04/22/1999 09:07 AM Senate FIN

                                                                                                                                
CS FOR SENATE BILL NO. 73(HES)                                                                                                  
"An Act relating to assisted living homes; and                                                                                  
providing for an effective date."                                                                                               
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill.                                                                                      
                                                                                                                                
Co-Chair John Torgerson explained proposed committee                                                                            
substitute, Version "G". He commented that he supported the                                                                     
bill but had concerns about the fiscal note.  The CS                                                                            
addressed those concerns.                                                                                                       
                                                                                                                                
Under the proposed CS, the bill would provide for a                                                                             
reimbursement rate of $50 per day, up from the current $34.                                                                     
This rate would apply for two years.  In FY02, the rate                                                                         
would increase to $75 per day, where it would remain.  The                                                                      
current version allowed for an additional raise to $100 per                                                                     
day, which this would eliminate.                                                                                                
                                                                                                                                
He noted an agreement with the Alaska Mental Health Trust                                                                       
Authority that they would provide $600,000 per year toward                                                                      
this increase.                                                                                                                  
                                                                                                                                
Co-Chair John Torgerson asked Senator Mike Miller if he                                                                         
opposed the drafted CS.                                                                                                         
                                                                                                                                
SENATOR MIKE MILLER qualified that he had tried to grant as                                                                     
much reimbursement to the caregivers as possible. In light                                                                      
of the current fiscal crisis, he believed this would be an                                                                      
improvement for the caregivers and would help many assisted                                                                     
living homes. He told the committee he was making other                                                                         
efforts to help the assisted living facilities in ways that                                                                     
would not cost the state any money.                                                                                             
                                                                                                                                
Senator Randy Phillips moved for adoption of the CS Version                                                                     
"G". There was no objection and it was so ordered.                                                                              
                                                                                                                                
Senator Mike Miller further commented that he felt this                                                                         
legislation was a step in the right direction and that it                                                                       
should not be delayed.                                                                                                          
                                                                                                                                
DWIGHT BECKER, Program Coordinator, Adult Protective                                                                            
Services, Division of Senior Services, Department of                                                                            
Administration, testified via teleconference from                                                                               
Anchorage.  He asked for clarification of when the $75                                                                          
reimbursement rate actually began.                                                                                              
                                                                                                                                
                                                                                                                                
Tape: SFC - 99 #104, Side B    9:54 AM                                                                                          
                                                                                                                                
                                                                                                                                
Co-Chair John Torgerson clarified that the program would                                                                        
begin in the calendar year 2001. However the fiscal year                                                                        
was 2002.                                                                                                                       
                                                                                                                                
ALISON ELGEE, Deputy Commissioner, Department of                                                                                
Administration and ELMER LINDSTROM, Special Assistant,                                                                          
Office of the Commissioner, Department of Health and Social                                                                     
Services came to the table to speak to the fiscal notes.                                                                        
                                                                                                                                
Co-Chair John Torgerson asked why there were two fiscal                                                                         
notes rather than one. Alison Elgee answered that this                                                                          
program impacted the clients of the Division of Senior                                                                          
Services and the clients of the Division of Mental Health                                                                       
and Developmental Disabilities. The program operated under                                                                      
one set of statutes and regulations although it serviced                                                                        
two different client groups.                                                                                                    
                                                                                                                                
Co-Chair John Torgerson wanted to know the total general                                                                        
fund expenditure. Elmer Lindstrom detailed the amounts of                                                                       
both fiscal notes adjusting for the receipts from the                                                                           
Alaska Mental Health Trust Authority. Senator Gary Wilken                                                                       
calculated the general fund component at $1.26 million.                                                                         
                                                                                                                                
Co-Chair John Torgerson ordered the bill held in committee                                                                      
to work on the fiscal notes.