Legislature(1993 - 1994)
04/16/1993 04:15 PM Senate HES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE
April 16, 1993
4:15 p.m.
MEMBERS PRESENT
Senator Steve Rieger, Chairman
Senator Loren Leman
Senator Mike Miller
Senator Johnny Ellis
Senator Judy Salo
MEMBERS ABSENT
Senator Bert Sharp, Vice-Chairman
Senator Jim Duncan
COMMITTEE CALENDAR
SENATE BILL NO. 92
"An Act relating to an advisory vote during regional
educational attendance area school board elections; and
providing for an effective date."
HOUSE JOINT RESOLUTION NO. 30
Relating to epidemiological and quarantine services in ports
of entry in the state.
HOUSE BILL NO. 148
"An Act exempting the University of Alaska from the
administrative adjudication provisions of the Administrative
Procedure Act; and providing for an effective date."
SENATE BILL NO. 143
"An Act reducing the rate of interest on certain student
loans; and providing for an effective date."
CS FOR HOUSE BILL NO. 217(JUD)
"An Act relating to Native corporation dividends and other
distributions due to minors in the custody of a state."
HOUSE BILL NO. 97
"An Act clarifying the responsibilities of the Department of
Health and Social Services and parents for children who are
committed to the custody of the department and are placed by
the department with the parents; and providing for an
effective date."
HOUSE BILL NO. 178
"An Act adding children under the age of 21 who are eligible
for adoption assistance because of special needs to the
optional Medicaid coverage list and revising the order of
priority in which groups eligible for optional Medicaid
coverage are eliminated; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 92 - See Community & Regional Affairs minutes dated
3/23/93.
HJR 30 - See HESS minutes dated 4/14/93.
HB 148 - No previous action to record.
SB 143 - No previous action to record.
HB 217 - No previous action to record.
HB 97 - No previous action to record.
HB 178 - No previous action to record.
WITNESS REGISTER
Senator Fred Zharoff
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of SB 92
Brain Saylor, Deputy Commissioner
Department of Health & Social Services
Nowlin Watson, Senior Vice President
McClellen & Copenhagen
POSITION STATEMENT: Presentation on AK public health
laboratories
Dwayne Peeples
Division of Public Health
Department of Health & Social Services
P.O. Box 110610
Juneau, AK 99811-0610
POSITION STATEMENT: Testified in support of HJR 30
Representative Gene Therriault
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of HB 148
Susan Warner
P.O. Box 21241
Juneau, AK 99802
POSITION STATEMENT: Opposed to passage of HB 148
Joanna Loying-Belyea
5775 Thane Road
Juneau, AK 99801
POSITION STATEMENT: Opposed to passage of HB 148
Wendy Redman, Vice President
for University Relations
University of Alaska
910 Yukon Drive
Fairbanks, AK 99775-2388
POSITION STATEMENT: Supports HB 148
Carol Carrol, Staff to Senator Jay Kerttula
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SB 143
Mary Lou Madden, Assistant Director
Postsecondary Commission
Department of Education
P.O. Box 110505
Juneau, AK 99811-0505
POSITION STATEMENT: Neutral on SB 143
Rena Buckovich, Staff to Representative
Eileen MacLean
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on HB 217
Elmer Lindstrom, Special Assistant
Department of Health & Social Services
P.O. Box 110601
Juneau, AK 99811-0601
POSITION STATEMENT: Testified in support of HB 97
ACTION NARRATIVE
TAPE 93-37, SIDE A
Number 001
CHAIRMAN RIEGER called the Senate Health, Education and Social
Services (HESS) Committee to order at 4:15 p.m., and
introduced SB 92 (REAA ADVISORY VOTES) as the first order of
business.
SENATOR FRED ZHAROFF, prime sponsor of SB 92, explained that
the legislation allows a provision to be added to AS
14.08.071, which relates to REAA schools. At this time, there
is no provision that allows an advisory vote for any issue
that may come up before the school district on the ballot for
election of school board members. SB 92 will provide an
authorization in statute to allow the Division of Elections
to place the question on the ballot before the election of
school board members.
Number 037
There being no further testimony on SB 92, CHAIRMAN RIEGER
asked for the pleasure of the committee.
SENATOR MILLER moved that SB 92 be passed out of committee
with individual recommendations. Hearing no objection, it was
so ordered.
Number 042
CHAIRMAN RIEGER announced the next order of business would be
a presentation on public health laboratories.
BRIAN SAYLOR, Deputy Commissioner, Department of Health and
Social Services, said the health and safety of the state's
public health laboratories have been of some question for a
number of years. The issue has been repeatedly studied by
outside experts, but they have not been able to pull together
a comprehensive look at the public health laboratories.
There are three laboratories in leased facilities that are
located in Juneau, Fairbanks and Anchorage. The department
is currently seeking options to protect public health, worker
safety and the quality of the products they deliver.
Number 075
NOWLIN WATSON, Senior Vice President of McClellen &
Copenhagen, a laboratory design consulting firm, used charts
and explained the functions of a public health laboratory and
the process of bringing fresh air into the laboratory and then
exhausting it outside. This is necessary to ensure worker
safety because the people working in these laboratories are
dealing with airborne pathogens that can make them sick. He
pointed out that the public is also protected because the air
is cleaned before it is exhausted out of the laboratory.
Mr. Watson said their study concluded that the biggest
problems in the State of Alaska are that the three state
laboratories are in leased space and the public safety risk.
Thus, they are recommending: (1) a detailed analysis which
will lead to a strategic plan for the public health
laboratories in the State of Alaska; and (2) new laboratories
because the current leased spaces cannot be effectively and
cost effectively renovated.
Number 183
BRIAN SAYLOR related that the department has renovation and
repair money in their FY 94 capital request, as well as a
request for $500,000 for the study. However, they now believe
that $350,000 to $400,000 is a better number and they would
hope to use the balance of the $500,000 for the renovation or
repair.
CHAIRMAN RIEGER thanked Mr. Saylor and Mr. Watson for their
presentation on the state's public health laboratories.
Number 222
The next order of business to come before the committee, was
HJR 30 (QUARANTINE SERVICES AT PORTS OF ENTRY).
DWAYNE PEEPLES, Division of Public Health, Department of
Health and Social Services, stated the division and the
department support HJR 30, which urges the federal government
to reinstate quarantine and to increase epidemiological staff
in Alaska to look at influxes of diseases carried by travelers
from the Russian Far East and other Pacific Rim countries.
Number 230
SENATOR ELLIS asked when the federal government discontinued
this operation in Alaska. DWAYNE PEEPLES responded they had
one position in Alaska and it was discontinued in 1985.
Number 238
SENATOR MILLER moved that HJR 30 be passed out of committee
with individual recommendations. Hearing no objection, it was
so ordered.
Number 247
CHAIRMAN RIEGER introduced HB 148 (EXEMPT U OF AK FROM APA
PROCEDURES) as the next order of business.
REPRESENTATIVE GENE THERRIAULT, prime sponsor of HB 148, said
in June 1991, the Alaska Supreme Court found that the
university was not specifically excluded from the provisions
of the Administrative Procedures Act until such time that the
legislature specifically excluded them.
When the university was placed under the Administrative
Procedures Act in 1977, the intent was that the constitutional
and statutory language would allow the regents to retain
control of the internal workings of the university. However,
the court in reaching its conclusion, did not consider the
intent and ruled that the APA would apply unless the
legislature gave a specific exemption to the university.
Representative Therriault said the adjudication provisions of
the APA were not designed for employee or student grievances.
The majority of university grievances are resolved with little
or no expense at an early stage of review. The procedure
outlined in the APA would result in an extraordinary expense.
HB 148 would exempt the university from the APA, and would
allow the university to go back to the grievance procedure
they had in place until 1977.
Number 310
SUSAN WARNER and JOANNA LOVING-BELYEA, classified employees
at the University of Alaska-Southeast, requested that HB 148
be removed from the table until a formally approved alternate
grievance policy is in place, which it is not at this point
in time, from the employee perspective.
Number 317
SENATOR SALO said she shared their concern, and she asked how
long they thought it would take to get an alternative plan in
place. SUSAN WARNER responded that most of the employees have
great confidence that the administration and the employees can
work it out in a timely manner. She also pointed out that the
university employees do not have a bargaining unit to
represent them, and it is her understanding that the typical
kinds of grievance procedures that are relevant to employees
are generally evolved through negotiations between the
administration and the bargaining unit representation. She
said anything that can be done to stop the passage of this
particular legislation until there is that agreement between
the university administration and the university governance
structure would be greatly appreciated.
Number 352
WENDY REDMAN, Vice President, University of Alaska, said she
understands the concerns voiced by Ms. Warner, but she thinks
there are some misunderstandings.
Ms. Redman said the university had in place a grievance
procedure before the APA process was laid on it. It wasn't
a perfect process, but the employee governance group worked
for over a year and developed a new grievance procedure which
was just about ready to be put in place, but was held in
abeyance until they got a court ruling. Ms. Redman said if
HB 148 passes, it would be their intention would be to take
that last grievance policy and put that into place on an
interim basis until the June board meeting. She added that
the president of the university would be more than willing to
commit to the employees the exact policy that will be put in
place, pending final approval by the governance groups once
the APA is passed, so that the employees know exactly what is
going to be there and there is not a gap in coverage.
Ms. Redman urged the passage of HB 148.
Number 395
SENATOR SALO asked how many different grievance procedures
would replace the Administrative Procedures Act. WENDY REDMAN
answered that there is one grievance procedure, but there are
different aspects to it.
Number 430
SENATOR ELLIS asked if the Chair would entertain a motion that
there be a letter of intent drafted to accompany the bill
stating that it's the legislature's intent that there not be
a gap time between when the bill passes and when an interim
grievance procedure is put in place. CHAIRMAN RIEGER agreed
and stated the bill would be set aside until later in the
meeting so that a letter of intent could be drafted.
Number 445
CHAIRMAN RIEGER introduced SB 143 (STUDENT LOAN INTEREST RATE
REDUCTION) as the next order of business.
CAROL CARROL, staff to Senator Jay Kerttula, prime sponsor of
SB 143, explained the legislation will reduce the interest
rates on student loans from eight percent to six percent.
The rate of interest on a loan in default would be reduced
from ten percent to eight percent. She said Senator Kerttula
feels that students of the State of Alaska should be able to
take advantage of the reduction in interest rates that the
nation is presently experiencing.
Number 480
SENATOR MILLER questioned if this change would create more
problems in the student loan program and, if so, why would we
want to do that. CAROL CARROL responded that according to the
projections of the bond council, when they use a growth rate
of three percent for this loan fund, their assumption is that
it will accelerate the time that the student loan corporation
has to make a decision about whether to limit loans, so there
won't be enough money for every student that applies. Because
the state is no longer putting any money into the fund, that
decision is going to have to be made anyway. She added that
this would at least give the students the benefits of the
lower interest rates.
Number 500
MARY LOU MADDEN, Assistant Director, Postsecondary Commission,
Department of Education, stated the commission does not have
a position on SB 143, and they are, in fact, studying the
whole question of the long-term viability of the loan program,
particularly in the absence of general fund monies, and their
reliance on the bond markets.
Number 510
SENATOR LEMAN wondered if there wasn't a better way to do this
instead of setting the interest rate at a fixed rate in
statute. MARY LOU MADDEN said she thought there were other
alternative ways of assuring that students get a break when
the rate goes down, and, at the same time, assuring that there
is money in the future.
CHAIRMAN RIEGER said he was willing to let the bill move out
of committee, but he has concern with anything that weakens
the program. He added that he did not like it when the
program was changed from being funded out of the general fund
to relying on the bond markets.
SENATOR ELLIS moved that SB 143 be passed out of committee
with individual recommendations. Hearing no objection, it was
so ordered.
Number 535
CHAIRMAN RIEGER introduced CSHB 217(JUD) (NATIVE CORPORATION
DIVIDENDS TO MINORS) as the next order of business.
RENA BUCKOVICH, staff to Representative Eileen MacLean,
explained the purpose of HB 217 is to require Native
corporation's under the Alaska Native Claims Settlement Act
(ANSCA) to hold a minor's dividends in an interest bearing
account while the minor is in state custody.
The legislation was requested by the Department of Health and
Social Services and the Native corporations to assure that
stock dividends are protected and spent for the child's
benefit while the child is in state custody.
Besides requiring the corporation to set up interest bearing
accounts for minors held in state custody, Ms. Buckovich said
the bill also prohibits the corporation from using the
property in the account unless approved by a court and
specifies when corporations can distribute property. Further,
it exempts the retention and distribution of dividends and
distributions under the legislation from the Uniform Transfers
to Minors Act.
Number 575
SENATOR MILLER moved that CSHB 217(JUD) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
Number 578
CHAIRMAN RIEGER introduced HB 97 (PARENTAL CARE FOR CHILD IN
STATE CUSTODY) as the next order of business.
ELMER LINDSTROM, Special Assistant, Department of Health and
Social Services, said the legislation was requested by
department. In 1991, there was a court decision that reversed
a lower court decision and ruled that the state must pay for
the medical costs of a child in state custody even though the
child lives with his or her parents. Holding the state
responsible for medical costs of children in its custody who
are placed at home would result in less protection for these
children and other children in need of aid.
The ramifications of this decision may also lead to the state
being held liable for other routine maintenance costs of
children, even to the extent of room and board for children
who are technically in state custody, yet living with their
parents. Mr. Lindstrom said it had never been the intent nor
the practice of the Division of Family & Youth Services to pay
those costs and HB 97 will clarify in statute what has been
the regular practice of the division.
TAPE 93-37, SIDE B
Number 030
SENATOR LEMAN asked why the bill has a retroactive effective
date. ELMER LINDSTROM answered that the effective date is an
artifact of when the court ruling was made in the original
case. He added there is a tremendous potential liability to
the state if the bill does not pass, but he is not aware of
any outstanding claims.
Number 041
SENATOR MILLER moved that HB 97 be passed out of committee
with individual recommendations. Hearing no objection, it was
so ordered.
Number 045
CHAIRMAN RIEGER brought HB 178 (MEDICAID FOR CERTAIN CHILDREN)
before the committee as the next order of business. He
directed attention to a proposed HESS SCS.
SENATOR ELLIS moved that SCS HB 178(HES) be adopted. Hearing
no objection, the motion carried.
SENATOR MILLER moved that SCS HB 178(HES) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
Number 055
CHAIRMAN MILLER brought HB 148 (EXEMPT U OF AK FROM APA
PROCEDURES) back before the committee.
SENATOR ELLIS read the following proposed intent language into
the record: "It is the intent of the legislature that upon
passage of HB 148 the university put into place the draft
grievance procedure distributed to employees for review on
March 22, 1993. It is the understanding of the legislature
that this policy will be used as an interim procedure only
until the University of Alaska general assembly and the Board
of Regents formally and jointly agree to a successor grievance
policy. It is further the intent of the legislature that the
University of Alaska assembly and Board of Regents reach final
approval of a successor grievance policy by June 15, 1993.
SENATOR ELLIS moved adoption of the intent language to HB 148.
SENATOR LEMAN objected and then withdrew his objection. There
being no further objection, the Chair stated the Letter of
Intent was adopted.
SENATOR MILLER moved HB 148, along with the Letter of Intent,
out of committee with individual recommendations. Hearing no
objection, it was so ordered.
There being no further business to come before the committee,
the meeting was adjourned at 5:10 p.m.
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