MINUTES SENATE FINANCE COMMITTEE May 16, 1999 11:14 P.N. TAPES SFC-99 # 143, Side A CALL TO ORDER Co-Chair Torgerson reconvened the meeting at approximately 11:14 P.M. PRESENT In addition to Co-chair John Torgerson, Senators Sean Parnell, Dave Donley, Loren Leman, Gary Wilken, Pete Kelly, Senator Lyda Green and Al Adams were present when the committee was reconvened. Senator Randy Phillips arrived shortly thereafter. Also Attending: KAREN PERDUE, Commissioner, Department of Health and Social Services; ALISON ELGEE, Deputy Commissioner, Department of Administration; MANYA PUUGOWI, on her own behalf; aides to committee members and other members of the Legislature. Attending via Teleconference: SUMMARY INFORMATION Co-chair Torgerson reconvened the committee at approximately 11:15 p.m. HOUSE BILL NO. 161 "An Act relating to reduction in payments to individuals under certain benefit programs; and providing for an effective date." CS FOR HOUSE BILL NO. 161(FIN) "An Act relating to reduction in payments to individuals under certain benefit programs; and providing for an effective date." CS FOR HOUSE BILL NO. 161(FIN)(efd fld) "An Act relating to reduction in payments to individuals under certain benefit programs." Senator Parnell MOVED SCS CSHB 161() version "H" and noted amendment #1. WITHOUT OBJECTION version "H" was ADOPTED as working draft before the committee. Senator Parnell MOVED amendment #1 with technical change to delete "9" and insert "11". WITHOUT OBJECTION it was ADOPTED. (The arrival of Senator Phillips was noted for the record.) KAREN PERDUE, Commissioner, Department of Health and Social Services was invited to join the committee. There were issues she did not see addressed in the bill that she had previously brought up before the committee. One of her concerns was for Adult Public Assistance. She believed that this bill would require them to pro-rate the Adult Public Assistance payment. She further testified to the committee that the department did not support this bill and felt that it was a very bad bill. Longevity Bonus has contributed monies back to the State. There were a few other divisions also contributing monies to the State. Senator Parnell questioned the Commissioner as to how this bill would change the law regarding Foster Care. Commissioner Perdue said she did not know at this time how Foster Care would be affected. Senator Parnell said he did not think the bill would change Foster Care. The Commissioner asked if Senator Parnell thought these regulations would not affect Foster Care? Senator Parnell responded that was not what he said. Commissioner Perdue said they could not control the number of children that would come into their care and the only way for them to save money was to cut payments to foster parents. In response to a question by Senator P. Kelly she explained they had reached the limits as to Federal block grants. Senator Kelly asked what statute applied to this matter? He did not understand why the bill was necessary if the pro-ration was according to regulation. Senator Donley said regulation suggested they pro-rate, but this bill would mandate it. Senator Green asked the Commissioner to provide copies of letters that were sent to individuals about the impact of this. Commissioner Perdue said she would be happy to provide a copy of the letter. ALISON ELGEE, Deputy Commissioner, Department of Administration was invited to join the committee. She said that with passage of this bill they would have to begin pro-rating Longevity Bonus as of 1 July. Senator Parnell asked if she read the bill to start pro- rating at the beginning of the fiscal year even if they had fully funded the request. Ms. Elgee said they would have to operate on their best estimates on these programs. If she was assured their best estimate had been fully funded they could do it later. Otherwise they must begin 1 July. Senator Parnell MOVED SCS CSHB 161 (FIN). Senator Adams OBJECTED. He voiced concern to class action suits by those entitled to specific programs if they were not fully funded. The bill would then cost money due to the fact they must pay legal costs. He thought the bill needed more work. Senator Phillips asked if a program had to be pro-rated what was this based on? He commented on the language on page one, at line six. He wanted to make sure he fully understood the "shall". Senator Leman said he believed this bill would give the Administration a very good tool to assist in the administration of their programs. Senator Parnell asked unanimous consent to remove his motion to move SCS CSHB 161(FIN). WITHOUT OBJECTION it was REMOVED. MANYA PUUGOWI, testifying on her own behalf, was invited to join the committee. She was a disability specialist and also had a disabled child. She did not feel the benefits of people that need them the most would really bring a long term savings to the State. Senator Phillips briefly commented. Senator Parnell MOVED SCS CSHB 161(FIN) and Senator Adams advised the he MAINTAINED his OBJECTION. By a roll call vote of 8 yeas (Torgerson, Parnell, Donley, Leman, Wilken, P. Kelly, Green, Phillips) and 1 nay (Adams) SCS CSHB 161(FIN) was REPORTED OUT with individual recommendations and zero fiscal note applying to all State agencies. Co-chair Torgerson advised that tomorrow at 9:00 a.m. the committee would take up HB 84, HB 87, HB 227, HB 231 and HB 151, however, not necessarily in that particular order. ADJOURNMENT Co-chair Torgerson recessed the committee at approximately 11:45 P.M. SFC-99 -1- 05/16/99 pn