SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE March 17, 1995 9:01 a.m. MEMBERS PRESENT Senator Lyda Green, Chairman Senator Loren Leman, Vice-Chairman Senator Mike Miller Senator Judy Salo MEMBERS ABSENT Senator Johnny Ellis COMMITTEE CALENDAR SENATE BILL NO. 98 "An Act making changes related to the aid to families with dependent children program, the Medicaid program, the general relief assistance program, and the adult public assistance program; directing the Department of Health and Social Services to apply to the federal government for waivers to implement the changes where necessary; relating to eligibility for permanent fund dividends of certain individuals who receive state assistance, to notice requirements applicable to the dividend program; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION SB 98 - See Health, Education & Social Services minutes dated 3/8/95, 3/10/95, and 3/13/95. WITNESS REGISTER Portia Babcock, Staff Senator Green State Capitol, Juneau, Alaska 99801-1182¶ POSITION STATEMENT: Reviewed the sectional analysis of SB 98. Jim Nordlund, Director, Division of Public Assistance Department of Health & Social Services P.O. Box 110640 Juneau, Alaska 99811-0640¶ POSITION STATEMENT: Discussed SB 98. ACTION NARRATIVE TAPE 95-16, SIDE A SHES - 3/17/95 SB 98 PERSONAL RESPONSIBILITY ACT OF 1995 Number 001 CHAIRMAN GREEN called the Senate Health, Education and Social Services (HESS) Committee to order at 9:01 a.m. and introduced SB 98 as the first order of business before the committee. The Chair called Ms. Babcock to review the sectional analysis on the bill. SENATOR MILLER moved that the CS for SB 98, Lauterbach 3/16/95, be adopted in lieu of the original bill. Hearing no objection, it was adopted. Number 025 PORTIA BABCOCK, Staff to Senator Green, reviewed the sectional analysis prepared by Legislative Counsel Terri Lauterbach, of Legislative Legal Services, which was submitted to the committee. Number 074 CHAIRMAN GREEN noted that the bill may need to be amended to specify "are federal allowable minimum", if that is the intent of the committee. Number 079 MS. BABCOCK continued with her review of the sectional analysis. Number 245 SENATOR LEMAN asked Ms. Babcock if she had checked with the department to determine if just having the name of the parent is sufficient for tracking responsibilities. Number 255 MS. BABCOCK responded that the Child Support Enforcement Division (CSED) would be required to legally establish paternity prior to approval of benefits. That can take up to two years. She does not believe that was the intent. Perhaps there should be clarification that this does not mean that legal paternity must be established prior to providing any kind of assistance. Applicants need to name both parents on the application in order to get the process moving. Receiving more than just a name is intended; as much information as possible, including the last known address, should be provided. SENATOR LEMAN asked Ms. Babcock to check on that. Number 279 MS. BABCOCK continued with her review of the sectional analysis of SB 98. Number 287 SENATOR SALO asked Ms. Babcock if the examples looked at in other states were part of statute. She suggested that outlining the "Personal Responsibility Statement" in regulations would more appropriate. MS. BABCOCK could not recall if that was in statute, or in regulation in other states. She would check on that. That section might also be affected by legislation currently being worked on by Congress. Number 302 CHAIRMAN GREEN commented that perhaps the legislation needed to be less specific on that point. SENATOR LEMAN suggested that if the department did not want that, then the committee may want to offer substantial guidelines. Number 313 MS. BABCOCK continued with her review of the sectional analysis for SB 98. Number 392 SENATOR SALO asked Ms. Babcock where "in the project area" would be. MS. BABCOCK pointed out that page 16, line 17 of SB 98 addresses that. Number 417 MS. BABCOCK continued with her review of the sectional analysis for SB 98. Number 507 JIM NORDLUND, Director of the Division of Public Assistance, stated that the administration just received the committee substitute last night and would like time to review the bill in order to establish a position. He stated that there are some sections of SB 98 the administration finds acceptable, others they find unacceptable, and some would merit discussion. He suggested working with committee staff on language clarification and intent clarification. SB 98 is a huge bill and will have a dramatic effect on the management of programs within the Division of Public Assistance as well as some of the other programs. He informed the committee that 200 hundred staff hours were spent on the preparation of the fiscal note for the governor's public aid legislation, and SB 98 is bigger than that. Number 533 CHAIRMAN GREEN said that was fine; the committee plans to hold the legislation for further work anyway. Number 542 SENATOR SALO recommended that the governor's legislation be before the committee at the same time as SB 98 in order to juxtapose both pieces of legislation. CHAIRMAN GREEN announced that on Wednesday, March 22, and Friday, March 24, the committee will hear SB 98. Number 549 MR. NORDLUND expressed concern that SB 98 with the suggested demonstration projects would be affected by any changes in federal law. Demonstration projects are experimental, and care should be taken when considering universal application. Demonstration projects may not even serve the ends the committee is trying to achieve. Mr. Nordlund suggested waiting until the passage of federal legislation, and then develop programs. Number 562 CHAIRMAN GREEN responded she understood Mr. Nordlund's concern, but the legislature should look agressively at workfare. Number 564 MR. NORDLUND commented that there are some programs such as workfare that the committee would want to consider regardless. There are some programs that may or may not work, like the diversion project. He noted that both the administration and the legislature think that would be a good idea. Perhaps committing to a program on a statewide basis should not happen until it is known whether the program would work or not. CHAIRMAN GREEN asked Mr. Nordlund to explain again what did not like about the workfare project. MR. NORDLUND clarified that he was not commenting that he disliked the workfare project. He explained that the blanket legislation applying everything on a statewide needed to be reviewed. Number 573 SENATOR LEMAN requested that Mr. Nordlund specify which programs he does not think should be applied statewide for the next committee hearing. There being no further business before the committee, the meeting adjourned at 9:46 a.m.