HOUSE BILL NO. 16 "An Act relating to delinquent minors, to the taking of action based on the alleged criminal misconduct of certain minors, to the services to be provided to the victims of criminal misconduct of minors, and to agency records involving minors alleged to be delinquent based on their criminal misconduct; and amending Rule 19 and repealing Rules 6, 7, 11(a), 12(a), and 21(f), Alaska Delinquency Rules." Co-Chair Hanley questioned how the Department's fiscal note would be affected by new Amendment #1. [Copy on File]. ELMER LINDSTROM, SPECIAL ASSISTANT, OFFICE OF THE COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVCIES, pointed out that the Department had submitted two fiscal notes to the Committee. The Division of Medical Assistance submitted a zero note accompanied with an analysis regarding new facilities. He commented that Ms. Tanoury would speak to the fiscal note submitted by the Division of Family and Youth Services (DFYS). THERESA TANOURY, ADMINISTRATOR, CHILD PROTECTION SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, discussed the fiscal note which the Division submitted to cover costs associated with semi-secure beds. Currently, there are 15 grantees that provide group care. She believed that staffing with a 1:3 ratio would be necessary in order to manage behavior problems. The fiscal note recommends increasing staffing patterns. Co-Chair Hanley suggested that the Department was making a policy call with the request of additional staffing. He questioned the $210 thousand dollar grant and claim line. Ms. Tanoury stated that the program would not work without the additional staff support. There has been no rate increase since 1990, whereas, difficult-to-care-for children numbers have dramatically increased. Co-Chair Hanley reiterated his concern. He asked if providers would need extra State grants to make the care worthwhile. Co-Chair Hanley commented that he would not support the amendment with the additional fiscal costs. He questioned if beds could be built without the requested funding. Ms. Tanoury advised that the State would not build the semi-secure beds without the requested funding support. RAY GILLESPIE, SPOKE ON BEHALF OF KATHY CRONEN, CHARTER, NORTHSTAR BEHAVORIAL HEALTH SYSTEM, ANCHORAGE, noting that Ms. Cronen was currently out for family emergency, although, requested to testify on the fiscal and legislative impact of the legislation at a latter date. Representative Kelly referenced SB 289 legislation from two years ago. He asked if the fiscal note, which had been funded with that legislation, had been used. ROBERT BUTTCANE, JUVENILLE PROBATION OFFICER, DIVISION OF FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, noted that he did not have the fiscal notes attached to that legislation, although, believed that the money was not used to create a semi-secure facility. Ms. Tanoury pointed out that at this time, there is not a semi- secure residential care facility in Anchorage or Fairbanks. Co-Chair Hanley asked if the grants would be available only for non-profits. Mr. Lindstrom noted that was correct and that the amendment would provide profits and non-profits to have semi-secure facilities, whereas, the grants would only allow the non-profit's funding. Co-Chair Hanley explained that Amendment #1 had been introduced to clarify profit versus non-profit. It was never the intent that for-profits receive grants. The new draft of the amendment clarifies that the grant process remains the same as current law. Co-Chair Hanley MOVED to adopt Amendment #1. There being NO OBJECTION, the new Amendment #1 was adopted. Representative J. Davies spoke to the new Amendment #3. [Copy on File]. He stated that the amendment would remove 13, 14 & 15 year olds from the bill sentencing provisions and would make that referral discretionary with the Department. He informed members that with the changes proposed in the amendment, costs associated with the bill would drop substantially. Mr. Buttcane commented that Amendment #3 would limit the dual sentencing provisions to youth 16 & 17 years old, who meet two criteria: ? Presented with a felony crime against a person and having a history of felony adjudication in the past; or ? Sexual abuse of a minor in the second degree. The Department has estimated that there would be 8 youth per year that would meet these criteria. The amendment makes dual sentencing discretionary. Representative J. Davies MOVED to adopt Amendment #3. There being NO OBJECTION, it was adopted. Representative Kelly MOVED to adopt Amendment #4. [Copy on File]. He advised that the amendment would address a technical statutory problem. There being NO OBJECTION, it was adopted. Co-Chair Hanley reiterated that he would not be supportive of the $210 thousand dollar grant line proposed in the Department's fiscal note. He MOVED to eliminate the grants and claim line. There being NO OBJECTION, it was deleted. Representative Foster MOVED to report CS HB 16 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. CS HB 16 (FIN) was reported out of Committee with a "do pass" recommendation and with two fiscal notes by the Department Administration, the Department of Health and Social Services, the Alaska Court System, the House Finance Committee, the Department of Law, and the Department of Corrections.