03/27/2001 03:37 PM House HES

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* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE March 27, 2001 3:37 p.m. MEMBERS PRESENT Representative Fred Dyson, Chair Representative Peggy Wilson, Vice Chair Representative John Coghill Representative Gary Stevens Representative Vic Kohring Representative Sharon Cissna Representative Reggie Joule MEMBERS ABSENT All members present COMMITTEE CALENDAR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76 "An Act authorizing the commissioner of health and social services to provide for the design and construction of psychiatric treatment facilities to replace the facilities of the Alaska Psychiatric Institute." - MOVED CSSSHB 76(HES) OUT OF COMMITTEE SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 77 "An Act relating to appropriations for the design and construction of a replacement facility or facilities for the Alaska Psychiatric Institute and for a grant to study the feasibility of locating certain health programs at the site of the Alaska Psychiatric Institute; and providing for an effective date." - MOVED CSSSHB 77(HES) OUT OF COMMITTEE HOUSE BILL NO. 142 "An Act relating to the Alaska temporary assistance program; and providing for an effective date." - HEARD AND HELD HOUSE BILL NO. 164 "An Act prescribing the rights of grandparents related to child- in-need-of-aid hearings; and amending Rules 3, 7, 10, 15, and 19, Alaska Child in Need of Aid Rules." - HEARD AND HELD CS FOR SENATE BILL NO. 112(FIN) "An Act placing certain employees of the Alaska Mental Health Trust Authority in the exempt service; establishing a minimum salary for the long term care ombudsman; and providing for an effective date." - MOVED CSSB 112(FIN) OUT OF COMMITTEE HOUSE BILL NO. 98 "An Act relating to the award of a high school diploma to certain World War II veterans." - MOVED CSHB 98(MLV) OUT OF COMMITTEE HOUSE BILL NO. 96 "An Act relating to acquisition and development of the Jesse Lee Home; and providing for an effective date." - HEARD AND HELD HOUSE BILL NO. 130 "An Act relating to the issuance of certificates of participation to finance demolition of all or part of the existing facility known as the Alaska Psychiatric Institute and construction of a new facility to be known as the Alaska Psychiatric Institute; giving notice of and approving the entry into, and the issuance of certificates of participation in, a lease-purchase agreement for demolition of all or part of the existing facility known as the Alaska Psychiatric Institute and construction of a new facility to be known as the Alaska Psychiatric Institute; and providing for an effective date." - SCHEDULED BUT NOT HEARD HOUSE BILL NO. 209 "An Act directing the Department of Health and Social Services to establish a foster care transition program; relating to that program; and providing for an effective date." - SCHEDULED BUT NOT HEARD PREVIOUS ACTION BILL: HB 76 SHORT TITLE:NEW FACILITIES FOR API SPONSOR(S): REPRESENTATIVE(S)ROKEBERG Jrn-Date Jrn-Page Action 01/19/01 0128 (H) READ THE FIRST TIME - REFERRALS

01/19/01 0128 (H) HES, FIN 02/14/01 0316 (H) SPONSOR SUBSTITUTE INTRODUCED 02/14/01 0316 (H) READ THE FIRST TIME - REFERRALS 02/14/01 0316 (H) HES, FIN 02/14/01 0316 (H) REFERRED TO HES 03/13/01 (H) HES AT 3:00 PM CAPITOL 106 03/13/01 (H) Heard & Held MINUTE(HES) 03/27/01 (H) HES AT 3:00 PM CAPITOL 106 BILL: HB 77 SHORT TITLE:APPROP: REPLACEMENT OF API SPONSOR(S): REPRESENTATIVE(S)ROKEBERG Jrn-Date Jrn-Page Action

01/19/01 0129 (H) READ THE FIRST TIME - REFERRALS

01/19/01 0129 REFERRALS MINUTE(HES) BILL: PASSAGE REFERRALS BILL: HB 142 02/23/01 0414 (H) READ THE FIRST TIME - 02/23/01 0414 (H) HES, FIN 02/23/01 0414 (H) FN1: ZERO(HSS) 02/23/01 0414 (H) GOVERNOR'S TRANSMITTAL LETTER 02/23/01 0414 (H) REFERRED TO HES 03/22/01 (H) HES AT 3:00 PM CAPITOL 106 03/22/01 (H) Heard & Held 03/27/01 (H) HES AT 3:00 PM CAPITOL 106 etail/22?Root=HB164'>HB 164 03/09/01 0515 (H) READ THE FIRST TIME - 03/09/01 0515 (H) HES, JUD, FIN 03/09/01 0515 (H) REFERRED TO HES 03/27/01 (H) HES AT 3:00 PM CAPITOL 106 etail/22?Root=SB112'>SB 112 02/22/01 0471 (S) READ THE FIRST TIME - 02/22/01 0471 (S) HES, FIN 02/28/01 (S) HES AT 1:30 PM BUTROVICH 205 02/28/01 (S) Moved Out of Committee 03/01/01 0556 (S) HES RPT 5DP 03/01/01 0556 (S) DP: GREEN, LEMAN, WILKEN, 03/01/01 0556 (S) FN1: ZERO(REV) 03/15/01 (S) FIN AT 9:15 AM SENATE FINANCE 03/15/01 (S) Moved CS(FIN) Out of 03/15/01 0674 (S) FIN RPT CS 6DP 2NR SAME TITLE 03/15/01 0675 (S) DP: DONLEY, KELLY, GREEN, 03/15/01 0675 (S) LEMAN; NR: AUSTERMAN, HOFFMAN 03/15/01 0675 (S) FN1: ZERO(REV) 03/15/01 (S) MINUTE(FIN) 03/20/01 (S) RLS AT 10:45 AM FAHRENKAMP 03/20/01 (S) MINUTE(RLS) 03/21/01 0753 (S) RULES TO CALENDAR 3/21/01 03/21/01 0757 (S) READ THE SECOND TIME 03/21/01 0757 (S) FIN CS ADOPTED UNAN CONSENT 03/21/01 0757 (S) ADVANCED TO THIRD READING 03/21/01 0758 (S) READ THE THIRD TIME CSSB 112(FIN) 03/21/01 0758 (S) PASSED Y16 N- E4 03/21/01 0758 (S) EFFECTIVE DATE(S) SAME AS 03/21/01 0759 (S) TRANSMITTED TO (H) 03/21/01 0759 (S) VERSION: CSSB 112(FIN) 03/22/01 0677 (H) READ THE FIRST TIME - 03/22/01 0677 (H) HES 03/27/01 (H) HES AT 3:00 PM CAPITOL 106 tail/22?Root=HB98'>HB 98

01/31/01 0211 (H) READ THE FIRST TIME - REFERRALS

01/31/01 0211 (H) MLV, HES

01/31/01 0212 (H) FN1: ZERO(EED)

01/31/01 0212 (H) GOVERNOR'S TRANSMITTAL LETTER 02/20/01 (H) MLV AT 3:30 PM CAPITOL 120 02/20/01 (H) Moved CSHB 98(MLV) Out of Committee 02/20/01 (H) MINUTE(MLV) 02/23/01 0407 (H) MLV RPT CS(MLV) 5DP 02/23/01 0407 (H) DP: MURKOWSKI, HAYES, GREEN, KOTT, 02/23/01 0407 (H) CHENAULT 02/23/01 0407 (H) FN1: ZERO(EED) 03/22/01 (H) HES AT 3:00 PM CAPITOL 106 03/22/01 (H) Scheduled But Not Heard 03/27/01 (H) HES AT 3:00 PM CAPITOL 106 BILL: HB 96 SHORT TITLE:ACQUIRING JESSE LEE HOME SPONSOR(S): REPRESENTATIVE(S)LANCASTER Jrn-Date Jrn-Page Action

01/26/01 0174 (H) READ THE FIRST TIME - REFERRALS

01/26/01 0174 (H) HES, FIN 03/27/01 (H) HES AT 3:00 PM CAPITOL 106 WITNESS REGISTER REPRESENTATIVE NORMAN ROKEBERG Alaska State Legislature Capitol Building, Room 118 Juneau, Alaska 99801 POSITION STATEMENT: Sponsor of HB 76 and HB 77. NEIL SLOTNICK, Deputy Commissioner Office of the Commissioner Department of Revenue PO Box 110405 Juneau, Alaska 99811 POSITION STATEMENT: Answered questions on HB 76. JERRY WATKINS, Engineer/Architect Construction & Operations Department of Transportation & Public Facilities 2200 East 42nd Street Anchorage, Alaska 99508 POSITION STATEMENT: Answered questions on HB 76. RANDALL BURNS, Director Alaska Psychiatric Institute Division of Mental Health & Developmental Disabilities Department of Health & Social Services 2900 Providence Avenue Anchorage, Alaska 99508 POSITION STATEMENT: Answered questions on HB 76. RUSS WEBB, Deputy Commissioner Office of the Commissioner Department of Health & Social Services PO Box 110601 Juneau, Alaska 99811 POSITION STATEMENT: Answered questions on HB 76. MARGOT KNUTH, Assistant Attorney General Office of the Commissioner - Juneau Department of Corrections 431 Franklin Street Juneau, Alaska 99801 POSITION STATEMENT: Answered questions on HB 76. SAM DICKEY Coalition for Alaska Psychiatric Institute (No address provided) Valdez, Alaska 99686 POSITION STATEMENT: Testified on HB 76. JEROME SELBY, Regional Director Providence Health Systems in Alaska 3200 Providence Drive Anchorage, Alaska 99519 POSITION STATEMENT: Testified on HB 76. ELAINE PRATT Coalition for Alaska Psychiatric Institute (No address provided) Anchorage, Alaska POSITION STATEMENT: Testified on HB 76. JIM NORDLUND, Director Division of Public Assistance Department of Health & Social Services PO Box 110640 Juneau, Alaska 99811 POSITION STATEMENT: Testified on HB 142. BETTY ROLANDS (ph) (No address provided) POSITION STATEMENT: Testified in support of HB 164. CHUCK ROLANDS (ph) 1491 Davidson Road North Pole, Alaska 99705 POSITION STATEMENT: Testified in support of HB 164. THERESA TANOURY, Director Division of Family & Youth Services Department of Health & Social Services PO Box 110630 Juneau, Alaska 99811 POSITION STATEMENT: Answered questions on HB 164. HANS NEIDIG, Staff to Senator Lyda Green Alaska State Legislature Capitol Building, Room 125 Juneau, Alaska 99801 POSITION STATEMENT: Testified on SB 112. GEORGE SMITH, Deputy Director Libraries, Archives & Museums Department of Education and Early Development PO Box 110571 Juneau, Alaska 99811 POSITION STATEMENT: Answered questions on SB 112. CAREN ROBINSON, Chair Alaska Mental Health Trust Authority 550 West 7th Avenue Anchorage, Alaska 99501 POSITION STATEMENT: Answered questions on SB 112. CAROL CARROLL, Director Administrative Services Division Department of Military & Veterans' Affairs 400 Willoughby Juneau, Alaska 99811 POSITION STATEMENT: Testified on HB 98. REPRESENTATIVE KEN LANCASTER Alaska State Legislature Capitol Building, Room 421 Juneau, Alaska 99801 POSITION STATEMENT: Sponsor of HB 96. TIM SCZAWINSKI PO Box 2885 Seward, Alaska 99664 POSITION STATEMENT: Testified in support of HB 96. GEORGE SMITH, Deputy Director Libraries, Archives & Museums Department of Education and Early Development PO Box 110571 Juneau, Alaska 99811 POSITION STATEMENT: Testified on HB 96. ACTION NARRATIVE TAPE 01-36, SIDE A Number 0001 CHAIR FRED DYSON reconvened the House Health, Education and Social Services Standing Committee at 3:37 p.m. Members present at the call to order were Representatives Dyson, Wilson, Coghill, Cissna, Kohring, Stevens, and Joule. [The minutes for the Alaska Council of School Administrators overview are found in the 3:00 p.m. cover sheet for the same date.] HB 76-NEW FACILITIES FOR API CHAIR DYSON announced that the committee would hear testimony on SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76, "An Act authorizing the commissioner of health and social services to provide for the design and construction of psychiatric treatment facilities to replace the facilities of the Alaska Psychiatric Institute." Number 0138 REPRESENTATIVE NORMAN ROKEBERG, Alaska State Legislature, came forth as sponsor of HB 76. He explained that the proposed committee substitute (CS) for SSHB 76, Version L [22-LS0349\L, Utermohle, 3/16/01], merges parts of the governor's HB 130 with the prior version of SSHB 76. One major change is that [Version L] has a general obligation (GO) bond instead of the certificates of participation (COPs). Version L retains language concerning the various state and local entities and the requirements for a forensic unit for the Department of Corrections. He stated that he also has proposed Amendment L.1, which deletes the GO bonds and inserts the COPs. The API (Alaska Psychiatric Institute) amounts have been conformed to the governor's bill; however, the drafter omitted any amount for a larger forensic unit. He suggested that it would be simpler to leave the numbers alone and let the House Finance Committee deal with it. He added that this bill would divide the GO bonds in the amount of approximately $58,750,000. Number 0287 REPRESENTATIVE JOULE made a motion to adopt the proposed committee substitute (CS) for SSHB 76, version 22-LS0349\L, Utermohle, 3/16/01, as a work draft. There being no objection, Version L was before the committee. CHAIR DYSON asked Representative Rokeberg if he wanted to adopt Amendment L.1. REPRESENTATIVE ROKEBERG stated that he didn't want to, but it is up to the committee. He explained that the difference is between GO bonds or COPs. REPRESENTATIVE JOULE asked what the difference is between GO bonds and COPs. REPRESENTATIVE ROKEBERG responded that GO bonds would go to the public in the next general election and would have to be voted on by the citizens of Alaska. Certificates of participation are financed similarly, but they come out of the income stream of the general fund within the appropriate department. The COPs are appropriated by the legislature without the will of the people. Number 0488 REPRESENTATIVE COGHILL remarked that this is a policy call, not only on GO bonds, but also as a matter of timing. He said this has been drawn out for some time; therefore, a COP would expedite the work. He made a motion to adopt Amendment L.1, [22-LS0349,\L.1, Utermohle], which read: Page 1, line 1: Delete "general obligation bonds" Insert "certificates of participation" Page 1, line 3, following "Institute;": Insert "giving notice of and approving the entry into and the issuance of certificates of participation in a lease-purchase agreement for demolition of all or part of the existing facility known as the Alaska Psychiatric Institute and construction of a new facility to be known as the Alaska Psychiatric Institute;" Page 2, line 5: Delete "general obligation bonds authorized by" Insert "certificates of participation to be issued by the state bond committee under sec. 5 of" Page 2, line 15: Delete "general obligation bonds authorized by" Insert "certificates of participation to be issued by the state bond committee under sec. 5 of" Page 2, line 29, through page 4, line 28: Delete all material and insert: "* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to read: DELEGATION OF AUTHORITY FOR LEASE-PURCHASE AGREEMENT. The Department of Health and Social Services is delegated the Department of Administration's authority under AS 36.30.085 to enter into a lease-purchase agreement for a new facility to be known as the Alaska Psychiatric Institute. * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: LEASE-PURCHASE PAYMENTS. The lease payments owed under a lease-purchase agreement executed under sec. 3 of this Act are subject to annual appropriation by the legislature. * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to read: NOTICE OF ENTRY INTO AND FINANCING OF LEASE-PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of Health and Social Services is authorized to enter into a lease-purchase agreement for a facility to be known as the Alaska Psychiatric Institute. (b) The state bond committee is authorized to provide for the issuance of certificates of participation in one or more series in the aggregate principal amount of $36,550,000 for the construction of a facility to be known as the Alaska Psychiatric Institute, with the remaining balance of the construction costs, in the amount of $22,200,000, to be paid from other money as described in sec. 1 of this Act. The estimated total cost of construction of, acquisition of, and equipping the project is $58,750,000. The estimated annual amount of rental obligations under the lease-purchase agreement is $3,700,000. The estimated total lease payments for the full term of the lease-purchase agreement is $55,000,000. In this subsection, "cost of construction" includes demolition of all or part of the existing facility known as the Alaska Psychiatric Institute, credit enhancement and underwriting expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee fees, advertising fees, capitalized interest, and interest earnings used for lease payments. (c) Under terms approved by the Department of Health and Social Services, upon the payment of all principal and interest payments under the certificates of participation, title to the new facility known as Alaska Psychiatric Institute shall vest in the State of Alaska. (d) The state bond committee may contract for credit enhancement, underwriting, credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that the committee considers necessary in financing the project described in this section. * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to read: NOTICE AND APPROVAL OF AGREEMENT. Section 5 of this Act constitutes the notice and approval required by AS 36.30.085." Renumber the following bill sections accordingly. REPRESENTATIVE STEVENS objected and stated that he thinks it is a cleaner way of doing things if it is sent out as a GO bond and the public can vote on the issues. REPRESENTATIVE CISSNA remarked that she would like to hear from one of the representatives from the administration to address this. CHAIR DYSON said he is interested in knowing how long this would delay the start of the project. Number 0600 NEIL SLOTNICK, Deputy Commissioner, Office of the Commissioner, Department of Revenue, came forth and stated that there would probably be a two-year delay in the project [with the use of GO bonds]. He added that the difference between the two is that a GO bond involves a pledge of the full faith and credit of the state, whereas the COPs are just selling shares of the facility. The full faith and credit of the state does not back the project when there is a COP. He added that it has been this body's tradition, in the past couple of years, to fund individual projects such as this one through the COP mechanism. There is a listing in an Alaska public debt booklet of all of the projects that have been funded by COPs, including the Seward Student [Service] Center, the Seward courthouse, the Wildwood Correctional Center, the Palmer courthouse, the Court Plaza Building, the Anchorage Times building, the Soldotna Maintenance Facility, the Fairbanks courthouse, the Palmer Airport Fire Facility, the Anchorage Health Lab, the Spring Creek Correctional Center refunding, and the Anchorage jail. REPRESENTATIVE CISSNA asked if there is a difference in savings between the two. MR. SLOTNICK answered that because the GO bond is backed by the full faith and credit of the state, there is going to be a little bit of a lower interest rate cost for the state, which is about .0012 percent. He said he thinks there are other costs associated with a GO such as election and educational costs. Number 0829 JERRY WATKINS, Engineer/Architect, Construction & Operations, Department of Transportation & Public Facilities, came forth and stated that private sector cost estimators have recently told him that the inflation index is expected to go up as the construction industry "heats" up in Alaska. He said he has been told that two years from now the annual rate of inflation may be 5 to 7 percent, depending on what major projects come out. REPRESENTATIVE CISSNA asked what this would cost. MR. WATKINS answered that the budget that has been fostered is $58 million. REPRESENTATIVE STEVENS stated that he supposes a disadvantage of going with a GO instead of a COP is that the public may vote against it. MR. WATKINS said that is possible. CHAIR DYSON remarked that he understands that the effort to replace API has been going on for over a dozen years. REPRESENTATIVE STEVENS asked why [the legislature] didn't get its act together before to get this on the ballot. Number 0934 RANDALL BURNS, Director, Alaska Psychiatric Institute, Division of Mental Health & Developmental Disabilities, Department of Health & Social Services (DHSS), came forth and stated that the legislature did appropriate funds for this purpose. Beginning in 1990, $1 million [was appropriated] for planning and design work, and $2.8 million [was appropriated] for construction. He stated that [API] is seeking additional funding because that may be the only option to complete the project. REPRESENTATIVE STEVENS remarked that he has no objection to the project; however, he said, he thinks there is a possibility of circumventing the will of the people by waiting till the last minute, until there is no time, and using COPs since they are the faster way to do it. He stated that he would speak up for going to the vote of the people for something of this magnitude. Number 1020 RUSS WEBB, Deputy Commissioner, Office of the Commissioner, Department of Health & Social Services, came forth and stated that it is important to understand that it is not $2.8 million but $22.8 million that had already been appropriated by the legislature to solve this problem some years back. He said the only issue that remains has not been the will of the body but the amount of money. He clarified that [DHSS] has tried several different solutions to live within the appropriation; however, they have failed. REPRESENTATIVE STEVENS asked Representative Rokeberg if his position is that it doesn't make much difference whether [the committee decides] on GO bonds or COPs because this will eventually go to the House Finance Committee, where the decision will be made. REPRESENTATIVE ROKEBERG responded that that is a relatively fair assessment. As the bill "travels," people become more aware of it. He stated that there is adequate money in hand to do the preliminary design and various construction activities before selling the GO bonds, which would have to be approved by the public. REPRESENTATIVE STEVENS withdrew his objection. Number 1200 CHAIR DYSON announced that there being no further objection Amendment L.1 was adopted. He asked Representative Rokeberg if he wanted to move Amendment L.2. REPRESENTATIVE ROKEBERG responded that he doesn't like Amendment L.2. He stated that one of the reasons he brought this legislation forward was to expose to the public the need for adequate facilities within the Department of Corrections for those prisoners who need mental health treatment. Currently, there are 140 beds scattered throughout the system, and there are two specific areas - the Mike Module and the Michelle Module - in the Anchorage area. He said he thinks it is necessary to consolidate and upgrade the quality of these particular facilities. He added that in the bill the forensic unit could be defined as the evaluation unit currently within the API facilities. The evaluation aspects of these, he said, are [significant] to the role and the mission of the institute. REPRESENTATIVE JOULE asked if someone could talk about the issues of having a correctional [facility] in this part of town, and whether or not there would be problems. Number 1310 MR. BURNS responded that [DHSS] does not want to downplay the needs of mental health patients. [Department of Health & Social Services] believes that attaching the 70-bed correctional unit, on the same grounds as API will make it very difficult to get approval again from the Municipality of Anchorage. He stated that having spent a year and a half dealing with the Airport Heights Community Council and their objection to the 10 beds that are not correctional and are in [DHSS] custody, [DHSS] believes that the local residents would object to the adding of 70 beds in the midst of an educational and health area. REPRESENTATIVE JOULE asked, if this language were retained in the current bill, whether it would cause further delay from another angle of the project. MR. BURNS answered yes. He added that there isn't any additional funding in the current bill for those beds. REPRESENTATIVE JOULE asked if 70 beds are going to meet the need of housing these specific individuals. MR. BURNS replied that the Department of Corrections has indicated to Representative Rokeberg that 70 beds would meet the need; it doubles the size of the hospital that is currently being planned. Number 1482 REPRESENTATIVE COGHILL made a motion to adopt Amendment L.2 [22- LS0349\L.s, Utermohle, 3/26.01], which stated: Page 2, lines 21 - 25: Delete "The replacement facility must include a forensic psychiatric unit to be operated by the Department of Corrections that is separate from other elements of the facility. In this section, "forensic psychiatric unit" means a facility for the assessment, treatment, custody, and confinement of mentally abnormal criminal offenders." Page 2, line 25: Delete "the Department of Corrections," CHAIR DYSON objected. Number 1520 MARGOT KNUTH, Assistant Attorney General, Office of the Commissioner - Juneau, Department of Corrections, came forth and stated that Representative Rokeberg has identified the genuine need that the Department of Corrections has for a mental health unit. She said 70 beds would be the right number. Currently, space in several different facilities is being used such as the Cook Inlet [pre-trial facility], for men, and Hiland Mountain [correctional center], for women. She remarked that the Department of Corrections has several urgent needs, this being one of them. CHAIR DYSON asked if it is better to have the psychiatric evaluation unit as part of an existing prison or an existing mental health facility. MS. KNUTH responded that it ought to be part of a mental health facility. For the inmates that would be in this unit, the mental health model is a better model than the correctional model. She added that there is no doubt that there would be a security component to it, which would be a correctional setting. MR. BURNS clarified that psychiatric evaluations of persons charged with a crime do occur at API. Number 1676 REPRESENTATIVE COGHILL asked Ms. Knuth, if this doesn't go forward, whether the Department of Corrections has any other plans. MS. KNUTH responded that [the Department of Corrections] does not have active plans for a separate facility for this population. She said this would be something focused on in the next 18 months. REPRESENTATIVE COGHILL remarked that what Representative Rokeberg is offering may be the only thing "in our time of history that's going to hit the proposal." Number 1750 MR. WEBB explained to the committee the difference in the two populations. He said there are no sentenced, convicted prisoners currently in API. The population being discussed [in HB 76] would all be adult, sentenced, convicted prisoners. He added that this really discusses providing a correctional program that is operated as a separate correctional program, not as part of the hospital that would provide mental health care. MR. BURNS stated that [API] does receive, on occasion, an inmate whose illness is such that he or she requires hospital-level care. MR. WEBB stated that one of the key issues that prevented the purchase of Charter North Hospital was this particular issue. He said there is no question in his mind that this will arise with stringent objections from the community. He added that another issue, which will be addressed by advocates of the mentally ill, has to do with the stigma attached to persons with mental illness. Number 1924 SAM DICKEY, Coalition for Alaska Psychiatric Institute, came forth and stated: We have made it our mission over the last several months to gather broad community support for the prompter placement of API. This problem has gone on for an awful long time, and we would like to see something done about it. We have adopted as our motto, "The communities are continually faced with great opportunities; they're brilliantly disguised as insoluble problems." We see this as a great opportunity at a lot of different perspectives. MR. DICKEY stated that from his experience there would be a delay with the inclusion of the Department of Corrections' language. He said he was the person who initially wrote the resolution - by the Airport Heights Community Council - in favor of API moving into the neighborhood. However, a year and a half later, when people started objecting to the location of the facilities, [Airport Heights Community Council] started to rethink. One of the issues, he said, is not only the appearance of the correctional [facility] but the correctional unit that is there already. MR. DICKEY, in response to Representative Stevens' question on whether or not the GO bonds would circumvent the will of the people, stated, "From experience, I've seen the will of the people kind of circumvent the will of the state to get this project done." CHAIR DYSON asked if there is a neighborhood in Southcentral [Alaska] that would like to have the corrections population. MR. DICKEY responded that nobody wants the corrections population next door. Number 2216 JEROME SELBY, Regional Director, Providence Health Systems in Alaska, testified via teleconference. He stated that [Providence Health Systems in Alaska] supports the adoption of the amendment. He added that [Providence Health Systems in Alaska] sees the purpose of API and the purpose of a correctional facility as being significantly different. If they are incorporated together, the nature of the facility is changed as well as the perception of what occurs in those two facilities. Alaska Psychiatric Institute is there with the idea that people will get healthy and back into society, which is different from the concept that may be going on with a psychiatric unit in a corrections facility. He added that there is not enough money in the bill to finance both. In conclusion, he stated that if these two facilities are combined, the requirements for the correctional facility and the containment of prisoners are going to drive the construction costs up. Number 2255 ELAINE PRATT, Coalition for Alaska Psychiatric Institute, testified via teleconference in support of using certificates of participation. She stated that it is her understanding that the replacement for API has been ongoing for 18 years. With regard to financing, she said, she is aware of the two options for funding - GO bonds or COPs. TAPE 01-36, SIDE B MS. PRATT explained that COPs have many strengths; they can be issued by the state and the city. Financing can be provided for up to 100 percent of the assets or, in this case, a facility. She stated that they are helpful tools for easing cash flow restrictions. In other states, COPs have been used to fund projects such as correctional facilities. She said: I strongly urge that certificates of participation be used to fund the necessary and appropriate replacement of API. The staff and patients have waited 18 years for a new asbestos-free facility. I'm not an economist, ladies and gentlemen, but I have owned my own company in Anchorage since 1981. Like most business people, I have used lease-purchase to enhance my business while maintaining a healthy cash flow. The same business principle applies to larger, more cumbersome projects such as API. REPRESENTATIVE ROKEBERG remarked that Amendment L.2 is absolutely unnecessary. He said that it doesn't indicate anything more or less than the existing component within API, because there is no definition about what the scope of the facility is. It states, a "replacement facility must include a forensic psychiatric unit to be operated by the Department of Corrections". He suggested that "Department of Corrections" could be removed, since other than the Department of Corrections reference, there is nothing that is different from what presently happens there. By adopting the amendment, he said, the evaluation unit may be removed. He added that the freestanding 70-bed facility is estimated to be in the $22- million range. CHAIR DYSON asked where in the bill Representative Rokeberg wants to strike "Department of Corrections". REPRESENTATIVE ROKEBERG responded that "to be operated by the Department of Corrections" could be deleted on page 2, line 22. Number 2010 REPRESENTATIVE COGHILL stated that he agrees the debate needs to be up, and he thinks the House Finance Committee should examine it since other alternatives will have to be discussed. He withdrew his motion to adopt Amendment L.2. He made a motion to adopt a conceptual amendment to delete on page 2, line 22, "to be operated by the Department of Corrections". REPRESENTATIVE CISSNA objected. She stated that she is concerned whether there is any language that will not fit into the conceptual amendment [on page 2], lines 23-25. REPRESENTATIVE COGHILL responded that he thinks the point that Representative Rokeberg is making is that the discussion needs to be up. The Department of [Health] & Social Services, instead of the Department of Corrections, would then operate it specifically for criminal offenders. Number 1872 MR. BURNS stated that there would be no difficulty if the language were to reflect that the facility must include a forensic psychiatric unit that is separate from the other elements of the facility, since that's currently true. However, a forensic psychiatric unit is defined for a mentally abnormal criminal offender. In general, he said, those people are in the custody of the Department of Corrections and not in the custody of DHSS. He suggested that the definition could be left broad enough to say "a forensic psychiatric unit", and then the next sentence could be deleted. He added that if the goal is for API to continue having a unit that provides a service for the courts, then this could be a compromise. REPRESENTATIVE ROKEBERG asked Mr. Burns if the current unit does not assess or treat responsibly for the custody and confinement of these offenders. MR. BURNS responded that the majority of the clients [at API] have not been adjudicated as criminal offenders. For the most part, persons are sent to API to determine competency regarding whether or not they can stand trial. If they are found incompetent to stand trial, they continued to be treated and are not adjudicated. He added that, occasionally, [API] does receive a correctional transfer who is an offender, but is so ill he or she needs hospital-level care; however, that is not the primary purpose of that unit. REPRESENTATIVE ROKEBERG remarked that he maintains his position that this issue should get further public debate. Number 1757 REPRESENTATIVE WILSON stated that "forensic psychiatric unit" is defined in this section [on page 2, line 22] as a facility for the assessment, treatment, custody, and confinement. She asked if "custody and confinement" could be deleted. REPRESENTATIVE ROKEBERG responded that people in that facility are in custody and are confined. REPRESENTATIVE JOULE asked if "to be operated by the Department of Corrections" is deleted, who would operate it. REPRESENTATIVE ROKEBERG responded that it would be operated under [DHSS]. REPRESENTATIVE COGHILL remarked that the design and construction would still be in cooperation with the Department of Corrections. REPRESENTATIVE CISSNA removed her objection. Number 1580 CHAIR DYSON announced that [there being no further objection], conceptual Amendment 3 was adopted. REPRESENTATIVE STEVENS stated that he is concerned about whether there is enough money to do both [of the projects]. REPRESENTATIVE ROKEBERG answered, "Don't worry about the language." REPRESENTATIVE STEVENS asked if there is an estimate of how much money the bill entails. REPRESENTATIVE ROKEBERG replied that the Department of Corrections has said that a smaller area would be about $22 million. CHAIR DYSON asked if the fiscal note should be adjusted. REPRESENTATIVE ROKEBERG remarked that it could be, but he doesn't want to use up any more of the committee's time. Number 1468 REPRESENTATIVE COGHILL made a motion to move the CS for SSHB 76, version 22-LS0349\L, Utermohle, 3/16/01, as amended from committee with individual recommendations and attached fiscal note. There being no objection, CSSSHB 76(HES) moved from the House Health, Education and Social Services Standing Committee. HB 77-APPROP: REPLACEMENT OF API CHAIR DYSON announced that the committee would hear testimony on SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 77, "An Act relating to appropriations for the design and construction of a replacement facility or facilities for the Alaska Psychiatric Institute and for a grant to study the feasibility of locating certain health programs at the site of the Alaska Psychiatric Institute; and providing for an effective date." Number 1444 REPRESENTATIVE NORMAN ROKEBERG, Alaska State Legislature, Sponsor, stated that HB 77 is a companion bill [to HB 76], which provides $200,000 in appropriations. This will allow for the Department of Community & Economic Development, with the Department of Health & Social Services and the University of Alaska, to work on a consolidated site plan and facility in the UMed (University Medical) district for the Municipality of Anchorage. He stated that there is a good deal of discussion within the entire community as to what the highest and best uses of the remaining land or the land to be redeveloped in the UMed district are. Number 1364 REPRESENTATIVE COGHILL made a motion to adopt the proposed committee substitute (CS) for SSHB 77, version 22-LS0350\J, Utermohle, 3/14/01, as a work draft. There being no objection, proposed CSSSHB 77, Version J, was before the committee. Number 1334 REPRESENTATIVE COGHILL made a motion to move CSSSHB 77, version 22-LS0350\J, Utermohle, 3/14/01, from committee with individual recommendations and the attached zero fiscal note. There being no objection, CSSSHB 77(HES) moved from the House Health, Education and Social Services Standing Committee. HB 142-AK TEMP. ASSISTANCE PROGRAM AMENDMENTS CHAIR DYSON announced that the committee would hear testimony on HOUSE BILL NO. 142, "An Act relating to the Alaska temporary assistance program; and providing for an effective date." Number 1240 REPRESENTATIVE WILSON made a motion to adopt the proposed committee substitute (CS) for HB 142, version 22-GH1023\F, Lauterbach, 3/24/01, as a work draft. There being no objection, proposed CSHB 142, Version F, was before the committee. CHAIR DYSON remarked that it is his intention not to move [HB 142] today. Number 1196 JIM NORDLUND, Director, Division of Public Assistance, Department of Health & Social Services (DHSS), came forth and stated that [DHSS] has discussed and supports Version F [of HB 142]. [HB 142 was held over.] HB 164-GRANDPARENTS' RIGHTS REGARDING CINA CHAIR DYSON announced that the committee would hear testimony on HOUSE BILL NO. 164, "An Act prescribing the rights of grandparents related to child-in-need-of-aid hearings; and amending Rules 3, 7, 10, 15, and 19, Alaska Child in Need of Aid Rules." Number 1127 BETTY ROLANDS (ph) came forth in support of HB 164. She stated that she belongs to an organization called Kids Count, working with children who are financially and physically at risk. She said she is currently working with two sets of grandparents. One has spent over $35,000 trying to get their grandchildren; they never knew what was going on until they filed their own motion in court. Another set of grandparents, from Seattle, Washington, had been writing back and forth to DFYS (Division of Family & Youth Services) for two years to get their two grandchildren. She remarked that this bill would assist these people in getting the information from the minute something happens to their grandchild. She added that she thinks that grandparents are a vital link to a grandchild. CHUCK ROLANDS (ph) came forth in support of HB 164. He remarked that he feels it is important for children to know where they have come from and to have close connections with family members. He stated: Recently we've had high school shootings. It seems these kids are misfits. I don't believe that ... they were part of the foster system, but I believe no good can come if we just desecrate somebody's history. And if at all possible, I believe foster children should be placed with a relative or grandparents. Also, I have seen the foster system at work, and I believe a blood relative will take better care of a child than somebody who's just getting paid money, because I think love is more important than money. Number 0925 THERESA TANOURY, Director, Division of Family & Youth Services, Department of Health & Social Services, came forth and stated that [DHSS] supports the bill. She noted that [DFYS], through existing practice, notifies relatives, including grandparents, whenever a child comes into custody. She added that this bill gives [DFYS] some options. If [DFYS] knows the grandparents ahead of time, the grandparents need to be given notice of any court hearing, and they have the right to be heard at those hearings. She noted that the sponsor statement refers to delinquency hearings; however, the bill only affects the child- in-need-of-aid statutes. [HB 164 was held over.] SB 112-LONG-TERM CARE OMBUDSMAN;MENTAL HLTH AUTH CHAIR DYSON announced the committee would hear testimony on CS FOR SENATE BILL NO. 112(FIN), "An Act placing certain employees of the Alaska Mental Health Trust Authority in the exempt service; establishing a minimum salary for the long term care ombudsman; and providing for an effective date." Number 0740 HANS NEIDIG, Staff to Senator Lyda Green, Alaska State Legislature, came forth to testify on SB 112 on behalf of Senator Green, chair of the Senate Health, Education and Social Services Standing Committee, which sponsored SB112. He stated: Senate Bill 112 would place employees of the Alaska Mental Health Trust Authority in the exempt service, while establishing a minimum salary for the Long Term Care Ombudsman. Senate Bill 112 was introduced at the request of the Alaska Mental Health Trust Authority to address concerns about their ability to function efficiently as a state corporation. Unlike other state boards, commissions, and authorities whose employees are placed in the exempt service under AS 39.25.110, the Alaska Mental Health Trust Authority's employees are not in the exempt service. This is despite the fact that the fiduciary responsibility owed to the beneficiaries by the trust requires that employees perform at the highest levels. Additionally, this legislation establishes a minimum salary for the Long Term Care Ombudsman at a Range 21. Salary for the Long Term Care Ombudsman is currently at a Range 20. ... Establishing a minimum salary for [the] Long Term Care Ombudsman will help ensure that a qualified individual can be hired for this crucial position. Number 0667 REPRESENTATIVE COGHILL asked if Mr. Neidig could explain the Executive Order 102. MR. NEIDIG responded that the Executive Order 102, now law, has moved the Long Term Care Ombudsman from the Department of Administration into the Mental Health Trust Authority. REPRESENTATIVE WILSON asked what the difference is between [Range] 20 and 21. MR. NEIDIG answered that it is his understanding that the Long Term Care Ombudsman position was "maxed out" at Range 20. He stated that it was suggested that a minimum range would take care of two issues; it would protect the Long Term Care Ombudsman from any kind of political retribution, and a well- qualified person could be found to fill the position. Number 0545 GEORGE SMITH, Deputy Director, Libraries, Archives & Museums, Department of Education & Early Development, stated that, roughly speaking, the difference between a Range 20 and 21 is about $5,000. A Range 19 starts at around $45,000, a Range 20 around $49,000-$50,000, and a Range 21 around $54,000-$55,000. REPRESENTATIVE WILSON asked if this position is empty. Number 0420 CAREN ROBINSON, Chair, Alaska Mental Health Trust Authority (AHMTA), stated that because this is a new duty for the AHMTA, the position is vacant. She said as soon as this bill passes, [the AHMTA] will advertise for a new ombudsman. There are three staff people at this point who are working for the ombudsman's office who will move to the AHMTA's office within the next couple of weeks. She explained that the [Long Term Care Ombudsman] will be supervising those three people. REPRESENTATIVE WILSON asked whether it is the case that [those three staff members] were not previously supervised but now they need to be. MS. ROBINSON remarked that there has been a long history of problems with the ombudsman's office. She said it is a courtesy of the AHMTA to take on the responsibilities and try to get this office operating the way it is supposed to be. The trustees felt if they could increase the level and make it an exempt position, they would be able to seek out people who had the qualifications to fill the position. She added that this would also make sure the individuals in the facilities that [the ombudsmen] would be monitoring get the care they are supposed to have. Number 0296 REPRESENTATIVE CISSNA remarked that she has read that one of the concepts behind ombudsmen is that they need to have some independence in order to challenge systems that don't work well, which means that there need to be safeguards to protect them. She said she assumes that the wage is part of that [safeguard] and asked if there are any other protections. MR. NEIDIG responded that the other part is that the Long Term Care Ombudsmen, though moved into the AHMTA, will remain in the classified service, so he or she won't be able to be hired and fired as freely as that person would be under the exempt service. Number 0217 REPRESENTATIVE COGHILL made a motion to move CSSB 112(FIN) out of committee with individual recommendations and attached zero fiscal notes. There being no objection, CSSB 112(FIN) moved from the House Health, Education and Social Services Standing Committee. HB 98-HIGH SCHOOL DIPLOMA FOR CERTAIN WWII VETS CHAIR DYSON announced the committee would hear testimony on HOUSE BILL NO. 98, "An Act relating to the award of a high school diploma to certain World War II veterans." [Before the committee was CSHB 98(MLV)] Number 0090 CAROL CARROLL, Director, Administrative Services Division, Department of Military & Veterans' Affairs, came forth to testify on HB 98. She stated that this bill will allow World War II veterans and Alaska territorial guards who served the United States during that time to get a high school diploma if they hadn't had one before. She remarked that there are various stipulations such as [the veterans] would have to have been honorably discharged. The [veterans] would apply to the Department of Education & Early Development and get a diploma, which would not be an honorary diploma. She added that there are fewer than 150 people in the state of Alaska who would be affected by this and allowed to get a diploma. TAPE 01-37, SIDE A REPRESENTATIVE WILSON asked if somebody had requested this. MS. CARROLL replied that this is a national effort, called Operation Recognition. She stated that various states across the United States are passing legislation of this type this year. She added that the veterans organization brought it before the [Department of Military & Veterans' Affairs]. Number 0050 REPRESENTATIVE CISSNA remarked that at a constituent meeting she was heartened when a constituent approached her who had heard about this bill and said that this would make an enormous difference to her father. REPRESENTATIVE COGHILL stated that he thinks it is great to honor those veterans. He asked if there is any possibility to go back and find what Alaska's diploma looked like at that point in history and bring that to [the veterans] accordingly. MS. CARROLL answered that most of the time it is the local school districts that give the diplomas. However, at one time there were state-operated schools, and she thinks that the [Department of Military & Veterans' Affairs] could try to do that. Number 0114 REPRESENTATIVE COGHILL made a motion to move CSHB 98(MLV) out of committee with individual recommendations and zero fiscal notes. There being no objection, CSHB 98(MLV) moved from the House Health, Education and Social Services Standing Committee. HB 96-ACQUIRING JESSE LEE HOME CHAIR DYSON announced that the committee would hear testimony on HOUSE BILL NO. 96, "An Act relating to acquisition and development of the Jesse Lee Home; and providing for an effective date." Number 0180 REPRESENTATIVE KEN LANCASTER, Alaska State Legislature, came forth as sponsor of HB 96. He stated that HB 96 would set up a task force to pursue the acquisition of the Jesse Lee Home. He explained that this facility was registered in 1995 as an historic place and has played a critical role in serving the health care and educational needs of Alaskan Native children. He added that the Alaskan flag was designed and raised on the site by John "Benny" Benson Jr. CHAIR DYSON asked what kind of shape the building is in. REPRESENTATIVE LANCASTER answered that the building was badly damaged during the 1964 earthquake. Frank Eirick (ph) purchased the building and planned to develop it into a home or hotel; that has never been done. One of the portions of the property has been sold; therefore, two and a half acres are left. He remarked that an engineer's report, which is somewhat dated, says that the building would need extensive work in order for it to be habitable. The Kenai Peninsula Borough is currently foreclosing the property, which would then be handed over to the City of Seward. The community [in Seward] would like it to come under the auspices of the state. CHAIR DYSON asked if state money would be involved. REPRESENTATIVE LANCASTER responded that there wouldn't be in the initial portion. Number 0330 TIM SCZAWINSKI testified via teleconference in support of HB 96. He stated that this building has been in a state of disrepair for a long time and is probably beyond Seward's financial abilities. However, he said, every year hundreds of thousands of tourists come to [Seward] and ask why nothing has been done to the place where [Alaska's] flag was first designed. He added: I know it's not real common and usual for the State of Alaska to take over the management and the financial part of historic monuments, but I think this is one of those opportunities where everybody can forget a little bit about geography and where this is located and realize that this is a place that should be important to all of us. Number 0480 GEORGE SMITH, Deputy Director, Libraries, Archives & Museums, Department of Education and Early Development, came forth and stated that he is surprised that [the legislature] is giving the responsibility to do the initial assessment to the State Museum and the museum's collection advisory committee. He explained that [Libraries, Archives & Museums] has no expertise or experience in this area; therefore, an engineer would have to be hired to do the assessment and evaluation. He noted that there are historical sites in the state that are managed by the state, but not by the museums. REPRESENTATIVE WILSON asked what other departments already have those duties. MR. SMITH responded that Department of Natural Resources manages the Wickersham House, the [Ernst] Gruening Cabin, Rika's Landing Roadhouse, and the Independence Mine; the Department of Military & Veterans' Affairs manages the Veterans' Memorial; and the Department of Transportation & Public Facilities manages several monuments along the Parks Highway and the Richardson Highway REPRESENTATIVE COGHILL stated that there are several historical preservation societies that probably have done this type of work and have hired engineers. He asked if this is something [the legislature] should look into. MR. SMITH replied that could be a possibility. He stated that there are about 20 to 25 historical societies in the state. Number 0670 REPRESENTATIVE STEVENS stated that Seward has a nice museum and suggested that it might be appropriate to ask them to do that. He added that whoever does [the assessment] is going to have an expense and will need to hire an engineer. MR. SMITH remarked that Representative Lancaster mentioned that several years ago somebody from an engineering firm did an assessment. This was done for a company in the Seward area that was interested in purchasing and renovating the property. CHAIR DYSON asked what Representative Lancaster's intention is. REPRESENTATIVE LANCASTER responded that he thinks the same firm that did [the aforementioned assessment] would give an update. CHAIR DYSON asked Representative Lancaster what appropriate body he intends to have manage this project. REPRESENTATIVE LANCASTER replied that he couldn't answer that. Number 0758 REPRESENTATIVE WILSON stated that she thinks it is a good idea, as was mentioned earlier, for the property to be handed over to the City of Seward. REPRESENTATIVE LANCASTER responded that it should be part of the state's historical record rather than the city's because it is a statewide entity. He noted that [the home] started in Unalaska. CHAIR DYSON asked what the City of Seward wants done with it. REPRESENTATIVE LANCASTER answered that [Seward] would like for [the State of Alaska] to take it over. Number 0860 REPRESENTATIVE KOHRING remarked that there was a dilapidated building that had historical value in Wasilla, called the Teelands Country Store. He stated that the city itself raised the money to [renovate] the building. He remarked that perhaps contributions from within the community could be pursued further. He added that he thinks if [a site] is listed under the national historic register, there might be some dollars at the federal level. REPRESENTATIVE LANCASTER stated that [this legislation] envisions the task force coming up with the best course of action to go forward. [HB 96 was held over.] ADJOURNMENT There being no further business before the committee, the House Health, Education and Social Services Standing Committee meeting was adjourned at 5:25 p.m. [The minutes for the Alaska Council of School Administrators overview are found in the 3:00 p.m. cover sheet for the same date.]

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