HB 16 - LICENSURE OF ASSISTED LIVING FACILITIES Number 0758 CO-CHAIRMAN DYSON announced the next order of business as House Bill No. 16, "An Act transferring to the Department of Health and Social Services the authority to license all assisted living facilities; eliminating the authority of the Department of Administration to license assisted living facilities; and providing for an effective date." Number 0774 REPRESENTATIVE ERIC CROFT, Alaska State Legislature, sponsor, came forward to testify saying that he felt it was the committee's discretion on what to do with HB 16. His original intention was a consolidation of a current function to solve a perceived conflict of interest and let the process of rewriting the regulations continue. Another option is to try to incorporate this consolidation into a change in function that would be a part of the regulations. He wants this committee to decide. He has a slight preference to do what he intended to do. Number 0875 REPRESENTATIVE BRICE commented that to concur with the original intention, they should probably move HB 16 as it is and move it without the fiscal note or ask the chair to rewrite a Health, Education and Social Services (HES) committee fiscal note that would show the actual transition between the Department of Administration (DOA) and the Department of Health and Social Services (DHSS). Number 0910 CO-CHAIRMAN DYSON said he believed that the committee had asked the departments and Representative Croft if there was a way to work this out. He repeated the philosophical questions they had asked: Should all the licensing be under one roof? Should the licensing be in an organization that is independent from the organization that administers the program? Can the administration come up with an ideal solution that heads them toward the best way to organize and administer the licensing and inspection process? Number 0983 ELMER LINDSTROM, Special Assistant, Office of the Commissioner, Department of Health and Social Services, came forward to testify. He agreed that those questions were raised and probably others, and there is a process that the DOA and DHSS are willing to commit to that will get those answers. He noted that the committee has been provided with a memorandum from Kay Burrows, Director, Division of Senior Services, DOA to Alison Elgee, Deputy Commissioner, DOA, dated May 11, 1999 regarding Timeline for review of Assisted Living Regulations. That is a process they are committed to engage in over the next several months. Their goal by the fall of 1999 is to have a very good understanding of where they want to go in terms of who should appropriately license the facilities. MR. LINDSTROM noted that they probably need to look at different standards for smaller "mom and pop" facilities as opposed to the larger assisted living facilities, like the pioneers' homes. By next fall they will have a much better sense of what they want this system to look like. He is willing to predict that one of their conclusions is that they will need legislation. Next year they will know what that legislation ought to look like from their perspective. Number 1082 REPRESENTATIVE GREEN commented that was a good move forward. He asked them to look at the possibility of new regulations for bigger and smaller facilities since that greatly affects the fiscal note. MR. LINDSTROM indicated they would be looking at that in the regulations. This review and developing the standards will allow them to refine their fiscal note far better than what was presented up to this point. Number 1159 REPRESENTATIVE KEMPLEN asked Mr. Lindstrom if the DHSS would be opposed to movement of HB 16 as it is written now. MR. LINDSTROM said he would like to pass on answering that question. Next fall they are likely to be looking at a need for some sort of legislative fix. He doesn't know if the sponsor would be interested in using HB 16 as a possible vehicle for that, but this bill needs further work. REPRESENTATIVE BRICE commented he was favoring moving out HB 16 as it is a simple change of administrative function that should come up with a net zero fiscal note moving out the DOA functions into DHSS, as it is written. If they want to focus on developing a stronger certification and licensing process and develop certain standards for assisted living programs, that is something outside of what they are talking about in HB 16. MR. LINDSTROM indicated that the Commissioner of DHSS would be opposed to this legislation should it pass without the funding they have estimated for the requirements at this time. The Committee took an at-ease from 4:05 p.m. to 4:15 p.m. Number 1311 CO-CHAIRMAN DYSON commented that the consensus of the committee is to hold this bill, revisit it and work with the departments. He asked that the departments keep the HES committee in the loop and suggested they have some concurrent meetings. The HES committee plans to meet in August, and they would like an update from the departments. In the meantime, a new fiscal note will be drafted. [HB 16 was held over.]