HB 44 - ADMISSION TO PIONEERS' HOMES CHAIR JAMES announced the last order of business would be HB 44, "An Act relating to admission to an Alaska Pioneers' Home," sponsored by Representative Tom Brice. Number 0282 REPRESENTATIVE TOM BRICE said the idea of HB 44 came to him during some discussion he was having with some people who were trying to gain admission to the Alaska Pioneers' Home. He informed the committee that the people he spoke with were concerned that the rates were going to grow so fast that they were going to be unable to afford them. He told the committee if a person got on the waiting list for the Pioneers' Home in January under a fixed income which they could afford at that time, and perhaps in a year when they finally gain admittance, that that amount of income would not be sufficient to cover the costs associated with getting in. He said it was suggested that it be put in statute that at the time a person gets on the waiting list, that they be locked in at that rate. He said locking a person in at that rate causes some major constitutional issues about equal protection and equal access, but what can be done is ensuring that a person would not be disqualified from entering the Pioneers' Home based upon their ability to pay. REPRESENTATIVE BRICE noted that the Department of Administration made a suggestion to Section 1 on page 1 beginning on line 9 which reads: An applicant who is otherwise qualified for admission to the home may not be disqualified for admission based on failure to make an initial payment or provide security for the monthly payments provided for in the agreement entered into AS 47.55.030(a) if the commissioner of administration determines that the applicant is financially unable to make the payment or provide the security. REPRESENTATIVE BRICE said instead of using the wording "based on failure to make an initial payment" it could be based on some type of statement that the applicant is financially unable to make the initial payment. He said "failure" means a person doesn't pay, even though they might be financially able to, but they don't. CHAIR JAMES suggested using the term "inability" instead of "failure." REPRESENTATIVE BRICE said that would be fine. Number 0303 REPRESENTATIVE RYAN asked, "Isn't this the way the Pioneers' Home was originally set up? That the old people when they reach a certain age they have a place to go." REPRESENTATIVE BRICE stated that we all know what the original purpose of the Pioneers' Home was for. He said he is not quite sure it's necessarily there anymore, but he does know that in the scheme of things, it's very important that the state work with the community in providing long-term care. He said the bill would definitely add a certain amount of comfort in those making application that they know they would not be denied access to the Pioneers' Home based upon ability. CHAIR JAMES said the Pioneers' Home was originally intended for pioneers who had lived in Alaska for 25 years and for those people who were here at statehood. She pointed out that the law cannot require a person to be a pioneer, therefore, the Pioneers' Home has to be open to anyone who has lived in Alaska for one year. Now the Pioneers' Home is a state-paid nursing facility. She said over the last few years the rates have been greatly increased because it is such an expensive operation. Even at the rates people are being charged, it still does not cover the costs. She indicated that all of the people in the Pioneers' Homes are not paying what it costs, but those who can are paying a much higher fee. She noted that there's been a lot of distress from the pioneers on that issue because even though they have the money to pay, they have other things they like to do with their money besides pay for their board and room. When the rates kept rising, they began to worry that they wouldn't be able to stay there anymore. Number 0322 CHAIR JAMES noted that the legislature passed legislation a couple of years ago that said if a person is already in a pioneer home and if the rates increased so that person would not be able to pay anymore, that they can't be kicked out. She said when she evaluates the legality of it with equal protection, if there are some people who are in the pioneer homes who don't have to pay, then the people who are qualified to be in there should be owed the same benefit. If we don't do that, that there might be an opportunity to challenge that. Chair James commented that pioneer homes are an extremely expensive way to provide a home for these people and pointed out that there are other assisted-living homes available, which are much less expensive and more efficient so that people can live more of a normal life instead of an institutional life. In conclusion she said, "We don't have enough places that's why there's a waiting list and I think this is a good way to go on this issue, but it doesn't cover the whole concern that we have, and it's a big one. And I've been very frustrated with this whole issue for the six years I've been here, as to how to manage the growing cost of the pioneers homes. Not necessarily because it doesn't provide a good home for some people, but that it is so extremely costly more than other systems." Number 0337 REPRESENTATIVE HODGINS noted that there is a zero fiscal note and said if people are going to be allowed not to pay, it seems there would be some sort of fiscal note generated. REPRESENTATIVE BRICE said, "It's current policy, it's not statute, but it is policy, and as we know, policies can change with the winds of the wind that someone will not be denied admittance. So they are currently doing this." He said his concern is that under the constant pressures that Chair James has brought forth that that policy will change. And that some time in the future it could be reasonably assumed that the administration of the Pioneers' Home would definitely base one's acceptance upon ability to pay. Number 0348 REPRESENTATIVE RYAN made a motion to replace the word "failure" with the word "inability" on page 1, line 10. There being no objection, it was so ordered. Number 0350 REPRESENTATIVE HODGINS made a motion to move HB 44 out of committee as amended with individual recommendations and attached zero fiscal note. There being no objection, CSHB 44(STA) moved out of the House State Affairs Standing Committee.