
the privatization was because of the history of inconsistent
staffing and the instability of programs with the department.
In addition, under the current structure, the FACT board is
unwilling to raise money that may or may not be used as donors
intend. Thus, the current administrative structure of the trust
does not allow for reliable, stable budget funding for grant
making. Given the trust's small operating budget and the size
of the grant awards, many community-based organizations are
unlikely to apply for grants because of the administrative
burden relative to the small size of the awards. Current trust
statute does not allow donations to the ACT to be used for
programming. The proposed legislation would allow a combination
of the governor appointee and self-appointed board members and
would ensure both adequate over-sight of the public dollars and
advocacy of the trust's mission. Ms. Rooney concluded that the
Legislative Affairs Agency advised that privatizing the fund
would require a repeal of the fund and some transfer provisions
for the existing principal. Therefore, HB 422 would allow the
legislature to transfer the annual estimated balance of the
account to the Alaska Community Foundation. Under the Alaska
Community Foundation the ACT will have greater flexibility to
create a more streamlined and simplified administrative
structure that would greatly enhance the trust's ability to
pursue its mission efficiently and effectively.
9:47:14 AM
REPRESENTATIVE GARDNER asked for examples of how the funds have
been used.
PANU LUCIER, Executive Director, Alaska Children's Trust and
Friends of the Alaska Children's Trust, explained that the ACT
is not allowed to run a program to prevent child abuse; thus
funds from the trust are granted to other organizations that
develop programs.
9:48:23 AM
REPRESENTATIVE KELLER asked for the organization that conducted
the audit.
MS. LUCIER, in response to two questions from Representative
Keller, said that the audit was done by The Giving Practice
(Philanthropy Northwest), at the request of the ACT board.
9:49:08 AM
REPRESENTATIVE CISSNA asked for clarification on whether the
funding must go directly to the state.
MS. ROONEY suggested that Representative Cissna save her
question for the next witness.
REPRESENTATIVE KELLER asked whether all of the seats on the ACT
board of trustees were filled.
MS. LUCIER stated that there was one open seat for a public
member. In further response, she indicated that all board
members are appointed by the governor. The governor is
represented on the board of trustees by a designee and the
commissioners of the Department of Education and Early
Development (EED) and the Department of Health & Social Services
(DHSS)).
REPRESENTATIVE KELLER asked whether the bill was requested by
the governor in addition to the ACT.
9:52:07 AM
DIANE KAPLAN stated that she was a member of the Alaska
Children's Board of Trustees and also served as a member of the
Friends of the Alaska Children's Trust. In response to a
question, she informed the committee that the current vacancy on
the ACT board of trustees is the governor's designee. She then
explained that child abuse and prevention is a very pressing
issue in Alaska and that the ACT is the only entity that is
focused specifically on prevention. In addition, the ACT is
heavily dependent on individuals and organizations for
contributions to supplement its small endowment. The existing
structure is insufficient to adequately support the important
work of the ACT. In fact, the endowment is a very small
responsibility of the Department of Revenue (DOR) and the DHSS
and does not get the type of support needed for success. As a
result, there are few applications and those that do apply find
long delays and frustration. Thus, the trustees feel that the
ACT is not meeting its potential. However, Ms. Kaplan pointed
out that the ACT needs a close relationship with state, the
governor's office, and the legislature, as the state is
ultimately responsible for the welfare of children. She opined
that HB 422 maintains a close relationship with the state and
provides a more streamlined approach for the fulfillment of the
ACT's mission. Furthermore, due to the reluctance of donors to
donate directly to the state, FACT members requested an ethical
structure to handle donor's contributions as directed. Ms.
Kaplan assured the committee that HB 422 was the right approach
to support ACT and Alaska's children. She further described the
difficulty in securing donations, and the instability of
funding, under the current structure.
9:57:45 AM
CHAIR WILSON asked whether the $12 million endowment would be
kept and future donations distributed according to the wishes of
the donor.
MS. KAPLAN indicated yes. She gave the example of how the
University of Alaska (UA) manages its endowment and foundation
funds. In further response to comments and questions, she
relayed that the state needs a group that is focused solely on
reducing the instances of child abuse and neglect, and directing
funds in the most effective manner. She spoke to the future of
the trust's role as a leader and innovator coordinating the
efforts of all of the organizations in the state toward the
reduction of child abuse and neglect.
10:03:34 AM
REPRESENTATIVE ROSES stated his support of HB 422, but disagreed
with the statement that the department "wasn't capable of doing
the work ...."
MS. KAPLAN clarified that the commissioner of the DHSS was one
of the most important members of the trust. However, the ACT is
a small entity within a large department. She stressed that the
commissioners of the DHSS and the EED are supportive of the
proposal.
10:05:25 AM
SAMMYE POKRYFKI, Vice Chair, Friends of the Alaska Children's
Trust, stated her support for HB 422 on behalf of FACT. She
informed the committee that the primary purpose of FACT was to
raise funds for the ACT. Many FACT board members have extensive
experience in non-profit fund raising and are obligated to honor
donor intent when soliciting contributions. Under the current
structure, FACT board members are not able to raise money that
may or may not be used as donors intend. She assured the
committee that FACT board members agree that privatization is
the best approach for change and fully support HB 422.
10:07:58 AM
REPRESENTATIVE KELLER asked whether the trustees of ACT would
remain the same after the passage of the bill.
MS. LUCIER said yes. She added that the intent was to retain
the board and state oversight by the commissioners serving on
the board.
MS. ROONEY noted that the Department of Commerce, Community, &
Economic Development (DCCED) would establish how the grant would
be handled.
REPRESENTATIVE KELLER further asked whether this structure is
statutorily defined.
MS. LUCIER responded that the seven member, governor appointed
board is defined in state statute.
10:10:15 AM
KARLEEN JACKSON, Commissioner, Department of Health and Social
Services (DHSS), in response to a question, relayed that she,
the DHSS, and the governor are all in support of HB 422. She
explained that, given the shortness of the session, it seemed
more prudent to allow the House Health, Education and Social
Services Standing Committee to sponsor the bill. She stressed
the importance of the contribution of volunteer board members
and supporting the work that they do; in fact, all Alaskans
should be engaged in the effort to prevent child abuse and
neglect. She then gave an example of how the proposal simples
the work of the ACT.
10:13:08 AM
REPRESENTATIVE ROSES referred to page 3, line 18, that read:
(5) the grantee shall annually report the conditions
and investment performance of the grant funds to the
commissioner of revenue and the board; and
(6) if the grantee materially breaches a condition of
the grant agreement set out in this section, the
balance of the grant reverts to the state.
REPRESENTATIVE ROSES than asked whether the DOR was supportive
of that language and whether there would be corrective action
prior to the reversal.
10:14:32 AM
JERRY BURNETT, Director, Administrative Services Division,
Department of Revenue, informed the committee that this language
was a new type of requirement that he had not discussed with the
commissioner. He assured the committee that the DOR was
supportive of HB 422 and did not anticipate any problems with
"how it would be done."
REPRESENTATIVE ROSES further asked whether the DOR would assist
[the grantee] in the nature of its investments.
MR. BURNETT indicated no.
REPRESENTATIVE ROSES expressed his concern that the grantee will
be measured against other systems, such as the Alaska Permanent
Fund, and suggested that there should be a corrective dialog
between the entities prior to the reversal of funds.
10:17:11 AM
MR. BURNETT opined that the grant agreement with the DCCED would
contain the mechanism.
REPRESENTATIVE ROSES suggested that a plan for corrective action
needs to be clearly written in the guidelines for the transfer.
10:18:07 AM
JEAN MISCHEL, Attorney, Legislative Legal and Research Services,
Legislative Affairs Agency, concurred that there is a lot of
latitude within the bill to set the terms of the grant
agreement. She then pointed out that the bill would repeal the
existing board and establish a new advisory board within the
office of the governor.
REPRESENTATIVE KELLER noted that the language being deleted was
the establishment of the trust, the powers of the commissioner
of the DOR [regarding the trust], the administration of the
trust, the establishment of the board, the powers and duties of
the board, the fund utilization, and the criteria and
eligibility for the grants. He expressed his support for bill,
but encouraged the addition of language that describes how the
money will be spent.
10:20:50 AM
REPRESENTATIVE ROSES pointed out that the bill outlines the
provision of a new board.
MS. MISCHEL explained that the language requires consultation
with a group, but there would not be a requirement in statute
for a permanent board. A solution would be to maintain the
board in law as an advisory group. She advised that another
legal issue raised by HB 422 was that there is no guarantee that
the trust would be maintained as originally constructed with the
collection of fees and donations. Under the proposed bill, the
funds would be held in an endowment, but there is some concern,
albeit limited, that there is no precedent for transferring fees
and private donations to a private entity. She cautioned that
there is some potential, therefore, that the license and
certificate fees will be lost and that there may be complaints
from donors.
10:24:58 AM
REPRESENTATIVE ROSES recalled that previous legislation has
addressed the issue of license fees paid to a private
organization. He then remarked:
... on page 3, line 5, it says "before a grant to a
named recipient is awarded," and then it goes on and
on and then it says "the customary provisions must
include the following: ... the grantee shall consult
with an advisory group established in the office of
the governor." It doesn't say when it was
established, it could be an existing board or it could
be a new board, and then it goes on to explain who
that would be. ... So, I'm looking at the word
"established" and looking at that as criteria that
must occur before the money would be transferred.
[Does] that not then satisfy the fact that we would
have a board in place and there would be no lack of
transition?
MS. MISCHEL said:
... what paragraph (4) [page 3, line 14,] is referring
to is a grant agreement provision. It doesn't
effectively establish the advisory group that refers
to an advisory group that we hope the governor will
maintain and establish. The make-up of that group is
different from the current trust board and we could,
fairly easily, set up this advisory group in the
governor's office in substantive law if we're, a,
concerned that that may not actually occur, but all
this paragraph does is require, places a condition on
the grantee, not the governor.
REPRESENTATIVE ROSES asked whether conceptual amendments could
be drafted that state his intent that the bill makes clear that
there would be a board and that corrective action would be taken
prior to funds reverting back to the state.
MS. MISCHEL said yes.
10:28:33 AM
REPRESENTATIVE GARDNER gave an example of a grantee that
materially breaches an agreement and the breach pertains to the
failure to consult with an advisory group that did not exist.
She asked whether the grantee would suffer the reversal of funds
to the state.
MS. MISCHEL relayed that her advice to the DCCED would be that
that situation does not constitute a material breach.
Typically, material breaches are a significant lack of
compliance from the original purposes of the grant.
REPRESENTATIVE KELLER surmised that the mission of the ACT could
be included in the language of the bill. He read:
[The mission of the Alaska Children's Trust is] to
improve the status of children in Alaska by generating
funds and committing resources to eliminate child
abuse and neglect.
REPRESENTATIVE KELLER explained that the mission statement
emphasizes that the ACT is more than an advocacy organization
lobbying for ongoing funds.
10:31:31 AM
REPRESENTATIVE CISSNA offered her understanding that there is a
need for organizations to stay flexible, and that mission
statements are sometimes updated, thus using specific language
might not be the best option.
REPRESENTATIVE KELLER clarified that he was asking whether the
addition was possible, in a legal sense.
10:33:25 AM
SALLY SADLER, Legislative Liaison, Department of Commerce,
Community, & Economic Development (DCCED), relayed her
understanding that the DCCED would need to provide oversight and
monitoring of the grant agreement, thus a grants administer may
be needed. She informed the committee that the DCCED employs
eight grants administrators who work with 1,700 grants totaling
$200 million. She opined that the amount of work needed to
provide oversight and guidance over a $12 million grant, outside
of a "pass through" of funds, requires personnel. In response
to a question, Ms. Saddler stated that with the conditions of
the grant agreement and monitoring responsibilities assigned to
the DCCED, additional personnel may be needed.
REPRESENTATIVE GARDNER expressed her understanding that the
intent of HB 422 was to move all of the funds and the
responsibility for managing the funds, to the Alaska Community
Foundation.
10:36:44 AM
MS. SADDLER affirmed that the DCCED was seeking clarification of
its responsibility.
REPRESENTATIVE ROSES opined that the bill was clear that this
was a pass-through grant, authorized only after certain
conditions are met. He stated that the DCCED would not have
continuing monitoring responsibilities.
CHAIR WILSON observed agreement from other members.
MS. SADDLER stated that there would be a zero fiscal note
forthcoming from the DCCED.
10:38:02 AM
MS. LUCIER outlined her experience with rural Alaska and pointed
out that the state currently provides services to children who
are in state custody. The Office of Children's Services (OCS),
DHSS, reports that 61 percent of the 2,000 children in state
custody are Alaska Native or American Indian. She stressed the
value of prevention and said that the ACT was the entity to
promote prevention, but its hands are tied under the current
system. The current system discourages rural communities from
applying for funds that could prevent children from ending up in
state custody. In the long run, prevention pays; studies
illustrate that local prevention services result in healthier
children and reduce the burden on the state in many ways. She
concluded that privatization would allow ACT and FACT to have
more impact on reducing the number of children in state custody
by allocating funds for prevention.
10:41:00 AM
CHAIR WILSON asked for examples of effective programs.
MS. LUCIER stated that there are six grantees, one of which is
the National Alliance of Children's Trust and Prevention Funds
Strengthening Families initiative. This program focuses on
strengthening families with young children. The Juneau Birth
Center is also a grantee involved with new parents. Further,
the children's trust supports parenting classes in Fairbanks and
a 24-hour phone line that provides information and help to
parents. She pointed out that all of these programs are
designed to prevent child abuse.
10:42:52 AM
REPRESENTATIVE KELLER and Chair Wilson expressed their
appreciation for Ms. Lucier's testimony.
REPRESENTATIVE ROSES referring to previous testimony provided on
other legislation, said "We want to do it right, we want to give
you the protection ... the latitude and the flexibility, ...
with the protections in place."
10:44:59 AM
The committee took an at-ease from 10:44 a.m. to 10:45 a.m.
CHAIR WILSON closed public testimony on HB 422.
10:46:17 AM
REPRESENTATIVE KELLER offered Conceptual Amendment 1, such that
the purpose of the fund would be to improve the status of
children in Alaska by generating funds and committing resources
to eliminate child abuse and neglect.
CHAIR WILSON objected. She stated that the language in the bill
must remain "loose."
REPRESENTATIVE KELLER clarified that a mission statement is
broad, but helps keep the proper prospective. He gave an
example of the purpose of a mission statement and stressed its
importance.
10:48:48 AM
CHAIR WILSON stated that the committee should not create a
mission statement for the trust.
REPRESENTATIVE GARDNER noted that on page 3, line 12, language
already ensures that the funds that would be transferred would
be used as intended.
REPRESENTATIVE CISSNA offered to amend Conceptual Amendment 1
such that protecting children's health would become a general
statement.
10:50:16 AM
REPRESENTATIVE ROSES agreed with Representative Gardner. He
then expressed his concern with the addition of a mission
statement that may prevent the future expansion of the trust
into other areas to benefit children.
10:50:55 AM
REPRESENTATIVE KELLER disagreed. He reminded the committee that
the children's trust was established for the specific purpose of
stopping child abuse. Today's testimony was that the trust was
limited in its abilities by legislation. If the mission
statement is removed there is the possibility that the fund
would drift to other concerns, which would be inconsistent with
the reason for establishing the trust. Future legislatures
should be involved in making changes, if changes become
necessary. Representative Keller stressed that the wording of
his Conceptual Amendment was provided by the trust.
10:52:49 AM
CHAIR WILSON gave the example of the changes undergone by the
mental health trust. She then reviewed the amendment to
Conceptual Amendment 1.
REPRESENTATIVE KELLER objected.
REPRESENTATIVE CISSNA re-stated that the wording was "to protect
children's health."
10:53:58 AM
REPRESENTATIVE GARDNER suggested that the amendment to
Conceptual Amendment 1 could have a great deal of influence on
where the money was used.
REPRESENTATIVE CISSNA referred to page 3, line 12, that read:
... shall be administered for the benefit of
community-based programs and projects in the state
that aid in the prevention of child abuse and neglect.
REPRESENTATIVE GARDNER asked for clarification of the amendment
to Conceptual Amendment 1.
10:54:59 AM
REPRESENTATIVE CISSNA clarified that Conceptual Amendment 1 adds
the following language: "improve the status of children in
Alaska by generating funds and committing resources to eliminate
child abuse and neglect." She then explained that her friendly
amendment to Conceptual Amendment 1 would read: "improve the
status of children in Alaska by generating funds and committing
resources to protect children's health."
10:56:25 AM
REPRESENTATIVE GARDNER opined that the friendly amendment would
enable trust funds to be used for many purposes, such as
immunizations, that are not specifically [for the prevention of]
abuse and neglect.
REPRESENTATIVE ROSES stated his opposition to the amendment to
Conceptual Amendment 1.
10:57:15 AM
REPRESENTATIVE KELLER confirmed the possibility of the growth of
the trust and the expansion of the use of trust monies.
REPRESENTATIVE ROSES opined that the passage of the bill
provides for private control of the fund without direction from
the legislature.
REPRESENTATIVE KELLER re-stated that the mission statement, if
put in statute, could be re-addressed.
REPRESENTATIVE ROSES pointed out that the funds would be
privately managed by a board and that the legislature would not
have authority over the funds or the mission statement once the
fund is privatized.
10:59:28 AM
REPRESENTATIVE CISSNA sought clarification on the placement of
the Conceptual Amendment in the bill.
REPRESENTATIVE KELLER clarified that his intent was to direct
the drafter to write language that affects the agreement between
the DCCED and the entity. In addition, changing the mission
statement would affect the agreement and "it would come from
that end."
REPRESENTATIVE CISSNA stated her misunderstanding and withdrew
the amendment to Conceptual Amendment 1.
11:01:49 AM
REPRESENTATIVE GARDNER opined that the committee did not have
the authority to create a mission statement for the Alaska
Children's Foundation; in fact, it could only direct how the
endowment should be used.
REPRESENTATIVE ROSES asked whether the amendment would create
oversight and conditions over the funds. He explained that the
fund would have an advisory board that would oversee the
investment guidelines and determine whether material breaches of
the contract have been made. He re-stated his opposition to
Conceptual Amendment 1.
11:03:11 AM
A roll call vote was taken. Representative Keller voted in
favor of Conceptual Amendment 1. Representatives Cissna,
Gardner, Roses, and Wilson voted against it. Therefore,
Conceptual Amendment 1 failed by a vote of 1-4.
11:03:44 AM
REPRESENTATIVE KELLER indicated that he was supportive of the
actions of the children's trust; however, he stressed his
concern about the unintended effect of taking a legislative
element out.
11:04:52 AM
REPRESENTATIVE ROSES moved to report HB 422 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 422 was reported from the
House Health, Education and Social Services Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Health, Education and Social Services Standing Committee meeting
was adjourned at 11:05 a.m.
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