03/21/2012 01:30 PM Senate HEALTH & SOCIAL SERVICES

           SB 221-ALCOHOLIC BEV. TAX/PREVENTION FUND                                                                        
                                                                                                                              
1:35:01 PM                                                                                                                    
CHAIR DAVIS  announced that the  first bill before  the committee                                                               
would be SB 221.                                                                                                                
                                                                                                                                
JAY LIVEY, staff  to Senator Lyman Hoffman, introduced  SB 221 on                                                               
behalf of  the Senate  Finance Committee, sponsor  of SB  221. He                                                               
began  by saying  that SB  221 is  a relatively  simple bill.  It                                                               
states  that  the  legislature should  allocate  100  percent  of                                                               
existing alcohol  tax revenues to fund  substance abuse treatment                                                               
prevention programs.  This allocation  is intended  to supplement                                                               
and not  supplant existing money  that has been  appropriated for                                                               
treatment programs.                                                                                                             
                                                                                                                                
He  explained that  the  bill proposes  a  significant change  in                                                               
thinking about funding  alcohol and drug abuse  programs. It does                                                               
not  create  a   dedicated  fund,  as  money  still   has  to  be                                                               
appropriated before it can be spent.  But it does send the signal                                                               
that as a state we do  understand the great need for more alcohol                                                               
and drug abuse treatment.                                                                                                       
                                                                                                                                
MR.  LIVEY reported  that  during the  current  fiscal year,  the                                                               
revenue  to  the  fund  was  approximately  $19.8  million.  This                                                               
accounts for half of the  alcohol taxes collected.   Expenditures                                                               
from the fund  during this fiscal year  total approximately $19.6                                                               
million.  He related  that the  bulk of  this expenditure  is for                                                               
behavioral health grants - this  category of funding accounts for                                                               
almost 80  per cent of  the expenditures -  with the bulk  of the                                                               
rest going  to rural services  and suicide prevention,  and small                                                               
portions to  administration and Medicaid.  He referred to  a list                                                               
of grantees in members' packets.                                                                                                
                                                                                                                                
MR.  LIVEY  pointed out  that  if  this  bill  were to  pass,  an                                                               
additional $20.4  million would  be available  for appropriation.                                                               
He opined  that everyone  could suggest areas  in which  to spend                                                               
the  money -  domestic violence  programs, child  abuse treatment                                                               
and prevention, corrections, fetal  alcohol syndrome, and others.                                                               
He said  many would agree  that there is a  need in all  of these                                                               
areas for expanded or new  programs. He believed that between the                                                               
advocates, the experts in the  department, and the legislature, a                                                               
rational  plan for  determining  the most  cost-effective use  of                                                               
this money can be crafted.                                                                                                      
                                                                                                                                
1:38:41 PM                                                                                                                    
SENATOR  MEYER  said  he  looked  at  the  list  of  items  under                                                               
behavioral health and saw the inclusion of the FASD Program.                                                                    
                                                                                                                                
MR. LIVEY agreed  it was there. He said he  thought a little over                                                               
$2 million went to that program.                                                                                                
                                                                                                                                
SENATOR  MEYER wanted  to  be sure  that  education was  included                                                               
along  with prevention  and intervention  of FASD.  He summarized                                                               
that  a separate  prevention  fund  would be  set  up from  which                                                               
amounts could be appropriated.                                                                                                  
                                                                                                                                
MR.  LIVEY said  that was  correct.  He explained  that the  fund                                                               
already exists.  Currently, half of  all alcohol tax  revenues go                                                               
into that  fund and  50 percent  of the fund  is available  to be                                                               
appropriated by the legislature.                                                                                                
                                                                                                                                
CHAIR DAVIS opened public testimony.                                                                                            
                                                                                                                                
1:41:28 PM                                                                                                                    
KATE BURKHART,  Executive Director, Advisory Board  on Alcoholism                                                               
and  Drug  Abuse,  Division of  Behavior  Health,  Department  of                                                               
Health and Social  Services, testified in support of  SB 221. She                                                               
referred  to a  letter  of  support from  the  Board in  members'                                                               
packets that included  strong support that all of  the money from                                                               
the  alcohol   excise  tax  be   allocated  to   substance  abuse                                                               
prevention  and  treatment  services. She  said  the  legislative                                                               
intent behind the  increase in the alcohol tax  is to supplement,                                                               
not supplant general funds.                                                                                                     
                                                                                                                                
She  addressed  ways  the  funding  could  be  used.  She  shared                                                               
statistics  about youth  drinking.  This  legislation would  make                                                               
additional  resources available  for prevention,  as well  as for                                                               
treatment  services.  The  Alaska  Judicial  Council  released  a                                                               
report on  the impact of  the Therapeutic Justice  program, which                                                               
showed  a lower  rate of  recidivism after  participation in  the                                                               
process. She concluded that an  investment in treatment will reap                                                               
savings.                                                                                                                        
                                                                                                                                
1:45:04 PM                                                                                                                    
DALE FOX,  President, Alaska  CHARR, testified  in support  of SB
. He urged  the committee to provide more funds  for detox and                                                               
rehab services.  One challenge is having  programs available when                                                               
people are ready  to receive help. Frequently,  citizens look for                                                               
help and are  unable to find the services they  need. He said the                                                               
alcohol industry supports SB 221.  He made three recommendations:                                                               
the  state should  study available  programs  to determine  which                                                               
ones are producing  results, fund more beds,  doctors, and nurses                                                               
at detox facilities,  and assist more people get  help from rehab                                                               
services.                                                                                                                       
                                                                                                                                
1:48:21 PM                                                                                                                    
CHRISTY LAWTON,  Director, Office  of Children's  Services (OCS),                                                               
Department of  Health and Social  Services, spoke of her  role in                                                               
working with alcohol abuse issues.  She reported that most of the                                                               
cases reported to  OCS are related to substance abuse  and due to                                                               
neglect,  sexual  abuse,  physical   abuse,  and  mental  injury.                                                               
Neglect is the  prevailing issue. Western Alaska  has the highest                                                               
number of substance  abuse cases. OCS connects  families to state                                                               
resources statewide.  She noted  that sometimes alcohol  abuse is                                                               
the  prevailing issue  that brings  families to  OCS's attention,                                                               
and other times  another issue unveils a  substance abuse problem                                                               
in the family. She did not  have data that provided the number of                                                               
cases that  are as a  direct result of substance  abuse; however,                                                               
she said her personal experience  shows that substance abuse is a                                                               
daily challenge.                                                                                                                
                                                                                                                                
JEFF JESSEE, Chief Executive Officer,  Alaska Mental Health Trust                                                               
Authority,  testified in  support  of  SB 221.  He  termed it  an                                                               
important first  step in trying  to get a  handle on some  of the                                                               
alcohol problems  in the  state. He  reported that  several years                                                               
ago the Trust funded  a study on what the cost  of alcohol was to                                                               
the state  and to  the state budget.  Overall, alcohol  abuse and                                                               
problems  related  to alcohol  abuse  cost  the state  over  $700                                                               
million.  Alcohol  abuse  costs  the  state  budget  hundreds  of                                                               
millions  of dollars  in  terms  of abuses  and  crimes and  lost                                                               
productivity.                                                                                                                   
                                                                                                                                
MR. JESSEE stressed  that AMHTA is in total  agreement with CHARR                                                               
on this  issue. He  suggested that  the next steps  are to  get a                                                               
good  evaluation of  current programs  and share  which ones  are                                                               
successful  with the  public.  The second  goal  is to  determine                                                               
where  the  unmet  needs  are.  Next,  the  legislature  and  the                                                               
executive branch  should set some  goals. For example,  one might                                                               
be to provide treatment for  domestic violence and sexual assault                                                               
victims. Other  examples might be  treatment for parents  who are                                                               
involved with  OCS or  treatment for  those who  are incarcerated                                                               
and support services upon release  from prison. He emphasized how                                                               
important it  is to provide  treatment immediately for  those who                                                               
need it.  He suggested setting  goals in these areas  and working                                                               
with multiple  agencies to develop  policies in order  to improve                                                               
the quality  of life  and to  reduce the  costs of  alcoholism in                                                               
Alaska.                                                                                                                         
                                                                                                                                
1:55:43 PM                                                                                                                    
KAREN EAKES,  Chair, Ketchikan  Wellness Coalition,  testified in                                                               
support of SB  221. She shared the results of  a community survey                                                               
which  showed  that substance  abuse  had  the highest  needs  in                                                               
Ketchikan. She  said that  37 percent  of the  respondents viewed                                                               
substance  abuse as  one of  the three  biggest health  issues in                                                               
Ketchikan.  She   stated  the  benefits  of   funding  prevention                                                               
programs.                                                                                                                       
                                                                                                                                
MARILEE  FLETCHER,  Behavioral  Health  Specialist,  Division  of                                                               
Behavioral  Health,  Department  of Health  and  Social  Services                                                               
(DHSS), answered questions related to SB 221.                                                                                   
                                                                                                                                
1:58:31 PM                                                                                                                    
SENATOR DYSON  asked what was  behind the policy decision  to not                                                               
put  all  the   proceeds  from  the  alcohol   tax  into  alcohol                                                               
treatment.                                                                                                                      
                                                                                                                                
MS. FLETCHER said she understood  that they were used for alcohol                                                               
treatment.                                                                                                                      
                                                                                                                                
SENATOR DYSON  pointed out that  only 50 percent of  the receipts                                                               
go towards treatment.                                                                                                           
                                                                                                                                
JOANNA  BALES,  Deputy  Director,  Tax  Division,  Department  of                                                               
Revenue (DOR),  addressed Senator Dyson's question.  She recalled                                                               
that 50  percent of the  alcohol tax  revenue went into  the fund                                                               
when it was  first created in 2002. At that  time the alcohol tax                                                               
was bringing  in between $12  million and $13 million  each year.                                                               
She said she understood that  when alcohol tax revenues increased                                                               
to about $30 million a year,  50 percent of the tax exceeded what                                                               
was currently going  into the fund - about $19  million. It was a                                                               
policy  call  to  continue  to   contribute  50  percent  to  the                                                               
prevention fund.                                                                                                                
                                                                                                                                
SENATOR  DYSON  understood  that   it  was  an  executive  branch                                                               
decision, not a legislative decision.                                                                                           
                                                                                                                                
MS. BALES clarified  that the legislation was  sponsored by then-                                                               
Representative Lisa Murkowski.                                                                                                  
                                                                                                                                
SENATOR DYSON  stated that  he supports  expanding the  amount of                                                               
money  that  goes into  treatment.  He  asked  if there  was  any                                                               
discussion  of deducting  administrative costs  from alcohol  tax                                                               
receipts.                                                                                                                       
                                                                                                                                
MS. BALES replied that she was  not aware of that discussion. She                                                               
explained that most DOR programs  are not receipt driven, but are                                                               
funded by general funds.                                                                                                        
                                                                                                                                
2:01:21 PM                                                                                                                    
SENATOR DYSON asked if DHSS uses  a percentage of the receipts to                                                               
cover the administration of the fund.                                                                                           
                                                                                                                                
MS. FLETCHER said she believed  a small percentage does go toward                                                               
administering the fund.                                                                                                         
                                                                                                                                
CHAIR DAVIS noted that Senate Finance  will hear SB 221 next. She                                                               
reported numerous  letters of support  for the bill and  said she                                                               
has received no opposition to the bill.                                                                                         
                                                                                                                                
2:02:23 PM                                                                                                                    
SENATOR  EGAN  moved to  report  SB  221  out of  committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, SB 221 was reported out  of the Senate                                                               
Health and Social Services Standing committee.