HOUSE FINANCE COMMITTEE MAY 2, 1997 4:40 P.M. TAPE HFC 97 - 120, Side 1, #000 - end. TAPE HFC 97 - 120, Side 2, #000 - #489. CALL TO ORDER Co-Chair Gene Therriault called the House Finance Committee meeting to order at 4:40 P.M. PRESENT Co-Chair Therriault Representative Kohring Representative Davies Representative Martin Representative Davis Representative Moses Representative Foster Representative Mulder Representative Kelly Representatives Grussendorf and Hanley were not present for the meeting. ALSO PRESENT Patti Swenson, Staff, Representative Con Bunde; Mike Tibbles, Staff, Representative Gene Therriault; Diane Worley, Director, Division of Family and Youth Service, Department of Health and Social Services; Stephanie Szymanski, Staff, Senator Drue Pearce; Joe Ambrose, Staff, Senator Robin Taylor; Jeff Bush, Deputy Commissioner, Department of Commerce and Economic Development; Guy Bell, Director, Division of Administrative Services, Department of Commerce and Economic Development; Jens Saakvitre, (Testified via teleconference), Director, LIFE-Alaska, Anchorage; Paula Haley, (Testified via teleconference), Anchorage. SUMMARY SB 38 An Act relating to anatomical gifts, living wills, and do not resuscitate orders. HCS CS SB 38 (JUD) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Health and Social Services dated 2/3/97 and a zero fiscal note by the Department of Public Safety dated 2/3/97. SB 55 An Act relating to the definition of certain state receipts; and providing for an effective date. 1 SB 55 was RESCHEDULED for a latter hearing. SB 103 An Act relating to hearings before and authorizing fees for the State Commission for Human Rights; and providing for an effective date. SB 103 was HELD for further discussion. SB 177 An Act relating to the international trade and business endowment; and providing for an effective date. SB 177 was reported out of Committee with "no recommendation" and with fiscal notes by the Department of Revenue dated 4/28/97, the Department of Commerce and Economic Development dated 4/22/97 and the Statewide Budget Office. HB 127 An Act relating to the citizen review board and panels for permanency planning for certain children in state custody; renaming the Citizens' Review Panel For Permanency Planning as the Citizens' Foster Care Review Board; extending the termination date of the Citizens' Foster Care Review Board; and providing for an effective date. CS HB 127 (FIN) was reported out of Committee with a "do pass" recommendation and with fiscal notes by the House Finance Committee, the Department of Administration dated 4/23/97 and a zero note by the Department of Health and Social Services dated 4/23/97. SENATE BILL 103 "An Act relating to hearings before and authorizing fees for the State Commission for Human Rights; and providing for an effective date." PAULA HALEY, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, spoke in support of the legislation and explained that in an effort to reduce budgets, some actions that save money also create efficiencies which better meet public service goals as is the case with the Human Rights Commission. The bill would allow the Human Rights Commission to hold hearings at the office in Anchorage rather than where the alleged discrimination occurred, as is required under current law. She suggested that it would save time and money in travel costs. The Commissioner would continue to ensure that complainants may participate in the hearings. 2 Ms. Haley continued, the bill would also allow the Commission to charge fees to cover the costs of services, information and materials and to provide tapes rather than transcriptions of the hearings. The changes would reduce the cost and time involved in resolving cases, helping the Commission to work through its tremendous backlog of cases, and better respond to the public's increased requests for its services. The result would be better human rights protection for Alaskans. Representative Foster MOVED to report CS SB 103 (STA)am out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS SB 103 (STA)am was reported out of Committee with a "do pass" recommendation and with two fiscal notes by the Office of the Governor dated 4/29/97 and 3/24/97. HOUSE BILL 127 "An Act relating to the citizen review board and panels for permanency planning for certain children in state custody; renaming the Citizens' Review Panel For Permanency Planning as the Citizens' Foster Care Review Board; extending the termination date of the Citizens' Foster Care Review Board; and providing for an effective date." PATTI SWENSON, STAFF, REPRESENTATIVE CON BUNDE, spoke to the changes between CS HB 127 (HES) and the proposed House Finance version of the legislation, 0-LS0496\L, Lauterbach, 5/2/97. Referencing Page 4, Line 25, she asked if the new language referring to when the board meets "telephonically" would also include video. Representative G. Davis understood that it would. Representative J. Davies suggested clarifying that language on Page 4, Line 26, inserting: "And may meet by video conference". MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, recommended that the enclosed amendment, [Amendment #1-Copy on file], which was included in the members packets would be the appropriate place to incorporate that language. Representative Foster MOVED that 0-LS0496\L, Lauterbach, 5/2/97, be the version before the Committee. There being NO OBJECTION, it was adopted. Representative Foster MOVED to adopt Amendment #1. Representative G. Davis OBJECTED for the purpose of 3 discussion, while suggesting to change the wording. Representative J. Davies MOVED to add the language: "And may meet by video conference", to Amendment #1. There being NO OBJECTION to the addition of the new language, the amended Amendment #1 was incorporated. There being NO further OBJECTION to the amended Amendment #1, it was adopted. Ms. Swenson spoke to the change from executive director to program coordinator. Representative J. Davies voiced concern with that change. He felt that an executive director implied a higher level of expertise. He asked if those terms were defined in the Administrative Code. Mr. Tibbles explained that the fiscal note spoke to the change of that position. The social service program coordinator would be a range 20. A program coordinator, the previous title, was used before the funding was reduced and that position was phased out. Ms. Swenson agreed, she thought that there would be a difference between what a program coordinator and an executive director. She advised that a program coordinator is a classified position within the State, whereas, an executive director is not and could serve at the pleasure of the board; a program coordinator would be a State directed position. DIANE WORLEY, DIRECTOR, DIVISION OF FAMILY AND YOUTH SERVICE (DFYS), DEPARTMENT OF HEALTH AND SOCIAL SERVICES, clarified that when a department is referenced in the proposed legislation, that reference is to the Department of Administration (DOA). Currently, there exists within the State, a social service project coordinator job class for upper level and senior management positions. Some boards are run by a classified executive director position. She understood that also was a State job classification. Ms. Swenson noted that when the panel was first appointed, it was run by a program coordinator with no problems. Representative J. Davies pointed out that initially, the program was a pilot project in a portion of Anchorage, whereas, the current proposal is a statewide program with a much broader scope. Ms. Swenson pointed out that the functions would basically continue to be the same. She continued, the change to Page 6, Lines 10-11, would address the State board making recommendations to the Department regarding regulations for out-of-home placement of children. She understood that the State board would be allowed to continue that procedure which would make a difference for DFYS. The new language would further clarify the legislation. 4 Mr. Tibbles spoke to the deletion of transitional language at the end of the bill. Ms. Swenson commented that the Department has indicated support for that change. Representative G. Davis referenced Page 6, Line 26, with regard to the report being sent to the Governor and Legislature. He suggested that these bodies should be "notified" of the availability of the report. Ms. Swenson noted that Representative Bunde would support that change in wording as it would save printing and mailing costs. Representative G. Davis MOVED to change the language on Page 6, Line 26 to: "Shall notify the governor and the legislature that the report is available". There being NO OBJECTION, it was adopted. Mr. Tibbles explained the revised fiscal note. The personal service line was changed to $45 thousand dollars, funding the program coordinator for a nine month period, in addition, it would bring the social worker II position from 10.5 month funding to 12 month funding. The social worker IV position would be eliminated and an additional administrative clerk would be added. Representative J. Davies questioned if additional funding exists as the quoted numbers amount to more than $45 thousand dollars allocated. Ms. Swenson replied, currently, there is staff functioning in the Anchorage panel office with funding through FY98. Representative J. Davies asked if it was the Chair's intent that the program coordinator position work only nine months a year. Ms. Swenson stated that the program coordinator position would be a full twelve month position. Representative J. Davies asked why the amount had not been increased in the personal service line following FY98. Mr. Tibbles interjected that was an oversight and that the personal service line had been copied without changing the numbers. The difference would be an additional $17 thousand dollars for a full year funding of an executive director position, and an additional $6 thousand dollars for full year funding of the clerk position. He recommended changing the FY99 through FY03 by increasing personal services for an additional $23 thousand dollars. Representative J. Davies MOVED that the personal services line through FY03 be changed to reflect $68 thousand dollars. There being NO OBJECTION, it was adopted. Representative Foster MOVED to report CS HB 127 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was 5 so ordered. CS HB 127 (FIN) was reported out of Committee with a "do pass" recommendation and with fiscal notes by the House Finance Committee, the Department of Administration dated 4/23/97 and a zero note by the Department of Health and Social Services dated 4/23/97. SENATE BILL 177 "An Act relating to the international trade and business endowment; and providing for an effective date." STEPHANIE SZYMANSKI, STAFF, SENATOR DRUE PEARCE, explained that the legislation would establish an International Trade and Business Endowment in the Alaska Science and Technology Foundation. The principal and income of the endowment will be invested by the Permanent Fund Corporation and net income from the endowment will be held in a separate account subject to appropriation by the Legislature. The intended purpose of the endowment income would be to cover a portion of the State's annual expenditure on international trade promotion. In the Senate version of FY98 budget, it is envisioned that the Department of Commerce and Economic Development, Division of Trade and Tourism's international trade staff and offices and the World Trade Center would receive support from the endowment income. Ms. Szymanski concluded that keeping the Department's trade specialists and overseas offices fully funded, the bill would make sure the State maintains the longstanding links with key trading partners in Asia, the Russian Far East and elsewhere. Representative Martin suggested that in order to receive the maximum from our money, it should be placed in a treasury rather than permanent fund. JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, replied that there was nothing scientific about placing the money in Alaska Science Technology Foundation (ASTF); it was decided that this would be a safe investment with a large foundation, and invested by the permanent fund. Placing the money was an add-on investment in a simple way. He acknowledged that there is a trade off with which the fund would be faced and the changes that it will bring. The Department has been comfortable with the permanent fund investments over the years, and would be investing some money there. 6 Mr. Bush, in response to Representative Martin, explained that the money would be earned and then set-up in an account within ASTF. It would then be subject by an appropriation to the Department for international trade efforts. It would be a separately maintained fund. Mr. Bush noted that the Department is in support of the bill. He added that Alaska Center for International Business (ACIB) recognizes that there has been discussion regarding the over-lapping and lack of coordination in international trade activities. The Administration sees the bill as an effort to better coordinate those activities. (Tape Change HFC 97-120, Side 2). Mr. Bush suggested that the merger would create a better international trade organization. ACIB has done a lot of international trade research, whereas, the Department has done a lot of international trade activities over the past years, in which they have used ACIB for research. To have the two groups working together will better coordinate the research, providing a more stable funding source. Representative Martin MOVED to report SB 177 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. SB 177 was reported out of Committee with "no recommendation" and with fiscal notes by the Statewide Budget Office, the Department of Revenue dated 4/28/97 and the Department of Commerce and Economic Development dated 4/22/97. SENATE BILL 38 "An Act relating to anatomical gifts, living wills, and do not resuscitate orders." JOE AMBROSE, STAFF, SENATOR ROBIN TAYLOR, noted that the legislation would modify existing statutes dealing with living wills and would add a provision by which those who execute a living will can choose through that document to become an organ donor. By adding the provision to the statutory language suggested for a living will, loved ones and health care professionals would be fully informed as to the wishes of family members and patients. In addition to adding anatomical gifts to the language of a living will, SB 38 would instruct the Division of Motor Vehicles (DMV) to indicate on drivers' licenses not only the 7 fact that the bearer has elected to become an organ donor, but also that the individual has a living will. The provision generated a fiscal note on the bill, which will total $2 thousand dollars for the design of a logo. Mr. Ambrose noted that SB 38 has been thoroughly examined in the committee process and has been amended to address concerns raised by the Emergency Medical Services (EMS) Section of the State Division of Health as well as organ banks in Alaska and Washington state. JENS SAAKVITRE, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, LIFE-ALASKA, ANCHORAGE, spoke in support of the proposed legislation. Representative Martin MOVED to report HCS CS SB 177 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CS SB 177 (JUD) was reported out of Committee with a "do pass" recommendation and with fiscal notes by the Department of Health and Social Services dated 2/3/97 and the Department of Public Safety dated 2/3/97. ADJOURNMENT The meeting adjourned at 5:30 P.M. 8 **FIN125PM