SB 59-CERTIFICATES OF NEED FOR HEALTH FACILITY CHAIRMAN MACKIE announced SB 59 to be up for consideration. SENATOR WILKEN said SB 59 was recommendation 21 from the Long Term Care Task Force which suggests that legislation be introduced to adopt a new standard for the Nursing Home Certificate of Need Program. Currently, if he were to build a care facility, the State would be interested in two aspects: its accessibility and its quality. SB 59 adds a new standard: whether the facility is cost effective recognizing that a care facility bed may be worth $100,000 per year of which the State picks up 40 percent. The Alaska State Hospital and Nursing Home Association asked for a change on page 2, line 26 after "foster" to insert "unnecessary" which both he and the Department agree with. SENATOR KELLY moved to adopt that as an amendment. There were no objections and it was so ordered. MR. LINDSTROM testified that Certificates of Need are issued for a variety of facilities. The purpose of this bill is to have separate and more appropriate standards specifically for long term care nursing beds and allowing them to include consideration of the cost to the State of the construction of the additional beds which are paid for by the State through the Medicaid Program. They have no objection to the amendment. There is a fiscal note in the amount of $26,500 which allows them to implement the new standards as it is a very complex program. CHAIRMAN MACKIE noted that if there was no fiscal note, the bill would not have to go through Finance Committee. MR. LINDSTROM said the costs were appropriate. MR. DAVID PIERCE, Certificate of Need Coordinator, Department of Health and Social Services, said the fiscal note is an estimated one-time cost to develop the standard based on prior work done by consultants. CHAIRMAN MACKIE asked if it was something that could be done within the Department. MR. PIERCE answered that it is somewhat unusual as it hadn't been done by any state before. The main thing they would be doing is a comparison of assisted living and long term care and how many assisted beds should be in a community before new long term beds will be allowed. The trend is to move towards assisted living and more community based services. The State does not have the expertise to do it. SENATOR LEMAN asked if there was someone uniquely qualified to do that. MR. PIERCE answered that he hadn't identified anyone, but the state of Georgia is now working on it and maybe we could get some help from them. He is the only person who works on the Certificate of Need Program and wouldn't have the time to do it. MS. DERR testified that they support this bill with the inclusion of the word "unnecessary". She explained it leaves it open for more support. SENATOR LEMAN noted the words "relating" in sections four and five should be changed to "related". SENATOR LEMAN moved to pass CSSB 59(L&C) from committee. There were no objections and it was so ordered.