CHAIRMAN RIEGER called the Senate Health, Education and Social                
 Services (HESS) Committee to order at 2:30 p.m.  He introduced                
  HB 409  (AFDC DEMO PROJECT AND DECREASE) as the first order of               
 business.  He noted that there was a proposed HESS CS which would             
 delete the statutory reductions in AFDC and APA and incorporates              
 other minor changes.                                                          
                                                                               
 SENATOR MILLER moved to adopt the HESS CS, the 8-LS1211\S version,            
 in lieu of the original bill.  Hearing no objections, the CS was              
 adopted.                                                                      
                                                                               
 MICHELLE TOOHEY, Legislative Assistant to Representative Hanley,              
 stated that they did not have any opposition to the CS.                       
                                                                               
 CURT LOMAS, Division of Public Assistance in the Department of                
 Health and Social Services, said that he was representing Jan                 
 Hansen.  He addressed Sections 7 and 8 which would cap the amount             
 of payments in AFDC and APA at the levels in effect in 1992.  He              
 stated that there was a problem with the language tying benefit               
 levels to January of 1992 because of the restructuring of the                 
 standards in last years bill.  He did not believe that Sections 7             
 and 8 were necessary.                                                         
                                                                               
 CHAIRMAN RIEGER explained that those sections were present in order           
 to conform to the title.  He asked if Mr. Lomas had conforming                
 language to offer.  CURT LOMAS suggested that they change the dates           
 in sections 7 and 8 to October 1993 which would eliminate the                 
 technical problem.                                                            
                                                                               
 Number 085                                                                    
                                                                               
 SENATOR MILLER moved to adopt the amendment changing the date from            
 "January 1992" to "October 1993."  Hearing no objections, it was              
 adopted.                                                                      
 CURT LOMAS pointed out another issue with Section 8.  He explained            
 that existing language under HB 67 makes cost of living awards                
 contingent upon specific appropriations by the Legislature for that           
 purpose.  Section 8 appears to conflict with that provision which             
 seems to indicate a potential problem.                                        
                                                                               
 CHAIRMAN RIEGER asked if Mr. Lomas had suggested language to                  
 address that problem.  Chairman Rieger asked if Mr. Lomas was in              
 doubt to the possibility of a problem regarding this issue.  CURT             
 LOMAS said that he was not certain that there was a problem, but he           
 thought that he could propose some language if given some time.               
                                                                               
 CHAIRMAN RIEGER set HB 409 aside in order to give Mr. Lomas time to           
 come up with language to speak to this problem in Section 8.                  
 CHAIRMAN RIEGER introduced  CSHB 409(FIN) am(efd fld)  (PUBLIC                
 ASSIST. DEMO PROJECT & DECREASE) as the next order of business.  He           
 asked for Mr. Lomas' comments on a change to Section 8 in SCS CSHB            
 409(HES) which was adopted by the committee on 4/18/94.                       
                                                                               
 CURTIS LOMAS, Division of Public Assistance, Department of Health             
 and Social Services, said he has discussed a  proposed change to              
 Section 8 with the bill drafter who agrees that it will take care             
 of the problem.  The amendment would delete the language                      
 "Notwithstanding AS 47.25.430 - 47.25.615" on page 5, line 16 and             
 replace it with "Except as provided in AS 47.25.430(b)."  He                  
 explained that is the section that provides for awarding of cost-             
 of-living increases, subject to appropriation for that purpose by             
 the Legislature.                                                              
                                                                               
 Number 470                                                                    
                                                                               
 SENATOR MILLER moved the adoption of Amendment No. 2 to page 5,               
 line 16 of SCS CSHB 409(HES).  Hearing no objection, the Chairman             
 stated the amendment was adopted.                                             
                                                                               
 Number 480                                                                    
                                                                               
 SENATOR MILLER moved that SCS CSHB 409(HES), as amended, be passed            
 out of committee with individual recommendations.  Hearing no                 
 objection, it was so ordered.