HOUSE BILL NO. 67 "An Act relating to eligibility for and payments of public assistance; and providing for an effective date." Representative Hanley MOVED to RESCIND the Committee's action in reporting CSHB 67 (FIN) out of Committee. Representative Brown OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Brown, Hoffman, Navarre The MOTION PASSED (8-3). A roll call vote was taken on the motion to report CSHB 67 (FIN) from Committee. IN FAVOR: Grussendorf, Brown, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Hanley MOVED to RESCIND the Committee's action in adopting Amendment 1 to HB 67. Representative Brown OBJECTED. Representative Brown emphasized the need for COLA adjustments. The amendment would suspend the COLA. Representative Hoffman spoke is support of Amendment 1. He asserted that repealing the COLA for Adult Public Assistance (APA) and Aid to Families with Dependent Children (AFDC) is "one of the most regressive things we can do to poor people in the state." Co-Chair Larson observed that Alaska is the only state that has a COLA clause for these programs. Representative Hoffman noted that if Amendment 1 is not adopted legislative action will be needed in the future to increase APA or AFDC payments. Representative Brown provided members with a Legislative Research Agency memorandum regarding the state of Alaska's children, dated 3/22/93 (Attachment 2). She pointed out that there are 45,000 children in Alaska living below the 10 poverty level. She observed that 27 percent of Alaska's preschool children live in poverty. She maintained that the programs support children. Representative Hoffman provided members with a 3/26/93, memorandum from Terri Lauterbach, Legislative Counsel stating that CSHB 67 (JUD) would not allow COLA payments to be made through appropriation (Attachment 3). Representative Grussendorf spoke against repealing the COLA. A roll call vote was taken on the motion to RESCIND Amendment 1, adopted on 3/27/93. IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Brown, Grussendorf, Hoffman, Navarre The MOTION PASSED (7-4). Representative Brown provided members with a substitute for Amendment 1 (copy on file). Representative Brown MOVED to ADOPT AMENDMENT 1. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Brown provided members with AMENDMENT 2 (Attachment 4). She explained that Amendment 2 would set a floor for APA and AFDC payment levels. The COLA adjustment would automatically be installed if AFDC and APA recipients fell below 70 percent of the federal poverty guideline. JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES explained that it is necessary to specify the household size. She explained that a two person household is at a higher percentage of poverty than a three person household. She suggested that the amendment specify that when a household of two reach 70 percent of the poverty level than the COLA adjustment would be made. She explained that COLAs are the same as the poverty level increase. She gave examples of COLA adjustments. She noted that in 1992 a household of three is at 77 percent of poverty and a household of two is at 86 percent of poverty. Representative Brown MOVED to AMEND AMENDMENT 2 to specify that when a three person household reaches below 70 percent of the poverty level a COLA adjustment would be made. Co- Chair Larson suggested that the amendment be held and 11 drafted be legal counsel. Amendment 2 was held. HB 67 was HELD in Committee.