05/16/2025 01:30 PM Senate LABOR & COMMERCE

        SB 154-HOME CARE EMPLOYMENT STANDARDS ADV BOARD                                                                     
                                                                                                                                
1:48:58 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration of SPONSOR  SUBSTITUTE FOR SENATE BILL  NO. 154 "An                                                               
Act  establishing the  Home  Care  Employment Standards  Advisory                                                               
Board;  relating  to  payment for  personal  care  services;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
1:49:28 PM                                                                                                                    
RYAN MCKEE, Staff, Senator Rob Yundt, Alaska State Legislature,                                                                 
Juneau, Alaska, provided a brief summary of SB 154:                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Alaska faces an acute  shortage of direct care workers,                                                                    
     particularly   outside  of   population  centers.   The                                                                    
     potential provider workforce  demographic, those age 18                                                                    
     to 64,  is in decline.   Furthermore, low pay  and lack                                                                    
     of   benefits  force   many  caregivers   out  of   the                                                                    
     profession   and   make   recruitment   and   retention                                                                    
     increasingly more difficult  for agencies providing in-                                                                    
     home care services.                                                                                                        
                                                                                                                                
     We need to  create a strong and  long-lasting home care                                                                    
     infrastructure in  Alaska which  will expand  access to                                                                    
     quality, affordable  home and community-based  care for                                                                    
     seniors and  people with  disabilities, keep  people in                                                                    
     their homes  and out of costly  facilities, and bolster                                                                    
     the  creation of  jobs.   We also  need to  ensure that                                                                    
     Medicaid funding  for personal care services  is wisely                                                                    
     spent, with  an adequate portion  of the rate  going to                                                                    
     pay and benefits  for direct care workers,  in order to                                                                    
     help   address   the   workforce   shortage.   SB   154                                                                    
     accomplishes both objects by:                                                                                              
                                                                                                                                
        • Establishing a Home Care Employment Standards                                                                         
          Advisory Board that  will investigate, advise, and                                                                    
          develop  recommendations  on  Medicaid  rates  and                                                                    
          other  policies  to  improve  the  wages,  working                                                                    
          conditions,  and  recruitment   and  retention  of                                                                    
          direct care workers.                                                                                                  
                                                                                                                                
        • Requiring that agencies providing personal care                                                                       
          services spend  at least 70  percent of  the total                                                                    
          annual  funding they  receive from  the department                                                                    
          for  personal   care  services  on  the   pay  and                                                                    
          benefits  of  Personal Care  Assistants  providing                                                                    
          such services.                                                                                                        
                                                                                                                                
1:51:51 PM                                                                                                                    
TONY  NEUMAN,   Director,  Division  of  Senior   and  Disability                                                               
Services, Juneau, Alaska,  provided a summary of  the fiscal note                                                               
for SB 154,  Department of Health, OMB component  2663, dated May                                                               
9, 2025. He  stated that the fiscal note  estimates would require                                                               
$163,000 in the first year and  $327,200 in FY 2027. SB 154 would                                                               
be  funded  50/50  by  federal receipts  and  the  general  fund,                                                               
allowing for one full-time position  initially and a second in FY                                                               
2027.                                                                                                                           
                                                                                                                                
1:53:07 PM                                                                                                                    
CHAIR BJORKMAN opened  public testimony on SB  154; finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
1:53:39 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
1:53:41 PM                                                                                                                    
SENATOR  MERRICK  moved  to  report  SSSB  154,  work  order  34-                                                               
LS0836\N,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
1:53:55 PM                                                                                                                    
CHAIR BJORKMAN found no objection  and SSSB 154 was reported from                                                               
the Senate Labor and Commerce Standing Committee.