Legislature(2007 - 2008)SENATE FINANCE 532
04/08/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB 2 | |
| SB 8 | |
| SB 212 | |
| HB 147 | |
| HB 166 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 212 | TELECONFERENCED | |
| += | SB 8 | TELECONFERENCED | |
| + | HB 2 | TELECONFERENCED | |
| + | HB 147 | TELECONFERENCED | |
| += | HB 166 | TELECONFERENCED | |
| + | HB 289 | TELECONFERENCED | |
| + | HB 307 | TELECONFERENCED | |
| + | HB 406 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 8, 2008
9:44 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:44:02 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Senator Bettye Davis; Tom Obermeyer, Staff, Senator Davis;
Angela Listan; Gus Marx, Grants Manager, Juneau Youth
Services; Jeff Jessee, Chief Executive Officer, Alaska
Mental Health Trust Authority; Pete Fellmen, Staff,
Representative John Harris; Jerry Burnett, Director,
Division of Administrative Services, Department of Revenue;
Jeff Park, Vice President, Rasmussen Foundation Kaci
Schroeder, Staff, Representative Thomas; Debbie Richter,
Director, Dividend Division; Jerry Burnett, Director,
Division of Administrative Services, Department of Revenue
PRESENT VIA TELECONFERENCE
Steve Horn, Executive Director, Alaska Behavioral Health
Association; Jerry Fuller, Medicare Director, Department of
Health and Social Services; Brenda Moore, Member, Medical
Health Board and Counselor, Suicide Prevention; Naomi
Tigner, Alaska Association for Homes for Children and
Presbyterian Hospitality House; Rod Betit, President, Alaska
State Hospital Nursing Home Association; Lawrence Weiss,
Executive Director, Alaska Center for Public Policy; Geran
Tarr, Alliance for Reproductive Justice; Brett Carlson,
Volunteer Chair, Alaska Travel Industry Association; Mike
Walsh, Vice President, 4 Acre Group
SUMMARY
SB 8 "An Act relating to a mental health patient's
right to choose the gender of hospital staff
providing intimate care to the mental health
patient and to the duties of hospital staff in
caring for patients receiving mental health
treatment."
CSSB 8 (FIN) was REPORTED out of Committee with no
recommendations and accompanying new zero fiscal
notes from the Department of Corrections and the
Department of Health and Social services.
SB 212 "An Act relating to eligibility requirements for
medical assistance for certain children and
pregnant women; and providing for an effective
date."
SB 212 was REPORTED out of Committee with no
recommendations and three accompanying previously
published fiscal notes from the Department of
Health and Social Services.
HB 2 "An Act relating to the vocational education
account and appropriations from that account; and
providing for an effective date."
HB 2 was SCHEDULED but NOT HEARD.
CSHB 147(RLS)
"An Act relating to matching funds and state money
for state tourism marketing contracts with trade
associations; and providing for an effective
date."
CSHB 147 (RLS) was HEARD and HELD in Committee for
further consideration.
CS HB 166(FIN)
"An Act relating to contributions from permanent
fund dividends to community foundations, to
certain educational organizations, and to certain
other charitable organizations; and providing for
an effective date."
SCS CSHB 166 (FIN) was REPORTED out of Committee
with no recommendations and an accompanying new
fiscal note from the Department of Revenue.
CSHB 289(FSH)
"An Act exempting employers from paying
unemployment tax for temporary services provided
by fishing vessel crewmembers and related to
emergency oil spill training and response
activities; and providing for an effective date."
CSHB 289 (FSH) was SCHEDULED by NOT HEARD.
CSHB 307(FIN)
"An Act relating to penalizing certain misdemeanor
domestic violence assaults as felonies."
CSHB 307 (FIN) was SCHEDULED but NOT HEARD.
CSHB 406(STA)
"An Act relating to contracts for the preparation
of election ballots."
CSHB 406 (STA) was SCHEDULED but NOT HEARD.
9:44:09 AM
HOUSE BILL NO. 2
"An Act relating to the vocational education account
and appropriations from that account; and providing for
an effective date."
HB 2 was SCHEDULED but the not HEARD.
Co-Chair Stedman reviewed SB 8 for mental health patient's
rights, first heard in Committee February 6, 2008. At that
meeting, the Committee adopted Committee Substitute Version
E changing the age of a patient's right to request a care
provider by gender, from sixteen to eighteen years.
9:46:48 AM
SENATE BILL NO. 8
"An Act relating to a mental health patient's right to
choose the gender of hospital staff providing intimate
care to the mental health patient and to the duties of
hospital staff in caring for patients receiving mental
health treatment."
SENATOR BETTYE DAVIS, bill sponsor, thanked the Committee
for hearing the bill and declared the bill had no
opposition.
Co-Chair Hoffman Moved to Report CSSB 8 out of Committee
with individual recommendations and accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
CSSB 8 (FIN) was REPORTED out of Committee with no
recommendations and accompanying new zero fiscal notes from
the Department of Corrections and the Department of Health
and Social services.
9:49:01 AM
SENATE BILL NO. 212
"An Act relating to eligibility requirements for medical
assistance for certain children and pregnant women; and
providing for an effective date."
9:49:16 AM
TOM OBERMEYER, STAFF, SENATOR DAVIS, presented an overview
of the bill by reading the Sponsor Statement:
SB 212 reinstates the qualifying income standards for
children and pregnant women receiving Medicaid benefits
under the Denali KidCare (DKC) program to poverty
guidelines used when the program was established in
1997 at 200% Federal Poverty Guideline (FPG) for
Alaska. Reduced and frozen at 175% FPG by the
Legislature in 2003, the equivalent income limits were
reduced in the following four years to 154% by the time
SB27 was implemented to reinstate current levels of the
FPG at 175% in 2007. Children and pregnant women with
household incomes between 176% and 200% FPG still have
not regained eligibility. SB212 also increases
allowable premiums or cost-sharing by families whose
incomes are between 150%-200% FPG.
The fiscal notes anticipate 2% enrollment growth after
2009 and an annual cost increase of 8.6%, allowing for
5% medical inflation in Alaska. The $249,600
appropriation required for 2009 does not reflect the
indirect savings by fewer emergency room visits and
many avoided long-term illnesses for SCHIP children.
The addition of one employee and office expense at
$73,800 provides for the anticipated increase in
enrollment of 218 pregnant women and 1277 children.
DHSS has requested additional support for Denali
KidCare in the Governor's FY09 budget.
Forty one-states allow participation by families at or
above 200% FPG with many over 300%. The reason for
higher SCHIP eligibility coverage in other states is
that the federal government reimburses SCHIP at an
enhanced rate, and higher SCHIP eligibility has proven
to be an efficient use of health care dollars. While
most patients enrolled in Medicaid are children,
children utilize only a fraction of the resources.
Early intervention and preventative care greatly reduce
visits to emergency rooms and costly long-term
illnesses. Hospitals regularly write-off the cost of
emergency room visits by non-emergency low-income,
indigent, or uninsured patients whom they must serve
when patients cannot pay. The costs of these non-
emergency visits to hospitals for SCHIP children and
other low-income and uninsured, who have no other way
of obtaining health care, are passed along in increased
costs to patients who do pay and/or are insured under
private or state health benefit plans. There is no
effect on eligibility for Denali KidCare if the SCHIP
allotment is fully expended. If costs exceed available
SCHIP funds, claims are simply reimbursed at the lower,
regular Medicaid rate, resulting in reduced federal
revenues.
9:52:16 AM
Senator Dyson asked what would be the financial difference
for a family of four.
Mr. Obermeyer explained that the amount is predicated on
income but he did not have the dollar amount. He referred to
a Medicaid expert online.
9:53:07 AM
STEVE HORN, EXECUTIVE DIRECTOR, ALASKA BEHAVIORAL HEALTH
ASSOCIATION testified via teleconference and spoke in
support of the bill. He reported that Alaska has the fourth
most stringent eligibility level for children's health
insurance in the country resulting in many children not
receiving needed basic health care. He believed Denali
KidCare will save Alaska money in the long run. Children
without health care receive less preventative care resulting
in higher health risks and greater use of expensive
emergency rooms.
9:54:38 AM
JERRY FULLER, MEDICARE DIRECTOR, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES testified via teleconference and noted he
did not have the income chart with him to answer Senator
Dyson's question to describe the income level for a family
of four at the 200% level. He acknowledged that the Governor
has not taken a position on this bill.
9:55:37 AM
BRENDA MOORE, MEMBER, MEDICAL HEALTH BOARD AND COUNSELOR,
SUICIDE PREVENTION testified via teleconference in support
this bill and encouraged the bill being moved from
Committee.
9:56:55 AM
NAOMI TIGNER, ALASKA ASSOCIATION FOR HOMES FOR CHILDREN AND
PRESBYTERIAN HOSPITALITY HOUSE testified via teleconference
in support of this bill. She believed in the necessity of
raising the eligibility level to 200% to enable children to
receive basic needed health care.
AT EASE: 9:58:09 AM
RECONVENED: 9:58:50 AM
9:59:05 AM
ROD BETIT, PRESIDENT, ALASKA STATE HOSPITAL NURSING HOME
ASSOCIATION testified via teleconference and supported the
bill. As a member of the Governor's Health Care Strategy
Council, the Association listed this as one of their key
recommendations to bring coverage to the 200 percent level.
10:00:24 AM
LAWRENCE WEISS, EXECUTIVE DIRECTOR, ALASKA CENTER FOR PUBLIC
POLICY testified via teleconference in support of this bill.
He presented the economic issues for the 1,200 Alaska
children with no access to health care. For every thirty
cents the state spends, the federal governor would
contribute seventy cents. Children without health care are
at highest risk to use expensive emergency rooms where they
do not receive preventive health measures. This program will
save the state money in the future.
10:03:15 AM
ANGELA LISTAN spoke in support of the bill. She noted that
the cost of health care has risen faster than almost any
other living expense. She noted that forty-six states use
the 200 percent federal poverty level rate. She remarked
that the federal poverty level for a family of four is
$53,000 which is not enough to cover all expenses with the
additional expense for health insurance.
10:05:24 AM
GERAN TARR, ALLIANCE FOR REPRODUCTIVE JUSTICE testified via
teleconference in support of the bill. She agreed with the
previous comments from the others testifiers.
10:06:45 AM
GUS MARX, GRANTS MANAGER, JUNEAU YOUTH SERVICES supported
the bill. His family has used Denali KidCare in the past and
he applauded the state for helping families in need.
10:08:11 AM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST AUTHORITY spoke in support of the bill. He declared
that Medicaid is a crucial part of funding for children in
need and this bill will assist in financing future projects.
10:08:55 AM
Co-Chair Stedman reviewed the three Department of Health and
Social Services fiscal notes attached to this bill.
10:09:50 AM
Senator Thomas appreciated those who brought forth this
bill. He mentioned that other people were covered by this
bill, such as the aged, blind and mentally retarded.
10:10:42 AM
Co-Chair Hoffman MOVED to REPORT SB 212 out of Committee
with individual recommendations and the attached fiscal
notes.
Senator Dyson OBJECTED for discussion.
Senator Dyson warned of putting into Statute programs that
the Legislature may not be able to sustain in the long run.
He suggested the bill have a provision that in three or four
years the percentage reverts back to the 175 percent unless
the Legislature takes action. The state may run into a
deficient problem in the future. He reminded the Committee
of another state program that allows people with significant
health issues to get state financing.
Senator Dyson WITHDREW his OBJECTION.
Senator Elton OBJECTED for discussion.
Senator Elton reported his enthusiastic support for this
bill. He remarked that one of the biggest debates this year
was whether to provide energy assistance, across the board,
regardless of need or income level. In his opinion, the
beauty of SB 212 is the it provides medical assistance to
Alaskans in need and this is one of the preeminent concerns
and rights of all citizens. This program would receive $2
from the federal government for every $1 spent by the state.
Senator Elton WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
SB 212 was REPORTED out of Committee with no recommendations
and three accompanying previously published fiscal notes
from the Department of Health and Social Services.
10:15:19 AM
CS FOR HOUSE BILL NO. 147(RLS)
"An Act relating to matching funds and state money for
state tourism marketing contracts with trade
associations; and providing for an effective date."
10:15:34 AM
PETE FELLMEN, STAFF, REPRESENTATIVE JOHN HARRIS, presented
an overview of the bill. He reported that HB 147 is
basically the same bill as SB 144, sponsored by Senator
Lesil McGuire. The difference between the two bills is that
the finance committee believed it prudent to limit the
amount of funds that the Office of Economic Development
could spend on tourism to $9 million. Mr. Fellman noted a
sunset provision for 2011 to give the tourism industry an
opportunity to grow and self finance the advertising. He
reminded the Committee that state tourism generates $1.5
billion into the state's economy. He noted that for every $1
the state contributes, $1.68 in returned to the state. The
economic boom from tourism flows throughout every region of
Alaska and touches many individuals and businesses. Mr.
Fellman disclosed that only nineteen other states require a
private sector contribution. Only Florida and California
have private section contributions more than Alaska. Alaska
ranks thirty-six in the nation in public sector funding.
10:19:10 AM
Senator Elton remained undecided on this approach because
state marketing efforts, with seafood and tourism, usually
require a market test. This market test asserts that the
benefiting industry believes they are receiving enough value
to contribute themselves at a certain level. His hesitation
to this approach is that the industry is not contributing at
the same level as before.
10:20:19 AM
Mr. Fellman responded that when the cruise ship tax became
part of the state statute, with cruise lines paying money
directly to the state's budget, they withdrew $2 million
that they had been investing in tourism. At one time Alaska
was putting in $20 million for tourism marketing but that
has since decreased.
Senator Elton interjected that the cruise lines are not
paying the tax directly but charging the head tax to the
passengers.
10:22:05 AM
Senator Olson inquired about the distribution level between
urban and rural Alaska.
10:22:25 AM
Mr. Fellman responded that there are a thousand tourism
businesses in the ATIA (Alaska Travel Industry Association)
and that money is distributed throughout the state depending
on how much is contributed. A plan would be developed to
disseminate the money throughout Alaska's various regions.
10:22:53 AM
Co-Chair Stedman reviewed the one fiscal note for $9
million.
10:23:07 AM
Co-Chair Hoffman noted he had similar concerns as Senator
Elton and wondered if more participation by industry could
be considered. He asked if the bill sponsor would consider a
lesser amount than listed in the bill
10:24:07 AM
Mr. Fellman responded that the present amount in the bill is
about the limit that the tourism industry could support. The
tourism industry will contribute $2.7 million to the
marketing campaign and can not contribute more at this time.
He remarked that if Alaska tourism begins to fall, then the
amount businesses will be able to contribute will also
decline. He stressed that it was important for Alaska to
help this industry until they are able to support
themselves.
Co-Chair Hoffman questioned why is there the belief that the
tourism industry is declining. He assumed Alaska tourism was
growing. He remarked that the cruise line industry has grown
tremendously in past years with tourists commenting that
Alaska sells itself.
10:26:27 AM
Senator Elton noted that it was hard for him to hear a
response that that says the tourism industry can not afford
more. He remarked that the tourism industry considers itself
larger than the seafood industry but the marketing program
for the seafood industry puts in twice a much as the tourism
industry and receives only $1 million from the state.
10:27:36 AM
Mr. Fellman responded that the fishing industry has received
considerable money in the past to help develop the industry.
He believed about $125 million has been invested in
marketing to help the fishing industry develop. He noted
that tourism was a renewable resource that will continue to
generate income and grow. Tourism money benefits the entire
state.
10:29:26 AM
Senator Elton reported that as the former Executive Director
of the Alaska Seafood Marketing Institute the seafood
industry received approximately $4 million a year. He
stressed there must be a market test and he did not believe
it had been met.
10:30:23 AM
BRETT CARLSON, VOLUNTEER CHAIR, ALASKA TRAVEL INDUSTRY
ASSOCIATION testified via teleconference and spoke in
support of the bill. He reminded the Committee that ATIA
represents over one thousand businesses throughout Alaska.
ATIA believed that the state can help Alaska travel
businesses and nurture the private sector economy to
contribute revenues to local and state government. Mr.
Carlson stressed that Alaska's tourism marketing funding is
broken. ATIA believes that this bill represents a fix. The
$9 million fiscal note is less than the $9.5 million in
funding that passed out of the Senate Finance Committee last
session. It identifies a sustainable travel industry
generated funding source for Alaska's tourism marketing
program.
10:33:22 AM
Co-Chair Hoffman revealed how proud he was that Alaska was
leading the way in getting participation from industry and
business and hoped other states would take that initiative.
He judged it would be better to get more industry and
business participation.
10:34:09 AM
HB 147 was HEARD and HELD in Committee for further
consideration.
CS FOR HOUSE BILL NO. 166(FIN)
"An Act relating to contributions from permanent fund
dividends to community foundations, to certain
educational organizations, and to certain other
charitable organizations; and providing for an
effective date."
Co-Chair Hoffman MOVED to ADOPT Senate Committee Substitute
for CSHB 166, work draft 25-LS0678\V as the working
document. There being NO OBJECTION, the Senate Committee
Substitute Version V was adopted.
KACI SCHROEDER, STAFF, REPRESENTATIVE THOMAS, provided an
overview of the committee substitute. The first change in
the new committee substitute Version V was in Section 1
which allows Alaskans to check off and contribute $25 to the
full dividend amount as a donation to charity. On page 2, it
states that the contribution can not be changed after the
application is filed and no money contributed by the
individual shall be used for administrative costs. Ms.
Schroeder continued that on page 2, Section (c) it further
clarifies the types of organizations that are eligible for
this program and on page 3 it lists the criteria that an
organization must meet before they are allowed to be put on
the permanent fund application. Page 4 clarifies that the
department may not use any contributions for administrative
costs but also states that the department can collect a $50
application fee. Ms. Schroeder noted that on page 4, (g) it
allows the department to circumvent the procurement code.
She signified that by January of each year the Legislature
would receive a report on how the program is working. She
cited that Section 2, page 5 deals with language requested
by the Department of Revenue. She noted the last change on
page 6 states that this will not apply to the 2008 dividend.
The program will begin in 2010 to give the department time
to implement the program.
10:39:09 AM
Senator Olson asked for the reasoning behind circumventing
the procurement quota.
Ms. Schroeder replied that it had been requested in the
House by Representative Coghill. The United Way was the only
known program ready to do this program now.
10:39:46 AM
DEBBIE RICHTER, DIRECTOR, DIVIDEND DIVISION noted she was
available for questions.
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE remarked that the department
neither supports nor opposes this bill. There is other
language in the bill that would eliminate paper and work
load for the department to allow staff to respond to
questions.
Co-Chair Stedman inquired if the department feels this is
administratively controllable.
10:42:14 AM
Ms. Richter remarked that the division has been working with
the United Way as the potential contractor for handling the
qualification of the agencies and they have expressed a
concern. They have offered an 800 number that would be
posted on their website for people call and ask questions.
Co-Chair Stedman requested the fiscal impact in the future.
10:43:01 AM
Mr. Burnett reported that the bill is written prohibiting
the division from using any Alaskan's dividend money to pay
for this program. Any money spent would be money that was
contractual from the Rasmussen Foundation or other private
sources. The fiscal note just gives spending authorization
for designated program receipts that are donated to the
state for this purpose.
Co-Chair Stedman inquired if it was expected that financial
support would still be there in three years or is this
funding just to start the program.
10:44:28 AM
Senator Elton questioned if the division is anticipating
that future costs will be funded by an application fee.
Mr. Burnett replied that the $50 application fee would not
be significant in terms of funding for this program. The
number of organizations would not be large enough. He
indicated that there would be, after successful two to three
years, some arrangement with the organizations receiving
this based on the costs. If the sunset is removed, then a
funding formula would need to be put into place at that
time.
10:45:50 AM
Senator Elton asked why the application fee was necessary.
Mr. Burnett replied that the department did not write the
bill or add the application fee as a funding source. The
application fee money would just offset some of the costs of
qualifying organizations rather than the ongoing costs.
Under this bill the Rasmussen foundation would pay the
administration costs for the first three years.
10:46:51 AM
Co-Chair Hoffman inquired why it was necessary to have four
thousand man hours to implement this legislation.
Ms. Richter replied that the eligibility technician
requested is to answer public response because the
department expects a significant increase in public contact
questioning the new information on the application. The
division is not able to handle the public response at this
time.
Co-Chair Hoffman signified that he does not see the division
receiving two thousand hours of inquiry for this program. He
noted that the Governor was looking for more efficiency in
government and this request did not reflect that philosophy.
Mr. Burnett agreed that the division may need less time and
effort but the fiscal note is an authorization to use money
given by the Rasmussen Foundation for this purpose. There
may not be a significant increase over time but only a short
term bump of inquiries. Any employees hired for this program
will be project specific employees not a permanent full time
part of the department until after this bill becomes a
permanent law.
10:49:23 AM
Senator Elton asked what kind of public contact the
department anticipates.
Ms. Richter replied that the department anticipates the
public will have many questions about the program in
general, such as whether their contributions are tax
deductable or if they can change their selection. The
division anticipates that if only one percent of the
applicants that apply for a dividend actually call the
division, this would be approximately six thousand phone
calls.
10:50:39 AM
Senator Thomas remarked that the division does anticipate
that the number of calls could be less than projected and
the three years of Rasmussen contributions in the first
three years will take care of that in the beginning stages.
He inquired if there are one thousand who regularly file
990s regularly.
Ms. Richter believed it to be two thousand.
10:52:00 AM
JEFF PARK, VICE PRESIDENT, RASMUSSEN FOUNDATION, responded
that the foundation would engage in working with the third
party provider, the United Way, and an outreach program to
inform the public about the purpose of the dividend check-
off. The fiscal note assumes that the department will be
taking on many of these new activities.
10:54:33 AM
Co-Chair Stedman requested an overview of the bill.
Mr. Parks remarked that this bill provides Alaskans with a
mechanism for making charitable donations to their favorite
non-profits. He addressed that the three year provision of
the program would be underwritten by the Rasmussen
Foundation. If the program were to continue beyond year
three it would require action by the Legislature.
10:55:49 AM
MIKE WALSH, VICE PRESIDENT, 4 ACRE GROUP testified via
teleconference and remarked he was available for questions.
10:56:38 AM
Co-Chair Hoffman MOVED to REPORT SCS CSHB 166 (FIN) out of
Committee with individual recommendations and an
accompanying fiscal. There being NO OBJECTION, it was so
ordered.
SCS CSHB 166 (FIN) was REPORTED out of Committee with no
recommendations and an accompanying new fiscal note from the
Department of Revenue.
AT EASE: 10:57:24 AM
RECONVENED: 10:59:14 AM
CS FOR HOUSE BILL NO. 289(FSH)
"An Act exempting employers from paying unemployment
tax for temporary services provided by fishing vessel
crewmembers and related to emergency oil spill training
and response activities; and providing for an effective
date."
CSHB 289 (FSH) was SCHEDULED but NOT HEARD.
CS FOR HOUSE BILL NO. 307(FIN)
"An Act relating to penalizing certain misdemeanor
domestic violence assaults as felonies."
CSHB 307 (FIN) was SCHEDULED but NOT HEARD.
CS FOR HOUSE BILL NO. 406(STA)
"An Act relating to contracts for the preparation of
election ballots."
CSHB 406 (STA) was SCHEDULED but NOT HEARD.
ADJOURNMENT
The meeting was adjourned at 10:59 AM
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