Legislature(1999 - 2000)

05/16/1999 11:14 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
MINUTES                                                                                                                         
SENATE FINANCE COMMITTEE                                                                                                        
May 16, 1999                                                                                                                    
11:14 P.N.                                                                                                                      
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                           
                                                                                                                                
SFC-99 # 143, Side A                                                                                                            
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Torgerson reconvened the meeting at approximately                                                                      
11:14 P.M.                                                                                                                      
                                                                                                                                
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
In addition to Co-chair John Torgerson, Senators Sean                                                                           
Parnell, Dave Donley, Loren Leman, Gary Wilken, Pete Kelly,                                                                     
Senator Lyda Green and Al Adams were present when the                                                                           
committee was reconvened.  Senator Randy Phillips arrived                                                                       
shortly thereafter.                                                                                                             
                                                                                                                                
Also Attending:  KAREN PERDUE, Commissioner, Department of                                                                      
Health and Social Services;  ALISON ELGEE, Deputy                                                                               
Commissioner, Department of Administration;  MANYA PUUGOWI,                                                                     
on her own behalf; aides to committee members and other                                                                         
members of the Legislature.                                                                                                     
                                                                                                                                
Attending via Teleconference:                                                                                                   
                                                                                                                                
                                                                                                                                
SUMMARY INFORMATION                                                                                                             
                                                                                                                                
Co-chair Torgerson reconvened the committee at                                                                                  
approximately 11:15 p.m.                                                                                                        
                                                                                                                                
                                                                                                                                
 HOUSE BILL NO. 161                                                                                                             
                                                                                                                                
"An Act relating to reduction in payments to                                                                                    
individuals under certain benefit programs; and                                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
 CS FOR HOUSE BILL NO. 161(FIN)                                                                                                 
"An Act relating to reduction in payments to                                                                                    
individuals under certain benefit programs; and                                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
 CS FOR HOUSE BILL NO. 161(FIN)(efd fld)                                                                                        
"An Act relating to reduction in payments to                                                                                    
individuals under certain benefit programs."                                                                                    
                                                                                                                                
                                                                                                                                
Senator Parnell MOVED SCS CSHB 161() version "H" and noted                                                                      
amendment #1.  WITHOUT OBJECTION version "H" was ADOPTED as                                                                     
working draft before the committee.                                                                                             
                                                                                                                                
Senator Parnell MOVED amendment #1 with technical change to                                                                     
delete "9" and insert "11".  WITHOUT OBJECTION it was                                                                           
ADOPTED.                                                                                                                        
                                                                                                                                
(The arrival of Senator Phillips was noted for the record.)                                                                     
                                                                                                                                
KAREN PERDUE, Commissioner, Department of Health and Social                                                                     
Services was invited to join the committee.  There were                                                                         
issues she did not see addressed in the bill that she had                                                                       
previously brought up before the committee.  One of her                                                                         
concerns was for Adult Public Assistance.  She believed                                                                         
that this bill would require them to pro-rate the Adult                                                                         
Public Assistance payment.                                                                                                      
                                                                                                                                
She further testified to the committee that the department                                                                      
did not support this bill and felt that it was a very bad                                                                       
bill.  Longevity Bonus has contributed monies back to the                                                                       
State.  There were a few other divisions also contributing                                                                      
monies to the State.                                                                                                            
                                                                                                                                
Senator Parnell questioned the Commissioner as to how this                                                                      
bill would change the law regarding Foster Care.                                                                                
Commissioner Perdue said she did not know at this time how                                                                      
Foster Care would be affected.  Senator Parnell said he did                                                                     
not think the bill would change Foster Care.  The                                                                               
Commissioner asked if Senator Parnell thought these                                                                             
regulations would not affect Foster Care?  Senator Parnell                                                                      
responded that was not what he said.  Commissioner Perdue                                                                       
said they could not control the number of children that                                                                         
would come into their care and the only way for them to                                                                         
save money was to cut payments to foster parents.                                                                               
                                                                                                                                
In response to a question by Senator P. Kelly she explained                                                                     
they had reached the limits as to Federal block grants.                                                                         
                                                                                                                                
Senator Kelly asked what statute applied to this matter?                                                                        
He did not understand why the bill was necessary if the                                                                         
pro-ration was according to regulation.  Senator Donley                                                                         
said regulation suggested they pro-rate, but this bill                                                                          
would mandate it.                                                                                                               
                                                                                                                                
Senator Green asked the Commissioner to provide copies of                                                                       
letters that were sent to individuals about the impact of                                                                       
this.  Commissioner Perdue said she would be happy to                                                                           
provide a copy of the letter.                                                                                                   
                                                                                                                                
ALISON ELGEE, Deputy Commissioner, Department of                                                                                
Administration was invited to join the committee.  She said                                                                     
that with passage of this bill they would have to begin                                                                         
pro-rating Longevity Bonus as of 1 July.                                                                                        
                                                                                                                                
Senator Parnell asked if she read the bill to start pro-                                                                        
rating at the beginning of the fiscal year even if they had                                                                     
fully funded the request.  Ms. Elgee said they would have                                                                       
to operate on their best estimates on these programs.  If                                                                       
she was assured their best estimate had been fully funded                                                                       
they could do it later.  Otherwise they must begin 1 July.                                                                      
                                                                                                                                
Senator Parnell MOVED SCS CSHB 161 (FIN).  Senator Adams                                                                        
OBJECTED.  He voiced concern to class action suits by those                                                                     
entitled to specific programs if they were not fully                                                                            
funded.  The bill would then cost money due to the fact                                                                         
they must pay legal costs.  He thought the bill needed more                                                                     
work.                                                                                                                           
                                                                                                                                
Senator Phillips asked if a program had to be pro-rated                                                                         
what was this based on?  He commented on the language on                                                                        
page one, at line six.  He wanted to make sure he fully                                                                         
understood the "shall".                                                                                                         
                                                                                                                                
Senator Leman said he believed this bill would give the                                                                         
Administration a very good tool to assist in the                                                                                
administration of their programs.                                                                                               
                                                                                                                                
Senator Parnell asked unanimous consent to remove his                                                                           
motion to move SCS CSHB 161(FIN).  WITHOUT OBJECTION it was                                                                     
REMOVED.                                                                                                                        
                                                                                                                                
MANYA PUUGOWI, testifying on her own behalf, was invited to                                                                     
join the committee.  She was a disability specialist and                                                                        
also had a disabled child.  She did not feel the benefits                                                                       
of people that need them the most would really bring a long                                                                     
term savings to the State.                                                                                                      
                                                                                                                                
Senator Phillips briefly commented.                                                                                             
                                                                                                                                
Senator Parnell MOVED SCS CSHB 161(FIN) and Senator Adams                                                                       
advised the he MAINTAINED his OBJECTION.  By a roll call                                                                        
vote of 8 yeas (Torgerson, Parnell, Donley, Leman, Wilken,                                                                      
P. Kelly, Green, Phillips) and 1 nay (Adams) SCS CSHB
161(FIN) was REPORTED OUT with individual recommendations                                                                       
and zero fiscal note applying to all State agencies.                                                                            
                                                                                                                                
Co-chair Torgerson advised that tomorrow at 9:00 a.m. the                                                                       
committee would take up HB 84, HB 87, HB 227, HB 231 and HB
151, however, not necessarily in that particular order.                                                                         
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Co-chair Torgerson recessed the committee at approximately                                                                      
11:45 P.M.                                                                                                                      
                                                                                                                                
                                                                                                                                
SFC-99 -1- 05/16/99 pn                                                                                                          

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