03/20/2002 09:44 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 182                                                                                                        
     "An Act requiring reductions in payments to individuals under                                                              
     certain benefit programs if appropriations are not sufficient                                                              
     to fully fund the statutorily established levels of payments."                                                             
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
AT EASE 9:45 AM / 9:46 AM                                                                                                       
                                                                                                                                
Co-Chair  Donley reminded  this legislation  implements  a pro  rata                                                            
process. He noted testimony  indicated that some funds should not be                                                            
included in this provision, such as the fisherman's fund.                                                                       
                                                                                                                                
Amendment   #1:  This   amendment   inserts   additional   statutory                                                            
references in Section 1,  page 2, line 2. The amended language reads                                                            
as follows.                                                                                                                     
                                                                                                                                
                (j) The provisions of (i) of this section do not                                                                
          apply  to payment  under AS 23.30  (Workers' Compensation                                                             
          Act),  AS 23.35.060-23.35.100,  AS 25.23.190 -  25.23.240,                                                            
          loan   programs,   state   employee   retirement   benefit                                                            
          programs,  or benefit programs for which  other provisions                                                            
          of law address underfunding.                                                                                          
                                                                                                                                
Co-Chair  Donley  moved  for  adoption,  explaining  this  amendment                                                            
addresses the aforementioned concerns.                                                                                          
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Senator Austerman  referenced a memorandum  by the sponsor  relating                                                            
to SJR 43 [copy on file.]                                                                                                       
                                                                                                                                
Co-Chair  Donley spoke  of discussions  that  some federal  programs                                                            
might have "maintenance  of efforts requirements" that could prevent                                                            
pro rata from being implemented.  He pointed out SJR 43 requests the                                                            
federal government to impose  a moratorium on maintenance of efforts                                                            
requirements  for  a short  period  each  year  to allow  states  to                                                            
"readjust their levels" for various federal programs.                                                                           
                                                                                                                                
Co-Chair  Donley  offered a  motion to  move  CS SB  182 (FIN)  from                                                            
Committee  with a  forthcoming indeterminate  fiscal  note from  the                                                            
Department  of Administration,  and eight  new indeterminate  fiscal                                                            
notes from  the Office of Management  and Budget, All Agencies,  and                                                            
the Department  of Health  and Social Services:  Public Assistance,                                                             
Alaska  Temporary Assistance  Program;  Public  Assistance,  General                                                            
Relief  Assistance;  Public  Assistance,  Adult  Public Assistance;                                                             
Purchased  Services,  Foster  Care Base  Rate;  Purchased  Services,                                                            
Foster Care Augmented Rate;  Purchased Services, Foster Care Special                                                            
Need; and, Public Assistance, Tribal Assistance.                                                                                
                                                                                                                                
Senator  Austerman informed  he would  not object  to reporting  the                                                            
bill from Committee but  that he might vote against its passage from                                                            
the Senate.                                                                                                                     
                                                                                                                                
The bill MOVED from Committee without objection.