HOUSE BILL NO. 209 "An Act directing the Department of Health and Social Services to establish a foster care transition program; relating to that program; and providing for an effective date." (Tape Failure occurred at the beginning of the meeting). REPRESENTATIVE DYSON, spoke on behalf of the House Health, Education and Social Services Standing Committee, sponsor of HB 209 in support of the legislation. He observed that the questioned is whether or not help should be provided to children that are "aging out" of the state foster care system. Currently, foster care children turning 18 years of age receive what is left of their accumulated permanent fund dividends and are sent on their way. The federal government has passed the Foster Care Independence Act in recognition that kids who have spent their lives in state custody may be ill equipped to take up independent living when they turn 18. The legislation would use federal funds to implement services for children ages 18 - 21, [who are no longer in foster care]. The University of Alaska has agreed to take some of the children on scholarships and labor unions have agreed to apprenticeship programs to assist in providing job skills. He pointed out that these children were not successfully adopted and many of them have had less than ideal living situations. Many of these children have issues regarding behavior problems. He emphasized that the program could make a significant difference in the lives of many of these kids. Representative Harris questioned if federal funds would be on going or if the state would be asked to take over the cost of the program. JOANN GIBBENS, PROGRAM ADMINISTRATOR, DIVISION OF DIVISION OF FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that it is a 5-year federal program. At the end of five years the program would be subject to renewal. Representative John Davies spoke to the fiscal note. He observed that the Division expects to receive a minimum of $500 thousand federal dollars and questioned if the Division's current statutory authority would be sufficient without the need for additional authority through the Legislative Budget and Audit Committee. Ms. Gibbens observed that the Division of Family and Youth Services has the authority to expend funds. She explained that the funds would be available to all children in their custody that are aging out or expected to age out without a permanent home. Representative Hudson questioned how many youths would be served and what services would be provided. Representative Dyson explained that there are approximately 200 receiving services: approximately 40 - 60 would age out each year. The most immediate need is for housing. He noted that services would also be directed toward making a living, through help from the university and trade schools. Life skills, such as keeping a checkbook, would also be taught. Programs would be individualized. In response to a question by Representative Whitaker, Ms. Gibbens noted that the first federal appropriation was $500 thousand dollars, which began in 2000. Representative Whitaker observed that the state has been able to receive the funds since 2000 and questioned the need for legislation. Ms. Gibbens explained that current Alaska statutes do not allow services for children over the age of 18, who are no longer in custody. Federal law requires that a portion of these funds be used for older children, when they leave state care. The funds are currently being used for older children that are moving out of custody. The legislation would give authority to use the funds on children that have moved out of custody. The legislation applies to those over 18. Representative John Davies referred to page 2, line 12. He noted that the program development is subject to appropriation. He questioned if there would be a new line in the operating budget to appropriate the federal funds. Ms. Gibbens clarified that the funds have already been received. What is missing is the statutory authority to spend the funds on those over 18 years of age. The funds have not all been expended. The intent is to add to the priorities by providing services for those over 18 years of age. Representative Harris summarized that the Division is looking for statutory authority to comply with the federal requirements. ROSELYNN CASCY, ADULT LEARNING CENTER, ANCHORAGE, testified via teleconference. She noted that they provide services to children that have been in foster care and expressed support for the legislation. In response to a question by Vice-Chair Bunde, Representative Dyson stated that the federal enabling legislation is for 5 years and is subject to renewal. He expressed the hope that improved services by the Division of Family and Youth Services would aid children in their ability to take care of themselves after their release from state custody. The program will cease if state funds are not appropriated after federal funding has ended. He stressed that the benefit would be derived from the program over the next 5 years. In response to a question by Vice-Chair Bunde, Representative Dyson observed that much of the work has dealt with finding safe housing and helping them to find a job path. Representative Foster MOVED to report CSHB 209 (HSS) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 209 (HSS) was REPORTED out of Committee with a "do pass" recommendation and with a previously published zero fiscal note: #1 (LAW).