Legislature(2023 - 2024)ADAMS 519

04/12/2024 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 219 REPEAL ASSISTIVE TECHNOLOGY LOAN PROGRAM TELECONFERENCED
Moved HB 219 Out of Committee
-- Public Testimony --
+ SB 170 EXTND SR BENEFITS; REPEAL LONGEVITY BONUS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 12, 2024                                                                                            
                         1:35 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:35:36 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster  called the House Finance  Committee meeting                                                                    
to order at 1:35 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
Representative Neal Foster, Co-Chair                                                                                            
Representative DeLena Johnson, Co-Chair                                                                                         
Representative Julie Coulombe                                                                                                   
Representative Mike Cronk                                                                                                       
Representative Alyse Galvin                                                                                                     
Representative Sara Hannan                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Will Stapp                                                                                                       
Representative Frank Tomaszewski                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Dan  Saddler,   Sponsor;  David   Kirstien,                                                                    
Administrative  Operations Manager,  Division of  Vocational                                                                    
Rehabilitation,   Department   of    Labor   and   Workforce                                                                    
Development;   Griffen   Sukkaew,   Staff,   Senator   Scott                                                                    
Kawasaki;  Joe Hayes,  Staff,  Senator  Scott Kawasaki;  Deb                                                                    
Ethridge,   Director,   Division   of   Public   Assistance,                                                                    
Department of Health.                                                                                                           
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jamie Kokoszka,  Program Coordinator, Governor's  Council on                                                                    
Disabilities  and Special  Education, Wasilla;  Mystie Rail,                                                                    
Executive   Director,   Assistive  Technology   of   Alaska,                                                                    
Anchorage;  Melodie  Wilterdink, Staff,  Representative  Dan                                                                    
Saddler;  Marge Stoneking,  Advocacy Director,  AARP Alaska,                                                                    
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 219    REPEAL ASSISTIVE TECHNOLOGY LOAN PROGRAM                                                                              
                                                                                                                                
          HB  219 was  REPORTED out  of committee  with nine                                                                    
          "do    pass"   recommendations    and   one    "no                                                                    
          recommendation"   recommendation   and  with   one                                                                    
          previously published zero note: FN1 (LWF).                                                                            
                                                                                                                                
SB 170    EXTND SR BENEFITS; REPEAL LONGEVITY BONUS                                                                             
                                                                                                                                
          SB 170 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
Co-Chair Foster reviewed the meeting agenda.                                                                                    
                                                                                                                                
HOUSE BILL NO. 219                                                                                                            
                                                                                                                                
     "An Act repealing the assistive technology loan                                                                            
     guarantee and interest subsidy program; and providing                                                                      
     for an effective date."                                                                                                    
                                                                                                                                
1:37:08 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  asked  the  bill  sponsor  to  review  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAN  SADDLER, SPONSOR, thanked  the committee                                                                    
for  hearing  the  bill  that  would  repeal  the  Assistive                                                                    
Technology  Loan Fund.  He  explained  that the  legislation                                                                    
would  eliminate a  well-intentioned loan  program that  was                                                                    
instituted many years ago but  had not had its intended use.                                                                    
The  bill  would  end  the loan  fund  and  appropriate  the                                                                    
funding to  a nonprofit that  could make the grants  and use                                                                    
the  funds as  originally intended  to assist  Alaskans with                                                                    
disabilities  with obtaining  assistive technology  allowing                                                                    
them to live, work, and go to school in Alaska.                                                                                 
                                                                                                                                
Representative  Saddler explained  that  a two-step  process                                                                    
was needed  to implement the  intent of the bill.  The first                                                                    
was to  appropriate the approximately $446,000  remaining in                                                                    
the  Assistive Technology  Loan  Fund to  the Department  of                                                                    
Labor   and   Workforce    Development   (DLWD)   Vocational                                                                    
Rehabilitation Special  Projects Section, which  would occur                                                                    
in the  final passage of  the operating budget.  He detailed                                                                    
that  the action  was contingent  on the  passage of  HB 218                                                                    
[219], which would repeal the fund.                                                                                             
                                                                                                                                
Co-Chair Foster noted that the  committee had heard the bill                                                                    
once before.                                                                                                                    
                                                                                                                                
1:39:05 PM                                                                                                                    
                                                                                                                                
Representative Hannan  remarked that the bill  number before                                                                    
the   committee   specified   HB   219.   She   noted   that                                                                    
Representative  Saddler had  referred to  HB 218.  She asked                                                                    
for verification that she was looking at the correct bill.                                                                      
                                                                                                                                
Representative Saddler confirmed it was HB 219.                                                                                 
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
JAMIE KOKOSZKA,  PROGRAM COORDINATOR, GOVERNOR'S  COUNCIL ON                                                                    
DISABILITIES   AND    SPECIAL   EDUCATION,    WASILLA   (via                                                                    
teleconference),  thanked  the  committee  for  hearing  the                                                                    
bill. She spoke in support  of the legislation. She detailed                                                                    
that  the Governor's  Council  on  Disabilities and  Special                                                                    
Education  (GCDSE)  along  with  the  Statewide  Independent                                                                    
Living Council (SILC) presented  a position paper in support                                                                    
of  the   recommendations  from   the  Alaska   Division  of                                                                    
Vocational   Rehabilitation   (DVR)    and   the   Assistive                                                                    
Technology  of   Alaska  (ATLA).  She  relayed   that  GCDSE                                                                    
believed   assistive  technology   (AT)  was   critical  for                                                                    
Alaskans with  disabilities to  live a  productive, healthy,                                                                    
independent,   and  dignified   life.   She  detailed   that                                                                    
assistive technology  allowed individuals to  participate in                                                                    
education and the  labor market. She reported  that the need                                                                    
for assistive technology had only  increased as the internet                                                                    
and   other  technologies   had   become  indispensable   to                                                                    
accessing services and participating in work and community.                                                                     
                                                                                                                                
Ms. Kokoszka  stated that GCDSE  believed ATLA was  the best                                                                    
organization  to  take  over  the  remaining  funds  of  the                                                                    
restricted  Title 1  funding. She  detailed that  it aligned                                                                    
with  ATLA's current  AT Act  services, which  could include                                                                    
developing   new   programs   that   adhered   to   AT   Act                                                                    
requirements. Additionally,  ATLA had a proven  track record                                                                    
of  responsibly managing  the funding  for this  purpose and                                                                    
getting AT  into the hands  of Alaskans that needed  it. She                                                                    
noted  that  the council's  position  paper  (copy on  file)                                                                    
included  additional   information  about   why  individuals                                                                    
needed the  technology. She highlighted that  the individual                                                                    
in the photo  shown on the council's position  paper was one                                                                    
of  the council's  staff members  and  he was  using a  one-                                                                    
handed keyboard. She thanked the  committee for its time and                                                                    
consideration.                                                                                                                  
                                                                                                                                
MYSTIE  RAIL, EXECUTIVE  DIRECTOR,  ASSISTIVE TECHNOLOGY  OF                                                                    
ALASKA,  ANCHORAGE (via  teleconference),  relayed that  she                                                                    
was available for questions.                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
1:43:23 PM                                                                                                                    
                                                                                                                                
Representative Coulombe referenced  a memorandum provided by                                                                    
Representative   Saddler  in   response  to   House  Finance                                                                    
Committee member  questions (copy  on file). She  noted that                                                                    
one of  the answers specified  that the funds  avoided being                                                                    
swept  because   they  consisted   of  federal   funds.  She                                                                    
highlighted  a  sentence  in the  document  specifying  that                                                                    
earnings on  the fund  were restricted.  She asked  if there                                                                    
were any issues  with moving the money  because it contained                                                                    
federal funds. She  asked if the interest was  allowed to be                                                                    
used for the purpose identified in the bill.                                                                                    
                                                                                                                                
Representative Saddler answered that  because the origins of                                                                    
the fund were  kind of "lost in the mists  of time" he could                                                                    
not give a clear answer  or cite a federal chapter; however,                                                                    
he believed  the fact that  the fund  had not been  swept in                                                                    
its lifetime of 20 or  more years was tertiary evidence that                                                                    
the fund was  not sweepable. He stated that  the best answer                                                                    
he could provide was that  the funds were restricted and not                                                                    
sweepable.                                                                                                                      
                                                                                                                                
Representative  Coulombe asked  if there  was an  issue with                                                                    
doing what the sponsor wanted due to the federal funds.                                                                         
                                                                                                                                
Representative  Saddler deferred  the  question  to the  Mr.                                                                    
Mayes with department.                                                                                                          
                                                                                                                                
Co-Chair Foster noted that the individual was not online.                                                                       
                                                                                                                                
Representative Saddler deferred the question to his staff.                                                                      
                                                                                                                                
MELODIE WILTERDINK,  STAFF, REPRESENTATIVE DAN  SADDLER (via                                                                    
teleconference),  replied  that  DVR   reached  out  to  the                                                                    
appropriate  federal department  and  had received  approval                                                                    
for the funds to be moved  to the nonprofit ATLA in order to                                                                    
achieve the original purpose of the funds.                                                                                      
                                                                                                                                
1:46:20 PM                                                                                                                    
                                                                                                                                
DAVID KIRSTIEN, ADMINISTRATIVE  OPERATIONS MANAGER, DIVISION                                                                    
OF  VOCATIONAL  REHABILITATION,   DEPARTMENT  OF  LABOR  AND                                                                    
WORKFORCE   DEVELOPMENT,   confirmed    that   the   federal                                                                    
government   had  given   authorization   to  transfer   the                                                                    
Assistive Technology Grant Fund balance to ATLA.                                                                                
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal note.                                                                          
                                                                                                                                
Mr. Kirstien reviewed the DLWD  fiscal note. He relayed that                                                                    
the fund was established in  1997 with federal receipts from                                                                    
the  assistive   technology  federal  grants.   The  program                                                                    
allowed  for loans  from a  commercial  bank to  be made  to                                                                    
qualified  individuals for  assistive technology  equipment.                                                                    
The fund had not been utilized  since 2014 and was no longer                                                                    
used  by  the department.  The  bill  would make  the  funds                                                                    
available to the non-state entity  ATLA to provide assistive                                                                    
technology  equipment  to  Alaskans  with  disabilities.  He                                                                    
added  that the  fiscal  note  was zero.  The  bill did  not                                                                    
modify the loan fund and it did not impact any regulations.                                                                     
                                                                                                                                
Representative Galvin asked if any  past loans made from the                                                                    
fund had  already been  cleared. She  wondered if  there was                                                                    
any money  owed that may  come in  and what would  happen to                                                                    
it.                                                                                                                             
                                                                                                                                
Mr.  Kirstien answered  that there  were no  remaining loans                                                                    
outstanding. The  last loan  was in 2014  and had  been paid                                                                    
off in 2018 or 2019.                                                                                                            
                                                                                                                                
Representative  Galvin wanted  to ensure  there would  be no                                                                    
further payments  on any  loans coming  in because  they had                                                                    
all been cleared.                                                                                                               
                                                                                                                                
Mr.  Kirstien replied  affirmatively.  He  relayed that  the                                                                    
fund  had   been  used  to   guarantee  loans   through  the                                                                    
commercial  bank; therefore,  there had  not been  any funds                                                                    
going in for the loan.                                                                                                          
                                                                                                                                
Co-Chair Foster  noted that no amendments  had been received                                                                    
on the bill.                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon MOVED  to REPORT  HB 219  out of  committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 219  was REPORTED  out of committee  with nine  "do pass"                                                                    
recommendations and  one "no  recommendation" recommendation                                                                    
and with one previously published zero note: FN1 (LWF).                                                                         
                                                                                                                                
Representative Saddler thanked the committee.                                                                                   
                                                                                                                                
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."                                                                                          
                                                                                                                                
1:50:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  asked the  sponsor's  staff  to provide  a                                                                    
review of the bill.                                                                                                             
                                                                                                                                
GRIFFEN  SUKKAEW,  STAFF,  SENATOR SCOTT  KAWASAKI,  relayed                                                                    
that the  Senate floor  was still  meeting, and  the senator                                                                    
could  not be  present.  He reviewed  the sponsor  statement                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Senate  Bill  170  would  extend  the  Senior  Benefits                                                                    
     Program  indefinitely, ensuring  continued support  for                                                                    
     low-income seniors across Alaska.  The successor to the                                                                    
     Longevity Bonus  created in  1972, the  Senior Benefits                                                                    
     Program  would end  in  June  2024 without  legislative                                                                    
     action.                                                                                                                    
                                                                                                                                
     The   Senior  Benefits   Program  protects   low-income                                                                    
     seniors  by providing  them  with  modest monthly  cash                                                                    
     assistance  to pay  for  expenses  like food,  heating,                                                                    
     electricity,     transportation    and     prescription                                                                    
     medication.  The program  was established  in 2007  and                                                                    
     currently aids  over 10,000 Alaskans aged  65 and older                                                                    
     with  incomes at  75, 100  and 175  percent of  federal                                                                    
     poverty  level.  Subject   to  appropriation  from  the                                                                    
     Alaska  State Legislature,  assistance  can range  from                                                                    
     $76 to $250 a month for eligible seniors.                                                                                  
                                                                                                                                
     In  September   2017,  the  House  Health   and  Social                                                                    
     Services Committee  held a statewide  listening session                                                                    
     for  Senior  Benefit  recipients and  their  advocates.                                                                    
     Hundreds  of Alaskans  spoke of  the  need to  preserve                                                                    
     this  program  to  enhance  their  way  of  life.  This                                                                    
     program  protects seniors  who  have  spent a  lifetime                                                                    
     building  our great  state.  It lends  a  hand to  low-                                                                    
     income seniors  who need assistance  to help  make ends                                                                    
     meet.                                                                                                                      
                                                                                                                                
     Terminating  this   program  would  put   thousands  of                                                                    
     seniors at  risk of losing their  means for maintaining                                                                    
     a  healthy  lifestyle.   I  respectfully  request  your                                                                    
     support to continue this vital program.                                                                                    
                                                                                                                                
Mr. Sukkaew reviewed the sectional analysis (copy on file):                                                                     
                                                                                                                                
     Section  1: Repeals  the still  existing statutes  that                                                                    
     established the Longevity Bonus Program.                                                                                   
                                                                                                                                
     Section 5: Removes the sunset  provision for the Senior                                                                    
     Benefits Program. This makes  the program permanent and                                                                    
     no     longer      needing     periodic     legislative                                                                    
     reauthorization.                                                                                                           
                                                                                                                                
1:54:09 PM                                                                                                                    
                                                                                                                                
JOE  HAYES,   STAFF,  SENATOR  SCOTT   KAWASAKI,  introduced                                                                    
himself and was available for questions.                                                                                        
                                                                                                                                
Representative  Galvin  appreciated   the  legislation.  She                                                                    
stated she had many elders  in the state. She referenced the                                                                    
Senior  Benefits Program  fact sheet  (copy on  file), which                                                                    
specified  that  payments  were  not  available  to  seniors                                                                    
living in  specific institutions  including prison  or jail,                                                                    
Alaska Pioneers  Home, Alaska  Veterans Home,  nursing home,                                                                    
and public  or private  institution for mental  illness. She                                                                    
understood  the first  several institutions  because seniors                                                                    
were  being  fed,  had  supports,  housing,  and  access  to                                                                    
healthcare. She was concerned  about the language pertaining                                                                    
to a public  or private institution for  mental illness. She                                                                    
wondered if  an elder was in  a home for other  reasons such                                                                    
as a disability. She asked for clarity.                                                                                         
                                                                                                                                
Mr. Sukkaew deferred the question to the department.                                                                            
                                                                                                                                
DEB  ETHRIDGE,  DIRECTOR,  DIVISION  OF  PUBLIC  ASSISTANCE,                                                                    
DEPARTMENT OF  HEALTH, answered that  the terminology  was a                                                                    
bit  antiquated,  but  it  generally  referred  to  a  state                                                                    
institution such  as the Alaska Psychiatric  Institute (API)                                                                    
or a facility that may  be specifically for individuals with                                                                    
developmental  disability. She  explained that  the language                                                                    
pertained to  an institution versus  a home. She  would need                                                                    
to clarify.                                                                                                                     
                                                                                                                                
Representative  Galvin  what  Ms.  Etheridge  meant  by  her                                                                    
statement that she needed to clarify.                                                                                           
                                                                                                                                
Ms. Ethridge replied  that she had misspoken.  She wanted to                                                                    
make  sure the  committee  understood the  language did  not                                                                    
mean an  individual in a home;  it applied to someone  in an                                                                    
institution.  She did  not  believe there  was  any need  to                                                                    
clarify additionally in the bill.                                                                                               
                                                                                                                                
Representative Galvin asked if  an institution meant someone                                                                    
without  the faculties  to be  able  to use  the money.  She                                                                    
thought about some elders living  in an assisted living home                                                                    
and  suffering from  depression, which  some may  say was  a                                                                    
mental disease.  She asked  if it would  keep a  person from                                                                    
enjoying the Senior Benefits Program.                                                                                           
                                                                                                                                
Ms.  Ethridge  responded that  a  home  and community  based                                                                    
setting  was  not  considered institutional.  She  explained                                                                    
that an institution  could be a nursing  facility or nursing                                                                    
home.                                                                                                                           
                                                                                                                                
1:59:27 PM                                                                                                                    
                                                                                                                                
Representative  Galvin  considered  seniors  living  in  the                                                                    
Pioneer Home  with some type  of a mental health  issue. She                                                                    
asked  if  it  meant   the  individuals  would  not  receive                                                                    
benefits.                                                                                                                       
                                                                                                                                
Ms.  Ethridge  answered  that individuals  residing  in  the                                                                    
Alaska  Pioneer Home  did not  receive senior  benefits. She                                                                    
noted that the  individuals had all of  their needs provided                                                                    
for  in the  Pioneer Home,  which was  similar to  a nursing                                                                    
home.                                                                                                                           
                                                                                                                                
Representative Coulombe remarked  that the sponsor statement                                                                    
in her bill packet specified  that the bill would extend the                                                                    
program for eight  years. She remarked that  Mr. Sukkaew had                                                                    
stated the  bill would extend the  program indefinitely. She                                                                    
asked for clarification.                                                                                                        
                                                                                                                                
Mr. Sukkaew apologized and stated  that he may have sent the                                                                    
wrong  version  [of the  sponsor  statement].  The bill  was                                                                    
amended in the Senate Finance  Committee to make the program                                                                    
indefinite as  opposed to an eight-year  extension under the                                                                    
original bill.                                                                                                                  
                                                                                                                                
Representative  Coulombe  asked  for verification  that  the                                                                    
bill did not make any  changes to how allocations were given                                                                    
out.  She  asked  for confirmation  that  the  only  changes                                                                    
included the removal  of the sunset date and  the removal of                                                                    
the longevity bonus wording.                                                                                                    
                                                                                                                                
Mr.  Sukkaew  confirmed  that  Representative  Coulombe  was                                                                    
correct.                                                                                                                        
                                                                                                                                
2:01:48 PM                                                                                                                    
                                                                                                                                
Representative   Stapp  asked   who  distributed   the  cash                                                                    
payments to seniors. He asked about income brackets.                                                                            
                                                                                                                                
Ms.  Ethridge answered  that a  senior  or individual  would                                                                    
apply for  the benefit similarly to  other public assistance                                                                    
programs.  Individuals could  mail  an  application or  come                                                                    
into the  office. She hoped  that individuals would  be able                                                                    
to  apply  online one  day  soon.  She elaborated  that  the                                                                    
application  was processed  by  Department  of Health  (DOH)                                                                    
eligibility technicians.  She relayed  that most if  not all                                                                    
of  the department's  eligibility technicians  processed all                                                                    
programs  for  the  Division  of  Public  Assistance  (DPA).                                                                    
Technicians  determined whether  an  applicant was  eligible                                                                    
and added the  income level in which a  person was eligible.                                                                    
Technicians   processed   the    applications   within   the                                                                    
department's  legacy  system  EIS  [Eligibility  Information                                                                    
System]. Payments to eligible  individuals were made through                                                                    
the EIS system.                                                                                                                 
                                                                                                                                
Representative   Stapp   understood   that   EIS   was   the                                                                    
department's Cobalt  system. He asked if  the department was                                                                    
integrating the program onto its new cloud-based system.                                                                        
                                                                                                                                
Ms. Ethridge  responded that the  intention was to  move all                                                                    
programs off of the  Cobalt legacy mainframe system starting                                                                    
with Medicaid  categories and working  its way  through SNAP                                                                    
[Supplemental  Nutrition   Assistance  Program]   and  other                                                                    
programs.  She  explained that  it  would  be a  cloud-based                                                                    
module.                                                                                                                         
                                                                                                                                
Representative Stapp  asked who distributed the  money after                                                                    
an individual  was approved for  benefit payments.  He asked                                                                    
if the  funds were distributed  by DOH or the  Department of                                                                    
Revenue (DOR).                                                                                                                  
                                                                                                                                
Ms.  Ethridge  answered  that DOH  authorized  the  benefits                                                                    
through EIS.                                                                                                                    
                                                                                                                                
Representative Stapp asked who distributed the funds.                                                                           
                                                                                                                                
Ms. Ethridge responded that individuals  could chose to have                                                                    
their benefits  directly deposited.  She detailed  that some                                                                    
cash  benefits  were  issued   through  an  EBT  [Electronic                                                                    
Benefits  Transfer]   card  and   some  benefits   could  be                                                                    
distributed via a check.                                                                                                        
                                                                                                                                
Representative   Stapp  asked   if  DOR   issued  1099s   to                                                                    
individuals receiving cash payments.                                                                                            
                                                                                                                                
Ms.  Ethridge  answered that  she  did  not know  and  would                                                                    
follow up on the question.                                                                                                      
                                                                                                                                
Co-Chair  Foster  noted that  an  individual  with AARP  was                                                                    
online  and would  be providing  invited testimony  later in                                                                    
the meeting.                                                                                                                    
                                                                                                                                
2:05:12 PM                                                                                                                    
                                                                                                                                
Representative Hannan  asked how often a  participant had to                                                                    
requalify [for benefits].                                                                                                       
                                                                                                                                
Ms.   Ethridge   answered   that   there   was   an   annual                                                                    
reauthorization/application renewal.                                                                                            
                                                                                                                                
Representative  Hannan  asked  if there  was  anything  that                                                                    
would prevent  a longer  authorization period.  She remarked                                                                    
that typically seniors on fixed  income did not start making                                                                    
more  income or  go off  of  an assistance  program as  they                                                                    
aged. She asked if statute  or regulation limited it to one-                                                                    
year  qualification and  eligibility.  She understood  there                                                                    
were federal guidelines for many of the benefit programs.                                                                       
                                                                                                                                
Ms. Ethridge answered that it  was a regulation the division                                                                    
had the authority to manage.                                                                                                    
                                                                                                                                
Representative Hannan asked  how long it had  been since the                                                                    
monthly benefit payments had been increased.                                                                                    
                                                                                                                                
Ms. Ethridge  answered that the  benefit level had  not been                                                                    
changed  since  2017.  She  noted that  in  April  2024  the                                                                    
poverty  level  changed,  changing those  eligible  for  the                                                                    
program.                                                                                                                        
                                                                                                                                
Representative Hannan  asked if the rate  was determined via                                                                    
regulation  or statute.  For example,  she  wondered if  the                                                                    
department  had the  ability to  increase  the payment  from                                                                    
$250 to $500 in response to a high rate of inflation.                                                                           
                                                                                                                                
Ms. Ethridge answered that the rate was in regulation.                                                                          
                                                                                                                                
2:07:25 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  asked  if the  governor's  FY  25                                                                    
operating  budget included  the $23  million. He  noted that                                                                    
the law  was set to expire  at the end of  the coming fiscal                                                                    
year.                                                                                                                           
                                                                                                                                
Mr. Hayes  replied that  the increment  was not  included in                                                                    
the budget. The Senate Finance  Committee had taken steps to                                                                    
look  at items  with attached  fiscal notes  to address  the                                                                    
issue.                                                                                                                          
                                                                                                                                
Representative   Josephson  noted   that  the   AARP  letter                                                                    
specified  that the  program expired  next summer.  He asked                                                                    
for  verification  that  the program  would  expire  in  the                                                                    
coming summer.                                                                                                                  
                                                                                                                                
Mr. Hayes responded affirmatively.                                                                                              
                                                                                                                                
Representative  Tomaszewski looked  at the  DOH fiscal  note                                                                    
and observed that the department  anticipated an increase of                                                                    
about  $500,000  annually going  forward.  He  asked if  the                                                                    
increase was  a result  of an  expectation of  an increasing                                                                    
number  of eligible  recipients. Alternatively,  he wondered                                                                    
if the  increase was  anticipating an  inflationary increase                                                                    
in payments.                                                                                                                    
                                                                                                                                
Ms.   Ethridge  responded   that   the  increase   reflected                                                                    
anticipated growth in program participation.                                                                                    
                                                                                                                                
Co-Chair Foster moved to invited testimony.                                                                                     
                                                                                                                                
MARGE STONEKING,  ADVOCACY DIRECTOR, AARP  ALASKA, ANCHORAGE                                                                    
(via teleconference),  relayed that AARP was  a nonpartisan,                                                                    
nonprofit   member   organization    serving   the   50-plus                                                                    
population. The  agency's purpose  was to empower  people to                                                                    
be able  to choose how  they live  as they age.  She relayed                                                                    
that AARP  had a  strong commitment to  protecting financial                                                                    
resilience for older adults. While  most older Alaskans were                                                                    
self-supporting, some needed  financial assistance to remain                                                                    
independent. She elaborated that  senior safety net programs                                                                    
like  the  Senior   Benefits  Program  provide  foundational                                                                    
support to help low income  elders remain in their homes and                                                                    
out of more costly levels  of care. For example, individuals                                                                    
qualifying  for the  largest senior  benefit amount  of $250                                                                    
per  month could  have income  of  no more  than $1,139  per                                                                    
month.  In  Alaska,  the  average  social  security  retired                                                                    
worker  benefit   was  $1,485  per  month.   Older  Alaskans                                                                    
eligible  for the  Senior Benefits  Program fell  below that                                                                    
average, which meant their lifetime  earnings were less than                                                                    
average.                                                                                                                        
                                                                                                                                
Ms. Stoneking elaborated that older  Alaskans most likely to                                                                    
benefit  from an  extension of  the Senior  Benefits Program                                                                    
based on historical  participation were women. Historically,                                                                    
Senior  Benefits  Program   beneficiaries  had  been  mostly                                                                    
women. She  stated it was  no secret that women  earned less                                                                    
over the course of their working  lives and made up the vast                                                                    
majority  of unpaid  family  caregivers  and often  outlived                                                                    
their husbands.  Many lower wage  workers, Alaskans  who did                                                                    
not make  as much during  their time working, had  more than                                                                    
one  job,  but with  Alaska's  higher  cost of  living  were                                                                    
unable to accumulate much; therefore,  they were more likely                                                                    
to  be receiving  minimal  social  security benefits.  Rural                                                                    
Alaskans,  especially those  living subsistence  lifestyles,                                                                    
were  less likely  to  have  made cash  income  and if  they                                                                    
received social  security at all, their  benefits were often                                                                    
very  low. The  loss of  the Senior  Benefits Program  would                                                                    
hurt many Alaskans living in remote villages.                                                                                   
                                                                                                                                
Ms. Stoneking highlighted that the  oldest Alaskans were the                                                                    
ones  most  likely  to spend  increasing  amounts  of  their                                                                    
retirement budgets on healthcare  costs, which may result in                                                                    
financial instability and make  it difficult to afford other                                                                    
basic  living expenses  including housing,  food, and  heat.                                                                    
Loss of income to the  specific population increased risk of                                                                    
losing independence  and hastened moves to  much more costly                                                                    
levels of care. She relayed  that AARP supported the bill to                                                                    
extend the Alaska Senior Benefits Program.                                                                                      
                                                                                                                                
Co-Chair Foster thanked Ms. Stoneking for her testimony.                                                                        
                                                                                                                                
2:13:00 PM                                                                                                                    
                                                                                                                                
Representative Stapp directed a  question to the department.                                                                    
He asked  for the  number of applications  per year  for the                                                                    
program, the number of people  who applied annually compared                                                                    
to  the   number  of  people   approved,  and   the  average                                                                    
processing time of each application.  He directed his second                                                                    
question  to Mr.  Hayes. He  looked  at the  history of  the                                                                    
program and  stated the appropriation was  shorted based off                                                                    
of  the  total.  He  thought  that the  money  paid  out  to                                                                    
eligible  individuals  appeared  to have  been  prorated  in                                                                    
certain fiscal  years. He  wondered if  it was  the standard                                                                    
procedure if the budget did not reflect the fiscal note.                                                                        
                                                                                                                                
Mr.  Hayes  answered  affirmatively.   He  stated  that  the                                                                    
funding was up to legislative appropriation annually.                                                                           
                                                                                                                                
Representative Coulombe  remarked that assets did  not count                                                                    
towards income eligibility  and most seniors did  not have a                                                                    
regular  job. She  thought it  sounded like  social security                                                                    
was  counted. She  asked  what  determined eligibility.  She                                                                    
asked if investment income counted.  She was interested in a                                                                    
definition between assets and income.                                                                                           
                                                                                                                                
Ms. Ethridge answered  that in order to be  eligible for the                                                                    
program a  person had  to be  65 or  older, fall  within the                                                                    
income level,  be an  Alaskan resident  and U.S.  citizen or                                                                    
qualified  alien, have  a social  security  number or  proof                                                                    
that one  had been  applied for,  and have  countable income                                                                    
that did not  exceed the income limits. She  noted she could                                                                    
provide the income level brackets.                                                                                              
                                                                                                                                
Representative  Coulombe   was  trying  to   determine  what                                                                    
counted as income if assets were not included.                                                                                  
                                                                                                                                
Ms. Ethridge  answered it  was more  a definition  of asset,                                                                    
which could  be a home,  car, or savings account.  She noted                                                                    
that those things would not be considered income.                                                                               
                                                                                                                                
Representative  Coulombe asked  if social  security benefits                                                                    
counted as income.                                                                                                              
                                                                                                                                
Ms. Ethridge responded affirmatively.                                                                                           
                                                                                                                                
2:16:36 PM                                                                                                                    
                                                                                                                                
Co-Chair Edgmon relayed  that there was a  bill in committee                                                                    
dealing with  SNAP benefits. He  did not know  whether there                                                                    
was  any  interplay between  the  SNAP  legislation and  the                                                                    
Public Assistance Program and  eligibility criteria in terms                                                                    
of assets. He  asked if Ms. Etheridge was  familiar with the                                                                    
other  legislation   and  knew   enough  to  speak   to  any                                                                    
connection between the two.                                                                                                     
                                                                                                                                
Ms.  Ethridge  answered  not necessarily.  She  stated  that                                                                    
senior benefits were counted when  looking at a SNAP benefit                                                                    
level, but there was no other direct relationship.                                                                              
                                                                                                                                
Co-Chair Edgmon asked about how  the Permanent Fund Dividend                                                                    
(PFD)  tied  into  the program.  He  considered  eligibility                                                                    
criteria and exemptions  under income. He asked  if PFDs and                                                                    
Alaska  Native regional  dividends  were  counted as  income                                                                    
under the federal poverty guidelines.                                                                                           
                                                                                                                                
Ms.  Ethridge answered  that she  would follow  up with  the                                                                    
information.                                                                                                                    
                                                                                                                                
Co-Chair Edgmon  noted there was a  hold harmless provision.                                                                    
He asked Mr. Hayes to comment.                                                                                                  
                                                                                                                                
Mr. Hayes replied  that there was a  hold harmless provision                                                                    
for  the  PFD  for  individuals  receiving  TANF  [Temporary                                                                    
Assistance  for  Needy  Families] and  other  benefits.  The                                                                    
provision was  in place to  ensure individuals did  not lose                                                                    
their benefits as  a result of the PFD  payment. He believed                                                                    
the hold harmless  provision would have the  same effect for                                                                    
senior benefits.                                                                                                                
                                                                                                                                
2:19:08 PM                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon surmised  there  were  likely no  snowbirds                                                                    
taking  advantage   of  the  Senior  Benefits   Program.  He                                                                    
believed  in theory  program  beneficiaries were  year-round                                                                    
Alaskan residents.                                                                                                              
                                                                                                                                
Mr. Hayes responded that under  the previous longevity bonus                                                                    
program  there  were seniors  who  were  snowbirds and  were                                                                    
eligible for  the funding. However, the  new Senior Benefits                                                                    
Program  applied  to  less  fortunate  Alaskan  seniors.  He                                                                    
asserted that the  individuals did not make  enough money to                                                                    
be snowbirds.                                                                                                                   
                                                                                                                                
Co-Chair  Edgmon looked  at page  3 of  the Senior  Benefits                                                                    
Program document  (copy on file).  He observed that  in 2023                                                                    
there were only  1,917 seniors who were  eligible to receive                                                                    
the maximum  benefit of  $250. He  was interested  in seeing                                                                    
the demographics involved in the  payment tiers. He believed                                                                    
many of  the recipients  receiving the higher  payment level                                                                    
would  be located  in  rural Alaska.  He  remarked that  the                                                                    
senior  population was  the fastest  growing segment  of the                                                                    
state's  population.  He  was   in  strong  support  of  the                                                                    
legislation.  He hoped  the state  would give  every bit  of                                                                    
help  possible, particularly  in  rural  Alaska where  costs                                                                    
were rising exponentially.                                                                                                      
                                                                                                                                
2:21:32 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  noted that Co-Chair Johnson  had joined the                                                                    
meeting.                                                                                                                        
                                                                                                                                
Representative Tomaszewski considered  that one reason there                                                                    
were more women receiving benefits  from the program was due                                                                    
to their longer lifespan.  He referenced snowbirds and asked                                                                    
how  many  days  out  of   the  state  would  disqualify  an                                                                    
individual from  receiving the benefit.  He asked if  it was                                                                    
similar to the PFD where an  individual could only be out of                                                                    
state for a certain period of time.                                                                                             
                                                                                                                                
Mr. Hayes deferred to his colleague.                                                                                            
                                                                                                                                
Mr.  Sukkaew  replied  that  AS  47.45.030  applied  to  the                                                                    
longevity  bonus and  he  believed it  also  applied to  the                                                                    
Senior Benefits Program. He read from the statute:                                                                              
                                                                                                                                
     After  qualification,  a  recipient  shall  notify  the                                                                    
     commissioner  of  health  and social  services  when  a                                                                    
     recipient expects  to be absent  from the state  if the                                                                    
     absence  is for  a  continuous period  that exceeds  60                                                                    
     days.  After that  notification, the  recipient may  no                                                                    
     longer receive  bonuses from  the Department  of Health                                                                    
     and Social  Services after the last  regularly approved                                                                    
     monthly application.  Upon returning to the  state, the                                                                    
     recipient  may  again  make application  for  a  bonus.                                                                    
     Failure  to  notify  the commissioner  of  an  expected                                                                    
     absence may be grounds for disqualification.                                                                               
                                                                                                                                
Representative   Tomaszewski   looked   at   the   cost   of                                                                    
$23,542,000 for FY 25. He if  the money was currently in the                                                                    
FY 25 budget. He asked where the money would come from.                                                                         
                                                                                                                                
Mr. Hayes  responded that the  Senate Finance  Committee had                                                                    
looked at the policy bills  with large fiscal note bills and                                                                    
he believed  the committee  had put  aside money  to address                                                                    
the Senior Benefits Program for FY 25.                                                                                          
                                                                                                                                
Representative  Tomaszewski asked  Mr. Hayes  to repeat  his                                                                    
response.                                                                                                                       
                                                                                                                                
Mr. Hayes complied.                                                                                                             
                                                                                                                                
Co-Chair Edgmon noted  that the $23 million  attached to the                                                                    
fiscal note  was part  of a  spending agreement  between the                                                                    
House and Senate. He stated  that presumably the bill had to                                                                    
pass [for  the funding  to be appropriated].  He highlighted                                                                    
that the PFD program allowed  individuals to be out of state                                                                    
for  180 days.  He noted  that  the 60-day  window was  more                                                                    
restrictive.  He added  there was  an exemption  for medical                                                                    
care in the event  a person had to be out  of state for more                                                                    
than  60 days  due to  a terminal  illness or  other medical                                                                    
reason. He  noted that there  were around 20  exemptions for                                                                    
PFD  eligibility including  military considerations  whereas                                                                    
the  Senior Benefits  Program eligibility  requirements were                                                                    
far  more restrictive.  He stated  there were  many ups  and                                                                    
downs over  the course  of the  program's life  beginning in                                                                    
1972. He  highlighted there were  years the program  had not                                                                    
been  funded.   He  referenced  debate  over   the  PFD  and                                                                    
following the law  and pointed out that  the Senior Benefits                                                                    
Program had not been funded in  some years as well. He hoped                                                                    
the program  could be resurrected  indefinitely and  that it                                                                    
would  become  a  regular feature  of  keeping  the  fastest                                                                    
growing segment of the population in Alaska.                                                                                    
                                                                                                                                
2:26:30 PM                                                                                                                    
                                                                                                                                
Representative Stapp  asked if  trust and  investment income                                                                    
was applicable to the poverty line testing.                                                                                     
                                                                                                                                
Ms.  Ethridge  replied  that  she would  follow  up  on  the                                                                    
question.                                                                                                                       
                                                                                                                                
Representative  Stapp stated  that the  co-chair's reference                                                                    
to  broad-base category  eligibility prompted  his question.                                                                    
He  noted that  those  items [trust  and investment  income]                                                                    
were not included in the  definition. He asked how money was                                                                    
loaded on  the EBT  card. He  asked if it  was a  payment in                                                                    
lieu of  benefit. He thought  there was a big  difference in                                                                    
being able to  provide the payment on a  card versus cutting                                                                    
a check for recipients.                                                                                                         
                                                                                                                                
Ms.  Ethridge  responded that  the  agency  FIS managed  the                                                                    
department's    electronic    benefit   transactions.    The                                                                    
department  authorized the  transaction and  FIS issued  the                                                                    
benefit based on the department's authorization.                                                                                
                                                                                                                                
Representative   Stapp  referenced   testimony  from   Marge                                                                    
Stoneking with  AARP about housing, food,  heat, and medical                                                                    
care.  He  noted that  all  of  those things  were  separate                                                                    
federal programs including Medicaid  and Medicare, which the                                                                    
recipients would  qualify for based  on their  income level.                                                                    
He stated that the EBT card  was for SNAP benefits. He asked                                                                    
how the  department would load  payments that  seniors could                                                                    
in theory  spend on  other things onto  a card  intended for                                                                    
SNAP.                                                                                                                           
                                                                                                                                
Ms.  Ethridge replied  that the  transaction  type could  be                                                                    
identified when using the card.                                                                                                 
                                                                                                                                
2:29:02 PM                                                                                                                    
                                                                                                                                
Representative Josephson  stated his understanding  that the                                                                    
bill would  repeal the 60-day  rule and the  longevity bonus                                                                    
part of  the law  and retain AS  47.45.304, which  seemed to                                                                    
restrict absences to medical  treatment, the accompanying of                                                                    
a family  member to medical  treatment, and for  a vacation,                                                                    
business trip, or other absence  of less than 30 consecutive                                                                    
days unless the  individual applied for and  received a time                                                                    
extension. He  thought it seemed  to deal with  the snowbird                                                                    
issue  as  well.   He  asked  Mr.  Hayes   if  that  sounded                                                                    
plausible.                                                                                                                      
                                                                                                                                
Mr. Hayes replied, "I do believe so, yes."                                                                                      
                                                                                                                                
SB  170  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster  relayed that the  committee would  focus on                                                                    
energy bills the following week.                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:31:03 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:31 p.m.                                                                                          

Document Name Date/Time Subjects
SB170 Sectional Analysis 3.11.24.pdf HFIN 4/12/2024 1:30:00 PM
SB 170
SB170 AARP Letter of Support rec'd 01.03.24 3.11.24.pdf HFIN 4/12/2024 1:30:00 PM
SB 170
SB170 Additional Documents-January 2024 Senior Benefit Fact Sheet 3.11.24.pdf HFIN 4/12/2024 1:30:00 PM
SB 170
SB170 Sponsor Statement 3.11.24.pdf HFIN 4/12/2024 1:30:00 PM
SB 170
SB170 Summary of Changes from Original Version B to S 3.11.24.pdf HFIN 4/12/2024 1:30:00 PM
SB 170
HB 219 Public Testimony Rec'd by 040424.pdf HFIN 4/12/2024 1:30:00 PM
SFIN 5/1/2024 9:00:00 AM
HB 219
SB 170 DOH HFIN 4.12.24 SB170 Response 041924.pdf HFIN 4/12/2024 1:30:00 PM
SB 170