Legislature(2017 - 2018)HOUSE FINANCE 519
02/07/2018 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB215 | |
| HB236 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 236 | TELECONFERENCED | |
| += | HB 215 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 7, 2018
2:05 p.m.
2:05:58 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 2:05 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Paul Seaton, Co-Chair
Representative Les Gara, Vice-Chair
Representative Jason Grenn
Representative David Guttenberg
Representative Scott Kawasaki
Representative Dan Ortiz
Representative Steve Thompson
Representative Cathy Tilton
Representative Tammie Wilson
MEMBERS ABSENT
Representative Lance Pruitt
ALSO PRESENT
Elizabeth Diament, Staff, Representative Paul Seaton; Jill
Lewis, Deputy Director, Division of Public Health,
Department of Health and Social Services; Jane Pierson,
Staff, Representative Neal Foster; Representative Scott
Kawasaki, Sponsor; Mercedes Colbert, Staff, Representative
Scott Kawasaki; Denise Daniello, Executive Director, Alaska
Commission on Aging, Department of Health and Social
Services; David Blacketer, Chair, Alaska Commission on
Aging, Department of Health and Social Services; Jayne
Andreen, AARP, Juneau.
SUMMARY
HB 215 DHSS: PUBLIC HEALTH FEES
CSHB 215(FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new
fiscal impact note from the Department of Health
and Social Services.
HB 236 EXTEND SENIOR BENEFITS PAYMENT PROGRAM
CSHB 236(FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new
fiscal impact note from the Department of Health
and Social Services.
Co-Chair Foster reviewed the meeting agenda.
HOUSE BILL NO. 215
"An Act relating to program receipts; and relating to
fees for services provided by the Department of Health
and Social Services."
2:07:02 PM
Co-Chair Foster noted that the bill had last been heard on
February 2, 2018.
ELIZABETH DIAMENT, STAFF, REPRESENTATIVE PAUL SEATON, had
no additional information to share with the committee.
Vice-Chair Gara asked why $600,000 in additional revenue
from the fees only resulted in a reduction of $200,000 in
undesignated general funds (UGF).
JILL LEWIS, DEPUTY DIRECTOR, DIVISION OF PUBLIC HEALTH,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, answered that the
$200,000 reductions to the general fund (GF) was based on
the only applicable program that had existing funding and
was used to craft the fiscal note. The fiscal note
reflected that GF expenditures would be replaced by fees.
2:09:22 PM
Representative Kawasaki noted that implementing fee
collection was a long process. He was aware of program
receipt authority placed in the budget and the fees were
never collected. He asked for comments from Ms. Lewis. Ms.
Lewis answered that the issue had been addressed in the
fiscal note by not showing any receipts collected in the
first year, FY 2019. She explained that in the first year
she expected the division to develop regulations and hold
meetings with stakeholders. The division hoped to collect
fees the following year. Representative Kawasaki spoke to a
provision related to waiving fees in Section 2 of the bill.
He recounted that the commissioner can waive fees if
collection was deemed not feasible or in the public
interest or if they undermined the division's public health
mission. He asked for more detail about when in the process
it was determined a fee undermined the mission. Ms. Lewis
replied that it was a subjective analysis; there were many
things to weigh in order to judge whether something was in
the public's interest or would undermine the division's
mission to protect or promote the health of Alaskans. She
explained that the division would not pursue a fee that it
or stakeholders determined would not achieve the division's
goals. At some point a fee could become a barrier to taking
advantage of services, which would negatively impact the
public's health.
2:12:00 PM
Representative Guttenberg stated that in a separate bill he
was working on, the administration was concerned about
raising fees that would impact state employees. The state
was anticipating rising healthcare costs. He asked if the
Department of Administration (DOA) weighed in on the issue
regarding how the bill would affect the cost of healthcare.
Ms. Lewis asked for clarification. She wondered if he was
asking that by filling the positions there would be
additional healthcare costs. Representative Guttenberg
explained by filling the position and instituting fees by
the department. He asked if the bill affected employee
healthcare costs in anyway. He asked whether DOA had
expressed concerns. Ms. Lewis replied in the negative. She
explained that the positions would not impact state
healthcare costs.
Representative Wilson asked for verification the bill would
charge patients. She asked whether the charge was a sliding
fee. Ms. Lewis answered that the department currently had
the authority to collect fees for clinical services like
lab fees, specialty clinics, and public nurse fees. She
listed services the department could not charge fees for;
professional services, consultations, technical assistance,
specialized data analysis, and certain administrative
services. The costs would generally be charged to the
entity that utilized the services but not to individual
members of the public.
2:14:57 PM
Vice-Chair Gara thanked Ms. Lewis, Ms. Diament and others
for their work. He shared that the previous year the DHSS
finance subcommittee recommended the department charge fees
for certain services that were not thoroughly "fleshed
out." He appreciated the department's and Co-Chair Seaton's
follow up.
Vice-Chair Gara reviewed the new fiscal impact note from
the Department of Health and Social Services allocated to
Public Health Administrative Services. The fiscal note
reflected a $200,000 expected reduction in UGF in FY 2020
and anticipated raising $600,000 in revenue for a net
positive of $400,000.
Representative Wilson asked what data was used to determine
the numbers. Ms. Lewis admitted that a certain level of
uncertainty existed because the proposed type of fees had
never been collected before. She analyzed each fee
individually to determine the volume and guessed at an
amount for a reasonable fee. The fee could be no more than
cost. The division had made the best attempt at identifying
what was necessary to support the program and an amount for
a fee that was possible to collect.
2:17:34 PM
Co-Chair Seaton MOVED to REPORT CSHB 215(FIN) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 215(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal impact note
from the Department of Health and Social Services.
2:18:14 PM
AT EASE
2:22:39 PM
RECONVENED
HOUSE BILL NO. 236
"An Act extending the Alaska senior benefits payment
program."
2:22:55 PM
Co-Chair Seaton MOVED to ADOPT the proposed committee
substitute for HB 236, Work Draft 30-LS0754\D (Glover,
2/2/18).
Co-Chair Foster OBJECTED for discussion.
JANE PIERSON, STAFF, REPRESENTATIVE NEAL FOSTER, explained
the changes in the Work Draft. The change extended the
program from four years to six years at the sponsor's
request.
Co-Chair Foster WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
2:24:21 PM
AT EASE
2:24:47 PM
RECONVENED
REPRESENTATIVE SCOTT KAWASAKI, SPONSOR, briefly introduced
the legislation. He shared that the bill was simple and
kept "grandparents in the state" by enabling some seniors
to continue to live in Alaska. He read from the sponsor
statement:
House Bill 236 would extend the Senior Benefits
Program to 2022, ensuring another four years of
support for low income seniors across Alaska. Without
action, the program would end in 2018.
The Senior Benefits Program protects low-income
seniors by providing them with modest cash assistance
to pay for expenses like food, heating, electricity,
transportation and prescription medication.
The program was established in 2007 and currently
provides assistance to nearly 11,500 Alaskans ages 65
and older with incomes at 75 percent, 100 percent, and
175 percent of the federal poverty level. Assistance
ranges from $76 to $250 a month for eligible seniors,
depending on income and the size of the appropriation
from the Alaska State Legislature. The Senior Benefits
Program is a successor to the Longevity Bonus created
in 1972.
This program protects seniors who have spent a
lifetime building this 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 for losing means to buy essential
items necessary for maintaining a healthy lifestyle,
such as groceries, medication, transportation, rent
and utilities.
2:28:31 PM
Representative Kawasaki elaborated that the bill received
extensive vetting and was placed in a subcommittee in the
House Health and Social Services Committee. He listed the
members of the subcommittee; Representative Fansler and
Representative Sullivan-Leonard. He relayed that he held a
statewide listening session in September 2017 to gain as
much public input as possible on the bill.
MERCEDES COLBERT, STAFF, REPRESENTATIVE SCOTT KAWASAKI,
offered to review program requirements.
Co-Chair Foster requested that the invited testifier share
her testimony.
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, provided
information about the commission. She explained that the
commission existed within the Department of Health and
Social Services (DHSS) and worked to plan services for
seniors, educate Alaskans regarding senior issues, and
provided recommendations regarding budget and policy items
that affected senior citizens. She relayed that the
commission strongly supported the bill and extension of the
Senior Benefits Program, which benefitted the quality of
life for over 11,000 seniors. She identified financial
security as a pressing issue confronting seniors. She
shared that over the years the program's growth had been
modest. The state's senior population increased
approximately 4 percent annually and 120,908 seniors
resided in the state. The program increased only 1.7
percent statewide. She elaborated that the Commission on
Aging held a joint senior advocacy meeting recently in
Juneau with H NET, The Pioneer Home Advisory Board, and
AARP Alaska. She related that all were in support of
passage of the bill. She characterized the bill as a hand
up to seniors, not a handout.
2:32:03 PM
DAVID BLACKETER, CHAIR, ALASKA COMMISSION ON AGING,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke in support
of the legislation. He appreciated the program and shared
that he benefitted from the program. He conveyed that his
only other income was from social security. He outlined the
various timing of income received during the month and when
his bills were due. He and his wife received a total of
$152 from the program, which helped him pay his rent on
time. He noted that if he did not pay the rent on time
there was a penalty. He noted that around 1,200 people were
receiving senior benefits from the program in Alaska.
2:34:26 PM
JAYNE ANDREEN, AARP, JUNEAU, spoke in support of the
legislation. She shared that AARP had over 95,000 members
in Alaska. She shared a personal story about visiting her
elderly parents and discussing with them how they could
remain in their home and sustain a quality of life. She
elucidated that one group who would most benefit from the
program was older women. She communicated that women had
lower earning power and outlived men. As the husband faced
declining health, resources were used on him leaving less
for the woman when she is widowed. The organization was
also concerned about low income Alaskans who had worked all
their lives at low paying jobs and were not able to build
retirement income. In addition, rural Alaskans, living a
subsistence lifestyle benefitted from senior benefits as
well as the oldest living individuals; people in their
80's, 90's, and 100 or older. She shared another story
about a family member who was able to live at home until he
was 99 years of age, but his resources had been completely
used up. She concluded that the classifications of seniors
she listed benefitted the most from senior benefits due to
increasing health costs and needs for services without the
increasing income to meet the needs.
2:37:34 PM
Co-Chair Foster CLOSED public testimony.
Representative Wilson was supportive of moving the bill.
Co-Chair Foster believed the bill had strong bipartisan
support.
Representative Grenn had a comment about amending the
fiscal note to reflect the extension to six years.
2:38:54 PM
AT EASE
2:39:54 PM
RECONVENED
Vice-Chair Gara addressed the previously published fiscal
impact note from the Department of Health and Social
Services (FN 1 (DHS)) allocated to the Senior Benefits
Payment Program. He shared that the note showed a
consistent program cost of $19,986,100 through FY 2024. He
reported that an amended fiscal note to extend the program
to 2024 was forthcoming.
Co-Chair Seaton MOVED to REPORT CSHB 236(FIN) out of
committee with individual recommendations and the
accompanying fiscal note.
CSHB 236(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal impact note
from the Department of Health and Social Services.
Co-Chair Foster reviewed the schedule for the following
day.
ADJOURNMENT
2:42:23 PM
The meeting was adjourned at 2:42 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 236 HFIN CS WORKDRAFT v.D.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |
| HB236 Supporting Document Alaska Commision on Aging Letter 2.2.18.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |
| HB236 Supporting Documents SBP Fact Sheet - Updated August 2017.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |
| HB236 Supporting Documents Email Public Comment Sept 2017.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |
| HB236 Supporting Documents AARP Letter Support April 2017.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |
| HB236 Supporting Document Governor FY2019 Budget Request SBP.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |
| HB236 Sponsor Statement - Updated 9.25.17.pdf |
HFIN 2/7/2018 1:30:00 PM |
HB 236 |