HOUSE FINANCE COMMITTEE March 29, 1993 8:35 a.m. TAPE HFC 93-78, Side 1, #000 - end. TAPE HFC 93-78, Side 2, #000 - 483. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 8:35 a.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Dave Williams, Division of Medical Assistance, Department of Health and Social Services; Ritchie Sonner, Hospice and Home Care of Juneau; Myra Howe, Director, Special Education, Department of Education; Willie Anderson, NEA-Alaska;Doug Wooliver, Staff Attorney, Representative Barnes; C.E. Swackhammer, Deputy Director, Department of Public Safety SUMMARY INFORMATION HB 69 "An Act relating to registration of and information about sex offenders and amending Alaska Rules of Criminal Procedure 11(c) and 32(b)." CSHB 69 (FIN) was reported out of Committee with a "do pass" recommendation and with four zero fiscal notes by the Department of Corrections, dated 2/8/93; Department of Law, dated 2/8/93; and two by the Department of Administration and with a fiscal impact note by the Department of Public Safety, dated 3/25/93. HB 171 "An Act providing coverage for hospice care under the Medicaid program; reordering the priorities given to optional services under the Medicaid program; and providing for an effective date." CSHB 171 (FIN) was reported out of Committee with 1 a "do pass" recommendation and with a fiscal impact note by the Department of Health and Social Services, dated 3/22/93. HB 178 "An Act adding children under the age of 21 who are eligible for adoption assistance because of special needs to the optional Medicaid coverage list and revising the order of priority in which groups eligible for optional Medicaid coverage are eliminated; and providing for an effective date." HB 78 was reported out of Committee with a "do pass" recommendation and with two fiscal impact notes by the Department of Health and Social Services, dated 3/22/93. HB 235 "An Act relating to educational programs and services for children with disabilities and other exceptional children and to persons with a handicap; and providing for an effective date." CSHB 235 was reported out of Committee with "no recommendation" and with a zero fiscal note by the Department of Education, dated 3/24/93. HOUSE BILL NO. 69 "An Act relating to registration of and information about sex offenders and amending Alaska Rules of Criminal Procedure 11(c) and 32(b)." Members were provided with a Work Draft for HB 69, 8- LS0395\U, dated 3/25/93 (Attachment 1). HB 69 was held in a subcommittee consisting of Chair Therriault with members Representatives Brown and Martin. Representative Therriault explained changes by the Subcommittee. References to DNA blood typing were deleted. First time sex offenders are required to register for 15 years. Sex offenders who have been convicted two or more times must register for life. Sexual abuse of a minor in fourth degree has been eliminated at the request of Representative Barnes. He explained that language to allow dispute of file information was added. The Department "shall" correct or supplement inaccurate or incomplete information. Representative Therriault note that by law the registration fee cannot be punitive in nature. The Subcommittee set the fee at $5.00 dollars. Representative Therriault MOVED to ADOPT Work Draft for HB 69, 8-LS0395\U, dated 3/25/93. There being NO OBJECTION, it 2 was so ordered. Representative Therriault MOVED to Amend, CSHB 69 (FIN), delete page 3, line 28, "11.40.130". He explained that offenders can be convicted under 11.40.130 for supplying alcohol to minors. There being NO OBJECTION, it was so ordered. Co-Chair MacLean asked if VPSO's would substitute for the Chief of Police in rural areas. She asked if the Department of Corrections could register sex offenders prior to release. C.E. SWACKHAMMER, DEPUTY DIRECTOR, DEPARTMENT OF PUBLIC SAFETY clarified that VPSO's would not be required to perform the registrations. He added that the Alaska State Troopers will aid rural areas with sex offender registration. Village Public Safety Officers would be informed of registered sex offenders in their areas. He explained that the Department of Corrections would not register offenders since offenders future place of residence and employment would be unknown. Representative Therriault noted that sex offender registration for first offenders will be retroactive ten years to 1984. Representative Navarre asked if the a ten retroactive period would be subject to discrimination challenges. Representative Therriault did not think there would be a basis for legal challenges. DOUG WOOLIVER, STAFF ATTORNEY, REPRESENTATIVE BARNES assured members that the ten year retroactive period would be upheld in court. He cited the difficulty in collecting accurate data past ten years. Mr. Wooliver explained the legal rational supporting a ten year retroactive period. Members discussed the retroactive registration period. Representative Navarre asked if other state law has been tested in regards to the right to privacy. Mr. Wooliver stated that Washington state has a constitutional right to privacy. The Washington State Supreme Court has up held the retroactive period. He clarified that offenders convicted of two or more offenses must register regardless of the time of conviction. Representative Therriault relayed that supporters of the legislation feel that sex offenders have a high recidivism rate because they do not think they will be caught. The legislation is designed to be a deterrent. Mr. Wooliver explained, in response to a question from Representative Foster, that a regulatory action would not be considered as a "expos facto". A punishment cannot be increased retroactively. Laws that are regulatory in nature 3 are not designed to punish. Representative Therriault MOVED to report CSHB 69 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 69 (FIN) was reported out of Committee with a "do pass" recommendation "do pass" recommendation and with four zero fiscal notes by the Department of Corrections, dated 2/8/93; Department of Law, dated 2/8/93; two by the Department of Administration and with a fiscal impact note by the Department of Public Safety, dated 3/25/93. hb#171 HOUSE BILL NO. 171 "An Act providing coverage for hospice care under the Medicaid program; reordering the priorities given to optional services under the Medicaid program; and providing for an effective date." RITCHIE SONNER, EXECUTIVE DIRECTOR, HOSPICE AND HOME CARE OF JUNEAU spoke in support of HB 171. She explained that hospice care supports the terminally ill to allow them to remain in their home. She emphasized that home care is cost effective. She stressed that the terminally ill are allowed to remain with their loved ones. She explained that terminally ill is defined as those that have 6 or less months to live. An inter disciplinary team of counselors, physicians, nurses, therapist, clergy and volunteers assist the terminally ill. The goal of hospice care is to allow terminally ill to spend their final days pain free and alert, at peace with themselves and their loved ones in their own home. Hospice care is endorsed and supported by Medicare. Representative Parnell pointed out that there are no Medicare certified hospice organizations in Alaska. He asked if the bill will impact certification. Ms. Sonner stated that in lieu of hospice certification Medicare will certify home care providers. She felt that the legislation would encourage hospice certification. Co-Chair Larson asked how the effective date would affect the Department of Health and Social Services. DAVE WILLIAMS, DIVISION OF MEDICAL ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES replied that the Department would like the effective date to be delayed until January 1994. He explained that the Department of Health and Social Services needs time to institute the program. He explained that the fiscal note will cover the cost of changing the 4 claims payment system. Representative Martin MOVED to Amend the effective date to insert "January 1, 1994." There being NO OBJECTION, it was so ordered. Co-Chair MacLean MOVED to report HB 171 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 171 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Health and Social Services, dated 3/22/93. HOUSE BILL NO. 178 "An Act adding children under the age of 21 who are eligible for adoption assistance because of special needs to the optional Medicaid coverage list and revising the order of priority in which groups eligible for optional Medicaid coverage are eliminated; and providing for an effective date." Representative Hanley clarified that children under the age of 21 who are eligible for adoption assistance will be given priority in Medicaid coverage. Mr. Williams explained, in response to a question from Co- Chair MacLean, the fiscal notes. He stated that the State will continue the cost of medical care for hard to place adoptive children. There will be a 50 percent federal match if the legislation is passed. Representative Martin MOVED to report HB 178 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HOUSE BILL NO. 235 "An Act relating to educational programs and services for children with disabilities and other exceptional children and to persons with a handicap; and providing for an effective date." Co-Chair Larson noted that members had received a letter from Marc Grober, Attorney addressing concerns regarding HB 235 (Attachment 2). MYRA HOWE, DIRECTOR, SPECIAL EDUCATION, DEPARTMENT OF EDUCATION presented the members with a written response to Mr. Grober's concerns (Attachment 3). She explained that 5 the State is required to submit an annual plan describing how Alaska will serve exceptional children. The State has received conditional approval of their FY 92 - 94 plan. Statutory and regulatory changes are needed to bring the state into compliance with federal law. The State will lose $8.3 million federal dollars if compliance is not met. Ms. Howe referred to section 8. She noted that the Department must allow for a parent hearing upon denial for placement of a child in special education services. (Tape Change, HFC 93-78, Side 2) Ms. Howe reviewed HB 235. She noted that in section 21, rehabilitation services is added to the definition of related services. Section 23 adds two new categories of autism and traumatic brain injury. The definition of education records has been expanded. Other changes have clarify language to assure clearer authority of the Department of Education. Co-Chair Larson provided members with Amendment 1: "Each school district shall develop an individualized education program for every exceptional child" (Attachment 4). Ms. Howe clarified, in response to a question from Co-Chair MacLean, that there is no federal requirement for a three year reevaluation of students. The Department has opted for a three year review to reestablish eligibility. If a child upon reevaluation is found to no longer meet the criteria they will be allowed to finish their current program. Representative Martin noted the costs associated with keeping exceptional children at a high level. He asked how the cost of evaluation compares to the cost of the programs. Ms. Howe could not answer. She noted that there is an annual evaluation requirement. Representative Grussendorf questioned the use of "shall" vs. "may" in Amendment 1. Ms. Howe replied that school districts could create a criteria so high as to not have any "gifted" students. Co-Chair Larson reiterated Representative Grussendorf's question regarding the use of "shall". Ms. Howe stressed that regulation already requires that each school district have a program for exceptional children. Ms. Howe explained, in response to a question by Representative Parnell, that the school districts submit plans for their programs to the Department of Education. The general standard is for IQ's of 130 and above. 6 Representative Grussendorf expressed the opinion that IQ tests are culturally biased. WILLY ANDERSON, NEA-ALASKA expressed support for HB 235. He stressed that the State will lose $8.3 million dollars in federal funds if HB 235 is not adopted. Representative Martin complained that "exceptional" children programs can be misused by school districts. Co-Chair Larson noted that the only opposition to HB 235 was based on the fear that gifted and talented programs which are provided for in regulation may be discontinued. He explained that Amendment 1 would guarantee that programs are continued. Co-Chair Larson MOVED to ADOPT, Amendment 1. Representative Martin questioned the use of "every" exceptional child. He felt that there would be an increase cost to the State. Ms. Howe clarified that Amendment 1 would not change current practice. She noted that "gifted children" is defined by each school district. Representative Martin noted that "gifted" and "talented" are defined in HB 235. Representative Martin OBJECTED to Amendment 1. A roll call vote was taken on the motion. IN FAVOR: Navarre, Parnell, Foster, Larson, MacLean OPPOSED: Martin, Grussendorf, Hanley Representatives Therriault, Brown and Hoffman were absent from the vote. The MOTION PASSED (5-3). Representative Hanley noted that the definition of "gifted and talented" children does not include all the previous categories. Ms. Howe explained that the Department was advised by the Department of Law to not include each specific category in statute. The Department of Law advised that it would be better to address specific requirements through regulations. Representative Grussendorf expressed concern that parents "brow beat" school districts to allow their children in the gifted and talented programs. Representative Martin agreed. Co-Chair MacLean MOVED to report CSHB 235 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. 7 CSHB 235 was reported out of Committee with "no recommendation" and with a zero fiscal note by the Department of Education, dated 3/24/93. ADJOURNMENT The meeting adjourned at 9:50 a.m. 8