HB 529 APPROVE CENTRALIZED PUBLIC HEALTH LAB                         
                                                                              
 Number 002                                                                    
                                                                               
 CHAIRMAN GREEN called the Senate Health, Education and Social                 
 Services (HESS) Committee to order at 9:06 a.m. and introduced                
 HB 529  as the first order of business before the committee.                  
                                                                               
 SENATOR MILLER believed that the committee had a CS which is a good           
 compromise.  Senator Miller moved that the SCS HB 529(HES) be                 
 adopted in lieu of the original bill.  Hearing no objection, the CS           
 was adotped.                                                                  
                                                                               
 SENATOR LEMAN wanted to hear from the department.  Are there still            
 substantial benefits from partial consolidation?  How much more               
 will this cost the state in the long run rather than doing the full           
 consolidation now?                                                            
                                                                               
 Number 039                                                                    
                                                                               
 ELMER LINDSTROM, Special Assistant to Commissioner Perdue in the              
 Department of Health & Social Services, said that the department              
 supports the CS adopted by the committee.  The department's first             
 priority throughout this process has been addressing the life,                
 health, and safety issues in the Juneau and Anchorage labs.  This             
 bill does just that.  Mr. Lindstrom noted that previously the                 
 department supported full centralization and those benefits have              
 been discussed.  However, this CS does address the aforementioned             
 priority.  There will be operating budget savings from the CS,                
 although not as large as the centralization option.                           
                                                                               
 SENATOR LEMAN inquired as to how much more it would cost to have a            
 facility in Fairbanks and a partially centralized facility in                 
 Anchorage.  ELMER LINDSTROM stated that the full centralization               
 option would save about $750,000 per year.  Mr. Lindstrom believed            
 that the estimated savings for the option under the CS is                     
 approximately $25,000.                                                        
                                                                               
 CHAIRMAN GREEN inquired as to the will of the committee.                      
                                                                               
 SENATOR MILLER moved that SCS HB 529(HES) be reported out of                  
 committee with individual recommendations.  Hearing no objection,             
 it was so ordered.