Legislature(1999 - 2000)

03/04/1999 03:02 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE HEALTH, EDUCATION AND SOCIAL                                                                                     
            SERVICES STANDING COMMITTEE                                                                                         
                   March 4, 1999                                                                                                
                     3:02 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Fred Dyson, Co-Chair                                                                                             
Representative John Coghill, Co-Chair                                                                                           
Representative Jim Whitaker                                                                                                     
Representative Joe Green                                                                                                        
Representative Carl Morgan                                                                                                      
Representative Tom Brice                                                                                                        
Representative Allen Kemplen                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER HOUSE MEMBERS PRESENT                                                                                                     
                                                                                                                                
Representative Gene Therriault                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
* HOUSE JOINT RESOLUTION NO. 13                                                                                                 
Relating to using oil spill settlement funds to create an endowment                                                             
for the sciences at the University of Alaska.                                                                                   
                                                                                                                                
     MOVED HJR 13 OUT OF COMMITTEE                                                                                              
                                                                                                                                
* SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 72                                                                                      
"An Act relating to the provision of services for persons with                                                                  
handicaps; substituting, in the chapter relating to the rights of                                                               
persons with handicaps and programs for the benefit of persons with                                                             
handicaps, references to 'disabilities' for references to                                                                       
'handicaps'; correcting references in that chapter in certain                                                                   
definitions; and correcting in that chapter a reference to an act                                                               
under which federal financial support is provided for the support                                                               
of education of the handicapped."                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HJR 13                                                                                                                    
SHORT TITLE: UNIVERSITY ENDOWMENT FOR RESEARCH                                                                                  
SPONSOR(S): REPRESENTATIVES(S) THERRIAULT, Davies, Whitaker,                                                                    
Mulder, Harris                                                                                                                  
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/08/99       162     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/08/99       163     (H)  HES, FINANCE                                                                                        
 2/10/99       203     (H)  COSPONSOR(S): HARRIS                                                                                
 3/04/99               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
                                                                                                                                
BILL: HB  72                                                                                                                    
SHORT TITLE: PERSONS WITH DISABILITIES                                                                                          
SPONSOR(S): REPRESENTATIVES(S) BRICE, Croft                                                                                     
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/29/99       102     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/29/99       103     (H)  HES, FINANCE                                                                                        
 2/01/99       122     (H)  COSPONSOR(S): CROFT                                                                                 
 2/17/99       236     (H)  SPONSOR SUBSTITUTE                                                                                  
                            INTRODUCED-REFERRALS                                                                                
 2/17/99       236     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/17/99       237     (H)  HES, FIN                                                                                            
 3/04/99               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
WILDA RODMAN, Legislative Administrative Assistant                                                                              
   for Representative Gene Therriault                                                                                           
Alaska State Legislature                                                                                                        
Capitol Building, Room 511                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-2812                                                                                                      
POSITION STATEMENT:  Presented HJR 13.                                                                                          
                                                                                                                                
MOLLY MCCAMMON, Executive Director                                                                                              
Exxon Valdez Oil Spill Trustee Council                                                                                          
645 G Street                                                                                                                    
Anchorage, Alaska  99517                                                                                                        
Telephone:  (907) 278-8012                                                                                                      
POSITION STATEMENT:  Testified on HJR 13.                                                                                       
                                                                                                                                
SUSAN DRATHMAN, Coordinator                                                                                                     
The Pride Program                                                                                                               
Community Mental Health Center                                                                                                  
4938 Ben Walters Lane                                                                                                           
Homer, Alaska  99603                                                                                                            
Telephone:  (907) 235-7701                                                                                                      
POSITION STATEMENT:  Testified in support of HB 72.                                                                             
                                                                                                                                
DAVID MALTMAN, Executive Director                                                                                               
Governor's Council on Disabilities and Special Education                                                                        
Office of the Commissioner                                                                                                      
Department of Health and Social Services                                                                                        
P.O. Box 240249                                                                                                                 
Anchorage, Alaska  99524                                                                                                        
Telephone:  (907) 269-8990                                                                                                      
POSITION STATEMENT:  Testified in support of HB 72.                                                                             
                                                                                                                                
EMILY ENNIS, Executive Director                                                                                                 
Fairbanks Resource Agency                                                                                                       
805 Airport Way, Suite 1                                                                                                        
Fairbanks, Alaska  99701                                                                                                        
Telephone:  (907) 456-8901                                                                                                      
POSITION STATEMENT:  Testified in support of HB 72.                                                                             
                                                                                                                                
ELAINE HAMRICK                                                                                                                  
Member, Key Coalition                                                                                                           
10250 Jamestown Number 11                                                                                                       
Anchorage, Alaska  99507                                                                                                        
Telephone:  (907) 522-1097                                                                                                      
POSITION STATEMENT:  Testified in support of HB 72.                                                                             
                                                                                                                                
SCOT WHEAT                                                                                                                      
P. O. Box 2353                                                                                                                  
Homer, Alaska  99603                                                                                                            
Telephone:  (907) 235-6840                                                                                                      
POSITION STATEMENT:  Testified in support of HB 72.                                                                             
                                                                                                                                
DIANA RAY                                                                                                                       
Hope Community Resources                                                                                                        
P. O. Box 33045                                                                                                                 
Juneau, Alaska  99803                                                                                                           
Telephone:  (907) 789-2118                                                                                                      
POSITION STATEMENT:  Testified in support of HB 72.                                                                             
                                                                                                                                
KARL BRIMNER, Director                                                                                                          
Division of Mental Health and Developmental Disabilities                                                                        
Department of Health and Social Services                                                                                        
P. O. Box 110620                                                                                                                
Juneau, Alaska  99811                                                                                                           
Telephone:  (907) 465-3370                                                                                                      
POSITION STATEMENT:  Provided information on HB 72.                                                                             
                                                                                                                                
CONNIE ANDERSON, Program Administrator                                                                                          
Developmental Disabilities Program                                                                                              
Division of Mental Health and Developmental Disabilities                                                                        
Department of Health and Social Services                                                                                        
P. O. Box 110620                                                                                                                
Juneau, Alaska  99811                                                                                                           
Telephone:  (907) 465-3370                                                                                                      
POSITION STATEMENT:  Provided information on HB 72.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-15, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIRMAN COGHILL called the House Health, Education and Social                                                               
Services Standing Committee meeting to order at 3:02 p.m.  Members                                                              
present at the call to order were Representatives Dyson, Coghill,                                                               
Morgan, Brice and Kemplen.  Representatives Whitaker and Green                                                                  
joined the meeting at 3:08 p.m. and 3:10 p.m. respectively.                                                                     
                                                                                                                                
HJR 13 - UNIVERSITY ENDOWMENT FOR RESEARCH                                                                                      
                                                                                                                                
Number 0050                                                                                                                     
                                                                                                                                
CO-CHAIRMAN COGHILL announced the first order of business as House                                                              
Joint Resolution No. 13, Relating to using oil spill settlement                                                                 
funds to create an endowment for the sciences at the University of                                                              
Alaska.                                                                                                                         
                                                                                                                                
Number 0068                                                                                                                     
                                                                                                                                
WILDA RODMAN, Legislative Administrative Assistant for                                                                          
Representative Gene Therriault, Alaska State Legislature read the                                                               
sponsor statement:                                                                                                              
                                                                                                                                
     House Joint Resolution 13, is related to using oil spill                                                                   
     settlement funds to create a long-term research and monitoring                                                             
     endowment.  It supports the recent action of the Exxon Valdez                                                              
     Oil Spill Trustees to create a long-term research and                                                                      
     monitoring endowment using $115 million of the expected                                                                    
     reserve.                                                                                                                   
                                                                                                                                
     The Exxon Valdez Oil Spill (EVOS) Trustee Council allocates                                                                
     money obtained from settlement of the Exxon Valdez spill                                                                   
     litigation.  Over the years EVOS funds have largely been used                                                              
     to purchase land for habitat preservation, and have been                                                                   
     lacking in the area of research.  I believe this has left a                                                                
     critical gap in our understanding of this spill and how to                                                                 
     respond in the future.  Endowing scientific chairs at the                                                                  
     University will help increase available baseline data, enhance                                                             
     the biological resources of the northern Gulf of Alaska, and                                                               
     significantly improve spill-related technology.  For example,                                                              
     it is widely understood that many aspects of the Exxon Valdez                                                              
     oil spill response, such as high-pressure washing of beaches                                                               
     and rock washing, may have caused more long-term harm than                                                                 
     benefit.  We also need to know if types of marine ecosystems                                                               
     are extra sensitive to certain cleanup activities, and if so,                                                              
     how we should respond to a spill in those areas.                                                                           
                                                                                                                                
     An endowment of this nature will fulfill the intent of the                                                                 
     Exxon Valdez oil settlement and the mission of the Trustee                                                                 
     Council, which is to restore, rehabilitate, replace, enhance,                                                              
     or acquire equivalent resources and services in the oil spill                                                              
     region.                                                                                                                    
                                                                                                                                
MS. RODMAN noted they have a proposed committee substitute because                                                              
of recent actions taken by the Trustee Council on Monday.                                                                       
                                                                                                                                
Number 0242                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE moved to adopt the proposed committee                                                                      
substitute (CS) for HJR 13, 1-LS0314\H, Ford, 3/4/99, as a work                                                                 
draft.  There being no objection, Version H was before the                                                                      
committee.                                                                                                                      
                                                                                                                                
CO-CHAIRMAN COGHILL accepted the motion.                                                                                        
                                                                                                                                
Number 0385                                                                                                                     
                                                                                                                                
MS. RODMAN referred to the memo attached to the CS in the packets                                                               
that explains all the changes.  The original [bill] urged the                                                                   
Trustees to create an endowment through the University of Alaska.                                                               
On Monday the EVOS Trustees voted to use $115 million of the                                                                    
reserve for a research and monitoring program which is similar                                                                  
enough to what the sponsors wanted that they changed the resolution                                                             
to now support that action.  It would no longer be through the                                                                  
University of Alaska.  In addition to that, they encouraged the                                                                 
Trustee Council to use a portion of that $115 million to establish                                                              
endowed chairs at the University.                                                                                               
                                                                                                                                
MS. RODMAN went on to say there is an issue with the way that the                                                               
funds are invested.  Currently the Department of Justice requires                                                               
that the funds be deposited into a court registry, which can only                                                               
be invested in the U.S. Treasury.  The Trustee Council, as part of                                                              
this resolution, wants to ask the U. S. Congressional delegation to                                                             
amend federal legislation so that they can move it out of the Court                                                             
Registry Investment System and into a different kind of fund where                                                              
it could be invested more aggressively.                                                                                         
                                                                                                                                
CO-CHAIRMAN COGHILL asked who would have control of this.                                                                       
                                                                                                                                
MS. RODMAN said Molly McCammon can answer that better.  Currently                                                               
the monies are in a non-expendable fund.  When they are authorized                                                              
for expenditure, they are moved into either a federal fund or an                                                                
Alaska fund.  The Alaska fund is called the Exxon Valdez Oil                                                                    
Settlement Trust and is expendable.  The EVOS Trustee Council wants                                                             
to set up a non-expendable fund that is similar to that and would                                                               
be invested like the retirement system funds.                                                                                   
                                                                                                                                
Number 0583                                                                                                                     
                                                                                                                                
MOLLY MCCAMMON, Executive Director, Exxon Valdez Oil Spill Trustee                                                              
Council, testified via teleconference from Anchorage.  She                                                                      
confirmed what Ms. Rodman said.  Under federal law these funds have                                                             
to be left within the U.S. Treasury so they can only be affected in                                                             
treasury bills.  The Trustees believe this seriously limits their                                                               
potential in creating a long-term research endowment and research                                                               
fund.  In order to maximize their investment potential, the EVOS                                                                
Trustees are seeking congressional authorization to move the funds                                                              
from the treasury to invest them in other accounts that are                                                                     
controlled by prudent management.                                                                                               
                                                                                                                                
Number 0679                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN asked if there was any discussion at the                                                                 
Trustee Council meeting of the concept of using these funds to                                                                  
endow chairs at the University of Alaska.                                                                                       
                                                                                                                                
MS. MCCAMMON answered they did not specifically bring up the issue                                                              
of endowed chairs at the Monday meeting.  The action was strictly                                                               
to establish a long-term fund for research, but there has been                                                                  
support expressed for endowed chairs.  Most of the public comment                                                               
has been in favor of a competitive research program.  The plan is                                                               
to develop the long-term plan and then see if an endowed chair fits                                                             
into those goals.  At this point there hasn't been any action taken                                                             
on it.                                                                                                                          
                                                                                                                                
REPRESENTATIVE KEMPLEN asked if there was a percentage breakdown                                                                
between the categories of research, monitoring and general                                                                      
restoration.                                                                                                                    
                                                                                                                                
Number 0812                                                                                                                     
                                                                                                                                
MS. MCCAMMON answered no that they all fit together.  These are the                                                             
main categories established through the settlement itself in 1991.                                                              
There would be two on-going programs.  One would be the long-term                                                               
planning of what goes on with ocean currents, ocean temperatures                                                                
and the things seen over a decade, and the other would be research                                                              
to answer a multitude of questions about the marine environment.                                                                
                                                                                                                                
Number 0893                                                                                                                     
                                                                                                                                
MS. RODMAN gave the committee information from the University on                                                                
exactly how the endowed chairs work.  Usually a minimum of $2                                                                   
million is managed and invested by the University of Alaska                                                                     
Foundation and would be deposited into the pooled endowment fund.                                                               
The interest is expected to raise approximately $100,000 per year                                                               
which would pay the salary and some support for the endowed                                                                     
position.  The subject for the research area would be dictated by                                                               
EVOS but the University would have discretion on who it hires to                                                                
fill the position.  EVOS could be as specific as it wanted on the                                                               
area of research.                                                                                                               
                                                                                                                                
CO-CHAIRMAN COGHILL asked when would they want the transfer to                                                                  
happen.                                                                                                                         
                                                                                                                                
Number 0975                                                                                                                     
                                                                                                                                
MS. MCCAMMON said they would like the authority as soon as possible                                                             
to get the funds in a better investment climate.  They hope to have                                                             
more than $115 million dollars in 2002 for the research fund.  In                                                               
the two years since the process started, the Trustees believe a                                                                 
minimum of $17 million in unearned interest has been lost.  As soon                                                             
as this is accomplished, they will have more options in the future.                                                             
                                                                                                                                
REPRESENTATIVE KEMPLEN asked if the University could hire someone                                                               
for the $100,000 that is generated per year.                                                                                    
                                                                                                                                
MS. RODMAN said Ann Ringstad at the University said the $100,000                                                                
covers salary, benefits and some support.                                                                                       
                                                                                                                                
MS. MCCAMMON added that some of the top researchers already receive                                                             
over $120,000 in salary and benefits; but to attract top faculty,                                                               
they would want to have more than $100,000 per year.                                                                            
                                                                                                                                
Number 1078                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN asked if the resolution addresses a minimum                                                              
level for an endowment to attract a quality person.                                                                             
                                                                                                                                
MS. RODMAN answered no that it simply urges the establishment of                                                                
endowed chairs.  She emphasized that it is a minimum of $2 million                                                              
to generate the $100,000.                                                                                                       
                                                                                                                                
Number 1158                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE moved House CS for HJR 13 with individual                                                                  
recommendations and zero fiscal note.                                                                                           
                                                                                                                                
HB 72 - PERSONS WITH DISABILITIES                                                                                               
                                                                                                                                
Number 1185                                                                                                                     
                                                                                                                                
CO-CHAIRMAN COGHILL announced the next order of business as Sponsor                                                             
Substitute for House Bill No. 72, "An Act relating to the provision                                                             
of services for persons with handicaps; substituting, in the                                                                    
chapter relating to the rights of persons with handicaps and                                                                    
programs for the benefit of persons with handicaps, references to                                                               
'disabilities' for references to 'handicaps'; correcting references                                                             
in that chapter in certain definitions; and correcting in that                                                                  
chapter a reference to an act under which federal financial support                                                             
is provided for the support of education of the handicapped."  Co-                                                              
Chairman Coghill called on Representative Brice to present the                                                                  
bill.                                                                                                                           
                                                                                                                                
Number 1200                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE said the State of Alaska, following federal                                                                
trends, eliminated institutional care for disabled citizens.                                                                    
Harborview Development Center in Valdez has been closed and people                                                              
have moved back in the communities.  The problem has been that the                                                              
community services have been inadequately funded.  Currently there                                                              
are about 700 people on the waitlist.  HB 72 implements a concrete                                                              
time line by which people with disabilities will receive services;                                                              
it removes the funding barriers so the Department of Health and                                                                 
Social Services (DHSS) can administer the community-based care                                                                  
program at an appropriate financial level; and revises the sections                                                             
in the statutes that say "handicap" to say "disability".  Currently                                                             
the people on the waitlist in crisis get service, but people who                                                                
have a fairly stable living situation may wait six months to six                                                                
years before they are eligible for services.                                                                                    
                                                                                                                                
CO-CHAIRMAN DYSON asked for an explanation of "it removes the                                                                   
barriers for funding."                                                                                                          
                                                                                                                                
REPRESENTATIVE BRICE answered that the statute currently says the                                                               
DHSS will provide the programs the legislature funds.  The DHSS has                                                             
never asked for full funding, therefore the legislature never fully                                                             
funded the program so there has always been a waitlist.  This bill                                                              
says the DHSS will provide those services so at least the DHSS will                                                             
be required to ask the legislature for adequate funding.                                                                        
                                                                                                                                
CO-CHAIRMAN DYSON asked what would happen if the legislative                                                                    
appropriation in a given year is not sufficient to get the level of                                                             
care to qualified people within time guidelines in this bill.                                                                   
                                                                                                                                
REPRESENTATIVE BRICE answered there would be no provision of                                                                    
service.                                                                                                                        
                                                                                                                                
CO-CHAIRMAN DYSON said he thought a case could be made that this                                                                
would mandate that the time people wait for service be followed and                                                             
the legislature could be under court order to take the funds from                                                               
other sources to put the amount of resources necessary to meet the                                                              
time guidelines in this bill.                                                                                                   
                                                                                                                                
REPRESENTATIVE BRICE said that is probably an accurate statement                                                                
although he believes that it would work much the same way as                                                                    
Medicaid/Medicare.  There have been many court cases where people                                                               
with disabilities have sued for service and regardless of what the                                                              
state statute said, the courts have awarded in their favor because                                                              
of the length of time people are being left without services.  The                                                              
concern is that there is no plan to eliminate the waitlist, and HB
72 at least gets an enumeration of who is on the waitlist.                                                                      
                                                                                                                                
Number 1518                                                                                                                     
                                                                                                                                
CO-CHAIRMAN DYSON said he would be wholeheartedly in favor of HB 72                                                             
if it mandated that DHSS put forth in the budget request the                                                                    
resources required.  The fact that the language that says that the                                                              
services are subject to the appropriation have been deleted makes                                                               
him uneasy.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN said there is still discretionary authority                                                              
given to the DHSS.  The use of "may" is an important distinction on                                                             
lines 5 and 7.  If the mandatory language were there then he could                                                              
understand the reservations.  This legislation simplifies the                                                                   
statutes and still allows the discretionary ability of the DHSS; it                                                             
doesn't mandate anything.                                                                                                       
                                                                                                                                
CO-CHAIRMAN DYSON said with the permissive "may" there, the DHSS                                                                
can provide services directly or through contractors, but he                                                                    
doesn't read it that there is the option of not providing services.                                                             
                                                                                                                                
REPRESENTATIVE BRICE said the idea is that the DHSS may provide the                                                             
services themselves or contract them out.  HB 72 starts addressing                                                              
the needs of the people on the waitlist to focus on what is needed.                                                             
                                                                                                                                
SUSAN DRATHMAN, Coordinator, The Pride Program, Community Mental                                                                
Health Center testified via teleconference from Homer and said she                                                              
supports the elimination of the waitlist.  In Homer there are about                                                             
12 people who have no services at all, several have been on the                                                                 
waitlist four or five years, some placements will expire in May and                                                             
they can't make any plans.  The waitlist is detrimental and some                                                                
people who do receive services are under funded.                                                                                
                                                                                                                                
Number 1989                                                                                                                     
                                                                                                                                
DAVID MALTMAN, Executive Director, Governor's Council on                                                                        
Disabilities and Special Education testified in support of HB 72.                                                               
The Governor's Council's role in this is to plan, evaluate and then                                                             
promote services that benefit people with developmental                                                                         
disabilities.  He provided an article from the National Conference                                                              
of State Legislatures for the packets.  The article gives an idea                                                               
of what legislative peers are experiencing in other states.                                                                     
                                                                                                                                
MR. MALTMAN reported that on July 1, 1998 there were 787 people                                                                 
waiting for services.  Through serving about 250 people, 180 moved                                                              
away or didn't need services any longer, the list today is 690.                                                                 
The point is some people have been served throughout the year and                                                               
the waitlist has been reduced.  Factors that cause the waitlist to                                                              
grow include demographics, about 2 out of 100 people are                                                                        
developmentally disabled; students who finish special education                                                                 
programs may need minimal vocational support or meaningful day                                                                  
activities; and elderly parents who may need some services for                                                                  
their adult children.                                                                                                           
                                                                                                                                
MR. MALTMAN asked for support for HB 72 for three reasons:  it                                                                  
emphasizes the on-going need to develop a long-term approach to                                                                 
serving people with developmental disabilities; it provide a                                                                    
mechanism for the state to move eligible people into services; and                                                              
it replaces archaic and out-dated offensive language.                                                                           
                                                                                                                                
Number 2251                                                                                                                     
                                                                                                                                
EMILY ENNIS, Executive Director, Fairbanks Resource Agency, Member,                                                             
Key Coalition came forward to testify in support of HB 72.  She                                                                 
informed the committee of the needs of developmentally disabled                                                                 
people so they could better understand those needs.  In order for                                                               
those people to maintain a life as normal as possible, they require                                                             
community services.  About 11,000 of people in Alaska are                                                                       
developmentally disabled and about 2,200 of those are receiving                                                                 
services.  Around 700 are waiting for services and while they wait                                                              
their families could go into crisis.  The waitlist significantly                                                                
impacts lives of Alaskans with disabilities and their families.                                                                 
                                                                                                                                
TAPE 99-15, Side B                                                                                                              
Number 2372                                                                                                                     
                                                                                                                                
MS. ENNIS said that the waitlist has grown because the scope of                                                                 
eligibility was broadened, but the money was not there to pay for                                                               
the growth.  As a reminder, she said the state funded Harborview                                                                
Development Center about 30 years for $7 million a year of which                                                                
$3.5 million came from general funds.  Those people are now being                                                               
served in the communities and the needs are the same.  There needs                                                              
to be a long-term future plan that may include a bigger price tag                                                               
than has been addressed, and it needs to be faced.  She                                                                         
wholeheartedly supports HB 72 as do the members of the Key                                                                      
Coalition she represents.                                                                                                       
                                                                                                                                
Number 2241                                                                                                                     
                                                                                                                                
ELAINE HAMRICK came forward to testify as a mother of a child with                                                              
multiple disabilities, as a member of the Key Coalition and for                                                                 
families on the waitlist.  Although there will always be those who                                                              
abuse the system, in her experience the families needing services                                                               
ask for very little; not even what they need.  After her daughter                                                               
was born, she started working in the developmental disability field                                                             
to help other families.  She has first-hand experience putting                                                                  
together support for families in crisis and is surprised at how                                                                 
little they ask for.  As a member of Key Coalition, she is                                                                      
concerned with the high fiscal note.  She would like an accounting                                                              
of the fiscal note, a copy of the waitlist to compare it with local                                                             
service providers and to give feedback.                                                                                         
                                                                                                                                
REPRESENTATIVE BRICE agreed that the fiscal note raises some                                                                    
substantial questions, but he can work with the DHSS on it.  He                                                                 
would like to see a copy of the waitlist without the confidential                                                               
information and the requested services of those individuals.                                                                    
                                                                                                                                
MS. HAMRICK repeated her wholehearted support of this bill.                                                                     
                                                                                                                                
Number 1938                                                                                                                     
                                                                                                                                
SCOT WHEAT affiliated with National Alliance for the Mentally Ill                                                               
(NAMI) and public member on Alaska Psychiatric Institute (API)                                                                  
Board, testified via teleconference from Homer.  The parallels                                                                  
between the phase out of Harborview and downsizing of API is                                                                    
important to him.  He wants to see community implementation of                                                                  
services that keep people out of institutions and in the least                                                                  
restrictive environment.  He believes it is relatively inexpensive                                                              
to provide services in the community.  The waitlist is tragic and                                                               
unacceptable and he would like to see it eliminated or at least                                                                 
reduced.  He believes that the language that talks about reducing                                                               
the time on a waitlist year by year is a real important provision.                                                              
                                                                                                                                
Number 1850                                                                                                                     
                                                                                                                                
BRIAN BENNETT testified via teleconference from Homer as a father                                                               
of a developmentally disabled son.  Although his son's condition is                                                             
considered undiagnosed, several specialists believe he was injured                                                              
by an immunization shot during the first year of his life.  He                                                                  
offered his story as a reminder that having a developmentally                                                                   
disabled child could happen to anyone from an illness or injury.                                                                
                                                                                                                                
MR. BENNETT said his family is doing OK with the respite care and                                                               
funding for specialized equipment they have received.  He believes                                                              
that an increase in funding for the developmentally disabled will                                                               
actually save money for the State of Alaska in the long term.  He                                                               
thinks if families receive support, they are more likely to remain                                                              
a family and people considering foster care may be more likely to                                                               
accept difficult responsibilities with necessary support.                                                                       
Comparing the $3,000 to $6,000 per year of support needed by these                                                              
families to the $80,000 to $120,000 per year for institutional                                                                  
care, it makes sense to fully fund support services for the                                                                     
developmentally disabled.  He served on the Site Review of the                                                                  
Community Mental Health Center and The Pride Program in Homer, and                                                              
was amazed at the tremendous positive impact that the services for                                                              
the developmentally disabled have on the clients and their                                                                      
families.  He added that there are many other families out there at                                                             
or near crisis who need support services.                                                                                       
                                                                                                                                
DIANA RAY came forward to testify from Hope Community Resources, a                                                              
provider of developmentally disabled services in the state.  She                                                                
emphasized that the services are not a luxury but are literally for                                                             
the survival of the family.  The divorce rate for families with                                                                 
children with disabilities ranges from 72 percent to four out of                                                                
five because of the stresses.  When families receive services, some                                                             
of the stresses are relieved.  Another consideration is there are                                                               
over 1,000 individuals employed through DD [developmentally                                                                     
disabled] funds throughout the state and this is an investment for                                                              
the entire State of Alaska.                                                                                                     
                                                                                                                                
MS. RAY expressed concerns about the fiscal note.  She explained                                                                
the waiver system which the federal government developed.  The                                                                  
federal government years ago fully supported putting people into                                                                
institutions.  They regulated it, and the cost became enormous,                                                                 
which is one of the reasons Alaska closed Harborview.  If a person                                                              
qualified for a level of care as they would receive in an                                                                       
institution, they wouldn't have to go to the institution, but the                                                               
federal government would participate in the funding of the services                                                             
in the community.  The state receives a 59.8 percent match from the                                                             
federal government for people on waivers, which eases the State's                                                               
burden.                                                                                                                         
                                                                                                                                
MS. RAY said she agreed with the numbers in the fiscal note for the                                                             
Division of Medical Assistance.  One assumption made is only 60                                                                 
percent of individuals who are developmentally disabled would                                                                   
qualify for a waiver, but in her experience that the number is                                                                  
around 75 to 80 percent.  She believes that there are some faulty                                                               
assumptions with the general fund piece of the fiscal note.  It                                                                 
assumes that all 1,000 people that DHSS is proposing to serve need                                                              
a full set of services.  Many people on the waitlist only need                                                                  
respite care that would cost around $3,000; some only need gainful                                                              
employment or a meaningful day activity, which would be less than                                                               
the $37,000 proposed by DHSS.                                                                                                   
                                                                                                                                
MS. RAY agreed that families will ask for only what they need.  She                                                             
noted that not everyone on the waitlist needs services now but in                                                               
a few years.  She is concerned about the implementation date and                                                                
the date for serving 1,000 within six months.  She made a point to                                                              
refer to "people" not a "program."  In reference to the language                                                                
about the DHSS providing services, she thought it left the door                                                                 
open for the DHSS to open an institution.  She thinks that the                                                                  
private sector can provide the services much more economically with                                                             
oversight from the division.  She urged the committee to look at                                                                
that language.                                                                                                                  
                                                                                                                                
Number 1280                                                                                                                     
                                                                                                                                
KARL BRIMNER, Director, Division of Mental Health and Developmental                                                             
Disabilities, Department of Health and Social Services, informed                                                                
the committee that the Division has been involved in an assessment                                                              
of the waitlist.  He said the assessment piece has been completed                                                               
but the data hasn't been analyzed yet.  They don't have all the                                                                 
information available today, but he will get it to the committee                                                                
members as soon as it is available.  He confirmed the statistics of                                                             
earlier testimony.  It is his hope that the Division will be able                                                               
to provide services to the 140 without services in this fiscal                                                                  
year.                                                                                                                           
                                                                                                                                
REPRESENTATIVE GREEN expressed his concern with the fiscal note and                                                             
said there is either an insurmountable problem ahead or there is a                                                              
problem with the math.                                                                                                          
                                                                                                                                
MR. BRIMNER said when the Division of Medical Assistance (DMA)                                                                  
estimated the per service cost, they reflected about $37,000 for a                                                              
person on a waiver; roughly 60 percent of that would be covered by                                                              
the federal government.  Based on recent information, there are                                                                 
increased costs per waivers at this point.  The actual figures per                                                              
cost on waivers reflect a higher amount so this shows a                                                                         
conservative amount of cost per service for anyone on a waiver.                                                                 
When the DMA estimated the cost per service, they estimated them at                                                             
a full range of services even though some people don't require a                                                                
full range of services.  It is very difficult to predict how many                                                               
services someone will need in the future.  The fact that providers                                                              
have not realized the cost differentials they have experienced over                                                             
the years, they are losing key staff and that is a real cost                                                                    
factor.  The figures can be reworked and he will be happy to work                                                               
with Representative Brice on that.                                                                                              
                                                                                                                                
Number 717                                                                                                                      
                                                                                                                                
CO-CHAIRMAN DYSON referred to page 3, line 4 of HB 72 and asked                                                                 
what Mr. Brimner thought the deletion of the words in brackets                                                                  
would mean.                                                                                                                     
                                                                                                                                
MR. BRIMNER says he thinks it creates a possibility of an                                                                       
entitlement for services.                                                                                                       
                                                                                                                                
CO-CHAIRMAN DYSON asked if the DHSS is publicizing the waitlist and                                                             
the services being provided.                                                                                                    
                                                                                                                                
MR. BRIMNER said they will be able to report a complete array of                                                                
information once the analysis is completed.  They want to share the                                                             
information with the public, providers and consumers.                                                                           
                                                                                                                                
CO-CHAIRMAN DYSON asked how and when will that information be made                                                              
available.                                                                                                                      
                                                                                                                                
Number 0391                                                                                                                     
                                                                                                                                
CONNIE ANDERSON, Program Administrator, Developmental Disabilities                                                              
Program, Division of Mental Health and Developmental Disabilities,                                                              
Department of Health and Social Services said she hopes to have the                                                             
data in a draft format by the end of the month.                                                                                 
                                                                                                                                
CO-CHAIRMAN DYSON suggested that this information be available on                                                               
the Governor's web site on a monthly basis.  He asked that they                                                                 
think about that and give feedback about that suggestion.                                                                       
                                                                                                                                
REPRESENTATIVE BRICE said the DHSS did an accounting and                                                                        
enumeration of the waitlist about a year ago and presented it to                                                                
the budget subcommittee.  The real fiscal note is who is on the                                                                 
waitlist, how long they have been on it and what services they                                                                  
need.                                                                                                                           
                                                                                                                                
Number 0150                                                                                                                     
                                                                                                                                
REPRESENTATIVE WHITAKER said it is important that they have                                                                     
information they can trust so they can make a reasonable decision,                                                              
and he requests on future fiscal notes that they reflect reality.                                                               
                                                                                                                                
REPRESENTATIVE GREEN asked for feedback before they revisit this                                                                
bill.                                                                                                                           
                                                                                                                                
Number 0052                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE would like a follow up hearing to review that                                                              
information and have further discussion.                                                                                        
                                                                                                                                
CO-CHAIRMAN DYSON suggested that he and Co-Chairman Coghill ask the                                                             
Department of Law to review the deletion on page 3, line 4 and 5 to                                                             
see if that does expose them to an entitlement to full funding.                                                                 
[HB 72 was held over]                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIRMAN COGHILL adjourned the House Health, Education and                                                                   
Social Services Standing Committee meeting at 4:40 p.m.                                                                         
                                                                                                                                

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