Legislature(2001 - 2002)

04/23/2001 01:44 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
           SB 116-AK TEMP. ASSISTANCE PROGRAM AMENDMENTS                                                                    
                                                                                                                                
MR.  JIM  NORDLUND,   Director,  Division   of  Public  Assistance,                                                             
Department of  Health and Social Services (DHSS),  said the original                                                            
bill was  introduced by the  governor and  dealt with one  provision                                                            
that had  been removed from  SB 116, with  the concurrence  of DHSS.                                                            
The governor introduced  the bill because there was a 60-month limit                                                            
to client  benefits under  the Alaska Temporary  Assistance  Program                                                            
(ATAP).   This  program   was  created  with   the  welfare   reform                                                            
legislation  that passed five years  ago.  Although ATAP  contains a                                                            
60-month  limit  to  benefits  for  clients,  20  percent  of  those                                                            
individuals  may be  exempt from  that limit.   Congress  recognized                                                            
that there would  always be people on welfare who  would not be able                                                            
to support themselves and  would need to receive benefits beyond the                                                            
60-month  limit.   The  problem is  that  the 20  percent  exemption                                                            
applies to the current  caseload rather than the caseload "as it was                                                            
way  back when."   And  since  the caseload  had been  lowered  from                                                            
12,000 families to 5,000  families, the number of exempt families is                                                            
much smaller.   DHSS has a problem with that and Senator  Green said                                                            
the HESS committee would  take that issue up next year.  The urgency                                                            
would  be greater  next  year because  the  first families  will  be                                                            
hitting the five-year limit in July 2002.                                                                                       
                                                                                                                                
MR. NORDLUND noted that  Section 2 of CSSB 116(HES) dealt with a two                                                            
parent court case that DHSS lost.  He explained:                                                                                
                                                                                                                                
     During  the summer, DHSS reduces  benefits for two parent                                                                  
     families by half, a policy  choice made by the legislature                                                                 
     and the  administration five  years ago.  That policy  was                                                                 
     developed  because it  was felt that  two parent families                                                                  
     were better able to work  during the summer months because                                                                 
     there was more employment  in Alaska during the summer and                                                                 
     because  one of  the parents  would be able  to stay  home                                                                 
     with the children.                                                                                                         
                                                                                                                                
MR. NORDLUND said  that when language regarding two  parent families                                                            
was put into the new law,  antiquated language from the AFDC law was                                                            
carried  over  saying  benefits  would  be provided  to  two  parent                                                            
families.   The court  looked at  that language  literally and  said                                                            
that  DHSS had  to do an  eligibility  determination  of two  parent                                                            
families  to determine who  was the principal  wage earner  and what                                                            
the unemployment  status was of that  person.  It was the  intent of                                                            
the  legislature  and  the administration   to say  all  two  parent                                                            
families  would have their  benefits cut  during the summer,  except                                                            
families with  one parent who was incapacitated.   But the court did                                                            
not  look  at  it  that  way  and said  that  DHSS  had  to  do  the                                                            
eligibility  determination.   The  determination would  have a  cost                                                            
attached and there would  be some two parent families receiving full                                                            
benefits through the summer  in a way that would be unrelated to the                                                            
intent of the legislation.                                                                                                      
                                                                                                                                
MR. NORDLUND noted  that Section 2 strips the original  bill of that                                                            
antiquated language and  brings the legislation back to the original                                                            
intent.   If  SB  116 does  not  pass, DHSS  would  have  to do  the                                                            
eligibility  determination  this summer  and would  probably end  up                                                            
paying  benefits  to  some  families  who  would  otherwise  not  be                                                            
eligible.                                                                                                                       
                                                                                                                                
CHAIRMAN TAYLOR asked about Section 3.                                                                                          
                                                                                                                                
Number 690                                                                                                                      
                                                                                                                                
MR. NORDLUND said  under ATAP, all families are required  to develop                                                            
a family self-sufficiency  plan, which  is a plan that charts  their                                                            
course from  welfare to work.   The original  law exempted  families                                                            
where one parent  was disabled or incapacitated.   DHSS thinks it is                                                            
a  good idea  for  all  families to  have  a  self-sufficiency  plan                                                            
because  it  assists   DHSS  in  helping  families,  even   disabled                                                            
families, improve their situation in life.                                                                                      
                                                                                                                                
SENATOR THERRIAULT  asked if  that was just  the exception  from the                                                            
self-sufficiency plan.                                                                                                          
                                                                                                                                
MR. NORDLUND said that is correct.                                                                                              
                                                                                                                                
CHAIRMAN TAYLOR  asked if Section  4 is a transition section  set up                                                            
to allow  each of the  others to  go into effect  so the  department                                                            
could  draw up  new  regulations.  Mr. Nordlund  indicated  that  is                                                            
correct.                                                                                                                        
                                                                                                                                
CHAIRMAN  TAYLOR  asked  if Sections  5  and  6 are  effective  date                                                            
clauses. Mr. Nordlund indicated that is correct.                                                                                
                                                                                                                                
SENATOR THERRIAULT  asked if Section 4 speeds up the  process rather                                                            
that waiting  for  the statutes  to become effective.  Mr.  Nordlund                                                            
said that is correct.                                                                                                           
                                                                                                                                
CHAIRMAN TAYLOR asked if they even need Section 1 at this time.                                                                 
                                                                                                                                
MR. NORDLUND  replied that Section  1 is an attempt to conform  with                                                            
federal law.                                                                                                                    
                                                                                                                                
CHAIRMAN  TAYLOR  asked  if that  is  the section  the  Senate  HESS                                                            
Committee would take up next year.                                                                                              
                                                                                                                                
MR. NORLUND  indicated that was not  correct; that the section  they                                                            
would take up next year  was already taken out of the original bill.                                                            
He said they are now looking at the committee substitute.                                                                       
                                                                                                                                
CHAIRMAN TAYLOR  said he thought the first section  talked about the                                                            
five year program.                                                                                                              
                                                                                                                                
MR. NORDLUND  replied that  it was related  to the section  that was                                                            
stripped out of  the bill, but federal law says that  anybody who is                                                            
living  in an Alaska  Native village  is exempt  from the  five-year                                                            
limit. "That's a provision in federal law."                                                                                     
                                                                                                                                
MR. NORDLUND  explained  that our  state law  does not  have such  a                                                            
provision and  so that section conforms state law  to federal law in                                                            
that regard.                                                                                                                    
                                                                                                                                
CHAIRMAN  TAYLOR asked  if this  exempts  them from  the 20  percent                                                            
rule.                                                                                                                           
                                                                                                                                
MR. NORDLUND responded, "Yes."                                                                                                  
                                                                                                                                
CHAIRMAN  TAYLOR said  that by exempting  them for  five years,  the                                                            
administration  doesn't have to find a job for any  person living in                                                            
a Native village.                                                                                                               
                                                                                                                                
MR. NORDLUND responded:                                                                                                         
                                                                                                                                
     It is  a two-edged sword, I think.  This provision is  not                                                                 
     something  that we necessarily originally promoted  in the                                                                 
     federal  law…. Even  the Native community  would tell  you                                                                 
     that  they see  this  as good  and bad.  The  fact of  the                                                                 
     matter  is that  there aren't  jobs  in so  many of  those                                                                 
     Native  villages and cutting  off individuals from public                                                                  
     assistance  when there's absolutely no hope of  employment                                                                 
     is very harsh.                                                                                                             
                                                                                                                                
CHAIRMAN TAYLOR asked about  the qualifications of a Native village.                                                            
                                                                                                                                
MR.  NORDLUND replied,  "The  reference  in the  federal  law is  to                                                            
ANCSA, which recognizes the Native communities in the state."                                                                   
                                                                                                                                
CHAIRMAN TAYLOR  asked if it was only the village  corporations that                                                            
would apply.                                                                                                                    
                                                                                                                                
MR.  NORLUND   responded,   "Locations  or   communities  that   are                                                            
recognized  in  the  federal  law as  being  Native  villages  under                                                            
ANCSA."                                                                                                                         
                                                                                                                                
MR. NORLUND said  there is a list of those communities  in committee                                                            
packets.                                                                                                                        
                                                                                                                                
Number 1038                                                                                                                     
                                                                                                                                
SENATOR COWDERY  asked why the term  "gainful activity" was  used in                                                            
Section 2.                                                                                                                      
                                                                                                                                
MR. NORLUND replied that  was a good question and he didn't know why                                                            
they couldn't  use the word "employment"  because that is  what it's                                                            
intended to mean.                                                                                                               
                                                                                                                                
CHAIRMAN  TAYLOR said he  thought it might  be defined somewhere  in                                                            
Title 47.                                                                                                                       
                                                                                                                                
SENATOR COWDERY asked if  increased employment in Alaska and welfare                                                            
have remained in proportion to each other.                                                                                      
                                                                                                                                
MR. NORDLUND replied, "Definitely.  The fact that we've had a policy                                                            
change,  first  of  all, is  a  big  piece  of it,  that  we're  now                                                            
requiring clients to look for work."                                                                                            
                                                                                                                                
He said that  the fact that the economy  has been so good  in Alaska                                                            
has been a huge contributor  to the fact that the welfare cases have                                                            
come down so much  across the nation. Another reason  for success is                                                            
that basically the legislature  and administration have been willing                                                            
to put  forward a budget  that's necessary  to help move folks  into                                                            
work - money for child care and case management.                                                                                
                                                                                                                                
MS. KRISTEN BAUMENGEN, Assistant Attorney General, said:                                                                        
                                                                                                                                
     The  term "gainful activity"  is used  in other places  in                                                                 
     this  particular statute  and so it is  a kind of term  of                                                                 
     art that  has been adopted in  AS 47.27.015, AS 47.25.025                                                                  
     and  AS 47.27.030.  It was  a part  of the  original  ATAP                                                                 
     bill.  The term was  used to describe  general employment                                                                  
     activities.  There is a definition  that's been generated                                                                  
     in a substantial  section in the regulations that  address                                                                 
     this.  Using this term now would  make it consistent  with                                                                 
     the other applications of the terms in the act."                                                                           
                                                                                                                                
SENATOR COWDERY said that  assumes the term was being used correctly                                                            
in the other parts of the statute.                                                                                              
                                                                                                                                
MS. BAUMENGEN  said she had a reference to the definition  as it was                                                            
generated in the regulations,  if that would helpful. They indicated                                                            
assent.                                                                                                                         
                                                                                                                                
SENATOR  ELLIS  asked if  Mr.  Nordlund had  addressed  the  House's                                                            
concern about an exemption for caretakers of disabled children.                                                                 
                                                                                                                                
MR. NORDLUND replied:                                                                                                           
                                                                                                                                
     Yes, there  was a discussion on the House side.  The House                                                                 
     version of  the bill does have an additional exemption  in                                                                 
     here. The  exemption you're seeing in this version  brings                                                                 
     it back  to the status  quo situation.  That is, in a  two                                                                 
     parent  family, we will exempt  them from getting the  two                                                                 
     parent  benefit cut  in the summer  months  if one of  the                                                                 
     parents is incapacitated.  The amendment that was added on                                                                 
     the  House side  says that  as well,  if in  a two parent                                                                  
     family, if they have a child  who has a severe disability,                                                                 
     then that two-parent family  is exempt from the two-parent                                                                 
     benefit  cut in  the summer months.  That is  not in  this                                                                 
     version.                                                                                                                   
                                                                                                                                
SENATOR ELLIS asked what his position was on that.                                                                              
                                                                                                                                
MR.  NORDLUND   said  they   were  neutral   on  that  addition   by                                                            
Representative Dyson.                                                                                                           
                                                                                                                                
SENATOR ELLIS  said he raised that as an issue for  the committee to                                                            
consider because  there were some compelling examples,  specifically                                                            
the Jackson family from Pt. Baker.                                                                                              
                                                                                                                                
MR. NORDLUND  said he had  an amendment that  they prepared  for the                                                            
House.                                                                                                                          
                                                                                                                                
CHAIRMAN TAYLOR  said they wanted  to make certain that that  option                                                            
is available.                                                                                                                   
                                                                                                                                
SENATOR THERRIAULT  asked if the federal  exemption was over  the 20                                                            
percent for state exemptions.                                                                                                   
                                                                                                                                
MR. NORDLUND answered that is correct.                                                                                          
                                                                                                                                
SENATOR THERRIAULT  pointed out that language says,  "The department                                                            
shall  disregard the  months  that are  required  to be disregarded                                                             
under that federal  law." He thought Mr. Nordlund  explained that it                                                            
was just a location-based exemption across the board.                                                                           
                                                                                                                                
MR. NORDLUND replied:                                                                                                           
                                                                                                                                
     What we  do as long as somebody  is living in that exempt                                                                  
     village, we  simply do not count that month. We  just stop                                                                 
     the  clock  for those  folks.  If  they  move back  to  an                                                                 
     unexempt  village, the clock  picks up again. Even though                                                                  
     we consider  stopping  the clock for  purposes of the  way                                                                 
     our computer system works,  the Department of Law tells us                                                                 
     it doesn't  matter. From the state's standpoint,  it still                                                                 
     counts  on the  state  clock. So,  if they  run  up to  60                                                                 
     months,  for the  purposes of  the state law,  we have  to                                                                 
     count  those  folks  within  that  20  percent  exemption                                                                  
     category. This is just the  terminology we use to say that                                                                 
     we're stopping the clock for those families.                                                                               
                                                                                                                                
SENATOR  THERRIAULT   asked  if  this  was  an  example   of  lawful                                                            
discrimination.                                                                                                                 
                                                                                                                                
MR. NORDLUND said he wasn't qualified to answer that question.                                                                  
                                                                                                                                
SENATOR THERRIAULT explained:                                                                                                   
                                                                                                                                
     We're  treating different  groups of  people differently,                                                                  
     based  on some reasoning.  If we treat  them differently,                                                                  
     we've  discriminated between  the benefits  one group  can                                                                 
     get that another  group can't get. The Congress  has found                                                                 
     that there  is justification for doing that and  made that                                                                 
     discrimination  lawful. Is that a correct interpretation?                                                                  
                                                                                                                                
MS. BAUMENGEN  responded that this was based on federal  law and the                                                            
special  relationship with  Native  American and  the Alaska  Native                                                            
populations in the Welfare Reform law. She said:                                                                                
                                                                                                                                
     This  language  was generated  after  the time  the  state                                                                 
     accepted  its language  for the  ATAP program  and it's  a                                                                 
     specific disregard that  mandates in 'shall' language that                                                                 
     the states disregard those months.                                                                                         
                                                                                                                                
SENATOR   THERRIAULT  asked   if  it  treats   individual   Alaskans                                                            
differently  based on some criteria  in federal law and this  change                                                            
to state law would make that acceptable.                                                                                        
                                                                                                                                
MS. BAUMENGEN  responded, "Yes, it addresses all adults  who live in                                                            
an Alaska Native village."                                                                                                      
                                                                                                                                
CHAIRMAN TAYLOR said, "Interestingly,  a person need not be a Native                                                            
Alaskan,  but  if  you  find  yourself  living  in  that  area,  you                                                            
qualify."                                                                                                                       
                                                                                                                                
MS. BAUMENGEN replied that is correct.                                                                                          
                                                                                                                                
CHAIRMAN  TAYLOR  said  to  Senator   Ellis,  "If  we  conform  [the                                                            
amendment]  by  putting   in  page  1,  line  13,  that's  the  word                                                            
'activity'  that we are seeking to  modify. Is that right  Kristen?"                                                            
                                                                                                                                
MS. BAUMENGEN responded that is correct.                                                                                        
                                                                                                                                
SENATOR ELLIS moved to adopt amendment , which reads as follows.                                                                
                                                                                                                                
                             AMENDMENT 1                                                                                    
                                                                                                                                
     Page  2, line 7                                                                                                            
                                                                                                                                
     Following "activity":                                                                                                    
                                                                                                                              
          Insert "or to be providing care for a child who is                                                                
          experiencing a disability"                                                                                        
                                                                                                                                
                                                                                                                                
MS. NICOLE  NELSON, Anchorage, said  she supported the amendment  on                                                            
caretaker  relatives  of  disabled   children  and  had  no  further                                                            
comments.                                                                                                                       
                                                                                                                                
SENATOR  DONLEY  said he  didn't agree  with  the analysis  that  is                                                            
contained in paragraph  3 of the sponsor statement  that says Alaska                                                            
sets an extremely excessive  goal compared to other states regarding                                                            
welfare reform.  He pointed  out, "I have seen several analyses that                                                            
have  appeared in  national  publications  saying that  we were  the                                                            
least aggressive on welfare of any state in the Union."                                                                         
                                                                                                                                
CHAIRMAN TAYLOR  said the fiscal note confused him  and asked how it                                                            
could be zero  when, if this law was left unchanged,  there would be                                                            
greater savings. By changing  the law, they are going to spend more.                                                            
                                                                                                                                
MR. NORDLUND explained the reason is:                                                                                           
                                                                                                                                
     Any  time  the  Alaska  Temporary  Assistance  Program  is                                                                 
     changed, is  because of the way the funding mechanism  for                                                                 
     the  program works.  We  get a set  block grant  from  the                                                                 
     federal government regardless  of what happens to the case                                                                 
     load  and regardless  of what  we do with  that caseload,                                                                  
     what kind  of programs we're providing.  Also,  that's the                                                                 
     federal side. On the state  side, we're required to put up                                                                 
     what's  known as a  maintenance of effort,  80 percent  of                                                                 
     the  funding that we  provided in  1994. So, essentially,                                                                  
     the state amount is fixed, as well.                                                                                        
                                                                                                                                
     You have a  fixed amount of money, both federal  and state                                                                 
     to  run  this  program  and if  the  caseload  goes  down,                                                                 
     basically what you do is  you're freeing up money from the                                                                 
     benefit side  of the program to move over to services.  In                                                                 
     addition,  what the legislature  has done in the past  few                                                                 
     years  is take a lot  of those savings,  which really  are                                                                 
     federal savings, using it  to fund other programs in state                                                                 
     government  that are  allowed under the  TANF Program  and                                                                 
     there's  been some general  fund savings  to the state  in                                                                 
     that way.  As an example, we  used to fund childcare  with                                                                 
     about $10 million from the  general fund. With the savings                                                                 
     of welfare  reform, we've been able to move those  federal                                                                 
     funds over,  supplant that, take the G.F. out  and you get                                                                 
     a  budget savings  that  way. But  the overall  amount  of                                                                 
     money we have for the program  is set. So, as the caseload                                                                 
     goes down, we can shift  the money over, but it's internal                                                                 
     to the  program. It doesn't really  show up in the fiscal                                                                  
     note.                                                                                                                      
                                                                                                                                
CHAIRMAN TAYLOR said they understand and commented that they do                                                                 
an accounting and, at the end of that process, they usually end                                                                 
up shifting some funds within the budgeting process.                                                                            
                                                                                                                                
Number 1840                                                                                                                     
                                                                                                                                
SENATOR DONELY said the sponsor statement, dated February 21,                                                                   
2001, doesn't say what bill number it's referring to.                                                                           
                                                                                                                                
MR. NORDLUND explained that this is the Governor's bill and it                                                                  
usually has the Governor's transmittal letter. He didn't think                                                                  
they had a sponsor statement, per se.                                                                                           
                                                                                                                                
SENATOR DONLEY asked if there were any parts of the sponsor                                                                     
statement that were no longer applicable to the committee                                                                       
substitutes that were produced. He asked for an updated sponsor                                                                 
statement.                                                                                                                      
                                                                                                                                
MR. NORDLUND said he would do that; but he didn't know that as a                                                                
rule, they rewrite their transmittal letters.                                                                                   
                                                                                                                                
CHAIRMAN TAYLOR said he thought that would be a good idea since                                                                 
the bill had changed so much.                                                                                                   
                                                                                                                                
SENATOR ELLIS moved to pass CSSB 116(JUD) from committee with                                                                   
individual recommendations. There were no objections and it was                                                                 
so ordered.                                                                                                                     

Document Name Date/Time Subjects