Legislature(1995 - 1996)
04/25/1995 09:25 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
APRIL 25, 1995
9:25 A.M.
TAPES
SFC-95, #42, Side 1 (000-575)
SFC-95, #42, Side 2 (575-end)
SFC-95, #44, Side 1 (000-400)
CALL TO ORDER
Senator Rick Halford, Co-chair, convened the meeting at
approximately 9:25 a.m.
PRESENT
Co-chairs Halford and Frank, along with Senators Phillips,
Sharp, Donley, Rieger and Zharoff were present.
Also Attending: Senator Miller; Senator Leman; Catherine
Reardon, Director, Division of Occupational Licensing, Dept
of Commerce and Economic Development; Jay Livey, Deputy
Commissioner, Dept of Health & Social Services; Bob
Rubadeau, Dept of Administration; Alison Elgee, Deputy
Commissioner, Dept of Administration; Bruce Geron, Dept of
Fish and Game; Joe McCormick, Executive Director for the
Commission on Postsecondary Education; Elmer Lindstrom,
Special Assistant to the Governor, Department of Health &
Social Services; Harlan Knudson, President, Alaska Hospital
and Nursing Home Association; Susan Taylor, Fiscal Analyst,
Legislative Finance; Benjamin Brown, Legislative Aide to
Representative Toohey; Kip Knudson, Aide to Representative
Hanley; Jackie Damon, Division of Family and Youth Services;
and Sherrie Goll, Alaska Women's Lobby.
SUMMARY
SB 124 HUMAN SERVICES COMMUNITY MATCHING GRANTS
Senator Miller gave testimony in support of SB 124
which was
REPORTED OUT of committee with a "do pass"
recommendation, and a zero fiscal note from the Dept of
Health & Social Services.
HB 124 ABOLISH BD OF NURSING HOME ADMINISTRATORS
Discussion was had by Catherine Reardon, Benjamin
Brown,
Kip Knudson, Harlan Knudson, and Jay Livey. SCSCSHB 124
(FIN)
REPORTED OUT of committee with a "do pass"
recommendation, and a fiscal note from the Dept of
Commerce and Economic Development, $8.2.
SB 142 HUMAN RESOURCE INVESTMENT COUNCIL
Bob Rubadeau, Special Assistant to the Lt. Governor,
testified
in support of the bill. CSSB 142 (STA) REPORTED OUT of
committee with a "do pass" recommendation and 7
fiscal notes (see details in minutes, page 5).
SB 123 POSTSECONDARY EDUCATION PROGRAMS
Testimony was given by Joe McCormick, Executive
Director for the Commission on Postsecondary Education.
Amendment 2 and 3
was ADOPTED. Conceptual Amendment involving a title
change
was ADOPTED. CSSB 123 (FIN) was REPORTED OUT of
committee with a "do pass" recommendation, and two
zero fiscal notes
from the Dept of Education (Student Loans and Program
Admin.).
SB 105 PARENTAL CONSENT BEFORE MINOR'S ABORTION
Senator Leman presented testimony to the committee.
Senator
Phillips moved to adopt an amendment changing age 18 to
age 16. Amendment was ADOPTED and invoked a title
change. Senator
Rieger moved to adopt an amendment. Amendment was
ADOPTED (see minutes for details). CSSB 105 (FIN)
REPORTED OUT of
committee with 4 fiscal notes (see minutes for details,
page 9).
SB 81 CLASSIFYING WOLF AS PREDATOR
Senator Sharp gave testimony. A Conceptual Amendment
was
ADOPTED. CSSB 81 (FIN) was REPORTED OUT of committee
with
individual recommendations and a fiscal note from the
Dept of Fish and Game.
SENATE BILL NO. 124
"An Act relating to the human services community
matching grant program; and providing for an effective
date."
Senator Miller testified that the Human Services Community
Matching Grants Program was created to assist municipalities
in providing human services via local non-profit agencies.
The statute was structured to increase the local match each
year for three consecutive years beginning at 10%,
increasing the next year to 30%, and leveling out on the
third (FY96) and subsequent years at 50%. Unfortunately the
50% match will be extremely difficult if not impossible for
most local governments to accomplish due to declining
municipal assistance and revenue sharing as well as reduced
federal funds. In addition, non profits are struggling to
obtain contributions at levels similar to those received in
past years. It should also be noted that all other
state/municipal matching grant programs require a 30% match.
This legislation is modeled after SB 368 from 1994 which
received broad support and passed both the House (Y31-N5-E1-
A3) and Senate (Y13-N3-E1-A3) but was later vetoed.
Senator Zharoff asked for an example. Senator Miller
referred to the "History of Human Services Community
Matching Grant" chart which compares 1993 through 1995.
(attached to minutes)
Senator Rieger MOVED to adopt SB 124 with an accompanying
zero fiscal note and with individual recommendations. No
objections being heard, SB 124 was REPORTED OUT of committee
with a zero fiscal note from the Dept of Health & Social
Services and a "do Pass" from Co-chairs Halford and Frank,
along with Senators Rieger and Sharp. Senator Phillips
recommended "do not pass", and Senators Donley and Zharoff
signed "no recommendation".
HOUSE BILL NO. 124
"An Act extending the termination date of the Board of
Nursing Home Administrators; and providing for an
effective date."
Senator Rieger MOVED to adopt CSHB 124 (FIN) "G" version as
a working draft. No objection being heard it was ADOPTED.
Benjamin Brown, Legislative Aid to Rep. Toohey was asked to
give testimony on the original bill and the sponsor's
statement. He stated that HB 124 is introduced to extend the
sunset date of the Board of Nursing Home Administrators,
which must exist according to federal regulation as a
condition for the state's receipt of Medicaid funds. After
the initial bill was introduced, the State Hospital and
Nursing Home Administration decided on its own, that they
did not want a Board of Nursing Home Administrators. It
would be easier to abolish the Board and transfer its duties
to the Division of Occupational Licensing. The Division was
happy with the proposed change which evolved into a CS from
the H&SS Committee. The House Finance Committee changed the
bill further, giving the Division the ability to deny a
license to a Nursing Home Administrator who falsifies
information on the application. There was a loophole in the
statute, meaning they would have had to give the license,
and then take it back if they found out there was
falsification. The bill is needed because without it, the
State will be at risk at not receiving $157 million in
Medicaid in the coming fiscal year, from the Federal
Department of Health. The moratorium on long term care beds
is a means of controlling the growth of the facilities
component of the Medicaid budget.
Catherine Reardon, Director, Division of Occupational
Licensing, Dept of Commerce & Economic Development,
testified that as of July 1st, the Board will go out of
existence if this legislation does not pass. The
elimination of the Board and the change to have the Division
directly manage the licensing program, will save
approximately $1.0 to $1.3 in travel costs. The primary
advantage is that it is much easier to issue licenses in a
timely fashion.
Jay Livey, Deputy Commissioner, Dept of Health & Social
Services, addressed Section 14: Moratorium on Nursing Home
Certificates of Need. The department is in favor of this
section. Nursing home care is expensive. The department
spent $50 million on nursing home care. A two-year
moratorium will give the State a chance to develop less
expensive alternatives that are currently being developed
through the home and community based waiver program. The
moratorium allows for more services at less cost.
Kip Knutson, Aid to Rep. Hanley said the state pays for 87%
of the long term beds through the Medicaid program. Their
addition drives the cost of Medicaid up. Cost increases
amount to 10-15% each year in the Medicaid budget. The
Certificate of Need process is broken. The department needs
attention before new beds are added.
Harlan Knudson, President, Alaska Hospital and Nursing Home
Association, spoke in favor of the original version of HB
124 and speaking in opposition to CSHB 124 as far as the
moratorium on nursing home beds. There is agreement with
the original HB 124 and the intent. With regard to the
moratorium on nursing home beds, there is agreement that
nursing home care is very expensive. There is also
agreement where there are situations where very frail, ill,
or disabled individuals, who need home care. The
Certificate of Need determines who needs how many beds. He
asked to move forward with the Certificate of Need process.
It has all the tools needed to stop unnecessary beds. He
stated that community based care will increase costs because
many people will never go to a nursing home since the family
is currently taking the extra effort to care for the
individual. The non-facility portion of the budget reflects
a higher rate, meaning a new level of service to a new level
of clients. There will still be a need for increased
nursing beds. There will be an increase in the Medicaid
Program for community based care.
Senator Rieger inquired as to the percentage of people that
could be placed in the community based care that are
currently receiving nursing beds within the institutions?
Mr. Knudson responded that he could not answer that
question.
Senator Sharp MOVED to adopt CSSB 124 with individual
recommendations and a zero fiscal note. No objections being
heard, CSSB 124 was REPORTED OUT of committee with a zero
fiscal note from the Dept of Health & Social Services and a
"do Pass" from Co-chairs Halford and Frank, along with
Senators Rieger and Sharp. Senator Phillips recommended "do
not pass". Senators Donley and Zharoff signed, "no
recommendation".
The meeting RECESSED at approximately 10:00 a.m.
The meeting RECONVENED at approximately 2:45 p.m.
PRESENT
Co-chair Halford, along with Senators Rieger, Zharoff, and
Sharp were present.
SENATE BILL NO. 142
"An Act establishing the Alaska Human Resource
Investment Council and transferring certain
functions of other entities to the council;
establishing a planning mechanism for employment
training and other human resource investment needs;
and providing for an effective date."
Bob Rubadeau, Special Assistant to the Lieutenant Governor,
testified that the bill primarily has 40 council members,
who are now serving on three separate state councils that
deal with federally funded projects in the state dealing
with vocational, education, and job retraining. These
councils meet approximately 12 times a year, quarterly, to
coordinate and review many of the same program provisions in
oversight over the federal funding mechanisms that deal with
job training and retraining. It is proposed under the Human
Resources Investment Council Bill, which has been empowered
by the federal government to combine the councils into one
council, and that their oversight role would be handled in
one coordinated way. The councils that are now proposed are
now housed in three separate agencies. The proposal under
SB 142 is to take the oversight committee, the council that
has created the Human Resource Investment Council, and place
it under the role of the governor. The consolidation bill
deals with $42 million in federal flow-through funds. Funds
are not coming from the general fund or the state in any
way. He stated that it is all federal past-due money
identified under federal legislation that meets the
requirements under a federal bill to obtain the $42 million
in federal flow-through funds. The interagency transfers
and staffing transfers have been identified specifically for
these oversight committees. The intent is to combine and
consolidate their commission, and come up with a
comprehensive plan that is strictly for Alaska. He stressed
the importance of having the consolidated council with the
upcoming federal block grants proposed.
Senator Phillips MOVED CSSB 142 with accompanying fiscal
notes, with individual recommendations. No objection being
heard, CSSB 142 was REPORTED OUT of committee with a "do
pass" recommendation by Co-chair Frank, and Senators
Phillips, Zharoff, and Sharp. Signing "no recommendations"
were Co-chair Halford and Senator Rieger. Zero fiscal notes
from: University of Alaska, Dept of Education; Dept of
Community and Regional Affairs, Dept of Labor, Dept of
Health & Social Services; and Dept of Commerce and Economic
Development. Office of the governor has a fiscal note of
$309.6.
SENATE BILL NO. 123
"An Act relating to student loan programs, interstate
compacts for postsecondary education, and fees for review
of postsecondary education institutions; and providing for
an effective date."
Co-chair Frank WITHDREW amendment #1. No objection being
heard amendment #1 was WITHDRAWN. Senator Zharoff offered
amendment #2 which deals the full and part-time students.
Joe McCormick, Executive Director for the Commission on
Postsecondary Education stated his support for amendment #2.
He said it provides a graduation, downward, of the annual
amounts eligible depending on the length of the program. It
tracks very closely the same loan eligibility requirements
that are currently available in the student aids programs.
Senator Zharoff MOVED to adopt amendment #2. Senator Sharp
OBJECTED. Senator Sharp MOVED amendment #3 which reduces
the proposed total amount available for a student loan to an
individual student over the career course of his education
from $79.0 to $60.0. The $60.0 his still higher than under
federal law.
Mr. McCormick was supportive of the amendment. He stated
that the current maximum is $5500 for an undergraduate, and
$6500 for a graduate student. Depending on the number of
years involved in the undergraduate or graduate study would
determine the aggregate. Four years of study at $5500 would
equal $22,000. Three years of graduate study at $6500
equals $19,000. This amounts to a 26% increase overall in
the allowable amount to be borrowed.
There was no objection to the amendment. Amendment #2 and
Senator Rieger expressed his concerns with regards to the
origination fee at 5%. He offered an amendment to reduce
the rate from 5% to 3%. Mr. McCormick stated that the 5%
rate was established as a rate that customarily was paid in
student loan programs, and their rate went up to 8%. The
rate has ranged over time from 3%- 8%. Therefore, 5% was
chosen as a mid-point rate. The average student loan is
$4700. Co-chair Frank stated that his desire is to have the
student loan program be fully self-supporting. Co-chair
Halford agreed with the program needing to be fully self-
supporting and could not support the amendment. Mr.
McCormick stated that the reason the student loan program
has not been paying for itself combines many factors. There
were many years that contained a forgiveness provision
within the law, which did not replenish the loan capital.
The loans were forgiven, but the capital was not
replenished. The forgiveness is part of the loss. When
students die, become totally disabled, and default on the
loans, there is no billing of the general fund to replenish
the capital. It is truly a loss and the capital of the fund
does go down. The other factor involved is that there is no
interest on the loan during the time the student is
initially in school. Under this provision the student may
be charged $240 origination fee, but he will have an
interest free loan over the next 12 months which works out
to be a $400 savings to the student. When the commission
feels that politically they can come to the legislature with
the proposal, they will come back and ask for interest to be
charged during the in-school period. This represents a
period of time for which the state is paying bond holders
interest on those bonds for which interest is not being
charged on the loan. That is a loosing proposition.
Amendment by Senator Rieger FAILED.
Senator Zharoff inquired as to the effective date for the
students borrowing in the year of 1995. Mr. McCormick
responded that current loan limits apply to students
applying for, and receiving, loans through June 30, 1995.
Students applying for loans to be disbursed on, or after,
July 1, 1995 would enjoy the benefits of the increased loan
limits. Tuition increase with the University of Alaska is
July 1, 1995. He recommended the increase in the loan
program to coincide with that date.
Senator Rieger offered a conceptual amendment making a
change in the title to include Western Interstate Commission
on Higher Education. No objection being heard, the
conceptual amendment was ADOPTED.
End Tape #42, Side 1
Begin Tape #42, Side 2
Senator Phillips MOVED to adopt CSSB 123 with accompanying
fiscal notes and with individual recommendations. No
objections being heard, CSSB 123 (FIN) was REPORTED OUT of
committee with a "do pass" from Co-chairs Halford and Frank,
along with Senators Phillips and Sharp. Senators Rieger and
Zharoff signed "no recommendation". Two zero fiscal notes
from Dept of Education (Student Loans) and (Program
Administration).
SENATE BILL NO. 105
"An Act relating to a requirement that a parent,
guardian, or custodian consent before a minor receives an
abortion; establishing a judicial bypass procedure by
which a minor may petition a court for authorization to
consent to an abortion without consent of a parent,
guardian, or custodian; amending the definition of
`abortion'; and amending Alaska Rules of Civil Procedure
40, 53, and 79; Alaska Rules of Appellate Procedure 204,
210, 212, 213, 508, and 512.5; and Alaska Administrative
Rule 9."
Senator Leman stated that SB 105 provides a judicial bypass
for a juvenile who seeks to have an abortion without
parental permission. Currently, state law requires a
juvenile under age 18 have parental consent. It is not
enforced. This proposed bill meets the test of the United
States Supreme Court. There are fiscal notes from the
Office of Public Advocacy and the Court System. The
advantages of a judicial bypass incorporates
confidentiality, and costs (no charge).
Co-chair Halford offered amendment #1 and asked Senator
Leman to define the amendment. Senator Leman explained that
the proposed amendment would delete the requirement for a
guardian ad litem, be appointed in addition to an attorney.
The minor would have an attorney who would represent her
interest. The duplication would be removed. In response to
the question, what is the definition of ad litem, he said
that it is a person appointed by the court who assists in
helping the juvenile to make decisions, acting in the best
interests of that juvenile.
Senator Sharp offered to ADOPT amendment #1. No objections
being
heard it was ADOPTED.
Co-chair Frank asked Senator Leman to give his reaction to
the zero fiscal note from the Dept of Health & Social
Services. He responded that there would be a savings with
fewer abortions. Elmer Lindstrom testified in direct
conflict with the supporting documentation from other states
and the purpose of this bill. The ultimate purpose is to
reduce the teen pregnancies and abortions. There is ample
documentation in the record that shows it does happen.
Co-chair Frank focused on the fiscal note. He stated the
discrepancies in this bill. Wanted to know if the $112.0
fiscal note from OPA is accurate. Senator Leman said that by
adopting the amendment, OPA's fiscal note would be decreased
by $112.0. Their projection is that there by 112 cases each
at $1500 per case. Their projection of numbers may be
accurate, the dollar amount is exorbitant. He was asked
what percentage of teens are expected to talk to their
parents versus the court? Senator Leman responded that an
assumption, based on statistics, that 61% of girls who now
talk to their parents, would continue to do so, and 39% who
do not, would then seek to have a judicial bypass.
Senator Leman stated that in order for a juvenile to qualify
for a judicial bypass she will be required to file a
complaint. She will state that she is pregnant, that she is
unmarried, under the age of 18 and unemancipated, that she
wishes to have an abortion without the consent of her
parents or others, and be able to allege to: the fact that
she is mature and well-enough informed; or, that she has
been a victim of physical, sexual, or emotional abuse by the
parents. That is how it would be presented to the judge.
Alison Elgee, Deputy Commissioner, Dept of Administration,
stated that as a result of the amendment just adopted,
eliminating the guardian ad litem requirement, the Office of
Public Advocacy fiscal note can be reduced to $168.0. In
other words, $112.0 is subtracted from the $280.0. Trial
Courts has a fiscal note of $9.6.
Sherrie Goll, Representing the Alaska Women's Lobby,
testified for the Pro Choice Alliances. She stated that the
Alliance and the Women's Lobby is opposed to the
legislation. In regard to the fiscal impact, she stated
that there is an additional impact to be considered, which
is defending the constitutionality of this law. She stated
it certainly will be challenged. There are two other states
that have similar rights to privacy in their constitution.
As the sponsor stated, this judicial bypass does meet the
constitutional test for the federal constitution. However,
the two states that have similar constitutions to ours
(California and Florida) have meet with different results.
In Florida it was struck down, and in California they chose
to suspend their law after they passed it, because there was
so much weight given to the fact that it would be overturned
to the court.
Senator Phillips offered an amendment changing the age from
18 to 16 in all provisions. Age 16 is the age of consent.
Senator Leman does not support the amendment. He suggests
focusing on the issue. The girls can be emancipated. He
felt that there is consistency in the juvenile laws if the
age is kept at age 18. No further debate, the question
before the committee is the adoption of the Phillips
amendment. In favor were Senators Zharoff, Donley, Rieger
and Phillips. Opposed were Co-chair Halford, Frank and
Senator Sharp. The amendment was ADOPTED.
Senator Rieger offered an amendment moving language on page
8, line 22 (section 5 (5) to (4)). No objection being
heard, the amendment was ADOPTED.
Senator Leman reiterated that the bill comes from existing
law in other states that have already withstood the scrutiny
of the United States Supreme Court. It is not a standard
created by him or the Alaska bill drafters. Section 5 was
modeled after the Ohio Law.
Senator Sharp MOVED to adopt CSSB 105 (FIN) with individual
recommendations and accompanying fiscal notes. There was
objection. The question is, shall CSSB 105 (FIN) move from
committee. Those in favor were Co-chairs Halford, Frank,
along with Senators Phillips and Sharp. Those opposed were
Senators Rieger, Donley, and Zharoff. CSSB 105 (FIN) was
REPORTED OUT of committee with "no recommendations" from
Senators Rieger, Phillips, Frank, and Zharoff. Co-chair
Halford and Senator Sharp recommended "do pass" and Senator
Donley recommended "do not pass". Accompanying fiscal
notes: Dept Health & Social Services (Medicaid Non-Facility)
zero; (Medicaid Facility) zero; Dept of Administration
$168.0; and Courts $9.6.
SENATE BILL NO. 81
"An Act classifying the wolf as a predator and
providing for a bounty on wolf."
Senator Sharp testified the bill declassifies the wolf as a
big game animal and places it in classified status. It also
leaves it as a fur bearer. It allows the Board of Game the
flexibility to set up areas designated for intensive
predator control by offering harvest incentives if the Board
of Game authorizes. It designates the department to set up
areas where trappers or members of the public, to take a
wolf, can present the skin as defined on page 2 for
identification and verification to the department's
satisfaction. If the animal is taken in an area designated,
then the department is responsible for paying the harvest
incentive.
End Tape #42, Side 2
Begin Tape #44, Side 1
Senator Sharp referred to his large chart produced by the
Division of Game. It graphically indicated the wildlife
harvest data. He indicated that the Resources Committee
substantially changed the bill. The bounty was reduced from
$400 to $200. All provisions were changed which referred to
the wolf as a "vermin to be killed in any way." It has been
changed to reflect that the wolf is an unclassified or fur
bearer and is subject to all the protection and the normal
procedures that apply to unclassified animals or fur
bearers. It further states, that the harvest incentive for
a bounty can only be applied in areas decided by the Board
of Game. He reiterated, the state is in turmoil over a
subsistence question that basically deals with a total of 4%
of the harvest.
Senator Donley supports maintaining the existing controls
for non-residents and aliens, and applying the new standards
to Alaskan residents. Co-chair Halford responded an
inconsistency in that there is no other unclassified or fur
bearer that has a non-resident tag. He noted the need to
create a non-resident tag for an unclassified animal. This
is inconsistent with the current management scheme.
Senator Phillips asked if there were any limits to the type
of wolf taken. Co-chair Halford responded that it is the
same as other like fur bearing animals. It is not
restricted by age or size, primarily because it is
impossible for someone in the field to know if a wolf is a
male or female or if it is 6 months or 6 years old.
Trapping is whatever gets in the trap. He reminded the
committee that there are 1100 wolves taken a year.
Senator Donley offered a conceptual amendment limiting the
harvesting of the wolf to Alaskans. No objection being heard
the amendment was ADOPTED.
Senator Phillips inquired as to why the right foreleg must
be taken to the department for identification. Co-chair
Halford responded that the characteristics of that bone
distinguishes a wolf from a dog.
Senator Sharp MOVED to adopt a conceptual amendment
changing the language from retain to remove on page 2, lines
4 and 6. No objection being heard, it was ADOPTED.
Co-chair Frank MOVED to adopt CSSB 81 (FIN) as amended with
a fiscal note from the Dept of Fish and Game of $85.0 with
individual recommendations. No objection being heard, CSSB
81 (FIN) was REPORTED OUT of committee. Co-chairs Halford
and Frank along with Senator Sharp recommended "do pass",
Senators Phillips, Donley, and Rieger recommended "no
recommendation". Co-chair Halford requested a current fiscal
note to reflect the actual cost from Dept of Fish and Game
of $85.0.
ADJOURNMENT
The meeting adjourned at approximately 3:00 p.m.
| Document Name | Date/Time | Subjects |
|---|