SENATE BILL NO. 204                                                                                                             
"An Act extending the termination date of the Alaska                                                                            
Commission on Aging; and providing for an effective                                                                             
date."                                                                                                                          
                                                                                                                                
                                                                                                                                
JANE DEMMERT, Alaska Commission on Aging stated that there                                                                      
are five elements to the auditor's findings, along with a                                                                       
cost allocation plan.  She noted that this finding is in                                                                        
its final stages of completion and will be provided shortly                                                                     
to the U.S. Administration on Aging and the Department of                                                                       
Health and Human Services.  She added that there is 63                                                                          
Commission grantees across the state.  She continued that                                                                       
each Grant award should have a certification in it that                                                                         
assures, by signature, (page 13 of the audit) that each                                                                         
grantee is not in a situation where they have been                                                                              
suspended from receiving federal funding.  She stated that                                                                      
in Alaska's Grant awards, which began as of June 1 of this                                                                      
year, this provision is outlined.  Ms. Demmert continued in                                                                     
regards to an interface with the grantees that there was a                                                                      
provision that at the conclusion of each Grant year, the                                                                        
grantees would be notified about the specific amount of                                                                         
federal funding received by the conclusion of the fiscal                                                                        
year.  She continued that these notices have gone out in a                                                                      
timely manner and that the most recent were for the record                                                                      
of federal funds received in FY99 which closed on June 30.                                                                      
The Commission is in the process of complying with these                                                                        
recommendations.                                                                                                                
                                                                                                                                
Senator P. Kelly referred to the $1.15 thousand fiscal note                                                                     
and asked if this was in the base of FY00.  He read from                                                                        
the fiscal note that there will be no fiscal impact as a                                                                        
result of this legislation, because the costs are already                                                                       
included in the Governor's budget and wondered again if                                                                         
this was in light of a base amount for FY00.                                                                                    
                                                                                                                                
Ms. Demmert responded affirmatively.                                                                                            
                                                                                                                                
Senator Green asked where the Commission was on extricating                                                                     
the long-term care ombudsman.                                                                                                   
                                                                                                                                
Ms. Demmert responded that the Commission has provided an                                                                       
update on their work regarding this question.  She noted                                                                        
that this is a part of the Committee's file and added that                                                                      
it gave a chronology of the ombudsman consideration.  She                                                                       
continued that this consisted of a sequence that began in                                                                       
1998-99 and led the Commission to spend an interim period                                                                       
conducting an extensive review of the long-term ombudsman                                                                       
and whether to out-station this position.  She gave a                                                                           
rundown of what this process entailed.  The Commission                                                                          
concluded that they would have the strongest office                                                                             
possible if it did remain in government rather than being                                                                       
out-stationed in a non-profit organization.                                                                                     
                                                                                                                                
Ms. Demmert continued that they looked at two in-state                                                                          
agencies, the state ombudsman's office and the Alaska                                                                           
Mental Health Trust Authority to absorb this position.  She                                                                     
noted that the state ombudsman's office did a very                                                                              
intensive review of the considerations they thought                                                                             
important, especially their ability to provide basic                                                                            
services as now mandated and the responsibilities inherent                                                                      
in the long-term ombudsman position.  She added that the                                                                        
state ombudsman's office concluded that it was not in the                                                                       
best interest of their operations to bring this additional                                                                      
long-term ombudsman position under their auspices.  She                                                                         
summarized that in the state's ombudsman report they would                                                                      
be responsive to absorb this position if mandated by the                                                                        
legislature.                                                                                                                    
                                                                                                                                
Ms. Demmert referred to the Alaska Mental Health Trust                                                                          
Authority, since about 50 percent of the cases handled by                                                                       
the long-term ombudsman relate to beneficiaries of the                                                                          
trust.  She noted that the trust was in the process of                                                                          
creating regulations that allow for a grievance mechanism                                                                       
for beneficiaries.  The Trust remains open to further                                                                           
discussions about out-stationing the long-term ombudsman                                                                        
office there.  She concluded that the Commission adopted an                                                                     
amendment to their bylaws creating a standing long-term                                                                         
care ombudsman committee that excludes from membership any                                                                      
members of the Commission that have any relationship with                                                                       
the Pioneer Home.  She noted that they have a search                                                                            
committee in place, which is currently conducting                                                                               
recruitment.                                                                                                                    
                                                                                                                                
Senator Green stated that she would not be interested in                                                                        
seeing this legislation pass from the Committee until the                                                                       
long-term ombudsman is moved out of the [indiscernible.]                                                                        
                                                                                                                                
Co-Chair Torgerson stated that SB 204 would be HELD for                                                                         
further deliberation.