Legislature(1993 - 1994)

05/02/1994 10:15 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                           May 2, 1994                                         
                           10:15 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #80, Side 1 (317-end)                                                
  SFC-94, #80, Side 2 (575-238)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-chair Drue Pearce  convened the meeting  at approximately                 
  10:15 a.m.                                                                   
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chair Pearce, Senators Jacko,  Kelly, and                 
  Sharp were present.   Senators  Kerttula and Rieger  arrived                 
  soon after the meeting began.   Co-chair Frank arrived as it                 
  was in progress.                                                             
                                                                               
  ALSO  ATTENDING:   Al   Zangri,  Chief,   Bureau  of   Vital                 
  Statistics, Division of  Public Health, Dept. of  Health and                 
  Social  Services;  Phil  Petrie,  Operations Manager,  Child                 
  Support  Enforcement   Division,  Dept.  of   Revenue;  Mike                 
  Heimbuch,  aide to  Representative Phillips;  Renee Chatman,                 
  aide to Representative Bettye Davis;  and aides to committee                 
  members and other members of the legislature.                                
  SUMMARY INFORMATION                                                          
                                                                               
  HB   2 -  DRUG TESTING FOR SCHOOL BUS DRIVERS                                
                                                                               
            Discussion was  had with  Mike Heimbuch.   CSHB  2                 
            (RLS) was REPORTED  OUT of committee with  a $84.0                 
            fiscal note from the Dept. of Education.                           
                                                                               
  HB 128 -  EARLY ACKNOWLEDGEMENT OF PATERNITY                                 
                                                                               
            Discussion was had with Phil Petrie and Al Zangri.                 
            The  bill  was HELD  in  committee in  response to                 
            Senator  Kelly's concern  regarding  need to  make                 
            provisions for private arrangements.                               
                                                                               
  HB 421 -  GRANTS FOR HOUSING DURING DISASTER                                 
                                                                               
            Amendment  No.  3  was  adopted  into SCS  HB  421                 
            (Finance) "E" version.   SCS HB 421  (Finance) was                 
            then REPORTED OUT of committee  with a zero fiscal                 
            note  from the  Dept.  of  Military  and  Veterans                 
            Affairs.                                                           
                                                                               
                                                                               
  HOUSE BILL NO. 421                                                           
                                                                               
       An  Act   authorizing  grants  for   temporary  housing                 
       assistance during emergencies and disasters.                            
                                                                               
  Co-chair  Pearce directed  that  HB 421  be  brought on  for                 
  hearing and noted that  it had been before committee  at the                 
  previous meeting.  She then  directed attention to Amendment                 
  No. 3:                                                                       
                                                                               
       Page 2, line 1, after "$5,000:" insert:                                 
                                                                               
            as a  condition of  accepting a  housing                           
            assistance  grant  from the  state under                           
            this  paragraph,  the   recipient  shall                           
            agree  to  repay   the  state  for   the                           
            assistance  to  the   extent  that   the                           
            recipient  is  reimbursed  or  otherwise                           
            compensated from any source for the same                           
            costs  of  temporary  housing that  were                           
            covered by the state grant.                                        
                                                                               
  Senator  Kelly  MOVED  for  adoption  of  Amendment  No.  3.                 
  Senator Jacko  OBJECTED for the  purpose of discussion.   He                 
  then asked if the recipient of a grant for temporary housing                 
  would have to repay the grant,  under the above language, if                 
  the individual received a settlement, but the settlement did                 
  not specifically designate  costs for  relocation housing.                   
  Senator Kelly  suggested that  since a settlement  indicates                 
  liability, it should include the  cost of temporary housing.                 
  The Senator  then expressed his apprehension  concerning the                 
  bill.   Senator Jacko  REMOVED his  OBJECTION.   No  further                 
  objection having been raised, Amendment No. 3 was ADOPTED.                   
                                                                               
  Senator  Kelly MOVED  that  SCS HB  421 (Finance)  pass from                 
  committee  with individual  recommendations.   No  objection                 
  having been raised, SCS HB 421 (Finance) was REPORTED OUT of                 
  committee with a zero fiscal note from the Dept. of Military                 
  and Veterans  Affairs.   Co-chair Pearce  and Senator  Kelly                 
  signed the committee report with a "do pass" recommendation.                 
  Senators  Kerttula and  Rieger  signed "no  recommendation."                 
  Senators  Jacko and  Sharp  signed the  report  but made  no                 
  recommendation.  Co-chair Frank was  absent from the meeting                 
  and did not sign.                                                            
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 2(RLS)                                                 
                                                                               
       An Act  requiring drug and alcohol tests for school bus                 
       drivers.                                                                
                                                                               
  Co-chair Pearce directed that CSHB 2 (RLS) be brought on for                 
  discussion  and  referenced  the House  Judiciary  Committee                 
                                                                               
                                                                               
  letter of  intent, scheduling  request, sectional  analysis,                 
  Dept. of  Education position paper  in support of  the bill,                 
  correspondence and resolution in support, and a $99.0 fiscal                 
  note from the Dept. of Education.                                            
                                                                               
  MIKE  HEIMBUCH, aide to Representative Phillips, came before                 
  committee.  Several  of the  committee members advised  that                 
  they  reviewed  the  legislation in  either  Senate  HESS or                 
  Senate  Judiciary and were familiar with the bill.  Co-chair                 
  Pearce asked if anyone wished to  testify.  No testimony was                 
  forthcoming.                                                                 
                                                                               
  Senator Jacko MOVED that CSHB 2 (RLS) come before  committee                 
  with individual recommendations.   No objection having  been                 
  raised, CSHB 2  (RLS) was REPORTED  OUT of committee with  a                 
  $84.0 fiscal note  from the  Dept. of  Education.   Co-chair                 
  Pearce and Senators  Jacko, Kelly, Rieger, and  Sharp signed                 
  the  committee  report  with  a  "do  pass"  recommendation.                 
  Senator Kerttula signed "no rec."  Co-chair Frank was absent                 
  from the meeting and did not sign.                                           
                                                                               
                                                                               
  CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 128(FIN)                        
                                                                               
       An Act  relating to  paternity determinations  and                      
       acknowledgements.                                                       
                                                                               
  Co-chair  Pearce  directed  that CS  SSHB  128  (Finance) be                 
  brought on for discussion and referenced a $43.3 fiscal note                 
  from Vital  Statistics and  a zero  note from  the Dept.  of                 
  Health and Social Services for AFDC.  She further pointed to                 
  support for the  legislation from  the Hospital and  Nursing                 
  Home Association, a sponsor statement, a sectional analysis,                 
  and various articles concerning the bill.                                    
                                                                               
  (Co-chair Frank arrived at the meeting at this time.)                        
                                                                               
  AL ZANGRI, Chief,  Bureau of  Vital Statistics, Division  of                 
  Public Health, Dept. of Health and Social Services; and PHIL                 
  PETRIE,  Operations  Manager,   Child  Support   Enforcement                 
  Division,  Dept.  of Revenue,  came  before committee.   Mr.                 
  Petrie said that the  bill would make little change  in what                 
  is currently being  done in state child  support enforcement                 
  efforts.  It responds to a  federal mandate that states pass                 
  laws establishing a  hospital based paternity program.   The                 
  state  has  been  using  an  acknowledgment  form  which  is                 
  subsequently used to establish support orders.  The division                 
  presently has 7,900 paternity cases pending.                                 
                                                                               
  The  federal  omnibus  budget  reconciliation  act  of  1993                 
  mandates  use  of an  acknowledgment  program.   The federal                 
  government  funds  both  the education  portion  as  well as                 
  program operations within vital statistics.                                  
                                                                               
                                                                               
  Mr. Zangri explained that when the mother and father sign an                 
  affidavit of paternity, the father's  name is placed on  the                 
  birth certificate, and he  has all the rights of  any father                 
  in Alaska.  He is also responsible for supporting the child.                 
  Senator  Kerttula  voiced   concern  that  women   would  be                 
  pressured by the system to sign  mandated forms.  Mr. Petrie                 
  responded that mothers would be encouraged to sign  the form                 
  and  educated  regarding  the  ramifications  of  doing  so.                 
  Senator  Kerttula asked if mothers  who refuse to sign would                 
  be  removed  from  welfare, if  they  happen  to  be on  the                 
  program.  Mr. Petrie acknowledged  that the mother's welfare                 
  grant would be reduced if she refused to sign.                               
                                                                               
  Senator Kelly  referenced arrangements between men and women                 
  whereby  a  couple  decides  to  have   child  and  the  man                 
  acknowledges   paternity  but   does   not  assume   support                 
  obligations.   He then  asked how that  type of  arrangement                 
  would  be  accommodated.   Mr.  Petrie  alluded  to possible                 
  contractual agreements that  may or may not  cover the cited                 
  arrangement.  He  advised that  he was not  an attorney  and                 
  could not  speak to that  aspect.   He stressed that  when a                 
  woman goes  on  public assistance,  "Somebody's going  after                 
  whoever she has named  as the father."  Senator  Kelly asked                 
  if the bill relates  to public assistance only.   Mr. Petrie                 
  responded negatively.  He reiterated that in the majority of                 
  instances, fathers sign  affidavits of paternity  and assume                 
  the associated responsibilities.  If the mother or father do                 
  not apply for welfare or  services through the child support                 
  enforcement division,  signing  the affidavit  will have  no                 
  effect other than to establish who  the parents of the child                 
  are.  The affidavit alone does not create a duty of support.                 
  A parent would have to apply  for services with the division                 
  or seek support through the court.   If a parent applies for                 
  welfare,  then the  division  would seek  a court  order for                 
  support in  order to  reimburse the state  and federal  AFDC                 
  program.                                                                     
                                                                               
  In  further discussion  of  mistaken paternity,  Mr.  Petrie                 
  advised of ability to appeal the paternity and request blood                 
  tests.    Mr. Petrie  stressed that  signing  the form  is a                 
  "presumption."                                                               
                                                                               
  Senator  Rieger inquired concerning  legal rights created by                 
  establishment   of   a   parent/child  relationship.      He                 
  specifically noted  instances where  the presumptive  father                 
  might harass the mother  and child or contest custody.   Mr.                 
  Petrie said that a father could not contest custody based on                 
  the acknowledgment  form.   The  father would  have to  take                 
  affirmative action  and go  to court  to establish  custody,                 
  visitation rights, etc.  The  affidavit provides a basis for                 
  that by establishing  who is the  father.  It further  makes                 
  the  child  subject  to benefits  from  the  social security                 
  administration,  other  benefits  from government  programs,                 
                                                                               
                                                                               
  etc.                                                                         
                                                                               
  Senator Kerttula again  voiced concern  that women would  be                 
  forced to  sign the  form in  instances where  they want  no                 
  further contact with the father.   Mr. Petrie alluded to $10                 
  million in  CSED funding  as well  as AFDC  moneys that  the                 
  state will forfeit if the mandated program is not initiated,                 
  and Alaska is  found to  be out of  compliance with  federal                 
  law.  He concurred that issues of custody and visitation are                 
  extremely sensitive.   The division does not deal with those                 
  issues.    They  are  left  to   the  courts.    Mr.  Petrie                 
  acknowledged  that  some mothers  who  wish to  receive AFDC                 
  benefits do not wish to commence a case with the division or                 
  provide the names  of the  fathers of their  children.   The                 
  federal government has taken the  position, however, that if                 
  one  wants  to  receive public  funds,  the  individual must                 
  cooperate with state and federal  governments in recovery of                 
  moneys.                                                                      
                                                                               
  Senator  Kelly  asked if  the  bill  is restricted  to  AFDC                 
  payments.  Mr. Petrie responded  negatively.  He added  that                 
  the federal government requires that it be extended to other                 
  individuals.    The  division serves  two  clientele:   AFDC                 
  recipients  and  "anyone  that   makes  application  to  the                 
  agency."  The division must provide  equal services to both.                 
  The  national  social  perspective  is  that  states  should                 
  provide these services to people who need them.                              
                                                                               
  Discussion  followed between  Senator Kelly  and  Mr. Petrie                 
  concerning false claims  of paternity.  Mr.  Zangri stressed                 
  that no  father could  be forced  to sign  the affidavit  of                 
  paternity.   Signature  is  voluntary on  the  part of  both                 
  parents.                                                                     
                                                                               
  In response to further concerns  relating to harassment, Mr.                 
  Petrie reiterated  that failure  to name the  father of  the                 
  child would result in  a reduced AFDC payment.   A reduction                 
  would be made in  the adult payment rather than  the child's                 
  portion (the  bulk of  the money)  of the  grant.   Division                 
  experience indicates that few cases fall into the harassment                 
  category.  Provisions in public assistance regulations allow                 
  for hearings "for  good cause."   If good cause is  granted,                 
  the division has two choices:                                                
                                                                               
       1.   Enforcement  of  the  case  if  that can  be  done                 
  without                                                                      
            threatening the safety of the mother or child.                     
                                                                               
       2.   Cease action on the  case if there is a  threat to                 
  the                                                                          
            mother or child.                                                   
                                                                               
  Mr.  Zangri  distributed  the  currently  used  affidavit of                 
  paternity for members' review.  He  advised that it had been                 
                                                                               
                                                                               
  in use for approximately ten years.                                          
                                                                               
  End,   SFC-94, #80, Side 1                                                   
  Start, SFC-94, #80, Side 2                                                   
                                                                               
  Senator  Kelly  voiced   need  for  an  amendment   to  make                 
  provisions  for  private  arrangements  between couples  and                 
  asked  that  he  be  given  a  day  to  develop  appropriate                 
  language.  Co-chair Pearce directed that the bill be HELD in                 
  committee for the next meeting.                                              
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:45 a.m.                        
                                                                               
                                                                               

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