HOUSE FINANCE COMMITTEE March 21, 1995 1:30 P.M. TAPE HFC 95-58, Side 2, #000 - #386. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 1:36 p.m. PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Grussendorf Representative Parnell Representative Kelly Representative Therriault Representative Kohring ALSO PRESENT Representative Cynthia Toohey; Catherine Reardon, Director, Division of Occupational Licensing, Department of Commerce and Economic Development; Harlan Knudsen, Alaska State Hospital and Nursing Home ; Jerry Shriner, Department of Corrections. SUMMARY HB 124 An Act extending the termination date of the Board of Nursing Home Administrators; and providing for an effective date. CSHB 124 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Commerce and Economic Development, dated 3/6/95. HB 200 An Act reassigning responsibility for the custody of persons pending their arraignments, commitment to the custody of the commissioner of corrections, or admission to a state correctional facility, and authorizing the commissioner of corrections to employ guards for emergencies on the same basis as the commissioner of public safety, as partially exempt service employees; and providing for an effective date. HB 200 was reported out of Committee with a "do 1 pass" recommendation and with a zero fiscal note by the Department of Public Safety, dated 3/14/95. HOUSE BILL NO. 124 "An Act extending the termination date of the Board of Nursing Home Administrators; and providing for an effective date." REPRESENTATIVE CYNTHIA TOOHEY spoke in support of HB 124. She stated that the legislation will abolish the Board of Nursing Home Administrators and transfer its licensing and regulatory functions to the Division of Occupational Licensing in the Department of Commerce and Economic Development. She noted that federal regulations require that nursing home administrators be licensed by the state to receive medicaid funds from the federal government. The current amount of medicaid monies coming from the federal government is approximately $157 million dollars. She observed that the federal licensing requirement can be met by a board or by an executive branch agency. The legislation is supported by the Department of Health & Social Services and the Hospital & Nursing Home Association. She observed that Representative Parnell will propose an amendment to give the Division the ability to deny a license if an application has been falsified, Amendment 1, #9- LS0491\C.1 (Attachment 1). CATHERINE REARDON, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT testified in support of HB 124. She asked that the Committee adopt Amendment 1 to enable the Division to deny licenses of nursing home administrators for the same reason that a license would be revoked. Representative MOVED to adopt Amendment 1. There being NO OBJECTION, it was so ordered. HARLAN KNUDSEN, ALASKA STATE HOSPITAL AND NURSING HOME ASSOCIATION spoke in support of HB 124. Representative Parnell MOVED to report CSHB 124 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 124 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Commerce and Economic Development, dated 3/6/95. 2 HOUSE BILL NO. 200 "An Act reassigning responsibility for the custody of persons pending their arraignments, commitment to the custody of the commissioner of corrections, or admission to a state correctional facility, and authorizing the commissioner of corrections to employ guards for emergencies on the same basis as the commissioner of public safety, as partially exempt service employees; and providing for an effective date." Representative Mulder testified in support of HB 200. He noted that the legislation transfers the Contract Jails Program from the Department of Public Safety to the Department of Corrections. He noted that the transfer was recommended by Governor Hickel's Organizational Efficiency Task Force. He noted that community jail programs have grown. He observed that the House Finance Subcommittee for the Department of Corrections recommended increased funding for community jails for upgrades in training and maintenance. In response to a question by Representative Brown, Representative Mulder clarified that the commissioner referred to in sections 1 and 2 is the commissioner of the Department of Corrections. JERRY SHRINER, DEPARTMENT OF CORRECTIONS explained that section 3 provides for the hiring of temporary guards when necessary due to over crowding or employee illness. Section 3 provides that in order to hire temporary guards at additional costs to the contract that approval must be obtained by the commissioner of the Department of Corrections. In response to a question by Representative Brown, Mr. Shriner clarified that the contractual arrangement between the state and local communities is not in statute. Representative Brown questioned the lack of an accompanying fiscal note by the Department of Corrections. Mr. Shriner explained that a fiscal note was not included, with the understanding that funding for the transfer would be included in the FY 96 budget. Representative Mulder observed that funding was included in the Subcommittee's recommendation. Mr. Shriner stated that the Commissioner is concerned that the funding level recommended by the Subcommittee is approximately $1.0 million dollars below the level needed to 3 operate the facilities. He observed that some facilities have indicated that they will not continue to operate if full funding is not provided. Representative Mulder observed that the amount identified for transfer from the Department of Public Safety's budget was $3.7 million dollars. The Department of Corrections' request was $5.8 million dollars. The House Finance Committee Subcommittee for the Department of Corrections recommended funding the Contract Jail Program at $4.6 million dollars. Representative Foster MOVED to report CSHB 200 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. HB 200 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Public Safety, dated 3/14/95. ADJOURNMENT The meeting adjourned at 2:00 p.m. 4