03/30/1993 01:40 PM House FIN

  HOUSE BILL NO. 67                                                            
                                                                               
       "An Act  relating to  eligibility for  and payments  of                 
       public  assistance;  and  providing  for  an  effective                 
       date."                                                                  
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action  in  reporting  CSHB  67   (FIN)  out  of  Committee.                 
  Representative Brown OBJECTED.  A  roll call vote was  taken                 
  on the motion.                                                               
                                                                               
  IN FAVOR: Grussendorf,  Foster,  Hanley,   Martin,  Parnell,                 
                 Therriault, MacLean, Larson                                   
  OPPOSED:  Brown, Hoffman, Navarre                                            
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  A roll  call vote was taken on the  motion to report CSHB 67                 
  (FIN) from Committee.                                                        
                                                                               
  IN FAVOR: Grussendorf, Brown, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Hanley  MOVED  to  RESCIND  the  Committee's                 
  action  in adopting  Amendment 1 to  HB 67.   Representative                 
  Brown OBJECTED.   Representative Brown  emphasized the  need                 
  for COLA adjustments.  The amendment would suspend the COLA.                 
                                                                               
                                                                               
  Representative Hoffman spoke  is support of Amendment 1.  He                 
  asserted that repealing the COLA for Adult Public Assistance                 
  (APA) and Aid to Families with Dependent  Children (AFDC) is                 
  "one of the most regressive things we can  do to poor people                 
  in the state."                                                               
                                                                               
  Co-Chair Larson observed that Alaska is  the only state that                 
  has  a  COLA  clause  for  these programs.    Representative                 
  Hoffman noted that if Amendment 1 is not adopted legislative                 
  action will be needed in the future to increase  APA or AFDC                 
  payments.                                                                    
                                                                               
  Representative  Brown  provided members  with  a Legislative                 
  Research Agency memorandum regarding  the state of  Alaska's                 
  children, dated  3/22/93 (Attachment  2).   She pointed  out                 
  that there are  45,000 children in  Alaska living below  the                 
                                                                               
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  poverty level.   She  observed that  27 percent of  Alaska's                 
  preschool children live in poverty.  She maintained that the                 
  programs support children.                                                   
                                                                               
  Representative Hoffman  provided  members  with  a  3/26/93,                 
  memorandum  from  Terri   Lauterbach,  Legislative   Counsel                 
  stating that CSHB 67 (JUD) would  not allow COLA payments to                 
  be    made    through    appropriation    (Attachment    3).                 
  Representative Grussendorf spoke against repealing the COLA.                 
                                                                               
  A  roll  call  vote  was  taken  on the  motion  to  RESCIND                 
  Amendment 1, adopted on 3/27/93.                                             
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Brown, Grussendorf, Hoffman, Navarre                               
                                                                               
  The MOTION PASSED (7-4).                                                     
                                                                               
  Representative  Brown provided members with a substitute for                 
  Amendment 1 (copy on file).   Representative Brown MOVED  to                 
  ADOPT  AMENDMENT 1.    A roll  call vote  was  taken on  the                 
  motion.                                                                      
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  2                 
  (Attachment 4).  She explained that  Amendment 2 would set a                 
  floor for APA and AFDC payment  levels.  The COLA adjustment                 
  would automatically be installed if  AFDC and APA recipients                 
  fell below 70 percent of the federal poverty guideline.                      
                                                                               
  JAN  HANSEN,  DIRECTOR,  PUBLIC  ASSISTANCE,  DEPARTMENT  OF                 
  HEALTH AND SOCIAL SERVICES explained that it is necessary to                 
  specify the household size.  She explained that a two person                 
  household is at a higher percentage  of poverty than a three                 
  person household.  She suggested  that the amendment specify                 
  that when a household of two reach 70 percent of the poverty                 
  level than the COLA adjustment would be made.  She explained                 
  that COLAs are the same as  the poverty level increase.  She                 
  gave examples of COLA adjustments.  She noted that in 1992 a                 
  household  of  three  is at  77  percent  of  poverty and  a                 
  household of two is at 86 percent of poverty.                                
                                                                               
  Representative Brown MOVED  to AMEND AMENDMENT 2  to specify                 
  that when  a three person household reaches below 70 percent                 
  of the poverty level a  COLA adjustment would be made.   Co-                 
  Chair  Larson  suggested  that  the  amendment be  held  and                 
                                                                               
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  drafted be legal counsel.  Amendment 2 was held.                             
                                                                               
  HB 67 was HELD in Committee.