HB 219-REPEAL SUNSET OF MENTAL HEALTH ASSISTANCE CHAIR DYSON announced that the first order of business would be HOUSE BILL NO. 219, "An Act relating to mental health treatment facilities; repealing the termination date of the mental health treatment assistance program; and providing for an effective date." Number 0064 REPRESENTATIVE HUGH FATE came forth as sponsor of HB 219. He stated that [HB 219] was requested by Senator Kelly, who is offering a companion bill [SB 154]. He explained that Section 1 of the bill repeals the sunset provisions in Sections 2, 4, 6, and 9 of chapter 87 of SLA 1999. Those current sections that would be removed would cover: the clarification of liability for expenses of placement in a treatment facility; the clarification of the definition of "designated treatment facility"; and the definition of the eligibility and procedures of the DET (Designated Evaluation and Treatment program) including the applicability, eligibility for assistance, application for assistance, decision on eligibility, eligible services rates, payment, appeal, regulations, and definitions. And, he said, it removes an effective date of sunset, July 1, 2001. REPRESENTATIVE FATE read to the committee: Those individuals who are working for people who have no insurance nor do they have any Medicaid coverage would still be afforded hospitalization if they meet certain eligibility requirements. He stated that these are people who are in a mental crisis. He added that it further goes on to describe how these patients would have to be removed if the sunset provision is not repealed. They would then be moved to API (the Alaska Psychiatric Institute), which is already crowded and would entail movement costs. Number 0322 ELMER LINDSTROM, Special Assistant, Office of the Commissioner, Department of Health & Social Services (DHSS), came forth and stated that this allows the DET program to continue beyond July 1 in its current configuration. He remarked that it is far better, therapeutically, for people to remain in their home communities and receive these services. He explained that the attached fiscal note shows the entire cost for the DET program in fiscal year 2002 is $2.6 million. Those funds are included in both the House and the Senate versions of the fiscal year 2002 operating budget. In the middle of the form there is a box [that is checked, which notes] that this bill is included in the governor's budget, as it was and is in the House and Senate budgets. He clarified that it is actually a zero fiscal note in the sense that [DHSS] is not looking for additional funds. REPRESENTATIVE COGHILL asked what the source of the funding is. MR. LINDSTROM answered that there are a variety of funding sources. He stated that two years ago, when Senator Kelly introduced a bill that modified the program, one of the primary funding sources was a federal grant [DHSS] received courtesy of the delegation, which is not a continuous source of funds. He said he believes the sunset was put on the bill recognizing that those funds would not continue. He added that [DHSS] has been able to construct a mechanism using other non-general funds to pick up the slack from that lost federal grant. This involves the disproportionate share payments through the Medicaid program and a non-general fund source. He stated that while there is about $1.1 million in general funds, the fiscal year 2002 budget was only a $200,000 increase in general fund and [DHSS] has been able to pick up the rest of the cost with the other non-general funds. KARL SANFORD testified via teleconference. He stated, on behalf of the hospital in Fairbanks, that he was in support of HB 219. Number 0616 REPRESENTATIVE COGHILL made a motion to move HB 219 from committee with individual recommendations and attached fiscal notes. There being no objection, HB 219 moved from the House Health, Education and Social Services Standing Committee.