Legislature(1997 - 1998)

04/24/1998 09:08 AM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE                   
                          April 24, 1998                                       
                            9:08 a.m.                                          
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Gary Wilken, Chairman                                                  
Senator Loren Leman, Vice-Chairman                                             
Senator Lyda Green                                                             
Senator Jerry Ward                                                             
Senator Johnny Ellis                                                           
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
None                                                                           
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
HOUSE BILL NO. 407                                                             
"An Act relating to repayment of teacher scholarship loans."                   
     PASSED HB 407 OUT OF COMMITTEE                                            
                                                                               
CS FOR HOUSE BILL NO. 353(HES) am                                              
"An Act relating to adoption by reference in regulations; and                  
providing for an effective date."                                              
     HEARD AND HELD                                                            
                                                                               
SENATE BILL NO. 293                                                            
"An Act relating to contracts for the provision of state public                
assistance to certain recipients in the state; providing for                   
regional public assistance plans and programs in the state;                    
relating to grants for Alaska tribal family assistance programs;               
and providing for an effective date."                                          
     PASSED SB 293 OUT OF COMMITTEE                                            
                                                                               
SENATE BILL NO. 266                                                            
"An Act relating to Medicaid coverage for certain eligible children            
and pregnant women; relating to primary care case management and               
managed care services as optional services and to premiums and                 
cost-sharing contributions under the Medicaid program; establishing            
the Healthy Families Alaska program; and providing for an effective            
date."                                                                         
     PASSED CSSB 266(HES) OUT OF COMMITTEE                                     
                                                                               
PREVIOUS SENATE COMMITTEE ACTION                                               
                                                                               
HB 407 - No previous committee action.                                         
                                                                               
HB 353 - See HESS minutes dated 4/22/98.                                       
                                                                               
SB 293 - No previous committee action.                                         
                                                                               
SB 266 - See HESS minutes dated 4/8/98 and 4/15/98.                            
                                                                               
WITNESS REGISTER                                                               
                                                                               
Representative Gary Davis                                                      
Alaska State Capitol                                                           
Juneau, Alaska  99801-1182                                                     
POSITION STATEMENT:  Sponsor of HB 407                                         
                                                                               
Gary and Marcia Reed                                                           
P.O. Box 2612                                                                  
Soldotna, Alaska  99669                                                        
POSITION STATEMENT:  Support HB 407                                            
                                                                               
Bruce Campbell                                                                 
Staff to Representative Pete Kelly                                             
Alaska State Capitol                                                           
Juneau, Alaska  99801-1182                                                     
POSITION STATEMENT: Testified for the sponsor of HB 353                        
                                                                               
Mr. Terry Hoefferle                                                            
Bristol Bay Native Association                                                 
P.O. Box 310                                                                   
Dillingham, Alaska  99576                                                      
POSITION STATEMENT:  Supports SB 293                                           
                                                                               
Bob Charles                                                                    
Alaska Village Council Presidents                                              
Bethel, Alaska  99559                                                          
POSITION STATEMENT:  Supports SB 293                                           
                                                                               
Mr. Michael Walleri                                                            
Tanana Chiefs' Council                                                         
122 1st Ave., Suite 600                                                        
Fairbanks, Alaska  99701                                                       
POSITION STATEMENT:  Supports SB 293                                           
                                                                               
Sharon Olsen                                                                   
Tlingit and Haida Central Council                                              
320 West Willoughby                                                            
Juneau, Alaska  99801                                                          
POSITION STATEMENT:  Supports SB 293                                           
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-38, SIDE A                                                             
Number 001                                                                     
                                                                               
CHAIRMAN WILKEN called the Senate Health, Education and Social                 
Services (HESS) Committee to order at 9:08 a.m.  Present were                  
Senators Leman, Ward, and Chairman Wilken.  Senators Green and                 
Ellis arrived shortly after the meeting convened.  The first order             
of business before the committee was HB 407.                                   
                                                                               
               HB 407 - TEACHER SCHOLARSHIP LOANS                              
                                                                               
REPRESENTATIVE GARY DAVIS, sponsor of the HB 407, gave the                     
following description of the measure.  Alaska established the                  
Teacher Scholarship Loan Program to provide an incentive to Alaska             
students to return to teach in rural Alaska after completing a                 
teaching degree program.  After teaching in a rural area for four              
years, Alaska student loan borrowers can get up to 100 percent of              
their loans forgiven.  HB 407 simply provides the same loan                    
forgiveness provision to a very small group of student loan                    
borrowers who have contracted an illness that requires them to                 
remain in urban areas to receive special medical attention.  Those             
borrowers must be teaching in the urban areas.  In the specific                
case Representative Davis was made aware of, a student loan                    
borrower contracted a degenerative disease that requires continual             
physical therapy and doctor's visits.  Current statute contains a              
provision allowing loan forgiveness if a borrower becomes disabled,            
but in this instance, the borrower does not want to file for                   
disability.  This woman wants to continue to teach.                            
                                                                               
CHAIRMAN WILKEN asked Representative Davis if a constituent brought            
this problem to his attention.                                                 
                                                                               
REPRESENTATIVE DAVIS explained he was approached by the father of              
a student from the Soldotna area.                                              
                                                                               
Number 087                                                                     
                                                                               
GARY REED testified via teleconference from Soldotna.  He is the               
father of the student who prompted this legislation.  He asked the             
committee to support HB 407.  He explained that his daughter                   
graduated from high school with a high GPA and went to college with            
the intent of returning to teach in rural Alaska.  During the first            
semester of her senior year, she was diagnosed with a disease that             
is progressively degenerative and has no cure, but is treatable.               
At this time his daughter is capable of teaching full-time, and she            
is not interested in qualifying for a disability.  Stress is a                 
factor that increases the degeneration, and the fact that she could            
not teach in rural Alaska added to her stress, as well as the                  
hardship the student loan payments cause her.  He noted the House              
passed this bill unanimously.                                                  
                                                                               
MRS. REED also urged the committee to support HB 407.                          
                                                                               
Number 146                                                                     
                                                                               
SENATOR LEMAN moved to pass HB 407 from committee with individual              
recommendations. There being no objection, the motion carried.                 
                                                                               
                                                                               
         HB 353 - ADOPTION BY REFERENCE IN REGULATIONS                         
                                                                               
BRUCE CAMPBELL, staff to Representative Pete Kelly, informed                   
committee members he prepared a committee substitute after several             
concerns were discussed by committee members at a previous meeting.            
                                                                               
SENATOR ELLIS moved to adopt SCSCSHB 353(HES), version F, as the               
working document of the committee.  There being no objection, the              
motion carried.                                                                
                                                                               
MR. CAMPBELL explained the changes made in the committee                       
substitute.  On page 1, line 11, language was added allowing this              
process to be applied when a regulation references a regulation                
adopted by another state agency.  For example, DHSS regulations                
require that child care centers meet fire marshall codes.  The fire            
marshall regulations regarding fire codes change when codes are                
updated.  Rather than require DHSS to repromulgate its regulations             
regarding fire codes in child care centers when the code is                    
updated, HB 353 will allow the new code regulations to be adopted              
by reference.  On page 3 an additional U.S. Department of Health               
and Human Services' reference document was added, entitled "The                
Relative Value Units Used in the Medicare Program for the                      
Determination of Fee Schedules."                                               
                                                                               
Number 190                                                                     
                                                                               
SENATOR LEMAN asked if Mr. Campbell decided the inclusion of                   
Amendment #1, proposed at the last meeting, was inappropriate in               
the committee substitute.                                                      
                                                                               
MR. CAMPBELL responded Amendment #1 is moving independently as SB
305, and is now in the House Labor and Commerce Committee.  He                 
stated had it been included, two bills that do the same thing will             
be enacted.                                                                    
                                                                               
SENATOR GREEN asked if, when new legislation is being drafted, a               
search through the regulations to cross-reference any tangential               
connection could create a conflict.                                            
                                                                               
MR. CAMPBELL said he did not think so because regulations are not              
normally quoted in statute. If DHSS cross references the fire                  
marshall code in its regulations on child care centers, then DHSS              
should be able to amend the regulations so that it can use the                 
updated fire marshall code without re-promulgating regulations                 
which can take six months.                                                     
                                                                               
CHAIRMAN WILKEN asked the committee's wishes on HB 353.  There                 
being no motion to moved HB 353, CHAIRMAN WILKEN announced HB 353              
would be taken up again by the committee on Monday, April 27.                  
                                                                               
      SB 266 - MEDICAID COVER/HEALTHY FAMILIES AK PROGRAM                      
                                                                               
SENATOR GREEN moved to adopt CSSB 266(HES), version B, as the                  
working document of the committee.  There being no objection, the              
motion carried.                                                                
                                                                               
CHAIRMAN WILKEN noted HB 369 is a mirror version of this bill.  He             
asked Mr. Livey what the status of that legislation is.                        
                                                                               
JAY LIVEY, Deputy Commissioner of DHSS, replied HB 369 passed out              
of the House Finance Committee the previous day.                               
                                                                               
CHAIRMAN WILKEN asked Mr. Livey to give the committee a synopsis of            
what activity has occurred in regard to HB 369.                                
                                                                               
MR. LIVEY stated the original bill, as introduced by the Governor,             
proposed to increase Medicaid eligibility for children and pregnant            
women, whose income is up to 200 percent of the poverty level.  The            
provision including pregnant women was removed on the House side so            
the bill that passed out of the House Finance Committee yesterday              
retained the Medicaid increase up to 200 percent of the poverty                
level for children only.  The original bill proposed continuous                
eligibility up to 11 months; that provision remains in the House               
bill.  The original Governor's bill also proposed targeted case                
management, which is a Medicaid option.  Targeted case management              
for the Healthy Families Program and for nurse midwives was removed            
from the House bill.  The original Governor's bill also contained              
a proposal to allow DHSS to proceed with certain types of managed              
care.  That provision was put back in by the House Finance                     
Committee.  The language that allows for cost sharing for children             
at over 150 percent of the poverty level remains in the bill.  The             
remaining sections of the bill were definitional sections.                     
                                                                               
Number 282                                                                     
                                                                               
SENATOR LEMAN asked if version B of SB 266 is similar to the House             
Finance Committee version.                                                     
                                                                               
CHAIRMAN WILKEN answered it is identical.                                      
                                                                               
SENATOR ELLIS moved CSSB 266(HES) out of committee with individual             
recommendations and its accompanying fiscal notes.  The motion                 
carried with no objection.                                                     
Number 303                                                                     
       SB 293 - STATE/REG'L/TRIBAL FAMILY ASS'T PROGRAMS                       
                                                                               
CHAIRMAN WILKEN announced HB 401, which is similar to SB 293, is               
now in the House Rules Committee.  He asked Mr. Livey to update the            
committee on the status of that measure during his presentation on             
SB 293.                                                                        
                                                                               
JAY LIVEY presented SB 293 to the committee.  When the federal                 
welfare reform legislation passed, it contained a provision that               
allowed the 12 Alaska Native regional non-profit corporations to               
apply to the federal government to administer welfare programs in              
their service areas.  The "welfare" program would consist of                   
monthly cash payments, employment training services, or any other              
services necessary to put people to work under welfare reform.  The            
regional non-profit corporation would submit a plan to the federal             
government for approval.  If approved, the regional corporation                
would receive, directly from the federal government, an amount of              
money equivalent to what the state spent in that service area in               
1994.  The state's welfare block grant is also based on the 1994               
amount, so the new federal law reroutes the state's federal block              
grant to regional non-profit corporations. Current welfare funds               
are comprised of half state and half federal money, so the regional            
corporations will also need to receive state funds to provide a                
program equivalent to that provided by the state.  SB 293                      
establishes a mechanism by which the state can convey money to the             
regional corporations to provide those public assistance services.             
                                                                               
MR. LIVEY explained that DHSS and the regional corporations                    
discussed various options, and came to a consensus on four or five             
points.  First, the tribes and the state agreed that self-                     
sufficiency should be promoted, as that is the whole point of                  
welfare reform.  Second, both agreed that flexibility in self-                 
sufficiency strategies should be promoted because strategies used              
in urban areas may not work in rural areas.  Third, both agreed                
that programs should be run efficiently.  Fourth, both agreed that             
disparity in benefit levels and services for similarly situated                
Alaskans should be discouraged.  For example, DHSS wanted to make              
sure that two families living next to each other, who operate                  
within the same economy and community, were treated the same in                
terms of benefits.  Fifth, issues surrounding the state's                      
delegation of authority needed to be addressed.                                
                                                                               
MR. LIVEY explained the mechanics of SB 293.  The regional                     
corporation will send its plan to the state six months prior to                
sending the plan to the federal government.  The state will review             
the plan for two sets of standards.  The first standard requires               
that the service area boundary of the regional corporation makes               
sense administratively, so that service areas are coherent and                 
compatible with other state service areas.  DHSS does not want to              
have pockets of service areas requiring the state to maintain a                
presence to fill in the blank spots.  The DHSS commissioner has                
some authority to review the service area to ensure that it                    
comports with the service areas of the state.  Second, DHSS                    
established five basic standards of welfare services that should be            
in the plan, regardless of who administers it.  DHSS took those out            
of the state's public assistance plan.  The recipient must have a              
dependent child in the family to receive benefits; recipients must             
work for their benefits, but not necessarily for cash;  recipients             
will have to cooperate with the Child Support Enforcement Division;            
an appeals process must be in place; and, a minor parent must live             
at home or in an adult supervised setting to receive a benefit.  If            
the regional corporation plan meets those two sets of standards, it            
will be eligible to receive a grant or contract from the state that            
will convey general funds to provide public assistance services in             
its area.  Once the plan is approved, the regional corporation will            
be responsible for the public assistance services in that area.                
                                                                               
MR. LIVEY discussed the issue of services to non-Native families               
living within the regional corporation's service area.  Two factors            
were considered by DHSS: administrative efficiency and disparate               
benefits for similarly situated families.  DHSS decided it wants               
all families in a service area to receive the same benefit package.            
SB 293 provides that non-Native families will be served by the                 
regional corporation plan, at the Commissioner's discretion.                   
                                                                               
Number 412                                                                     
                                                                               
SENATOR GREEN asked if the payment to the non-Native family would              
consist of 100 percent state funds.                                            
                                                                               
MR. LIVEY replied half of the money for Native families comes from             
the federal government and half will come from the state.  For the             
non-Native families, 100 percent of the money will come from the               
state because the federal dollars for non-Native families is                   
already in DHSS's budget.                                                      
                                                                               
MR. LIVEY stated DHSS believes SB 293 is a good idea for the                   
following reasons.  DHSS believes this approach will make welfare              
reform more successful because welfare services can be designed to             
match the economy and labor force in specific regions.  DHSS                   
believes partnering with regional corporations will be beneficial              
to the state because many of the regional corporations have already            
established employment training and child care programs, allowing              
the state to leverage some services through the partnership.                   
Finally, regional providers are willing to express a local                     
responsibility to be successful within their regions.  DHSS                    
believes it will be beneficial to take advantage of the regional               
corporations enthusiasm and it wants to help the corporations                  
successfully deliver services.                                                 
                                                                               
Number 439                                                                     
                                                                               
SENATOR WARD asked who requested the bill.                                     
                                                                               
MR. LIVEY replied DHSS has been talking to the regional                        
corporations about this approach ever since the federal law was                
enacted.                                                                       
                                                                               
SENATOR WARD noted the Tlingit and Haida Central Council (THCC)                
unanimously passed a resolution four days ago that states that the             
Cook Inlet Regional Corporation (CIRI) should not be treated as a              
tribe.  The Cook Inlet Tribal Council is appointed directly by the             
profit making corporation, so SB 293 would be giving state funds               
directly to a profit-making corporation which has direct control               
over its non-profit regional corporation by appointment.  Eight of             
the nine villages in the Cook Inlet region protested over the                  
hospital transfer.                                                             
                                                                               
Number 452                                                                     
                                                                               
MR. LIVEY stated the federal law that set up the regional                      
corporation mechanism explicitly named the 12 regional non-profit              
corporations and Metlakatla as being the only entities eligible to             
receive the federal grants.  He said he believes the Cook Inlet                
Tribal Council is named in that law.                                           
                                                                               
SENATOR WARD asked if any federal money will come to the state if              
SB 293 is not enacted.                                                         
                                                                               
MR. LIVEY said if SB 293 is not enacted, regional corporations                 
could still write a plan and apply to the federal government to                
provide services, however they could only use federal money since              
the state would have no mechanism to convey general funds to them.             
                                                                               
SENATOR WARD noted the regional corporations would also have to                
present authorization from the villages within their regions each              
time they applied.  SB 293 would preclude that from happening.                 
                                                                               
MR. LIVEY stated he believes the federal law defined the regional              
corporations as tribes for this particular purpose only.                       
                                                                               
CHAIRMAN WILKEN noted teleconference participants might be able to             
address Senator Ward's concern later in the meeting.                           
                                                                               
Number 473                                                                     
                                                                               
SENATOR LEMAN questioned whether SB 293 contains incentives to                 
encourage a reduction in the amount of payments going out.                     
                                                                               
MR. LIVEY thought the incentives for the regional corporations are             
the same as those for the state.  The federal money received by a              
tribe will be in the form of a block grant, so the amount will not             
fluctuate.  The general fund portion will be subject to annual                 
appropriation, and the regional corporations understand that that              
money will not increase if they are not successful.  Also, the                 
state grants and contracts will contain performance requirements               
regarding the services that have to be provided.                               
                                                                               
SENATOR LEMAN said at present, the state submits a supplemental                
appropriation request if it exceeds its budget for welfare reform              
services.  He questioned whether the regional corporations will do             
the same or whether incentives will be locked into the grants to               
encourage the regional corporations to hold the line.                          
                                                                               
MR. LIVEY stated such clauses will be included in the contracts,               
but situations, such as the Bristol Bay economic disaster, could               
occur that require extra funding.                                              
                                                                               
Number 500                                                                     
                                                                               
SENATOR LEMAN questioned whether a commensurate reduction in the               
state's cost to deliver the services through its public assistance             
program will occur.  He stated the fiscal note does not reflect any            
reduction.                                                                     
                                                                               
MR. LIVEY explained the fiscal note is indeterminate because DHSS              
does not believe all twelve regional non-profit corporations will              
participate.  As the regional non-profit corporations do take on               
this program, the existing money in the DHSS budget will be                    
distributed in the form of grants and contracts.  DHSS anticipates             
a savings to the state will occur, and it will reduce its                      
administrative components as well, because administrative money                
will be going out to the regional corporations at the same time.               
                                                                               
Number 514                                                                     
                                                                               
CHAIRMAN WILKEN asked how much money is available from the federal             
government.                                                                    
                                                                               
MR. LIVEY said the state gets about $60 million in the federal                 
block grant.                                                                   
                                                                               
CHAIRMAN WILKEN asked if the state will pass a portion of the $60              
million on to the new program.                                                 
                                                                               
MR. LIVEY said that is correct, and the amount for the new program             
will be reduced from the amount the state can claim from the                   
federal government.                                                            
                                                                               
CHAIRMAN WILKEN asked where the five criteria in the second                    
standard are located in the bill.                                              
                                                                               
MR. LIVEY replied they appear on the bottom of page 5, line 30,                
through page 6, line 18.                                                       
                                                                               
CHAIRMAN WILKEN clarified there are six criteria.  He asked if this            
proposal was before the Legislature during a prior session.                    
                                                                               
MR. LIVEY stated this is the first year this bill has been                     
introduced, however very short, similar language was contained in              
the original welfare reform bill that allowed DHSS to contract with            
regional corporations.                                                         
                                                                               
CHAIRMAN WILKEN noted Section 5 pertains to qualifications.  He                
asked if one person in a service area is served the everyone in                
that area would be served.                                                     
                                                                               
MR. LIVEY explained the federal law gives the regional corporations            
flexibility to design and draw boundaries around their service                 
areas.  DHSS is requiring that it approve of the way those lines               
are drawn to ensure that the boundaries make sense administratively            
regarding efficiency of service.                                               
                                                                               
CHAIRMAN WILKEN asked if it is possible that one family will be                
provided service and another not, regardless of tribal affiliation,            
if SB 293 passes.                                                              
                                                                               
MR. LIVEY replied that all eligible families within a service area             
will be served by a regional corporation.                                      
                                                                               
CHAIRMAN WILKEN asked if the families will have to meet the six                
criteria.                                                                      
                                                                               
MR. LIVEY clarified the six steps on pages 5-6 are actually                    
requirements of the tribal plan.  If those are not included in the             
regional corporation's plan, it will not be eligible for state                 
money.                                                                         
                                                                               
                                                                               
SENATOR WARD noted the regional non-profit arm of the CIRI was the             
Cook Inlet Native Association.  CIRI then created Cook Inlet Tribal            
Council; CIRI appoints the tribal council members.  He asked if                
guidelines regarding the formation of non-profit agencies are                  
contained in SB 293.                                                           
                                                                               
MR. LIVEY responded SB 293 contains no such guidelines.                        
                                                                               
SENATOR WARD asked whether any discussion about putting guidelines             
in the bill took place.                                                        
                                                                               
Number 561                                                                     
                                                                               
MR. LIVEY said no discussion took place, DHSS just referenced the              
federal law which lists the eligible regional corporations.  He                
offered to supply committee members with a copy of the federal law.            
                                                                               
SENATOR WARD maintained the bill will allow state funds to be given            
to a regional non-profit corporation that is completely controlled             
by its profit making arm.  He thought it would be prudent for the              
state to determine that all of the non-profits were formed,                    
operated, and controlled in the same manner.                                   
                                                                               
MR. LIVEY stated he is not familiar with the situation in Cook                 
Inlet.                                                                         
                                                                               
SENATOR WARD stated the amount of money is large enough to warrant             
concern.                                                                       
                                                                               
CHAIRMAN WILKEN took teleconference testimony.                                 
                                                                               
MR. TERRY HOEFFERLE, Chief of Operations for the Bristol Bay Native            
Association (BBNA), informed committee members BBNA is comprised of            
32 tribal communities and is governed by a 37 member board of                  
directors.  BBNA was formed to work for the passage of ANILCA over             
30 years ago.  BBNA has since been performing some of the not-for-             
profit social and economic programs for the members of the                     
association.                                                                   
                                                                               
TAPE 98-38, SIDE B                                                             
                                                                               
MR. HOEFFERLE stated the new federal law named 12 tribal groups in             
Alaska as entities that could operate public assistance programs.              
In doing so, Congress recognized the necessity for local                       
responsibility and to tie public assistance to local economic and              
social conditions.  BBNA's 1997 annual report details the programs             
it operates and the resources it has employed.  The report also                
details the source of program funds.  BBNA has a staff of 294; 239             
of those workers are located in villages.  The village employees               
would be a major way to leverage some of the state's Temporary                 
Assistance for Needy Families (TANF) dollars.  BBNA's 35 programs              
are organized into divisions;, one of those divisions is called                
workforce development.  That division combines 10 separate programs            
under a federal law called 102.477.  That legislation permits BBNA             
to combine Bureau of Indian Affairs, Department of Education, and              
Department of Labor programs. Those programs are combined for                  
budgetary and administrative purposes. BBNA has operated the 10                
programs as a single block grant, and by doing so has reduced                  
reporting requirements and the number of applications to one.                  
Administrative costs have been reduced by 30 percent; that money               
was directly plowed into client services.  Those programs include              
six separate employment and training programs, a child care                    
program, a general assistance program, and adult basic education.              
If BBNA has the opportunity to operate the state's public                      
assistance program independently, it will be able to provide the               
necessary counseling required to move a person from welfare to                 
work.  At present, those services are provided by telephone from               
service providers in Anchorage.  BBNA could provide individual                 
responsibility plans to clients in person.                                     
                                                                               
SENATOR WARD asked if a majority of the voting members of BBNA's               
non-profit regional board are elected or appointed by the profit-              
making arm of the corporation.                                                 
                                                                               
MR. HOEFFERLE replied 32 board members are appointed by the                    
presidents of their local tribal councils, five are appointed by               
the board of directors to provide expertise to the operation of                
BBNA.  Those five directors are BBNA members who generally                     
represent the Bristol Bay Native Corporation, the Bristol Bay                  
Health Corporation, the village representative to AFN, and two                 
others.                                                                        
                                                                               
SENATOR WARD noted BBNA has a good non-profit regional corporation             
that truly represents the villages which is the way the law was                
intended.                                                                      
                                                                               
MR. BOB CHARLES, Vice President of Operations for the Association              
of Village Council Presidents (ACVP) in Bethel, testified.  AVCP               
represents 47 village communities of the Yukon-Kuskokwim Delta.                
AVCP wholeheartedly supports CSSB 293(HES).  AVCP has been involved            
with the other regional corporations, the state, and its villages              
about this issue since it began several years ago.  AVCP was formed            
in 1954 and was formally incorporated in 1968.  Due to recent                  
changes in Alaska law, AVCP can concentrate its efforts more on                
service delivery and improving the quality of services and case                
management at the village level.  AVCP's directors are elected by              
their village residents.  When Congress was considering this                   
legislation in 1995, the AVCP convention adopted a resolution in               
support of it, and many of its villages started planning to assume             
responsibility to deliver welfare services at the village level.               
Local village coordinators were hired less than one year ago to                
take referrals from the Division of Public Assistance.  The                    
coordinators help people find work or training to help meet their              
work requirements.  AVCP has been working with about 800 families.             
AVCP intends to integrate all of its services if CSSB 293(HES)                 
passes and it believes it can do a good job because it has a strong            
and large infrastructure in place at the village level.                        
                                                                               
Number 460                                                                     
                                                                               
SENATOR WARD asked if all non-profit regional corporations should              
come under the same guidelines for their formation and existence.              
                                                                               
MR. CHARLES replied that each non-profit regional corporation is               
established according to the same principles and rules.  Under the             
federal legislation, non-profit regional corporations must have                
established a cadre of services and programs comparable to the                 
state's program and operated under the same principles.  Regarding             
how the regional non-profit corporations are organized and managed,            
each region is a little bit different from the others.                         
                                                                               
SENATOR WARD asked if any board of a regional non-profit                       
corporation, other than CIRI, is appointed by the profit making arm            
of the corporation.                                                            
                                                                               
MR. CHARLES said he was not aware of other areas.                              
                                                                               
Number 445                                                                     
                                                                               
MIKE WALLERI, the general counsel for the Tanana Chiefs' Conference            
(TCC),  stated support for CSSB 293(HES).  TCC has a republican                
form of governance; its board is comprised of 43 members who are               
appointed by the village councils throughout the region, and two               
associations in Tok and Fairbanks.  All of the organization's                  
boards and councils are elected under a democratic system.  There              
are no appointments of Doyon or any village corporations involved              
in the TCC governance.  SB 293 was developed in consultation with              
the regional non-profit corporations.  TCC has been involved in                
welfare reform for quite some time.  It was the first region in the            
state, and probably the first tribal organization in the nation, to            
implement welfare reform within the Bureau of Indian Affairs                   
general assistance program.  That ultimately resulted in a national            
program called the Work Incentive Program, which TCC has                       
successfully operated for a number of years.  TCC has undergone a              
planning process for about 1+ years beginning with meetings in the             
villages, meetings with regional boards, and culminating in two                
region-wide meetings to develop a plan which has been submitted to             
the federal authorities with a start date of July 1.  The TCC plan             
will have a heightened work requirement for participants in the                
TANF program.  The work requirement will be about 33 percent more              
than the state program requires.  TCC also provides for mandatory              
drug and alcohol evaluation and treatment, and sanctions for not               
participating.  One of the major differences between the TCC plan              
and the state program is in the delivery of services.  TCC has a               
network of offices in every village in the region in coordination              
with the tribal councils.  TCC is able to offer a "one-stop shop"              
for all TANF and work services which the state has not been able to            
do.  Many regions objected to the lack of a "one-stop" service                 
delivery approach in rural Alaska in the state plan.  Second, TCC              
has more flexibility to develop plans to meet the local economies              
and needs in its programs.  This provision allows for a "bottom-up"            
planning structure, beginning at the village level.  This program              
will also allow state programs to interface with existing tribal               
regional programs and leverage off of those programs to provide the            
same level of services currently available in urban areas.  This               
would not be possible under a state plan.  Finally, it provides an             
economy of scale, for region-wide planning operations, and it                  
avoids duplication of services that might occur if the tribal                  
organizations proceeded to operate the programs without the state              
match.                                                                         
                                                                               
In response to Senator Ward's and Senator Leman's questions, MR.               
WALLERI said the Cook Inlet Region is different in terms of its                
governance, but the federal legislation designates the Cook Inlet              
Regional Corporation for purposes of contracting under the Indian              
Self Determination Act.   That law locks the Cook Inlet Regional               
Corporation into a relationship in the actual contracting of those             
programs.  The federal TANF legislation differs from CSSB 293(HES)             
in that it lists the non-profit corporations specifically,                     
including the Cook Inlet Tribal Association.  To that extent, this             
program offers a little more autonomy for that particular                      
corporation.  Most of the regional corporations urged Congress to              
adopt a decision-making structure at the village level as to who               
will actually operate these programs, much as that decision is made            
throughout most of the state under the Indian Self Determination               
Act.   The Alaska delegation felt this was a more appropriate way              
to conduct the program therefore that issue should be addressed                
with the Alaska delegation and should not stop this legislation.               
TCC anticipates some cost reductions in the area of cost avoidance.            
Leveraging off of the non-profit service dollars allows the state              
to put together a program without having to actually pay out-of-               
state dollars for the job service programs that can be provided by             
the non-profit regional corporations.  In addition, TCC expects to             
see a benefit reduction because of TCC's additional drug and                   
alcohol sanctions and its higher level of work requirements.  TCC              
is unable to estimate what those cost reductions will be with any              
degree of accuracy.                                                            
                                                                               
Number 318                                                                     
                                                                               
SENATOR WARD commended the TCC program and agreed that an approach             
that starts from the lower level and works up through a non-profit             
regional corporation ends with a product that represents the entire            
region.  His concern about Cook Inlet is that the approach goes in             
the other direction.  He stated the only corporation that will be              
affected if the bill requires 51 percent of the board seats too be             
appointed by the villages is Cook Inlet.                                       
                                                                               
CHAIRMAN WILKEN noted his intent to pass the legislation on to the             
State Affairs Committee where that issue could be addressed.                   
                                                                               
SHARON OLSEN, Division Director for the Employment and Training                
Programs for Tlingit Haida Central Council, gave the following                 
testimony.  A packet she provided to committee members outlines                
THCC's goals, principles, and strategies in its tribal plan, a                 
letter to Commissioner Perdue in support of SB 293 and other                   
materials.  THCC has undergone a lot of preparation to position                
itself to address welfare reform.  THCC is comprised of 21 villages            
throughout Southeast Alaska.  It's delegates are elected every two             
years; those delegates attend a general assembly annually to                   
address tribal affairs.  THCC also has an elected executive                    
committee made up of a president and six vice presidents.  THCC                
receives funding for its programs from the Department of Labor,                
Bureau of Indian Affairs, and the U.S. Department of Health and                
Human Services.  The funding is for child care, work experience,               
and training programs.  THCC contracted with the State of Alaska               
last year to work with Native ATAP clients in the Juneau area to               
provide work search activities as well as case management.  THCC               
also receives a grant from the Department of Education for its                 
tribal vocation rehabilitation program.  That program addresses                
needs of tribal members with disabilities.  Two years ago THCC                 
received a grant from HUD to construct a vocational training and               
resource center which will be completed in August.  That program               
will offer computer training, small business management and tourism            
classes, and basic skills with the focus on job preparation and                
maintenance.  THCC has undertaken these programs in preparation for            
implementing a tribal TANF program.  THCC was able to consolidate              
a variety of programs into one budget, plan, and reporting system              
which gives it a lot more flexibility in meeting the unique needs              
of each of its communities.  The unemployment and economic                     
conditions in Southeast's rural communities will be a challenge for            
THCC.  It has been working closely with all employers to identify              
employment opportunities. THCC has had years of experience                     
providing on-the-job training and work experience programs.  THCC              
believes it is ready and able to take on this challenge.                       
                                                                               
Number 227                                                                     
                                                                               
SENATOR WARD asked Ms. Olsen if she had a copy of THCC's resolution            
regarding CIRI.                                                                
                                                                               
MS. OLSEN said she did not, but would provide it to committee                  
members later.                                                                 
                                                                               
SENATOR ELLIS noted he has had THCC trainees in his office for                 
three years.  He noted THCC runs a lean, serious, no-nonsense                  
operation which is exactly what policy makers asked for when they              
started welfare reform in 1989.  He applauded THCC for its efforts.            
                                                                               
SENATOR GREEN asked whether THCC would use different standards for             
non-Natives in a town already integrated, such as Juneau.                      
                                                                               
Number 200                                                                     
                                                                               
MS. OLSEN replied that THCC has worked very closely with DHSS for              
the last 2+ years addressing comparability, equal access, and other            
issues related to running a TANF program.  THCC believes treating              
people fairly and consistently is important, which is one reason               
THCC has spent so much time addressing every aspect of the program             
that will come before it.                                                      
                                                                               
SENATOR GREEN moved CSSB 293(HES) to its next committee of referral            
with individual recommendations.  There being no objection, the                
motion carried.                                                                
                                                                               
There being no further business to come before the committee,                  
CHAIRMAN WILKEN adjourned the hearing at 10:31 a.m.                            
                                                                               

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