SENATE CS FOR CS FOR HOUSE BILL NO. 142(HES)                                                                               
     "An Act relating to the Alaska temporary assistance program;                                                               
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Green  indicated this legislation  allows the Department  of                                                            
Health and Social  Services to reduce benefits during  the months of                                                            
July, August and September  for two-parent families participating in                                                            
the Alaska  Temporary Assistance Program  (ATAP). She discussed  how                                                            
this relates  to out-dated  language from  the discontinued  welfare                                                            
assistance  program that was included  in ATAP when it was  created.                                                            
She assured,  "This is the  piece they need.  This is all they  need                                                            
this year" in order for the department to be in compliance.                                                                     
                                                                                                                                
Co-Chair  Donley noted that  the Senate Health  and Social  Services                                                            
committee  substitute does  not include all  the items mentioned  in                                                            
the governor's transmittal letter. [Copy on file.]                                                                              
                                                                                                                                
JIM NORDLUND,  Director, Division  of Public Assistance,  Department                                                            
of Health and  Social Services, testified  the committee  substitute                                                            
is  a  "stripped  down"  version  of  the  bill  introduced  at  the                                                            
beginning of the session.  He informed that the committee substitute                                                            
contains an "urgent"  provision that places the state  in compliance                                                            
with federal Temporary  Assistance for Needy Families (TANF) statute                                                            
that exempts  welfare  recipients  living in  certain Alaska  Native                                                            
villages from the 60-month limit on benefits.                                                                                   
                                                                                                                                
[Teleconference equipment temporally interrupted the meeting.]                                                                  
                                                                                                                                
Mr.  Nordland  explained  that other  provisions  contained  in  the                                                            
original  bill yet  removed from  the committee  substitute, have  a                                                            
deadline of June 2002 and could therefore be postponed.                                                                         
                                                                                                                                
                                                                                                                                
SFC 01 # 95, Side B 12:01 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr.  Nordland  informed  the  Committee  that  the  other  remaining                                                            
provision  in the committee  substitute  is in response  to a  court                                                            
case challenging  statutory language, which had been  taken from the                                                            
laws governing  the previous public  assistance program,  but became                                                            
ambiguous  when  incorporated   in  the  ATAP  laws.  This  language                                                            
addressed   the  seasonal  reduction   of  benefits  to   two-parent                                                            
households. He described  the "carried over" language stipulates the                                                            
department must  identify the principal wage earner  in a family and                                                            
the employment status of that wage earner.                                                                                      
                                                                                                                                
Mr. Nordland stressed the  legislative and Administrative intent was                                                            
to require  that  all two-parent  families,  with  the exception  of                                                            
those with one  parent disabled, should have their  benefits reduced                                                            
during the  summer months.  He explained the  rationale was  that in                                                            
two-parent  families, one  parent should  be able  to work and  also                                                            
because there  are more employment  opportunities during  the summer                                                            
season. However,  he continued, the  courts did not consider  intent                                                            
but rather  the "letter of  the law" and  ruled that the  department                                                            
had  failed  to  perform   and  eligibility  determination   of  the                                                            
principal wage earner and that parent's employment status.                                                                      
                                                                                                                                
Mr. Nordland stated Section  2 of the committee substitute, "removes                                                            
that antiquated  law" and allows the  department to reduce  benefits                                                            
to all able-bodied two-parent families in the summer.                                                                           
                                                                                                                                
Senator  Green offered  a motion to  move SCS CS  HB 142 (HES)  from                                                            
Committee  with   accompanying  Department  of  Health   and  Social                                                            
Services zero fiscal note.                                                                                                      
                                                                                                                                
There was no objection and the bill MOVED from Committee.                                                                       
                                                                                                                                
AT EASE 12:03 PM / 12:05 PM