Legislature(1997 - 1998)
03/12/1998 01:50 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
MARCH 12, 1998
1:50 P.M.
TAPE HFC 98 - 66, Side 1.
TAPE HFC 98 - 66, Side 2.
CALL TO ORDER
Co-Chair Therriault called the House Finance Committee
meeting to order at 1:50 P.M.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Kohring
Representative J. Davies Representative Martin
Representative G. Davis Representative Moses
Representative Foster Representative Mulder
Representative Grussendorf
ALSO PRESENT
Peter Bushre, Chief Financial Officer, Alaska Permanent
Fund Corporation; Jim Kelly, Director of Communications,
Permanent Fund Corporation; Elmer Lindstrom, Special
Assistant, Office of the Commissioner, Department of Health
and Social Services; Theresa Tanoury, Administrator, Child
Protection Services, Division of Family and Youth and
Services, Department of Health and Social Services; Bob
Buttcane, Juvenile Probation Officer, Division of Family
and Youth Services, Department of Health and Social
Services; Ray Gillespie, Spoke on behalf of Kathy Cronen,
Charter, Northstar Behavioral Health System, Anchorage; Jim
Nordlund, Director, Division of Public Assistance,
Department of Health and Social Services; Val Horner,
Program Officer, Quality Assessment, Division of Public
Assistance, Department of Health and Social Services.
SUMMARY
HB 16 An Act relating to delinquent minors, to the
taking of action based on the alleged criminal
misconduct of certain minors, to the services to
be provided to the victims of criminal misconduct
of minors, and to agency records involving minors
alleged to be delinquent based on their criminal
misconduct; and amending
Rule 19 and repealing Rules 6, 7, 11(a), 12(a),
and 21(f), Alaska Delinquency Rules.
CS HB 16 (FIN) was reported out of Committee with
a "do pass" recommendation and with fiscal notes
by the Department of Administration, the
Department of Law, the Department of Corrections,
the Alaska Court System, the House Finance
Committee, and the Department of Health and
Social Services.
SB 220 An Act making a supplemental appropriation to the
Alaska Permanent Fund Corporation; and providing
for an effective date.
CSSB 220 (FIN)(title am) was reported out of
Committee with a "do pass" recommendation.
HJR 4 Proposing amendments to the Constitution of the
State of Alaska relating to terms of legislators.
HJR 4 was reported out of Committee with a "do
pass" recommendation and with a fiscal note by
the Office of the Lt. Governor dated 1/30/98 and
a zero fiscal note by the Legislative Affair
Agency dated 1/30/98.
HB 325 An Act making appropriations for the operating
and loan program expenses of state government,
for certain programs, and to capitalize funds;
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing
for an effective date.
RESULTS BASED GOVERNMENT
Welfare to Work
HB 325 was HELD in Committee for further
consideration.
SENATE BILL NO. 220
"An Act making a supplemental appropriation to the
Alaska Permanent Fund Corporation; and providing for
an effective date."
JIM KELLY, DIRECTOR OF COMMUNICATIONS, ALASKA PERMANENT
FUND CORPORATION, spoke to the letter in the Committee
packet from the Permanent Fund Corporation (PFC) dated
2/27/98. [Copy on File]. The letter addresses the savings
realized by combining custody services into one provider.
He projected that this year, PFC will save approximately
$950 thousand dollars. Currently, the fund value is $24
billion dollars. He pointed out that the fund could earn
$2.2 billion dollars this year, noting that this is an
amazing growth and that the Legislature should not expect
it every year.
PETER BUSHRE, CHIEF FINANCIAL OFFICIER, ALASKA PERMANENT
FUND CORPORATION, added that the fund has added $500
million dollars this month due to market appreciation.
Representative Foster MOVED to report CSSB 220(FIN)(title
am) out of Committee with individual recommendations.
There being NO OBJECTION, it was so ordered.
CSSB 220(FIN)(title am) was reported out of Committee with
a "do pass" recommendation.
HOUSE BILL NO. 16
"An Act relating to delinquent minors, to the taking
of action based on the alleged criminal misconduct of
certain minors, to the services to be provided to the
victims of criminal misconduct of minors, and to
agency records involving minors alleged to be
delinquent based on their criminal misconduct; and
amending Rule 19 and repealing Rules 6, 7, 11(a),
12(a), and 21(f), Alaska Delinquency Rules."
Co-Chair Hanley questioned how the Department's fiscal note
would be affected by new Amendment #1. [Copy on File].
ELMER LINDSTROM, SPECIAL ASSISTANT, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVCIES,
pointed out that the Department had submitted two fiscal
notes to the Committee. The Division of Medical Assistance
submitted a zero note accompanied with an analysis
regarding new facilities. He commented that Ms. Tanoury
would speak to the fiscal note submitted by the Division of
Family and Youth Services (DFYS).
THERESA TANOURY, ADMINISTRATOR, CHILD PROTECTION SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, discussed the
fiscal note which the Division submitted to cover costs
associated with semi-secure beds. Currently, there are 15
grantees that provide group care. She believed that
staffing with a 1:3 ratio would be necessary in order to
manage behavior problems. The fiscal note recommends
increasing staffing patterns.
Co-Chair Hanley suggested that the Department was making a
policy call with the request of additional staffing. He
questioned the $210 thousand dollar grant and claim line.
Ms. Tanoury stated that the program would not work without
the additional staff support. There has been no rate
increase since 1990, whereas, difficult-to-care-for
children numbers have dramatically increased.
Co-Chair Hanley reiterated his concern. He asked if
providers would need extra State grants to make the care
worthwhile. Co-Chair Hanley commented that he would not
support the amendment with the additional fiscal costs. He
questioned if beds could be built without the requested
funding. Ms. Tanoury advised that the State would not
build the semi-secure beds without the requested funding
support.
RAY GILLESPIE, SPOKE ON BEHALF OF KATHY CRONEN, CHARTER,
NORTHSTAR BEHAVORIAL HEALTH SYSTEM, ANCHORAGE, noting that
Ms. Cronen was currently out for family emergency,
although, requested to testify on the fiscal and
legislative impact of the legislation at a latter date.
Representative Kelly referenced SB 289 legislation from two
years ago. He asked if the fiscal note, which had been
funded with that legislation, had been used.
ROBERT BUTTCANE, JUVENILLE PROBATION OFFICER, DIVISION OF
FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, noted that he did not have the fiscal notes
attached to that legislation, although, believed that the
money was not used to create a semi-secure facility. Ms.
Tanoury pointed out that at this time, there is not a semi-
secure residential care facility in Anchorage or Fairbanks.
Co-Chair Hanley asked if the grants would be available only
for non-profits. Mr. Lindstrom noted that was correct and
that the amendment would provide profits and non-profits to
have semi-secure facilities, whereas, the grants would only
allow the non-profit's funding.
Co-Chair Hanley explained that Amendment #1 had been
introduced to clarify profit versus non-profit. It was
never the intent that for-profits receive grants. The new
draft of the amendment clarifies that the grant process
remains the same as current law. Co-Chair Hanley MOVED to
adopt Amendment #1. There being NO OBJECTION, the new
Amendment #1 was adopted.
Representative J. Davies spoke to the new Amendment #3.
[Copy on File]. He stated that the amendment would remove
13, 14 & 15 year olds from the bill sentencing provisions
and would make that referral discretionary with the
Department. He informed members that with the changes
proposed in the amendment, costs associated with the bill
would drop substantially.
Mr. Buttcane commented that Amendment #3 would limit the
dual sentencing provisions to youth 16 & 17 years old, who
meet two criteria:
? Presented with a felony crime against a person
and having a history of felony adjudication in
the past; or
? Sexual abuse of a minor in the second degree.
The Department has estimated that there would be 8 youth
per year that would meet these criteria. The amendment
makes dual sentencing discretionary.
Representative J. Davies MOVED to adopt Amendment #3.
There being NO OBJECTION, it was adopted.
Representative Kelly MOVED to adopt Amendment #4. [Copy on
File]. He advised that the amendment would address a
technical statutory problem. There being NO OBJECTION, it
was adopted.
Co-Chair Hanley reiterated that he would not be supportive
of the $210 thousand dollar grant line proposed in the
Department's fiscal note. He MOVED to eliminate the grants
and claim line. There being NO OBJECTION, it was deleted.
Representative Foster MOVED to report CS HB 16 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes.
CS HB 16 (FIN) was reported out of Committee with a "do
pass" recommendation and with two fiscal notes by the
Department Administration, the Department of Health and
Social Services, the Alaska Court System, the House Finance
Committee, the Department of Law, and the Department of
Corrections.
HOUSE JOINT RESOLUTION NO. 4
Proposing amendments to the Constitution of the State
of Alaska relating to terms of legislators.
Co-Chair Therriault explained that HJR 4 proposes to limit
terms by limiting the number of regular legislative
sessions a person may serve. The resolution proposes that
a person may not serve consecutively more than twelve
regular sessions in the Legislature. A person may not
again serve in the Legislature as a result of election or
appointment to fill a vacancy until at least two
consecutive regular sessions have lapsed. In addition,
when tabulating the number of sessions served, special
sessions shall not be countered nor shall time served as
the result of appointment to fill a vacancy.
He recommended that term limits are a positive legislative
reform, guaranteeing that new legislators will be elected
along with new ideas. The popularity of term limits
indicates that a majority of our citizens do not prefer
career politicians representing them. Term limits will
also level the playing field for challengers facing long-
term incumbents whose power oftentimes is derived primarily
from seniority.
Representative Martin suggested that Section 3 was not
needed. Co-Chair Therriault responded that legal drafters
recommended adding that language so that the constitutional
amendment could be voted upon; however, at the same time,
legislators running on the year for which the language was
included, would be precluded from counting that year if
Section 3 was not added. The language provides a delayed
effective date, so that those people are able to serve
their term out.
Representative J. Davies pointed out that from a national
legislative term study undertaken from 1959 through 1994,
legislators that served eight years or less comprised 84%,
whereas, legislators who served twelve years or less
comprised 94%. He submitted, given those numbers, there is
no compelling or practical reason for the legislation which
would prohibit that 6% from serving longer terms.
Representative J. Davies ascertained that having a few
members in the legislative body with institutional
knowledge derived from a long tenure is useful.
Representative Kelly echoed Representative Davies concerns.
Representative Foster MOVED to report HJR 4 out of
Committee with individual recommendations and with the
accompanying fiscal notes.
HJR 4 was reported out of Committee with a "do pass"
recommendation and with fiscal notes by the Office of the
Lt. Governor dated 1/30/98 and the Legislative Affairs
Agency dated 1/30/98.
(Tape Change HFC 98- 66, Side 2).
HOUSE BILL NO. 325
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
RESULTS BASED GOVERNMENT - PROGRAM REVIEW
ALASKA TEMPORARY ASSISTANCE PROGRAM (ATAP)
JIM NORDLAND, DIRECTOR, DIVISION OF PUBLIC HEALTH,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, noted that the
Department had reworked the performance measures discussed
at a previous Committee work session. The Department
discovered that many of the measures could be consolidated
to those indicated on the handout. [Copy on File]. Mr.
Nordland stated that the Division supports all the
performance measures except #3, "ATAP cases closed due to
earnings without child support".
VAL HORNER, PROGRAM OFICIER, QUALITY ASSESSMENT, DIVISION
OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, recommended that item #3 was a direct measurement
of the Child Support Enforcement Agency (CSEA) activities.
She suggested that it was an interim measure to insure that
Public Assistance was partnering up with CSEA, however,
would not directly measure performance activities within
the ATAP program.
Co-Chair Hanley responded that the addition of that
language resulted from a concern of Representative Martin's
as indication of an overall caseload decline. Ms. Horner
replied that regardless of the activities established by
ATAP, all referrals go to CSEA for collection. The
Division has no direct role in what is collected. Co-Chair
Hanley suggested that it would indicate the caseload
percentage decreased because of child support.
Mr. Nordlund agreed that the information was important for
ATAP to have access to, but to suggest that the Division
has effect over that information is questionable. Ms.
Horner strongly disagreed with tying it to ATAP's budget
when measuring success.
Representative J. Davies stipulated for the record that the
Division of Public Assistance does not carry the entire
responsibility but instead must work with CSEA.
Representative J. Davies MOVED to adopt the proposed ATAP
mission statement including the above-mentioned
stipulation. There being NO OBJECTION, it was adopted.
HB 325 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 2:50 P.M.
H.F.C. 8 3/12/98
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