HOUSE BILL NO. 394 An Act extending the Alaska Commission on Aging. BARBARA COTTING, STAFF TO REPRESENTATIVE JIM HOLM, explained that Section 1 extends the sunset for the Alaska Commission on Aging. Sections 2 and 3 reflect Executive Order 108 in 2003 which moved the commission from the Department of Administration to the Department of Health & Social Services. Ms. Cotting referred to page 13 of the audit report (copy on file) recommending extension of the commission. The fiscal note indicates that the Department of Health & Social Services will receive $13 million in federal funds because the commission meets the federal requirements. Co-Chair Harris asked for clarification of the federal funds on the fiscal note. PATRICK SIDMORE, COMMISSION ON AGING GRANTS, SENIOR AND DISABILITY SERVICES, DEPARTMENT OF HEALTH & SOCIAL SERVICES, explained that the Commission on Aging is responsible for planning for Title 3 federal money of the Older Americans Act that provides for nutrition, transportation and support services (NTS) for seniors. Title 3 funds Meals on Wheels, congregate meals, rides for seniors, and the National Family Caregiver program. The commission is tasked with allocating the money to meet the targets of federal law. Co-Chair Harris reiterated his question of whether federal money is involved. Mr. Sidmore explained that interagency receipts are administration money from the federal government based on senior population. He said that Alaska receives the minimum amount. Referring to Fiscal Note 1 dated 02/12/04, Mr. Sidmore stated that a portion of $202.4 in "Other (1007 Interagency Receipts)" is the federal administration money. REPRESENTATIVE HOLM referred to the second page of the fiscal note, "analysis continuation," that explains the department would lose $13 million in federal dollars for senior services if the commission expires. Co-Chair Harris questioned that the fiscal note analysis indicating the extension of the commission has no fiscal impact because it is funded in the Governor's office, while the second fiscal note shows an increase over the original fiscal note to reflect changes in the amended Governor's budget. Representative Holm was unable to respond. LAURA BAKER, BUDGET CHIEF, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH & SOCIAL SERVICES (DHSS), explained that when DHSS updated the fiscal note for the Senate version [Senate Bill 263], the department realized it had submitted a budget amendment for interagency receipts for the commission that reflected what would have been in the budget if the department had not proposed a consolidation of several boards in the original proposal. The $417.9 totals the cost of the four current full-time positions in the commission. With the plan to consolidate, the FY 05 budget had revised these to two part-time and two full-time positions. Co-Chair Harris asked if the department is proposing four new permanent full-time members. Ms. Baker clarified that the $417.9 reflects the Governor's amended budget, and while there is a slight increase over FY 04 in interagency receipts and retirement costs, it shows the cost of the aging commission if it is extended. She said it is already built into the budget. Representative Hawker asked if these changes came through a late amendment incorporated in the budget process rather than in the Governor's budget. Ms. Baker affirmed, and explained that the new fiscal note is a technical adjustment showing the increase in interagency receipts in the budget amendment. Representative Hawker advised that the budget amendment resulted from a negotiated settlement over a potential lawsuit regarding changes proposed to the boards and commissions. In response to a question by Co-Chair Harris, Representative Hawker explained that the $417 thousand is already in his subcommittee recommendations for the Department of Health & Social Services. Representative Fate brought up the Legislative Budget and Audit report in FY 02 giving directives regarding the mixing of funds for sub-recipients, and asked if those corrective actions are on-going. Mr. Sidmore explained that corrective actions have been taken. There was concern over the sub- recipients not reporting their older workers in the federal Mature Alaskans Seeking Skills Training (MASST) Program. Each of the larger sub-recipient agencies is visited at least once a year for an audit. The department also corrected the reporting of federal monies. The department is under a new system of managing grants, and the FY 02 audit is outdated. Representative Foster MOVED to report CSHB 394(HES) out of Committee with the accompanying fiscal note and individual recommendations.