HB 209-PROGRAM FOR FORMER FOSTER CHILDREN  SENATOR WARD moved to adopt a proposed Senate HESS Committee substitute to HB 209, Version L, for the purpose of discussion. There being no objection, the motion carried. REPRESENTATIVE FRED DYSON, sponsor of HB 209, told members that he spoke with Karen Perdue, former commissioner of DHSS, about foster children several years ago and was told that the state is not doing the job it should to help children who have been in state custody all of their lives make the transition to living on their own. He said the federal government has just taken a major step in that direction - a step that includes a funding package. HB 209 will enable the state to get federal funds, fulfill the mandates of the state and improve the services provided by DHSS. In the past, foster children who reach the age of 18 were given their last two or three permanent fund dividend checks and told to have a good life. HB 209 will help DHSS assess the life skills, education, vocational skills, jobs, housing and/or mentor needs of each child. The proposed committee substitute contains changes that were worked out between DHSS and the Covenant House. The Covenant House wants to make sure that non-government organizations get a chance to participate in the design and delivery of services to these children. SENATOR LEMAN noted that Version L contains a provision that says DHSS shall develop the regulations in concert with public, private and Alaska Native organizations. He said he sees the merit in that list as many children are probably Alaska Native but asked whether there is merit in doing a broader reach to include other groups. REPRESENTATIVE DYSON said it is a judgment call but he wouldn't recommend it. He said nothing in the bill precludes what can be done to help an individual child. CHAIRWOMAN GREEN asked who would be excluded if it read, "The department shall develop the regulations in consultation with public and private organizations." REPRESENTATIVE DYSON said no one would be excluded. CHAIRWOMAN GREEN said she saw no reason to specify Alaska Native organizations. SENATOR WILKEN moved [Amendment 1] on page 2, lines 4 and 5, to amend the sentence to read, "The department shall develop the regulations in consultation with those public and private organizations as they deem necessary." CHAIRWOMAN GREEN announced that with no objection, Amendment 1 was adopted. CHAIRWOMAN GREEN asked if the current federal funding falls under the Foster Care Independence Act of 1999 and whether it pays 100 percent. REPRESENTATIVE DYSON said that is his understanding. CHAIRWOMAN GREEN said she wants to be certain that when the federal government cuts back those funds 30 or 40 percent, it cannot force the state to make up the difference. CHAIRWOMAN GREEN said she is concerned that the program will gain a huge constituency and, if it is then cut, that constituency will anticipate state support. SENATOR DAVIS noted the bill applies to 18 to 20 year olds and said many foster children transition into the adult world who are not 18 years old. They can legally emancipate themselves. She asked why the minimum age is 18. CHAIRWOMAN GREEN thought it was patterned after the federal program. REPRESENTATIVE DYSON said the age was changed to 16 in the proposed committee substitute before the committee. CHAIRWOMAN GREEN asked how that comports with the federal program. REPRESENTATIVE DYSON said DHSS is authorized by the state to take care of children under the age of 18. CHAIRWOMAN GREEN asked why those children would be put under this program. REPRESENTATIVE DYSON said the proposed committee substitute authorizes DHSS to use federal funds to provide some services up through age 20, which DHSS cannot currently do. CHAIRWOMAN GREEN said she understands that, but questions why the bill references 16 year olds. REPRESENTATIVE DYSON stated, "So that we can start working with these kids when they're 16." CHAIRWOMAN GREEN asked, "With federal funds?" MS. JOANNE GIBBONS, state program administrator of the Division of Family and Youth Services, DHSS, explained that the funds for the independent living program are currently being used for children in custody. One of the requirements for receiving the funds is that the state serve young adults who were in the foster care system but are no longer. SCS CSHB 209(HES) will give DHSS the statutory authority to spend funds on individuals not in state custody. CHAIRWOMAN GREEN acknowledged that the bill has a zero fiscal note. She asked if all of the funds will be federal. SENATOR WARD asked if DHSS now spends money on children between the ages of 14 and 18 and whether the federal legislation will continue to be earmarked for children between the ages of 14 and 21 or between the ages of 18 and 21. MS. GIBBONS said DHSS will always be required to provide those services for children 14 to 18, both in custody and formerly in custody of the state. She explained the current federal law requires DHSS to spend these funds not only on teenagers and young adults in state custody, but also to provide a certain amount of services and financial support for young adults once they have left state custody. DHSS cannot just drop them at age 18, or whenever custody is dropped, without any support. Under current Alaska statute, DHSS cannot expend funds on individuals no longer in its custody so it cannot serve the individual who was in custody six months ago but is now on his own trying to find an apartment and job. SENATOR WARD asked if this bill will allow DHSS access to funds that it cannot currently capture. MS. GIBBONS said these funds are specifically for the State of Alaska. Each state was given a certain amount of funds to use specifically for this purpose. DHSS is currently expending these funds, but they are only used for children in custody of the state. REPRESENTATIVE DYSON asked whether future appropriations will be in jeopardy if Alaska statute is not changed. MS. GIBBONS said the federal agency has made it clear that if Alaska does not spend part of the federal funds on foster children who are no longer in state custody, it will lose funding. The federal agency has not been specific about how much, but has announced that it will place sanctions on states that do not comply. SENATOR DAVIS asked what year of the five-year grant DHSS is in now. MS. GIBBONS said DHSS is in the second year right now. SENATOR DAVIS asked if DHSS knows how much of that money it has spent each year. MS. GIBBONS said she believes it does and that DHSS must go through a reauthorization process every year and submit an annual report. SENATOR DAVIS asked if this bill will allow DHSS to take those foster children in who are no longer in state custody and allow it to provide services to them. REPRESENTATIVE DYSON said the phrase, "take them in" is not exactly accurate. They will not be in a state run home but could be in a state subsidized apartment and get job placement and counseling if necessary. SENATOR DAVIS asked if this will be a tool to transition children in custody to independence. REPRESENTATIVE DYSON said it will. He added that DHSS is really pushing to get children in to permanent homes, but the children this bill will apply to never got adopted or had a guardian and were most likely in a series of group or foster homes. CHAIRWOMAN GREEN announced that she would hold the bill until Wednesday. She also announced the committee would hear about the Baldridge Award for the Chugach School, HB 239 and SB 306 at that time. With no further business to come before the committee, she adjourned the meeting at 2:30 p.m.