HOUSE FINANCE COMMITTEE February 24, 1994 1:40 p.m. TAPE HFC 94-40, Side 2, #000 - end. TAPE HFC 94-41, Side 1, #000 - end. TAPE HFC 94-41, Side 2, #000 - 292. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:40 p.m. PRESENT Co-Chair Larson Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf Representative Hoffman was not present for the meeting. ALSO PRESENT Senator Randy Phillips; Nancy Bear-Usera, Commissioner, Department of Administration; Mila Doyle, Labor Relations Analyst, Department of Administration; Dan Spencer, Fiscal Analyst, Office of Management and Budget, Office of the Governor; Pat O'Brien, Social Services Program Office, Division of Family and Youth Services, Department of Health and Social Services; Donna Schultz, Associate Coordinator, Division of Family and Youth Services, Department of Health and Social Services; Tim Sullivan, Staff, Representative Mulder; Jerry Burnett, Staff, Representative. SUMMARY INFORMATION HB 406 "An Act relating to municipal sales and use taxes involving air carriers; and providing for an effective date." HB 406 was assigned to a subcommittee consisting of Representative Foster as Chair and Representatives Martin and Grussendorf. HB 421 "An Act authorizing grants for temporary housing assistance during emergencies and disasters." HB 421 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note 1 by the Department of Military and Veterans Affairs, dated 2/14/94. HB 456 "An Act making appropriations to satisfy the agreed-upon monetary terms of certain collective bargaining agreements for certain public employees; and providing for an effective date." HB 456 was reported out of Committee with no recommendations. SB 45 "An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date." HCS CSSB 45 (JUD) was assigned to a subcommittee consisting of Representative Therriault as Chair and Representatives Parnell and Brown. HOUSE BILL NO. 456 "An Act making appropriations to satisfy the agreed-upon monetary terms of certain collective bargaining agreements for certain public employees; and providing for an effective date." NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION testifie1d on behalf of HB 456. She explained that HB 456 would ratify labor contracts negotiated by the Department. HB 456 would make a total appropriation of $368,630.0 thousand dollars to satisfy the monetary terms of collective bargaining agreements with the Alaska Vocational Technical Center Teachers' Association (AVTEC) and the Marine Engineers' Beneficial Association (MEBA). She provided members with a list of the Department's contract negotiation goals and objectives (copy on file). She stressed that the Department's goals are to: * Maximize the quality, cost effectiveness, and productivity of government services to the public; * Enhance management flexibility to respond effectively to changes in economic conditions and operational needs; * Realign the cost of wages and benefits to, bring the state's compensation package back into appropriate standards, reflect the current and foreseeable economic environment, and prioritize benefits and funding to meet labor and managements's common interest in providing for 2 employees' greatest benefit needs; and * Modify the contract to provide opportunities for improving productivity, accountability, consistency, and efficiency of state government operations. Commissioner Usera emphasized the Department's desire to provide a more flexible benefit package. She stressed the importance of employee involvement. She maintained that growth and inflation factors must be included in considerations. She reminded members that during the time the Alaska pipeline was being constructed the state had difficulty attracting and maintaining qualified employees. She asserted that one of the goals of the Department is to continue to attract and maintain qualified employees. Commissioner Usera provided members with a summary of the state's eleven bargaining units (copy on file). She reviewed the status of each of the bargaining unit's labor contract negotiations. Commissioner Usera discussed the AVTEC contract. She observed that the unit is comprised of 36 employees who are affiliated with the National Educational Association. She noted that the contract contains: * A management rights clause; * Clarification of layoff procedures, specific to the facility; * Added, at employer discretion, sabbaticals after seven years of continuous service; * Eliminated and cashed out FY 95 annual leave, (employees now receive five days of annual leave and sick leave.) * Added complaint procedures for disputes other than interpretation of contract; * Clarified that additional educational credits must be job-related; * Allowed a COLA of up to 2 percent; * Established a per employee health coverage cost to allow unions to determine individual packages. Co-Chair Larson noted that HB 456 funding information is incorrect. He observed that sections 2 and 3 make 3 appropriations from the Alaska Marine Highway System Fund. Funding contained in section 2 was added to other funds. Section 3 was added to general funds. He suggested that, in order to maintain consistency, funding in sections 2 and 3 should be listed together. DAN SPENCER, FISCAL ANALYST, OFFICE OF THE GOVERNOR noted that the Office of the Governor advises that appropriations from the Alaska Marine Highway System fund be listed as other funds. Representative Martin requested information regarding frequent flyer mileage. Commissioner Usera noted that negotiations by the previous administration awarded ownership of frequent flyer miles to employees through a letter of agreement. Representative Martin expressed concern that the highest paid employees receive the best benefit packages. Commissioner Usera noted that health coverage benefits are a set amount per employee. Retirement benefits are tied to salary. Commissioner Usera provided members with a detailed breakdown of the MEBA contract (copy on file). Co-Chair MacLean asked if the Department of Administration had considered a unilateral COLA freeze. Commissioner Usera explained that the Department has placed a COLA freeze on exempt employees. She observed that the state is under obligation to bargain with other units. Representative Brown asked how many employees participate in the MEBA Vacation Committee. Commissioner Usera clarified that 4 or 5 employees participate on the committee. MILA DOYLE, LABOR RELATIONS ANALYST explained that employees meet 2 to 3 times a year. Issues are resolved in one to five days. Representative Navarre MOVED to report HB 456 out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. HB 456 was reported out of Committee with no recommendations. HOUSE BILL NO. 421 "An Act authorizing grants for temporary housing assistance during emergencies and disasters." 4 TIM SULLIVAN, STAFF, REPRESENTATIVE MULDER spoke in support of HB 421. He noted that the legislation was introduced at the request of the state of Alaska's Division of Emergency Services. He explained that under current state statute, people that are displaced from their homes during a state declared disaster must have temporary housing arrangements negotiated individually by the Department of Military and Veterans Affairs. He observed that this can be a lengthy, tedious process. He observed that the Federal Emergency Management Agency makes grants directly to displaced individuals who make their own housing arrangements. Mr. Sullivan noted that HB 421 adds language to AS 26.23.100 to allow the Division of Emergency Services the ability to grant funds to displaced people for temporary housing during state declared disasters. Eligibility for these funds would be determined by criteria established by the Division of Emergency Services. He asserted that the change will result in a more efficient response to temporary housing needs during a state declared disaster. Co-Chair MacLean MOVED to report HB 421 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 421 MOVED was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Military and Veterans Affairs, dated 2/14/94. SENATE BILL NO. 45 "An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date." SENATE RANDY PHILLIPS emphasized that the intent of HCS CSSB 45 (JUD) is to balance the rights of parents and children. PAT O'BRIEN, SOCIAL SERVICES PROGRAM OFFICER, DIVISION OF FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES explained that the state of Alaska currently assists youths that have abuse and neglect issues. She observed that the state has a substantial runaway problem. She explained that HCS CSSB 45 (JUD) would create shelters to serve as short term safe places for runaways until other plans can be made for their care. She noted that communities across the state have an informal network to deal with runaways. Shelters would be created through private agencies. She noted that there are approximately a dozen licensed child placement agencies. She anticipated that many of the private agencies would not be interested in participating in the program. She stressed that staff from 5 the Division of Family and Youth Services (DFYS) would need to work with communities to begin the program. She added that there may be some evaluation of homes by the Division. Ms. O'Brien referred to the fiscal notes by DFYS. She explained that $20.0 would be used to create a task force to write regulations. Three community care licensing speciallist positions would be funded. The first year a position would be added in South Central Alaska. The second year a position would be added in Northern Alaska. The third year a position would be added in Southeast Alaska. Representative Brown noted that there are five fiscal notes from DFYS. Ms. O'Brien explained that a fiscal note was submitted for each region. In addition, a fiscal note was submitted for the task force and one was submitted for the Delinquency Prevention Component. In response to a question by Representative Brown, Ms. O'Brien clarified that the state does not provide funding for the current system. She observed that runaway programs are operated by nonprofit organizations. She emphasized that the legislation would effect smaller communities that do not have nonprofit entities that can compete for existing federal funding. The legislation would provide for smaller scale safe homes. Representative Brown referred to licensing requirements. Ms. O'Brien observed that regulations governing licensing will be drafted. She stressed the need for a task force to help draft the regulations. (Tape Change, HFC 94-41, Side 1) JERRY BURNETT, STAFF, SENATOR PHILLIPS explained, in response to a question by Representative Martin, that references to individuals between the ages of 18 and 21 were deleted from the legislation. Ms. O'Brien clarified that the composition of the task force has not been decided. She explained that fiscal notes reflect COLA variations between regions. Ms. O'Brien noted that police could take juveniles to safe homes. Senator Phillips observed that page 6, line 19 addresses the issue of police discretion. In response to a question by Representative Brown, Ms. O'Brien clarified that the legislation provides the police officer with two options. He can take the child home or to the Department of Health and Social Services. 6 Representative Brown stressed that it is not the intent of the legislation to presume that the child be returned home. Senator Phillips agreed that the child can be returned home or if physical or sexual abuse is suspected the child can be taken to the Department of Health and Social Services for further placement. Representative Brown noted the current language that allows minors to determine if they will be returned to their parents was deleted in the House Judiciary version. Ms. O'Brien pointed out that the House Judiciary Committee added language on page 6, lines 23 - 26 to assure that the officer would not return juveniles to their home if "the officer has reasonable cause to suspect that the minor has experienced physical or sexual abuse". Representative Martin questioned whether 12 hours was sufficient time to allow the Department of Health and Social Services to notify parents of the custody of their child. Ms. O'Brien observed that 12 hours is a standard time frame employed for purposes of litigation. Representative Therriault referred to sections 12 and 16. He clarified that these sections were included at the request of the Juvenile Justice Committee. He stressed that minors that choose not to return to their home are not placed in state custody. He observed that minors brought to shelters in Fairbanks check themselves in and then immediately return to the street. Representative Parnell referred to provisions for emancipation. He observed that parents are allowed to petition for emancipation from their child. Senator Phillips gave the example of a child who stole their parent's car and charge card. The child was responsible for excessive damages and bills. The parent lost custody of the child but was still responsible for the bills. He asserted that parent's rights are being eroded as children's rights are being enhanced. Representative Parnell questioned if under those circumstances it would be in the best interest of the minor to be emancipated from the parent. Representative Brown expressed concern that the Sponsor Statement contradicts testimony regarding the intent of the legislation to allow police officers to take minors to the Department of Health and Social Services. She noted that the Sponsor Statement states that "HCS CSSB 45 (JUD) would require the peace officer to return a minor to his/her parents or legal guardian, unless there is evidence that the minor has been abused." She stressed that it would be the officer's discretion to take the minor home or to the 7 Department of Health and Social Services. She added that if the officer had reasonable cause to suspected physical or sexual abuse they could not exercise the option of taking the minor home. Ms. O'Brien agreed that the House Judiciary version agrees with Representative Brown's interpretation. Senator Phillips agreed with Representative Brown's assessment. Representative Brown suggested that language in section 12 prohibiting incarceration of minors in adult prisons may be in conflict with laws allowing juveniles to be waived into the adult system and incarcerated as an adult. DONNA SCHULTZ, ASSOCIATE COORDINATOR, DIVISION OF FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES noted that abused and neglected minors were being held in adult jails in lockups due to a lack of other community facilities. The language in section 12 is a result of federal mandates created to address this problem. According to the Department's fiscal note, the Division receives a minimum annual allocation of $325.0 thousand dollars in federal funding through the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention. This funding will be discontinued if the state of Alaska does not come into compliance with the Juvenile Justice and Delinquency Prevention Act, prohibiting the incarceration of juveniles in the safe facility as an adult. Passage of HCS CSSB 45 (JUD) would bring the state into compliance. She emphasized that minors waived into adult status are considered an adult. ELMER LINDSTROM, DEPARTMENT OF HEALTH AND SOCIAL SERVICES reiterated that a juvenile waived into adult status is not a juvenile in the mind of the federal government. Representative Brown stressed the need to use consistent terminology. Representative Brown referred to section 10. She noted that employment of minors would be restricted. A minor "may not be employed or allowed to work after 10:00 p.m. on the night before the minor's school is in session unless the minor has graduated from secondary school or its equivalent; however, a minor under 16 years of age may not be employed to work after 9:00 p.m." Mr. Burnett pointed out that provisions preventing 16 year olds to work past 9:00 p.m. are in current statutes. Senator Phillips emphasized that section 10 was added as a response to requests by parents. Co-Chair Larson questioned how section 10 would affect an emancipated minor trying to support themself while attending school. Representative Parnell noted that section 2, line 20 reflect the purpose of the parents. 8 Representative Brown observed that once a minor is emancipated they are not eligible for services provided by the Department of Health and Social Services, such as emergency shelter. She suggested that involuntarily emancipated minors continue to be eligible for services provided by the Department. She provided members with AMENDMENT 1 (copy on file). Amendment 1 would require that "upon request of a minor whose disabilities of minority have been removed for general purposes under AS 09,55.590, the department shall offer available counseling services, emergency shelter care, medical care, and other services determined appropriate by the department considering the minor's circumstances." Ms. O'Brien pointed out that a parent may not seek to emancipate a child unless the child is capable of self support and independence. Ms. Schultz emphasized that children are rarely emancipated. Ms. O'Brien stressed that it would be inconsistent to allow emancipated minors to obtain services after emancipation. (Tape Change, HFC 94-41, Side 2) Representative Brown emphasized that a minor who is capable of self support could need temporary emergency services. She suggested that the ability to grant temporary services would allow a "safety net" in granting emancipation to the parents. She stressed that a child could not stay in a shelter if they were emancipated from their parents. Senator Phillips reiterated that emancipations are difficult to achieve. He asserted that the option of parental emancipations will provide parents with a tool to control their children. Representative Hanley stressed that the court requires that the minor can sustain self support, manage their financial affairs and consent to emancipation. The court can waive the juveniles consent if the court determines it is in the best interest of the minor. Ms. O'Brien suggested that regulations could allow emancipated minors to reside in shelters as a boarder if space is available. Senator Phillips maintained that emancipated minors are responsible for their own actions. Co-Chair MacLean suggested that minors be granted a three month temporary access to services provided by the Department of Health and Social Services. Co-Chair Larson summarized the Committee's concerns in regards to HCS CSSB 45 (JUD). He questioned the need for a 9 task force. HCS CSSB 45 (JUD) was assigned to a subcommittee consisting of Representative Therriault as Chair and Representatives Parnell and Brown. HOUSE BILL NO. 406 "An Act relating to municipal sales and use taxes involving air carriers; and providing for an effective date." Co-Chair Larson assigned HB 406 to a subcommittee consisting of Representative Foster as Chair and Representatives Martin and Grussendorf. ADJOURNMENT The meeting adjourned at 3:20 p.m. 10