CS FOR SENATE BILL NO. 364(HES)                                                                                            
     "An  Act relating  to liability  for expenses  of placement  in                                                            
     certain  mental  health  facilities;  relating  to  the  mental                                                            
     health  treatment  assistance  program;  and providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken communicated  that the Senate Rules Committee at the                                                            
Request of the Governor  sponsors this legislation which would limit                                                            
State aid  for mental health  care and provide  a mechanism  through                                                            
which to address  expenses associated with mental  health diagnosis,                                                            
evaluation and treatment (DET) programs.                                                                                        
                                                                                                                                
Co-Chair Wilken  recalled that, during the previous  hearing on this                                                            
bill, a question  was asked regarding  how the Legislature  would be                                                            
notified were the Department  to anticipate a shortage of funds with                                                            
which to address DET program expenses.                                                                                          
                                                                                                                                
BILL HOGAN, Director,  Division of Behavioral Health,  Department of                                                            
Health  and  Social  Services,  stated  that  the  Department  would                                                            
provide notification in the manner specified by the Legislature.                                                                
                                                                                                                                
Co-Chair Wilken asked whether  the bill should be amended to specify                                                            
that the  Department must  notify the Senate  President, Speaker  of                                                            
the House,  and Finance  Committee Co-chairs  were short funding  to                                                            
occur.                                                                                                                          
                                                                                                                                
Mr. Hogan responded that a formal request would be sufficient.                                                                  
                                                                                                                                
Senator Hoffman  suggested that the bill be amended,  as he attested                                                            
that,  in addition  to  the  Department's  funding  being  strained,                                                            
communities  and hospitals  would have "undue  burdens" placed  upon                                                            
them, particularly considering  the fact that the Alaska Psychiatric                                                            
Institute  (API) would  be downsized  to 72  beds in  July 2004.  He                                                            
pointed out that  the Department could not speak to  the impact this                                                            
might have on hospitals.  Therefore, he voiced a lack of support for                                                            
the legislation, were it not amended.                                                                                           
                                                                                                                                
Co-Chair Wilken  asked whether Senator Hoffman would  be offering an                                                            
amendment to address this concern.                                                                                              
                                                                                                                                
Senator Hoffman refrained from offering an amendment.                                                                           
                                                                                                                                
Co-Chair  Wilken  expressed  therefore,  for  the record,  that  the                                                            
intent  of the  Department would  be to  notify the  Speaker of  the                                                            
House, the Senate President,  and Finance Committee co-chairs were a                                                            
shortfall in funding for the DET program to occur.                                                                              
                                                                                                                                
Co-Chair  Green  moved to  report  the bill  and the  Senate  Health                                                            
Education and Social Services  Committee (HES) Letter of Intent from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
There  being no  objection, CS  SB 364(HES)  and the  HES Letter  of                                                            
Intent was  REPORTED from  Committee with  negative $100,000  fiscal                                                            
note #1  dated February 6,  2004 from the  Department of Health  and                                                            
Social Services.