Legislature(2023 - 2024)ADAMS 519
05/13/2024 10:00 AM House FINANCE
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Audio | Topic |
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Start | |
HB400 | |
SB205 | |
SB170 | |
SB259 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | HB 400 | TELECONFERENCED | |
+ | SB 205 | TELECONFERENCED | |
+= | SB 170 | TELECONFERENCED | |
+ | SB 151 | TELECONFERENCED | |
+ | SB 259 | TELECONFERENCED | |
+ | SB 183 | TELECONFERENCED | |
+= | SB 34 | TELECONFERENCED | |
+= | SB 29 | TELECONFERENCED | |
+= | HB 275 | TELECONFERENCED | |
+= | SB 99 | TELECONFERENCED | |
+= | HB 149 | TELECONFERENCED | |
+= | HB 159 | TELECONFERENCED | |
+= | HB 196 | TELECONFERENCED | |
+ | SB 24 | TELECONFERENCED | |
+ | SB 12 | TELECONFERENCED | |
+ | SB 204 | TELECONFERENCED | |
+= | HB 259 | TELECONFERENCED | |
+= | HB 174 | TELECONFERENCED | |
+= | HB 190 | TELECONFERENCED | |
+ | HB 397 | TELECONFERENCED | |
+ | HB 396 | TELECONFERENCED | |
+ | TELECONFERENCED |
CS FOR SENATE BILL NO. 170(FIN) "An Act relating to the Alaska longevity bonus program and the Alaska senior benefits payment program; and providing for an effective date." 10:27:42 AM Co-Chair Foster noted the bill had been heard previously [April 12, 2024]. SENATOR SCOTT KAWASAKI, SPONSOR, reviewed the bill. He recapped that SB 170 would extend the Senior Benefits Program indefinitely. The program aids over 10,000 Alaskans aged 65 and older with incomes at 75, 100, and 175 percent of the federal poverty level. The assistance can range from $76.00 to $250.00 a month for eligible seniors. He mentioned how many seniors benefitted in various regions of the state. He noted that the program had historical and current bipartisan support. Co-Chair Foster OPENED public testimony. Co-Chair Foster CLOSED public testimony. 10:30:12 AM Co-Chair Foster requested a review of the fiscal notes. COURTNEY ENRIGHT, LEGISLATIVE LIAISON, DEPARTMENT OF HEALTH. She discussed the fiscal notes. She turned to the Department of Health (DOH) (FN1 (DOH) fiscal note allocated to the Senior Benefits Payment Program dated January 1, 2024. The projected total senior benefit expenditure for the next fiscal year was $23,542.3 million and increased by one percent in the outyears. 10:31:05 AM Co-Chair Foster moved to amendments. Representative Stapp MOVED to ADOPT Amendment 1: Page 2, following line 5: Insert a new bill section to read: "* Sec. 4. Section 4, ch. 1, FSSLA 2007, as amended by sec. 5, ch. 6, SLA 2011, sec. 1, ch. 113, SLA 2014, and sec. 1, ch. 8, SLA 2018, is amended to read: Sec. 4. AS 09.38.015(a)(11); AS 47.45.301, 47.45.302, 47.45.304, 47.45.306, 47.45.308, and 47.45.309 are repealed June 30, 2029 [2024]." Renumber the following bill sections accordingly. Page 2, lines 10 - 11: Delete all material. Renumber the following bill section accordingly. Representative Josephson OBJECTED. Representative Stapp discussed the amendment. He explained that the amendment added a sunset provision back into the bill. The payments were in fixed amounts and a future legislature might want to revisit the issue due to factors like inflation or to make changes to the program. Representative Josephson asked why he selected some of the date references and not others. He asked for clarity. Representative Stapp explained it was how Legislative Legal drafted the amendment. He assumed it applied to the entirety of the bill. Representative Josephson asked for the sponsor's opinion of the amendment. Senator Kawasaki replied that the current legislation had been in effect and unchanged since 2007. The fiscal note reflected increments in the outyears to allow a larger number of seniors coverage. The Senate Finance Committee eliminated the sunset date via amendment. He thought that whether to add it back was the committee's decision. Representative Hannan cited Senator Kawasaki statement that the current program was unchanged since 2007. She wondered if the payouts had not changed or just the eligibility. Senator Kawasaki answered that the program had not changed since 2007, but the income limits were adjusted annually through regulation. Representative Hannan reiterated her question regarding the monthly payouts. Senator Kawasaki replied that it depended on the number of enrollees, but the underlying bill and regulations had not changed since 2007. GRIFFEN SUKKAEW, STAFF, SENATOR SCOTT KAWASAKI, added that the payout levels were subject to legislative appropriation. 10:36:10 AM Representative Ortiz asked if the current sunset date was the first time there had been one. Senator Kawasaki answered that there had been sunsets since the program's inception in the 1970s. He deferred to the will of the committee regarding the amendment. Representative Coulombe asked why Representative Stapp chose 2029. Representative Stapp answered that the date did not matter to him. He considered the high inflation rate over the prior 3 years and chose a 5 year sunset. The program had always had a sunset date. He did not believe the legislature would reconsider a program due to inflation if a sunset was not included in the program. The current fixed amounts in the bill might want to be readjusted in the future. 10:38:34 AM Co-Chair Edgmon thought there was an adjustment due to regulation and changing federal poverty guidelines. He deduced that it would be adjusted over time moving forward. Representative Ortiz asked what action was taken in the prior committee. Senator Kawasaki replied that the Senate Finance Committee had removed the sunset completely. He delineated that there was a 2 percent escalator in the fiscal note and the historical 2 percent increase was already in statute. Representative Galvin understood that there may be fluctuation in terms of percentages of household income, but the amount of the payout was not changing over the years. Senator Kawasaki pointed to a fact sheet document in members files ["Senior Benefits Program - Information and Fact Sheet" updated January 2024, DOH] (copy on file) that showed examples of the payout changing due to changes in the federal poverty guidelines. In addition, on page 3 the total number of recipients had changed over time and actually decreased in 2022. He felt that the underlying policy was that senior benefits remained available when seniors needed them. 10:41:35 AM Representative Galvin strongly supported the program and bill. She wanted to understand the reason for the proposed amendment. She wondered whether it was warranted to examine the issue again in five years to determine if the monthly payment amount was sufficient or if it needed an upward adjustment. She wanted to understand the mechanism of the program and how the payout was calculated. She wondered if the payout was something that the legislature adjusted. Senator Kawasaki stated the program was in place and budgeted annually based on prior annual numbers. He believed that the adjustments were already built in. 10:42:55 AM Representative Stapp provided wrap up for the amendment. He cited the sponsor statement related to the fixed amount and read the following: Subject to appropriation from the Alaska State Legislature, assistance can range from $76 to $250 a month for eligible seniors. Representative Stapp elaborated that the 2 percent projected growth noted in the fiscal note was due to Alaska's aging population. In addition, regarding the federal poverty limit, the qualification adjusts at the federal guidelines. Therefore, more or less seniors would be eligible for benefits, but the amounts of payout do not change unless the legislature changes the appropriation. He reiterated that the purpose of the sunset amendment was that the program always had a sunset and if any member believed that the amount of $76.00 to $250.00 was adequate to the end of time, then he advised not to vote for the amendment. He believed that the legislature would never revisit the bill without a sunset. He favored a sunset every 5 or 6 years to encourage consideration of legislative changes to the program. 10:44:14 AM Representative Josephson maintained the objection. A roll call vote was taken on the motion. IN FAVOR: Coulombe, Stapp, Tomaszewski, Cronk, Foster OPPOSED: Hannan, Ortiz, Josephson, Galvin, Edgmon Failed 5/5 Co-Chair Johnson was absent from the vote. Co-Chair Foster RECESSED the meeting to a call of the chair. 10:45:57 AM RECESSED 12:01:40 PM RECONVENED Co-Chair Foster noted the committee had left off on considering Amendment 2 for SB 170. 12:02:14 PM Representative Hannan MOVED Amendment 2 to SB 170: Page 1, line 2, following "program;": Insert "relating to the supplemental nutrition assistance program;" Page 2, following line 5: Insert a new bill section to read: "* Sec. 4. AS 47.25.980(a) is amended to read: (a) The department shall (1) adopt regulations necessary to carry out the food stamp program; (2) cooperate with the federal government and do all things necessary to continue state eligibility under the food stamp program; (3) comply with the requirements of 7 U.S.C. 2011 - 2036d (Supplemental Nutrition Assistance Program), implement categorical eligibility under 7 U.S.C. 2014(a), and make eligible an individual whose household income is not more than 200 percent of the federal poverty guideline regardless of the value of assets owned by the household [7 U.S.C. 2011 - 2036 (FOOD STAMP PROGRAM)]; (4) establish an electronic application for the food stamp program and allow an applicant to submit an application in electronic format or in other formats required by state and federal law; the electronic application must inform an applicant that a false statement made on the application will be investigated and is punishable under AS 11.56.210; in this paragraph, "electronic application" means an application for benefits or renewal of benefits, whether the department exclusively administers the benefits or administers the benefits in coordination with another state agency or federal agency, electronically completed and submitted through the department's Internet website." Renumber the following bill sections accordingly. Page 2, line 12: Delete all material and insert: "* Sec. 7. Section 4 of this Act takes effect July 1, 2025. * Sec. 8. Except as provided in sec. 7 of this Act, this Act takes effect immediately under AS 01.10.070(c)." Representative Stapp OBJECTED. Representative Hannan explained that the amendment would add HB 196 (Food Stamp Program Eligibilty) to SB 170. The bill had two prior hearings [May 1, 2024 and May 2, 2024] in the House Finance Committee. She believed that it was the stage in session when efficiency measures were necessary. The legislation would expand the Supplemental Nutrition Assistance Program (SNAP) and help feed Alaskans by broadening broad based categorical eligibility. The program would help elevate people out of poverty and was a federal flexibility that was adopted in 42 states and 2 territories. She explained that the amendment allowed the state to increase income limits from 130 percent of poverty to 200 percent of the poverty limit. However, it was not mandating an increase to 200 percent, but it allowed for expansion and the development of new regulations to expand up to 200 percent. In addition, it allowed the state to waive the asset test, which aided disqualification via ownership of vehicles, etc. The amendment would also allow the state to phase down eligibility for working families as their economic status increases. She reported that SNAP was an economic driver in rural communities since, every dollar spent on SNAP generated $1.70 in communities. The bill increased the administrative burden and had the potential to save the state money. 12:04:50 PM Representative Stapp MOVED Conceptual Amendment 1 to Amendment 2. Page 2, following line 5: Insert a new bill section to read: "* Sec. 4. Section 4, ch. 1, FSSLA 2007, as amended by sec. 5, ch. 6, SLA 2011, sec. 1, ch. 113, SLA 2014, and sec. 1, ch. 8, SLA 2018, is amended to read: Sec. 4. AS 09.38.015(a)(11); AS 47.45.301, 47.45.302, 47.45.304, 47.45.306, 47.45.308, and 47.45.309 are repealed June 30, 2029 [2024]." Renumber the following bill sections accordingly. Page 2, lines 10 - 11: Delete all material. Renumber the following bill section accordingly. Representative Hannan OBJECTED. Representative Stapp explained that conceptual Amendment 1 would reduce the 200 percent of the federal poverty limit to 150 percent. He stated that there were many reasons why he thought it was a wise decision, but he had questions for the department. He asked whether the department could determine how many new individuals would become eligible with the poverty limit increased. 12:06:04 PM DEB ETHERIDGE, DIRECTOR, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH (DOH) (via teleconference), responded that projecting the number of individuals who would apply and take advantage of the SNAP program at 200 percent was complex. She discerned that approximately 11.5 percent of Alaskans were under 100 percent of the federal poverty level, and 13.6 percent were between 100 percent and 199 percent of the poverty level. She disclosed that the statistics were from the Kaiser Family Foundation in 2024. Representative Stapp asked if there was a specific number rather than a percentage she could offer. He calculated that it was roughly 10 thousand Alaskans. Ms. Etheridge answered that the number sounded correct. She added that the preliminary numbers of individuals in the SNAP program in March 2024 was 77,197. Representative Stapp thought that the asset test reduction was a good thing and it made the department's processing more efficient. He feared that there could be an increase of 10,000 applicants. He inquired as to how many applications were part of the departments second backlog. Ms. Etheridge replied that [audio cut out] the backlog was a little over 8,000 individuals but she was not the director at the time. Representative Stapp understood that the bill did not require the department to adopt the entire 200 percent of the poverty limit and had some discretion in the increase. He asked whether the department would set the eligibility at 200 percent if the the bill were to pass, Ms. Etheridge answered that the department would likely set the percentage at 200 percent of the federal poverty limit. She indicated that there were proposed regulations for TANF Temporary Assistance for Needy Families that would require SNAP at 200 percent FPL. The department would not want to duplicate work if it could be prevented. She voiced that the decision was up to the will of the committee. Representative Stapp relayed that he was aware that the department would increase the limit to 200 percent. He asked if the bill were to pass whether there was confidence that there would not be another backlog in the following year. Ms. Etheridge answered that she would adopt measures to avoid a backlog by taking a phased approach to implementation. Representative Stapp thought that 150 percent was a good start for implementation and yielded for questions from the committee. 12:11:00 PM Representative Hannan cited the statistic that 13.6 percent of Alaskans were between 100 percent and 199 percent of FPL. She asked whether she was correct. Ms. Etheridge replied in the affirmative. Representative Hannan calculated that out of the 13 percent eligible Alaskans some were already eligible and or receiving the benefit because they were between 100 percent and 130 percent of the poverty guidelines. Ms. Etheridge responded in the affirmative. Representative Hannan was in opposition to conceptual amendment 2. She believed that a 20 percent addition was not enough and if the TANF program mandated 200 percent FPL it would create eligibility requirements in two different programing levels with two different evaluations; SNAP at 150 percent and TANF at 200 percent. 12:13:01 PM Representative Josephson recalled that HB 196 had one fiscal note that would cost the state's treasury $69 thousand. He asked if the amount would help more than 10 thousand more Alaskans pay for food. Ms. Etheridge responded that the amendment would require an additional fiscal note from the division. Representative Josephson believed that there was only one fiscal note for HB 196. He asked if there was an additional expense if the amendment merged into the senior benefits bill other than what was contained in the fiscal note. Ms. Etheridge responded that the senior benefits bill, SB 170 had a fiscal note and the broad-based categorical eligibility had two separate fiscal notes. She disclosed that the department had prepared fiscal notes in the event that the amendment was adopted; they were largely identical to the original fiscal notes for HB 196. Representative Josephson noted that SB 170 had two fiscal notes that totaled approximately $140 thousand combined. He asked if the state spent $140 thousand, could it assist in feeding 10 thousand more Alaskans. Ms. Etheridge responded in the affirmative. Representative Galvin recalled that many other states were at 200 percent of the poverty level and asked for the exact number of states. Ms. Etheridge responded that the statistics came from the sponsor of the bill and she offered to follow up. 12:17:22 PM REPRESENTATIVE GENEVIEVE MINA, SPONSOR, answered that there were approximately 25 states at 200 percent of poverty level and listed the name of each state. Representative Galvin understood that the funding was from federal dollars. She asked if there was some portion of the funding that paid for the administration of the program. Ms. Etheridge affirmed that the food stamps benefits were federal pass through funds and additional administrative costs were included in the attached fiscal note. Representative Cronk worried about receiving a lot of phone calls regarding a SNAP backlog if the program was not phased in. He was concerned that it was a set up for failure. He favored Representative Stapp's amendment. Representative Stapp provided wrap up comments. He was offering the amendment because he felt it was unwise that once the department cleared the SNAP backlog it created a backlog for Medicaid and a half dozen other programs." He worried about creating backlogs and believed that at 200 percent FPL it would create another SNAP backlog. 12:21:12 PM AT EASE 12:21:29 PM RECONVENED Co-Chair Foster indicated that the motion was to adopt Conceptual Amendment 1 for Amendment 2 and asked if the objection was maintained. Representative Hannan maintained the objection. 12:21:51 PM A roll call vote was taken on the motion. IN FAVOR: Cronk, Stapp, Tomaszewski, Coulombe OPPOSED: Hannan, Josephson, Galvin, Ortiz, Edgmon, Foster The MOTION FAILED (4/6). 12:22:40 PM Representative Stapp asked whether the sponsor of Amendment 2 checked with Legislative Legal Services regarding compliance with the single subject rule. Representative Hannan replied that she did not receive a memo from the drafter regarding an issue with the single subject rule. 12:23:00 PM Co-Chair Foster indicated that the motion was to adopt Amendment 2. Representative Stapp maintained the objection. A roll call vote was taken on the motion. IN FAVOR: Hannan, Josephson, Galvin, Ortiz, Cronk, Edgmon, Foster OPPOSED: Stapp, Tomaszewski, Coulombe The MOTION PASSED (7/3). 12:23:57 PM Co-Chair Edgmon Co-Chair Edgmon MOVED to REPORT SB 170 out of committee with individual recommendations and the accompanying and forthcoming fiscal notes and allow Legislative Legal Services the authority to make technical and conforming changes. 12:25:10 PM Representative Stapp OBJECTED for discussion. He hoped he would be wrong a year from now, but in the event that there was another SNAP backlog it would be unfortunate. Representative Stapp WITHDREW the objection. There being no further objection, it was so ordered. HCS CSSB 170(FIN) was REPORTED out of committee with eight "do pass" recommendations and two "amend" recommendations and with two new fiscal impact notes from the Department of Health and one previously published fiscal impact note: FN1 (DOH). 12:26:34 PM
Document Name | Date/Time | Subjects |
---|---|---|
SB 259 Amendment #1 Foster 051324.pdf |
HFIN 5/13/2024 10:00:00 AM |
SB 259 |
SB 205 Public Testimony Rec'd by 050724.pdf |
HFIN 5/13/2024 10:00:00 AM |
SB 205 |