MINUTES SENATE FINANCE COMMITTEE February 8, 1994 9:30 a.m. TAPES SFC-94, #19, Side 2 (end-000) CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 9:30 a.m. PRESENT In addition to Co-chairs Pearce and Frank, Senators Sharp, and Kerttula were present. Senators Kelly and Rieger joined committee after the meeting was in progress. Senator Jacko was absent. ALSO ATTENDING: Representative Eldon Mulder, sponsor of HB 137; Representative Terry Martin; Thomas C. Williams, Director, Permanent Fund Dividend Division, Department of Revenue; Richard Collum, Executive Director, Parole Board, Department of Corrections; Karl Luck, Director, Division of Occupational Licensing, Department of Commerce & Economic Development; and Mike Greany, Director, Legislative Finance Division; and aides to committee members and other members of the legislature. SUMMARY INFORMATION CSHB 137(JUD): An Act authorizing special medical parole for terminally ill prisoners. Representative Eldon Mulder, sponsor of HB 137, testified in support of CSHB 137(JUD). Discussion was held between Co-chairs Pearce and Frank regarding who would determine the terminally ill inmates. The bill was REPORTED OUT of committee with a "do pass" and three zero fiscal notes from the Department of Administration, #1631 and #43, and the Department of Corrections. HB 144: An Act relating to fees for certain costs of administering the permanent fund dividend program. Thomas C. Williams, Director, Permanent Fund Dividend Division, Department of Revenue, testified in support of HB 144. Representative Terry Martin later joined him and answered questions from the committee. Discussion was held by Senators Frank and Kelly regarding attachments and assignments of PFDs. The bill was REPORTED OUT of committee with individuals recommendations and a zero fiscal note from the Department of Revenue. SCSHB 294 An Act extending the termination date of the Board (L&C): of Pharmacy; and providing for an effective date. Testimony was heard in support of SCSHB 294(L&C) by Karl Luck, Director, Division of Occupational Licensing, Department of Commerce & Economic Development. Co-chair Pearce questioned Mr. Luck regarding the Pharmacy Board. The bill was REPORTED OUT of committee with a "do pass" and a zero fiscal note from the Department of Commerce & Economic Development. CS FOR HOUSE BILL NO. 137(JUD): An Act authorizing special medical parole for terminally ill prisoners. CO-CHAIR PEARCE announced that CSHB 137(JUD) was before committee and invited Representative Mulder, sponsor of the bill, to join the committee at the table. REPRESENTATIVE MULDER said that HB 137 was the product of the Alaska Sentencing Commission's recommendations to the legislature, and a cooperative effort between the Department of Corrections, the Parole Board, and himself. The bill is a cost avoidance measure intended to save the Department of Correction and hence, the state, a considerable amount of money in the future. It relates to special medical parole for terminally ill prisoners. The Department of Corrections is responsible for inmates' medical costs as long as they are in custody. Covering health costs is a serious financial burden particularly when a terminal illness is involved. Once paroled, the medical costs could be picked up by Medicare or Medicaid, easing the burden on the Department of Corrections and the state. This bill would allow the parole board when appropriate to grant special medical parole for terminally ill patients. It contains certain criteria the board must follow before parole can be granted. It must be determined that the prisoner is suffering from the terminal illness, a reasonable probability exists that the prisoner will not violate any laws or conditions imposed by the board, and finally, the prisoner will not pose a threat to society and that the release of the prisoner will not diminish the severity of the crime. Passage of this bill should save the state of Alaska a substantial amount of money in the future and urged the committee to support HB 137. He said that representatives from the Department of Corrections and the Sentencing Commission were present and welcomed questions from the committee. In answer to Co-chair Pearce, Representative Mulder said the Parole Board would determine a "terminally ill" inmate with strict and limited definitions. Co-chair Pearce pointed out that this might effect more than just elderly prisoners. In answer to Co-chair Frank, Representative Mulder urged the committee to remember all the conditions that will be considered, and that the person suffering from such an illness carries with him a tremendous medical cost to the state. In addition, the factors outlined (specifically, to not diminish the severity of the crime or to not pose a threat to society) limits the scope of the usage of HB 137. In answer to Co-chair Pearce, Representative Mulder informed the committee the inmates paroled could go home or to other medical facilities where costs could be picked up by Medicare or Medicaid. SENATOR KERTTULA asked what would happen if, after a period of time, the inmate was no longer considered terminally ill. RICHARD COLLUM, Executive Director, Parole Board, Department of Corrections, assured the committee that if an illness was turned around that would not be reason enough to reincarcerate the prisone but if any of the other parole conditions were violated, the board would put the parolee back into prison. In answer to Co-chair Pearce, Mr. Collum, although not a medical professional, believed that Alzheimer's disease was considered a terminal illness. SENATOR SHARP MOVED for passage of CSHB 137(JUD) from committee with individual recommendations. No objections being raised, CSHB 137(JUD) and three zero fiscal notes from the Department of Administration, #1631 and #43, and the Department of Corrections, was REPORTED OUT of committee. Co-chairs Pearce and Frank, Senators Rieger, Kerttula, and Sharp signed the committee report with a "do pass" recommendation. HOUSE BILL NO. 144: An Act relating to fees for certain costs of administering the permanent fund dividend program. Co-Chair Pearce announced that HB 144 was before committee and invited Thomas C. Williams, Director, Permanent Fund Dividend Division, Department of Revenue, to join the committee at the table. She explained the only reason HB 144 was brought back to Senate Finance from Senate Rules Committee was a new Department of Revenue fiscal note. THOMAS C. WILLIAMS said the fiscal note changed due to the estimate of the amount of revenues that would be received assuming a $2 fee would be adopted instead of a $5 fee on which the original fiscal note was based. In answer to Co-chair Frank, Mr. Williams said that the original estimate only covered the staff cost for processing the applications. At this time Co-chair Pearce invited Representative Martin to join Mr. Williams at the table. Co-chair Frank commented that he was encouraged that the fee was as low as $2 in estimating processing costs. REPRESENTATIVE MARTIN added that HB 144 would allow the recipients of the money, pay for the work involved. In answer to Co-chair Frank, Mr. Williams explained that last year the estimated cost of processing attachments and assignments was approximately $60.0, not including data processing time. Since they felt $1 fee would not cover the costs, a $2 was chosen as a even fee that would approximately cover costs. Mr. Williams said that the costs are now shown as administrative fees. Discussion was held between Co-chair Frank, Senator Kelly and Mr. Williams regarding false assignments and attachments. CO-CHAIR FRANK MOVED for passage of HB 144 from committee with individual recommendations. No objections being raised, HB 144 and a zero fiscal note from the Department of Revenue was REPORTED OUT of committee. Co-chairs Pearce and Frank, Senators Kelly, Rieger, and Sharp signed the committee report with a "do pass" recommendation. Senator Kerttula signed no recommendation. SENATE CS FOR HOUSE BILL NO. 294(L&C): An Act extending the termination date of the Board of Pharmacy; and providing for an effective date. Co-Chair Pearce announced that SCSHB 294(L&C) was before committee and invited Karl Luck, Director, Division of Occupational Licensing, Department of Commerce & Economic Development, to join the committee at the table. KARL LUCK testified in support of SCSHB 294(L&C) extending the Board of Pharmacy's term to 1999. In answer to Co-chair Pearce, he said that the total number of pharmacists was approximately 549, and that fees have been increased to $180 for each pharmacist and $200 for each pharmacy. These new fees will begin to be collected as of June 1994. SENATOR KELLY informed the committee that the L&C committee substitute was a result of an audit that recommended extending terms to ten years of those non-controversial boards and commissions. Mr. Luck pointed out that the boards at ten-year terms were staggered. Senator Kelly explained that the SCSHB 294(L&C) set the Pharmacy board with a six-year term. Co-chair Pearce noted that the audit recommended revising the statutes as they have not kept pace with the practice of pharmacy. Senator Kelly informed the committee that those recommendations by the auditors were being taken care of administratively and did not require legislation. Mr. Luck said that the pharmacy board is working diligently on updating their statutes and regulations but did not believe that would be accomplished this session. In answer to Co- chair Pearce, Mr. Luck said that the pharmacy board was a five-member board. Senator Kelly MOVED for passage of SCSHB 294(L&C) from committee with individual recommendations. No objections being raised, SCSHB 294(L&C) was REPORTED OUT of committee with a zero fiscal note from the Department of Commerce & Economic Development. Co-chairs Pearce and Frank, Senators Kelly, Kerttula, Rieger, and Sharp signed the committee report with a "do pass" recommendation. ADJOURNMENT The meeting was adjourned at approximately 10:10 a.m.