Legislature(1997 - 1998)

03/12/1998 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE FINANCE COMMITTEE                                           
                 MARCH 12, 1998                                                
                    1:50 P.M.                                                  
                                                                               
TAPE HFC 98 - 66, Side 1.                                                      
TAPE HFC 98 - 66, Side 2.                                                      
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Therriault called the House Finance Committee                         
meeting to order at 1:50 P.M.                                                  
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Hanley   Representative Kelly                                         
Co-Chair Therriault   Representative Kohring                                   
Representative J. Davies  Representative Martin                                
Representative G. Davis  Representative Moses                                  
Representative Foster  Representative Mulder                                   
Representative Grussendorf                                                     
                                                                               
ALSO PRESENT                                                                   
                                                                               
Peter Bushre, Chief Financial Officer, Alaska Permanent                        
Fund Corporation; Jim Kelly, Director of Communications,                       
Permanent Fund Corporation; Elmer Lindstrom, Special                           
Assistant, Office of the Commissioner, Department of Health                    
and Social Services; Theresa Tanoury, Administrator, Child                     
Protection Services, Division of Family and Youth and                          
Services, Department of Health and Social Services; Bob                        
Buttcane, Juvenile Probation Officer, Division of Family                       
and Youth Services, Department of Health and Social                            
Services; Ray Gillespie, Spoke on behalf of Kathy Cronen,                      
Charter, Northstar Behavioral Health System, Anchorage; Jim                    
Nordlund, Director, Division of Public Assistance,                             
Department of Health and Social Services; Val Horner,                          
Program Officer, Quality Assessment, Division of Public                        
Assistance, Department of Health and Social Services.                          
                                                                               
SUMMARY                                                                        
                                                                               
HB 16 An Act relating to delinquent minors, to the                             
taking of action based on the alleged criminal                                 
misconduct of certain minors, to the services to                               
be provided to the victims of criminal misconduct                              
of minors, and to agency records involving minors                              
alleged to be delinquent based on their criminal                               
misconduct; and amending                                                       
Rule 19 and repealing Rules 6, 7, 11(a), 12(a),                                
and 21(f), Alaska Delinquency Rules.                                           
                                                                               
CS HB 16 (FIN) was reported out of Committee with                              
a "do pass" recommendation and with fiscal notes                               
by the Department of Administration, the                                       
Department of Law, the Department of Corrections,                              
the Alaska Court System, the House Finance                                     
Committee, and the Department of Health and                                    
Social Services.                                                               
                                                                               
SB 220 An Act making a supplemental appropriation to the                       
Alaska Permanent Fund Corporation; and providing                               
for an effective date.                                                         
                                                                               
 CSSB 220 (FIN)(title am) was reported out of                                  
Committee with a "do pass" recommendation.                                     
                                                                               
HJR 4 Proposing amendments to the Constitution of the                          
State of Alaska relating to terms of legislators.                              
                                                                               
 HJR 4 was reported out of Committee with a "do                                
pass" recommendation and with a fiscal note by                                 
the Office of the Lt. Governor dated 1/30/98 and                               
a zero fiscal note by the Legislative Affair                                   
Agency dated 1/30/98.                                                          
                                                                               
HB 325 An Act making appropriations for the operating                          
and loan program expenses of state government,                                 
for certain programs, and to capitalize funds;                                 
making appropriations under art. IX, sec. 17(c),                               
Constitution of the State of Alaska, from the                                  
constitutional budget reserve fund; and providing                              
for an effective date.                                                         
                                                                               
  RESULTS BASED GOVERNMENT                                                     
   Welfare to Work                                                             
                                                                               
HB 325 was HELD in Committee for further                                       
consideration.                                                                 
SENATE BILL NO. 220                                                            
                                                                               
"An Act making a supplemental appropriation to the                             
Alaska Permanent Fund Corporation; and providing for                           
an effective date."                                                            
                                                                               
JIM KELLY, DIRECTOR OF COMMUNICATIONS, ALASKA PERMANENT                        
FUND CORPORATION, spoke to the letter in the Committee                         
packet from the Permanent Fund Corporation (PFC) dated                         
2/27/98.  [Copy on File].  The letter addresses the savings                    
realized by combining custody services into one provider.                      
He projected that this year, PFC will save approximately                       
$950 thousand dollars.  Currently, the fund value is $24                       
billion dollars.  He pointed out that the fund could earn                      
$2.2 billion dollars this year, noting that this is an                         
amazing growth and that the Legislature should not expect                      
it every year.                                                                 
                                                                               
PETER BUSHRE, CHIEF FINANCIAL OFFICIER, ALASKA PERMANENT                       
FUND CORPORATION, added that the fund has added $500                           
million dollars this month due to market appreciation.                         
                                                                               
Representative Foster MOVED to report CSSB 220(FIN)(title                      
am) out of Committee with individual recommendations.                          
There being NO OBJECTION, it was so ordered.                                   
                                                                               
CSSB 220(FIN)(title am) was reported out of Committee with                     
a "do pass" recommendation.                                                    
HOUSE BILL NO. 16                                                              
                                                                               
"An Act relating to delinquent minors, to the taking                           
of action based on the alleged criminal misconduct of                          
certain minors, to the services to be provided to the                          
victims of criminal misconduct of minors, and to                               
agency records involving minors alleged to be                                  
delinquent based on their criminal misconduct; and                             
amending Rule 19 and repealing Rules 6, 7, 11(a),                              
12(a), and 21(f), Alaska Delinquency Rules."                                   
                                                                               
Co-Chair Hanley questioned how the Department's fiscal note                    
would be affected by new Amendment #1.  [Copy on File].                        
                                                                               
ELMER LINDSTROM, SPECIAL ASSISTANT, OFFICE OF THE                              
COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVCIES,                        
pointed out that the Department had submitted two fiscal                       
notes to the Committee.  The Division of Medical Assistance                    
submitted a zero note accompanied with an analysis                             
regarding new facilities.  He commented that Ms. Tanoury                       
would speak to the fiscal note submitted by the Division of                    
Family and Youth Services (DFYS).                                              
                                                                               
THERESA TANOURY, ADMINISTRATOR, CHILD PROTECTION SERVICES,                     
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, discussed the                        
fiscal note which the Division submitted to cover costs                        
associated with semi-secure beds.  Currently, there are 15                     
grantees that provide group care.  She believed that                           
staffing with a 1:3 ratio would be necessary in order to                       
manage behavior problems.  The fiscal note recommends                          
increasing staffing patterns.                                                  
                                                                               
Co-Chair Hanley suggested that the Department was making a                     
policy call with the request of additional staffing.  He                       
questioned the $210 thousand dollar grant and claim line.                      
Ms. Tanoury stated that the program would not work without                     
the additional staff support.  There has been no rate                          
increase since 1990, whereas, difficult-to-care-for                            
children numbers have dramatically increased.                                  
                                                                               
Co-Chair Hanley reiterated his concern.  He asked if                           
providers would need extra State grants to make the care                       
worthwhile. Co-Chair Hanley commented that he would not                        
support the amendment with the additional fiscal costs.  He                    
questioned if beds could be built without the requested                        
funding.  Ms. Tanoury advised that the State would not                         
build the semi-secure beds without the requested funding                       
support.                                                                       
                                                                               
RAY GILLESPIE, SPOKE ON BEHALF OF KATHY CRONEN, CHARTER,                       
NORTHSTAR BEHAVORIAL HEALTH SYSTEM, ANCHORAGE, noting that                     
Ms. Cronen was currently out for family emergency,                             
although, requested to testify on the fiscal and                               
legislative impact of the legislation at a latter date.                        
                                                                               
Representative Kelly referenced SB 289 legislation from two                    
years ago.  He asked if the fiscal note, which had been                        
funded with that legislation, had been used.                                   
                                                                               
ROBERT BUTTCANE, JUVENILLE PROBATION OFFICER, DIVISION OF                      
FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL                     
SERVICES, noted that he did not have the fiscal notes                          
attached to that legislation, although, believed that the                      
money was not used to create a semi-secure facility.  Ms.                      
Tanoury pointed out that at this time, there is not a semi-                    
secure residential care facility in Anchorage or Fairbanks.                    
                                                                               
Co-Chair Hanley asked if the grants would be available only                    
for non-profits.  Mr. Lindstrom noted that was correct and                     
that the amendment would provide profits and non-profits to                    
have semi-secure facilities, whereas, the grants would only                    
allow the non-profit's funding.                                                
                                                                               
Co-Chair Hanley explained that Amendment #1 had been                           
introduced to clarify profit versus non-profit.  It was                        
never the intent that for-profits receive grants.  The new                     
draft of the amendment clarifies that the grant process                        
remains the same as current law.  Co-Chair Hanley MOVED to                     
adopt Amendment #1.  There being NO OBJECTION, the new                         
Amendment #1 was adopted.                                                      
                                                                               
Representative J. Davies spoke to the new Amendment #3.                        
[Copy on File].  He stated that the amendment would remove                     
13, 14 & 15 year olds from the bill sentencing provisions                      
and would make that referral discretionary with the                            
Department.  He informed members that with the changes                         
proposed in the amendment, costs associated with the bill                      
would drop substantially.                                                      
                                                                               
Mr. Buttcane commented that Amendment #3 would limit the                       
dual sentencing provisions to youth 16 & 17 years old, who                     
meet two criteria:                                                             
                                                                               
? Presented with a felony crime against a person                               
and having a history of felony adjudication in                                 
the past; or                                                                   
? Sexual abuse of a minor in the second degree.                                
                                                                               
The Department has estimated that there would be 8 youth                       
per year that would meet these criteria.  The amendment                        
makes dual sentencing discretionary.                                           
                                                                               
Representative J. Davies MOVED to adopt Amendment #3.                          
There being NO OBJECTION, it was adopted.                                      
                                                                               
Representative Kelly MOVED to adopt Amendment #4.  [Copy on                    
File].  He advised that the amendment would address a                          
technical statutory problem.  There being NO OBJECTION, it                     
was adopted.                                                                   
                                                                               
Co-Chair Hanley reiterated that he would not be supportive                     
of the $210 thousand dollar grant line proposed in the                         
Department's fiscal note.  He MOVED to eliminate the grants                    
and claim line.  There being NO OBJECTION, it was deleted.                     
                                                                               
Representative Foster MOVED to report CS HB 16 (FIN) out of                    
Committee with individual recommendations and with the                         
accompanying fiscal notes.                                                     
                                                                               
CS HB 16 (FIN) was reported out of Committee with a "do                        
pass" recommendation and with two fiscal notes by the                          
Department Administration, the Department of Health and                        
Social Services, the Alaska Court System, the House Finance                    
Committee, the Department of Law, and the Department of                        
Corrections.                                                                   
HOUSE JOINT RESOLUTION NO. 4                                                   
                                                                               
Proposing amendments to the Constitution of the State                          
of Alaska relating to terms of legislators.                                    
                                                                               
Co-Chair Therriault explained that HJR 4 proposes to limit                     
terms by limiting the number of regular legislative                            
sessions a person may serve.  The resolution proposes that                     
a person may not serve consecutively more than twelve                          
regular sessions in the Legislature.  A person may not                         
again serve in the Legislature as a result of election or                      
appointment to fill a vacancy until at least two                               
consecutive regular sessions have lapsed.  In addition,                        
when tabulating the number of sessions served, special                         
sessions shall not be countered nor shall time served as                       
the result of appointment to fill a vacancy.                                   
                                                                               
He recommended that term limits are a positive legislative                     
reform, guaranteeing that new legislators will be elected                      
along with new ideas.  The popularity of term limits                           
indicates that a majority of our citizens do not prefer                        
career politicians representing them.  Term limits will                        
also level the playing field for challengers facing long-                      
term incumbents whose power oftentimes is derived primarily                    
from seniority.                                                                
                                                                               
Representative Martin suggested that Section 3 was not                         
needed.  Co-Chair Therriault responded that legal drafters                     
recommended adding that language so that the constitutional                    
amendment could be voted upon; however, at the same time,                      
legislators running on the year for which the language was                     
included, would be precluded from counting that year if                        
Section 3 was not added.  The language provides a delayed                      
effective date, so that those people are able to serve                         
their term out.                                                                
                                                                               
Representative J. Davies pointed out that from a national                      
legislative term study undertaken from 1959 through 1994,                      
legislators that served eight years or less comprised 84%,                     
whereas, legislators who served twelve years or less                           
comprised 94%.  He submitted, given those numbers, there is                    
no compelling or practical reason for the legislation which                    
would prohibit that 6% from serving longer terms.                              
Representative J. Davies ascertained that having a few                         
members in the legislative body with institutional                             
knowledge derived from a long tenure is useful.                                
Representative Kelly echoed Representative Davies concerns.                    
                                                                               
Representative Foster MOVED to report HJR 4 out of                             
Committee with individual recommendations and with the                         
accompanying fiscal notes.                                                     
                                                                               
HJR 4 was reported out of Committee with a "do pass"                           
recommendation and with fiscal notes by the Office of the                      
Lt. Governor dated 1/30/98 and the Legislative Affairs                         
Agency dated 1/30/98.                                                          
                                                                               
(Tape Change HFC 98- 66, Side 2).                                              
HOUSE BILL NO. 325                                                             
                                                                               
"An Act making appropriations for the operating and                            
loan program expenses of state government, for certain                         
programs, and to capitalize funds; making                                      
appropriations under art. IX, sec. 17(c), Constitution                         
of the State of Alaska, from the constitutional budget                         
reserve fund; and providing for an effective date."                            
                                                                               
RESULTS BASED GOVERNMENT - PROGRAM REVIEW                                      
ALASKA TEMPORARY ASSISTANCE PROGRAM (ATAP)                                     
                                                                               
JIM NORDLAND, DIRECTOR, DIVISION OF PUBLIC HEALTH,                             
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, noted that the                       
Department had reworked the performance measures discussed                     
at a previous Committee work session.  The Department                          
discovered that many of the measures could be consolidated                     
to those indicated on the handout.  [Copy on File].  Mr.                       
Nordland stated that the Division supports all the                             
performance measures except #3, "ATAP cases closed due to                      
earnings without child support".                                               
                                                                               
VAL HORNER, PROGRAM OFICIER, QUALITY ASSESSMENT, DIVISION                      
OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL                          
SERVICES, recommended that item #3 was a direct measurement                    
of the Child Support Enforcement Agency (CSEA) activities.                     
She suggested that it was an interim measure to insure that                    
Public Assistance was partnering up with CSEA, however,                        
would not directly measure performance activities within                       
the ATAP program.                                                              
                                                                               
Co-Chair Hanley responded that the addition of that                            
language resulted from a concern of Representative Martin's                    
as indication of an overall caseload decline.  Ms. Horner                      
replied that regardless of the activities established by                       
ATAP, all referrals go to CSEA for collection.  The                            
Division has no direct role in what is collected.  Co-Chair                    
Hanley suggested that it would indicate the caseload                           
percentage decreased because of child support.                                 
                                                                               
Mr. Nordlund agreed that the information was important for                     
ATAP to have access to, but to suggest that the Division                       
has effect over that information is questionable.  Ms.                         
Horner strongly disagreed with tying it to ATAP's budget                       
when measuring success.                                                        
                                                                               
Representative J. Davies stipulated for the record that the                    
Division of Public Assistance does not carry the entire                        
responsibility but instead must work with CSEA.                                
Representative J. Davies MOVED to adopt the proposed ATAP                      
mission statement including the above-mentioned                                
stipulation.  There being NO OBJECTION, it was adopted.                        
                                                                               
HB 325 was HELD in Committee for further consideration.                        
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 2:50 P.M.                                             
                                                                               
                                                                               
H.F.C. 8 3/12/98                                                               

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