CS FOR SENATE BILL NO. 150(HES) "An Act relating to the Alaska children's trust grant awards." JASON HOOLEY, STAFF, SENATOR DYSON, related that the Alaska Children's Trust was created by the Legislature in 1988 to help fund programs around the state aimed at preventing child abuse and neglect. Under current law, the trust may spend the net income earned by the trust to fund community based prevention programs. However, current statute limits the size of grants to $50,000 and provides a specific formula for funding grants. The Board of Trustees has requested additional flexibility in awarding grants. SB 150 removes the $50,000 cap and refines the funding formula. The changes proposed by the bill will allow trustees flexibility in setting grant awards, authority to reduce grants and enforce requirements for program performance, and authority to require applicants to include self- sustainability plans in their proposals. 6:44:35 PM Vice-Chair Stoltze asked who the grant recipients are. JOEL GILBERTSON, COMMISSIONER, DEPARTMENT OF HEALTH & SOCIAL SERVICES, explained that he is sitting in for the trustees who have previously testified at every hearing. He read the list of grant recipients: Bartlett Regional Hospital; Center for Community, Sitka; City of Saxman; Covenant House, Anchorage; Fairbanks Counseling and Adoption; Fairbanks Resource Agency; Homer Children's Services; Hoonah City Schools; Juneau Family Birth Center; REACH, Juneau; Resource Center for Parents and Children, Fairbanks; Sutton Elementary School; Talkeetna Elementary School; Tundra Women's Coalition, Bethel; Seaview, Seward. Commissioner Gilbertson related that the reason the trustees asked for this legislation is because the Alaska Children's Trust has been set up so that the grants are paid from the earning of the fund and the earnings have been flat. He explained about the trust and the recurring grants. He shared that there would not be any new grants for the third straight year if SB 150 does not pass. 6:48:50 PM Vice-Chair Stoltze asked if the legislation would prevent large donations to the trusts. Commissioner Gilbertson responded that individuals could still contribute to the trust. 6:49:52 PM Representative Hawker stated that one of the problems is that there are not enough sidebars when issuing grants. They become entitlement programs. He said he is troubled by that and he called it an anti-accountability bill. Commissioner Gilbertson disagreed. He stressed that the bill does the exact opposite because it ends "continuous grants" and caps them at four years. It would also give greater authority to the trustees. Representative Hawker concurred with the idea of limiting grants. Commissioner Gilbertson explained that Section 5 adds a plan for sustainability and self-sufficiency after the grant period, and it extends authority to the board to reduce or discontinue a grant. 6:52:49 PM Representative Croft pointed out that, in one way, it does remove the sidebars, but in another way it establishes new sidebars. He asked why the $50,000 cap is not retained. Commissioner Gilbertson relayed the current fiscal challenge of the trust. The trust has received federal funding. Representative Croft asked if the federal money is governed by these rules. Commissioner Gilbertson replied that it is. He described how it was administered, including a statewide media campaign. 6:55:12 PM Vice-Chair Stoltze MOVED to report CSSB 150 (HES) out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSB 150 (HES) was REPORTED out of Committee with a "no recommendation" recommendation and with a zero fiscal impact note by the Department of Health and Social Services. 6:56:11 PM