Legislature(2007 - 2008)BUTROVICH 205

02/07/2007 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES


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01:33:30 PM Start
01:34:41 PM SB40
02:09:20 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 40 LONGEVITY BONUS REAPPLICATIONS TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                        February 7, 2007                                                                                        
                           1:33 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bettye Davis, Chair                                                                                                     
Senator Joe Thomas                                                                                                              
Senator John Cowdery                                                                                                            
Senator Kim Elton                                                                                                               
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 40                                                                                                              
"An Act relating to reapplications for the Alaska longevity                                                                     
bonus program; and providing for an effective date."                                                                            
     HEARD AND HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to consider                                                                                                  
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Senator Wielechowski                                                                                                            
Alaska State Capitol                                                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 40                                                                                          
                                                                                                                                
Pat Luby, Advocacy Director                                                                                                     
AARP                                                                                                                            
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Supported SB 40                                                                                          
                                                                                                                                
Janet Clark, Assistant Commissioner                                                                                             
Department of Health & Social Services                                                                                          
Juneau, AK                                                                                                                      
POSITION STATEMENT:  Available for questions on SB 40                                                                         
                                                                                                                                
Stacie Kraly, Assistant Attorney General                                                                                        
Civil Division                                                                                                                  
Department of Law                                                                                                               
Juneau, AK                                                                                                                      
POSITION STATEMENT:  Available for questions on SB 40                                                                         
                                                                                                                                
Ellie Fitzjarrald, Director                                                                                                     
Division of Public Assistance                                                                                                   
Department of Health & Social Services                                                                                          
Juneau, AK                                                                                                                      
POSITION STATEMENT:  Available for questions on SB 40                                                                         
                                                                                                                                
Frederick Sturn, representing himself                                                                                           
Mat-Su Valley AK                                                                                                                
POSITION STATEMENT:  Supported SB 40                                                                                          
                                                                                                                                
Doris Carpenter, representing herself                                                                                           
Mat-Su Valley AK                                                                                                                
POSITION STATEMENT:  Supported SB 40                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  BETTYE  DAVIS  called the  Senate  Health,  Education  and                                                             
Social Services  Standing Committee  meeting to order  at 1:33:30                                                             
PM.  Present were  Senators Cowdery,  Thomas,  Elton, Dyson,  and                                                             
Chair Davis.                                                                                                                    
                                                                                                                                
              SB 40-LONGEVITY BONUS REAPPLICATIONS                                                                          
                                                                                                                              
CHAIR DAVIS announced SB 40 to be up for consideration.                                                                         
                                                                                                                                
1:34:41 PM                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI, sponsor  of SB 40, said that  it related to                                                               
reapplication for the  longevity bonus, and he  believes that the                                                               
bonus represents long-standing Alaska values and smart policy.                                                                  
                                                                                                                                
SENATOR ELTON  moved to adopt  the proposed  committee substitute                                                               
to SB  40, Version /C, as  the working document.   There being no                                                               
objection, the motion carried.                                                                                                  
                                                                                                                                
1:35:46 PM                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI  explained  that the  committee  substitute                                                               
made a  simple administrative correction to  give jurisdiction to                                                               
the commissioner of the Department  of Health and Social Services                                                               
(DHSS).                                                                                                                         
                                                                                                                                
He  said that  the bonus  went  back to  1915, listed  historical                                                               
facts about  the bonus and  the requirements over the  years, and                                                               
how admission to  the program was ended in 1996.  Funding for the                                                               
bonus was  ended in 2003  by former governor Frank  Murkowski. No                                                               
analysis was done  to determine the impact of this  change on the                                                               
economy. Many seniors  relied heavily on the bonus.  He urged the                                                               
committee to join him in supporting the bill.                                                                                   
                                                                                                                                
1:38:48 PM                                                                                                                    
                                                                                                                                
SENATOR   WIELECHOWSKI   explained    that   the   problem   with                                                               
reinstituting  the bonus  was that  the current  statute required                                                               
continual application  in order to maintain  eligibility; section                                                               
1 of  his bill would  require that  the commissioner of  the DHSS                                                               
accept applicants  who were eligible  when the bonus  funding was                                                               
cut. The  bonus law had  remained active even though  the funding                                                               
was no  longer provided. SB  40 would require applicants  to have                                                               
been  eligible  in 2003,  and  have  maintained continuous  state                                                               
residency since that  date. New applicants would  not be allowed.                                                               
Provisions are  also included about  the reapplication  date, the                                                               
right to  determine whether an applicant  meets requirements, the                                                               
amount of the monthly bonus, and an effective date.                                                                             
                                                                                                                                
1:40:46 PM                                                                                                                    
                                                                                                                                
PAT LUBY, Advocacy  Director for the Alaska AARP,  said that many                                                               
of  the  AARP  members  were  delighted  that  the  governor  had                                                               
reinstated the funding  in her budget. He urged  the committee to                                                               
approve the bill.                                                                                                               
                                                                                                                                
1:41:55 PM                                                                                                                    
                                                                                                                                
SENATOR  DYSON asked  Mr. Luby  whether his  organization thought                                                               
the bonus should be needs-based.                                                                                                
                                                                                                                                
1:42:51 PM                                                                                                                    
                                                                                                                                
MR. LUBY replied that many  people based their retirement budgets                                                               
on the longevity bonus.   The AARP's position was that government                                                               
money should be first given to those most in need.                                                                              
                                                                                                                                
1:43:59 PM                                                                                                                    
                                                                                                                                
SENATOR  COWDERY  remarked  that  like the  permanent  fund,  the                                                               
longevity bonus should not be given on an as-needed basis.                                                                      
                                                                                                                                
1:45:40 PM                                                                                                                    
                                                                                                                                
JANET CLARK,  Assistant Commissioner of the  Department of Health                                                               
and  Social Services  (DHSS), said  that the  DHSS supported  the                                                               
bill, and she would explain the fiscal impact.                                                                                  
                                                                                                                                
STACIE KRALY,  Assistant Attorney  General for the  Department of                                                               
Law, said  that the department's  review of the statute  showed a                                                               
need  for  reconstitution  of the  program.  Under  the  existing                                                               
statute  an  applicant  had to  reapply  consistently  to  remain                                                               
eligible,  but  with  the  de-funding  of  the  program  everyone                                                               
stopped applying.  The statute  thus needs to  be fixed  to allow                                                               
for reapplication.                                                                                                              
                                                                                                                                
1:49:13 PM                                                                                                                    
                                                                                                                                
CHAIR DAVIS asked if such a change could be made within SB 40.                                                                  
                                                                                                                                
1:49:23 PM                                                                                                                    
                                                                                                                                
MS. KRALY replied that the issue  should be addressed in SB 40. A                                                               
process for re-determining eligibility needs to be created.                                                                     
                                                                                                                                
1:50:41 PM                                                                                                                    
                                                                                                                                
CHAIR DAVIS said  that some issues with the bill  might be better                                                               
addressed in another committee.                                                                                                 
                                                                                                                                
1:51:11 PM                                                                                                                    
                                                                                                                                
SENATOR  COWDERY asked  if people  who  left the  state when  the                                                               
bonus funding was cut would be  allowed to re-apply, and how they                                                               
would be tracked.                                                                                                               
                                                                                                                                
1:51:38 PM                                                                                                                    
                                                                                                                                
MS. KRALY replied that the issue needed to be addressed.                                                                        
                                                                                                                                
1:52:15 PM                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI said  that according  to the  current bill,                                                               
people who left the state when  the program funding was cut would                                                               
no longer be eligible if they returned.                                                                                         
                                                                                                                                
1:52:59 PM                                                                                                                    
                                                                                                                                
MS. KRALY replied that the  process of re-qualification needed to                                                               
be examined.                                                                                                                    
                                                                                                                                
1:53:43 PM                                                                                                                    
                                                                                                                                
SENATOR  ELTON asked  if the  DHSS would  have the  discretion to                                                               
determine the residency requirement.                                                                                            
                                                                                                                                
1:54:26 PM                                                                                                                    
                                                                                                                                
MS. KRALY  replied that the DHSS  would not be able  to establish                                                               
baseline  eligibility for  residency, but  the bill  could create                                                               
litigation in specific scenarios.                                                                                               
                                                                                                                                
1:55:42 PM                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI said that  technically every applicant would                                                               
be  in  violation of  the  statute  because it  required  monthly                                                               
applications, and agreed that an amendment needed to be made.                                                                   
                                                                                                                                
1:56:43 PM                                                                                                                    
                                                                                                                                
MS.  CLARK  said  that reestablishing  the  bonus  would  require                                                               
policy guidance and retooling of the bill.                                                                                      
                                                                                                                                
1:57:31 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS asked if there would  be a provision for those who                                                               
may forget to apply for the bonus on time.                                                                                      
                                                                                                                                
1:57:54 PM                                                                                                                    
                                                                                                                                
MS. KRALY  replied that the  legislation was codified law  of the                                                               
state of Alaska, so all due process would apply.                                                                                
                                                                                                                                
1:58:16 PM                                                                                                                    
                                                                                                                                
CHAIR DAVIS  said they could  review the  fiscal note at  a later                                                               
date, and asked Ellie Fitzjarrald to testify.                                                                                   
                                                                                                                                
1:58:55 PM                                                                                                                    
                                                                                                                                
ELLIE FITZJARRALD, Public Assistance  Director for the Department                                                               
of Health  and Social Services  (DHSS), explained that  she could                                                               
talk about the fiscal analysis, but did not plan to testify.                                                                    
                                                                                                                                
1:59:14 PM                                                                                                                    
                                                                                                                                
FREDERICK STURN,  representing himself,  said that  the longevity                                                               
bonus was  important to  many seniors  he knew,  especially women                                                               
without retirement  plans. Living  off social security  alone was                                                               
difficult with rising prices.                                                                                                   
                                                                                                                                
2:00:54 PM                                                                                                                    
                                                                                                                                
DORIS CARPENTER, representing herself,  said that she thought the                                                               
reapplication  issue was  not very  important and  that continual                                                               
reapplication was not necessary.                                                                                                
                                                                                                                                
2:03:00 PM                                                                                                                    
                                                                                                                                
SENATOR COWDERY  said that he  thought reapplication should  be a                                                               
non-issue, and asked how many  eligible people had died since the                                                               
program funding was cut.                                                                                                        
                                                                                                                                
2:04:10 PM                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  said that the number  of eligible residents                                                               
has dropped from 18,000 to 13,000.                                                                                              
                                                                                                                                
He explained  that the governor  line-item vetoed the  funding in                                                               
2003, and that  there had been wide support  from the legislature                                                               
for  the program.  He agreed  with  Senator Cowdery  in that  the                                                               
bonus should not be needs-based.                                                                                                
                                                                                                                                
2:06:09 PM                                                                                                                    
                                                                                                                                
SENATOR ELTON  said that he  heard the cost of  reinstituting the                                                               
program  would be  $33 million,  and wondered  if early  appliers                                                               
would  add  an   additional  cost  to  this   figure  because  of                                                               
retroactive payments.                                                                                                           
                                                                                                                                
2:08:06 PM                                                                                                                    
                                                                                                                                
SENATOR  COWDERY  pointed out  that  the  fiscal  note on  SB  40                                                               
required the bonus to be declared as supplemental income.                                                                       
                                                                                                                                
2:08:41 PM                                                                                                                    
                                                                                                                                
CHAIR DAVIS  said that  the committee would  be putting  the bill                                                               
aside to allow the sponsor to  confer with the Department of Law,                                                               
and the  committee would likely  review the bill again  two weeks                                                               
from that date.                                                                                                                 
                                                                                                                                
CHAIR DAVIS, finding no further business, adjourned the meeting                                                                 
at 2:09:20 PM.                                                                                                                
                                                                                                                                
                                                                                                                                

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