HB 242-EXTEND SENIOR BENEFITS PAYMENT PROGRAM  3:04:30 PM CHAIR PRAX announced that the first order of business would be HOUSE BILL NO. 242, "An Act extending the Alaska senior benefits payment program; and providing for an effective date." 3:04:53 PM REPRESENTATIVE VANCE, Alaska State Legislature, as prime sponsor of HB 242, explained the bill simply extends the senior benefits payment program by ten years. CHAIR PRAX confirmed that a public hearing had been held for the bill. He expressed an interest in moving the bill forward and entertained a motion. 3:05:38 PM REPRESENTATIVE RUFFRIDGE moved to report HB 242 out of committee with individual recommendations and the accompanying fiscal notes. 3:06:05 PM REPRESENTATIVE FIELDS objected and explained he was going to offer an amendment to index the benefits to inflation. He observed that the Senate version was in its second reading on the Senate floor and would pass first anyway. 3:06:25 PM The committee took an at-ease from 3:06 p.m. to 3:07 p.m. 3:07:36 PM REPRESENTATIVE RUFFRIDGE withdrew his motion. 3:07:46 PM REPRESENTATIVE FIELDS moved Conceptual Amendment 1 to index the senior benefits in the bill to inflation. REPRESENTATIVE SADDLER explained he generally opposes indexing financial decisions because the state has an ever-moving fiscal situation, and the state constitution does not allow for dedicated funds. It erodes the authority of the legislature to lock in benefit levels for inflation. REPRESENTATIVE MINA said she supports inflation adjusting because many Alaskans do rely on the benefit program and have relied on it for decades. REPRESENTATIVE FIELDS requested to hear the bill sponsor's response to Conceptual Amendment 1. REPRESENTATIVE SADDLER said he did not want anyone to misinterpret his objection to inflation proofing because he does support the senior benefits program. 3:09:46 PM REPRESENTATIVE VANCE spoke to the concept of inflation-proofing by explaining it should be approached cautiously because of the fiscal impacts. She pointed out the growing number of seniors who are becoming eligible, and it is a robust though valid discussion. 3:10:32 PM REPRESENTATIVE SUMNER asked Representative Fields what he envisioned happening in the case of deflation, particularly because of the housing component of the Consumer Price Index (CPI). He discussed a hypothetical situation where the current increased cost of housing would be reversed and wondered if the inflation index would adjust downwards. 3:11:21 PM REPRESENTATIVE FIELDS suggested the amendment leave the potential for deflation or clarify that the index is a floor not a ceiling. 3:12:02 PM A roll call vote was taken. Representatives McCormick, Fields, and Mina voted in favor of Conceptual Amendment 1 to HB 242. Representatives Ruffridge, Saddler, Sumner, and Prax voted against it. Therefore, Conceptual Amendment 1 failed to be adopted by a vote of 3-4. 3:12:59 PM CHAIR PRAX suggested the committee table HB 242 to be taken up later. REPRESENTATIVE RUFFRIDGE moved to table HB 242. There being no objection, it was so ordered. HB 242-EXTEND SENIOR BENEFITS PAYMENT PROGRAM  5:08:51 PM CHAIR PRAX announced that the next order of business would be a return to HOUSE BILL NO. 242, "An Act extending the Alaska senior benefits payment program; and providing for an effective date." 5:08:57 PM REPRESENTATIVE RUFFRIDGE moved to take HB 242 off the table. There being no objection, HB 242 was once again before the committee. 5:09:13 PM REPRESENTATIVE FIELDS moved to adopt Amendment 2 to HB 242, labeled (NEED TO FIND THE AMENDMENT) REPRESENTATIVES SUMNER and SADDLER objected. REPRESENTATIVE FIELDS explained that Amendment 2 ensures senior benefits are paid at the statutory level which is higher than they have paid out the past five or six years, and they have been administratively reduced for the last five or six years. He provided context for the amendment by pointing out currently the department has additional administrative authority beyond the legislature's ability to appropriate. The amendment would ensure the greatest likelihood of paying out at the statutory level. 5:10:39 PM The committee took an at-ease from 5:10 p.m. to 5:12 p.m. 5:12:09 PM REPRESENTATIVE VANCE, Alaska State Legislature, as prime sponsor of HB 242, said she remained neutral regarding Amendment 2 at that point because she did not know whether it would change the fiscal note. She appreciated people being able to appeal the amount of distribution. By principle she likes to apply things equally across law, and this may create a conflict with other monetary distribution people receive from the state. 5:13:10 PM REPRESENTATIVE SUMNER explained he is not certain that deleting this language from statute would have the result the amendment's sponsor believes it would have in the event of an insufficient appropriation. CHAIR PRAX asked for input from someone from the administration. 5:14:05 PM DEB ETHERIDGE, Director, Division of Public Assistance, Department of Health, explained that the appropriations would have to be included in the division's base budget. Furthermore, it would require knowing exactly the number of individuals who would be applying at which benefit level. If the division didn't have the appropriations, it would have to ask for additional funds through ratification, otherwise it could impact other general fund programs. 5:14:54 PM REPRESENTATIVE SADDLER said he was inclined to not support the amendment and let the division know the issue is likely to come up in the future. REPRESENTATIVE FIELDS asked whether Legislative Legal Services could answer questions about the amendment. 5:15:35 PM REPRESENTATIVE SUMNER posed a hypothetical, asking if this amendment passed, and the appropriation was not made, would other programs be impounded in order to pay off the benefit. MS. ETHERIDGE explained that she needed additional time to review the impact of the amendment. 5:16:08 PM REPRESENTATIVE SUMNER removed his objection to Amendment 2 to HB 242. REPRESENTATIVE SADDLER [maintained his objection]. REPRESENTATIVE RUFFRIDGE reiterated his understanding that if the division is not allowed to "short" the benefit if the appropriation does not match, under statute the division would have to find those dollars. MS. ETHERIDGE said that was her understanding. 5:17:17 PM REPRESENTATIVE SADDLER confirmed that he still maintained his objection. 5:17:22 PM A roll call vote was taken. Representatives Mina, Sumner, and Fields voted in favor of Amendment 2 to HB 242. Representatives Ruffridge, Sadler, and Prax voted against it. Therefore, Amendment 2 242 failed to be adopted by a vote of 3-3. 5:18:18 PM REPRESENTATIVE RUFFRIDGE moved to report HB 242 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 242 was reported out of the House Health and Social Services Standing Committee.