02/15/2024 03:00 PM House HEALTH & SOCIAL SERVICES

          HB 242-EXTEND SENIOR BENEFITS PAYMENT PROGRAM                                                                     
                                                                                                                                
3:04:30 PM                                                                                                                    
                                                                                                                                
CHAIR PRAX  announced that the  first order of business  would be                                                               
HOUSE BILL NO. 242, "An  Act extending the Alaska senior benefits                                                               
payment program; and providing for an effective date."                                                                          
                                                                                                                                
3:04:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE, Alaska State  Legislature, as prime sponsor                                                               
of HB 242, explained the  bill simply extends the senior benefits                                                               
payment program by ten years.                                                                                                   
                                                                                                                                
CHAIR PRAX confirmed that a public  hearing had been held for the                                                               
bill.   He expressed an interest  in moving the bill  forward and                                                               
entertained a motion.                                                                                                           
                                                                                                                                
3:05:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved to report  HB 242 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
3:06:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS objected  and  explained he  was going  to                                                               
offer  an amendment  to  index  the benefits  to  inflation.   He                                                               
observed that  the Senate  version was in  its second  reading on                                                               
the Senate floor and would pass first anyway.                                                                                   
                                                                                                                                
3:06:25 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:06 p.m. to 3:07 p.m.                                                                       
                                                                                                                                
3:07:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE withdrew his motion.                                                                                   
                                                                                                                                
3:07:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  moved Conceptual Amendment 1  to index the                                                               
senior benefits in the bill to inflation.                                                                                       
                                                                                                                                
REPRESENTATIVE  SADDLER explained  he generally  opposes indexing                                                               
financial decisions  because the state has  an ever-moving fiscal                                                               
situation,  and  the  state  constitution   does  not  allow  for                                                               
dedicated funds.   It erodes the authority of  the legislature to                                                               
lock in benefit levels for inflation.                                                                                           
                                                                                                                                
REPRESENTATIVE  MINA   said  she  supports   inflation  adjusting                                                               
because many  Alaskans do  rely on the  benefit program  and have                                                               
relied on it for decades.                                                                                                       
                                                                                                                                
REPRESENTATIVE  FIELDS  requested  to  hear  the  bill  sponsor's                                                               
response to Conceptual Amendment 1.                                                                                             
                                                                                                                                
REPRESENTATIVE   SADDLER  said   he  did   not  want   anyone  to                                                               
misinterpret his objection to inflation  proofing because he does                                                               
support the senior benefits program.                                                                                            
                                                                                                                                
3:09:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  spoke to the concept  of inflation-proofing                                                               
by explaining it  should be approached cautiously  because of the                                                               
fiscal impacts.   She pointed  out the growing number  of seniors                                                               
who  are becoming  eligible,  and  it is  a  robust though  valid                                                               
discussion.                                                                                                                     
                                                                                                                                
3:10:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SUMNER   asked  Representative  Fields   what  he                                                               
envisioned  happening  in  the case  of  deflation,  particularly                                                               
because  of the  housing component  of the  Consumer Price  Index                                                               
(CPI).  He  discussed a hypothetical situation  where the current                                                               
increased cost of  housing would be reversed and  wondered if the                                                               
inflation index would adjust downwards.                                                                                         
                                                                                                                                
3:11:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS  suggested   the   amendment  leave   the                                                               
potential for deflation or clarify that  the index is a floor not                                                               
a ceiling.                                                                                                                      
                                                                                                                                
3:12:02 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.   Representatives McCormick, Fields,                                                               
and Mina  voted in  favor of  Conceptual Amendment  1 to  HB 242.                                                               
Representatives  Ruffridge,  Saddler,   Sumner,  and  Prax  voted                                                               
against  it.   Therefore,  Conceptual Amendment  1  failed to  be                                                               
adopted by a vote of 3-4.                                                                                                       
                                                                                                                                
3:12:59 PM                                                                                                                    
                                                                                                                                
CHAIR PRAX  suggested the committee table  HB 242 to be  taken up                                                               
later.                                                                                                                          
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved  to table HB 242.   There being no                                                               
objection, it was so ordered.                                                                                                   
         HB 242-EXTEND SENIOR BENEFITS PAYMENT PROGRAM                                                                      
                                                                                                                                
5:08:51 PM                                                                                                                    
                                                                                                                                
CHAIR PRAX announced that the final  order of business would be a                                                               
return  to HOUSE  BILL  NO.  242, "An  Act  extending the  Alaska                                                               
senior benefits  payment program; and providing  for an effective                                                               
date."                                                                                                                          
                                                                                                                                
5:08:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE moved  to take  HB 242  off the  table.                                                               
There  being no  objection,  HB  242 was  once  again before  the                                                               
committee.                                                                                                                      
                                                                                                                                
5:09:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt Amendment 2 to HB 242,                                                                     
                                                                                                                                
REPRESENTATIVES SUMNER and SADDLER objected.                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  explained that Amendment 2  ensures senior                                                               
benefits are  paid at  the statutory level  which is  higher than                                                               
they have  paid out  the past  five or six  years, and  they have                                                               
been administratively reduced for the last five or six years.                                                                   
He  provided  context for  the  amendment  by pointing  out  that                                                               
currently the department  has additional administrative authority                                                               
beyond the  legislature's ability to appropriate.   The amendment                                                               
would  ensure  the  greatest  likelihood of  paying  out  at  the                                                               
statutory level.                                                                                                                
                                                                                                                                
5:10:39 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 5:10 p.m. to 5:12 p.m.                                                                       
                                                                                                                                
5:12:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE, Alaska State  Legislature, as prime sponsor                                                               
of HB  242, said  she remained neutral  regarding Amendment  2 at                                                               
that point because  she did not know whether it  would change the                                                               
fiscal note.   She  appreciated people being  able to  appeal the                                                               
amount of distribution.   By principle she likes  to apply things                                                               
equally across  law, and  this may create  a conflict  with other                                                               
monetary distribution people receive from the state.                                                                            
                                                                                                                                
5:13:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER  explained he is not  certain that deleting                                                               
this language from statute would  have the result the amendment's                                                               
sponsor believes  it would have  in the event of  an insufficient                                                               
appropriation.                                                                                                                  
                                                                                                                                
CHAIR PRAX asked for input from someone from the administration.                                                                
                                                                                                                                
5:14:05 PM                                                                                                                    
                                                                                                                                
DEB   ETHERIDGE,  Director,   Division   of  Public   Assistance,                                                               
Department  of Health,  explained that  the appropriations  would                                                               
have to be included in  the division's base budget.  Furthermore,                                                               
it would  require knowing exactly  the number of  individuals who                                                               
would  be applying  at  which  benefit level.    If the  division                                                               
didn't  have  the  appropriations,  it  would  have  to  ask  for                                                               
additional funds through ratification,  otherwise it could impact                                                               
other general fund programs.                                                                                                    
                                                                                                                                
5:14:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  said he was  inclined to not  support the                                                               
amendment and let  the division know the issue is  likely to come                                                               
up in the future.                                                                                                               
                                                                                                                                
REPRESENTATIVE  FIELDS asked  whether Legislative  Legal Services                                                               
could answer questions about the amendment.                                                                                     
                                                                                                                                
5:15:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SUMNER  posed  a  hypothetical,  asking  if  this                                                               
amendment  passed,  and the  appropriation  was  not made,  would                                                               
other programs be impounded in order to pay off the benefit.                                                                    
                                                                                                                                
MS.  ETHERIDGE  explained  that she  needed  additional  time  to                                                               
review the impact of the amendment.                                                                                             
                                                                                                                                
5:16:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER removed his objection  to Amendment 2 to HB
.                                                                                                                            
                                                                                                                                
REPRESENTATIVE SADDLER [maintained his objection].                                                                              
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE reiterated  his  understanding that  if                                                               
the  division  is not  allowed  to  "short"  the benefit  if  the                                                               
appropriation does  not match, under  statute the  division would                                                               
have to find those dollars.                                                                                                     
                                                                                                                                
MS. ETHERIDGE said that was her understanding.                                                                                  
                                                                                                                                
5:17:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER confirmed  that he  still maintained  his                                                               
objection.                                                                                                                      
                                                                                                                                
5:17:22 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives Mina,  Sumner, and                                                               
Fields voted in favor of Amendment  2 to HB 242.  Representatives                                                               
Ruffridge,  Sadler,  and  Prax  voted  against  it.    Therefore,                                                               
Amendment 2 242 failed to be adopted by a vote of 3-3.                                                                          
                                                                                                                                
5:18:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved to report  HB 242 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no objection,  HB 242 was reported out of the                                                               
House Health and Social Services Standing Committee.