Legislature(2015 - 2016)BUTROVICH 205

02/01/2016 01:30 PM Senate HEALTH & SOCIAL SERVICES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Heard & Held
Moved CSSB 72(HSS) Out of Committee
Moved SB 145 Out of Committee
Moved CSSB 147(HSS) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSSB 98(HSS) Out of Committee
Moved SB 55 Out of Committee
       SB 151-DHSS CENT. REGISTRY; LICNSE; BCKGROUND CHK                                                                    
2:03:09 PM                                                                                                                    
CHAIR STEDMAN announced the consideration of SB 151.                                                                            
2:03:54 PM                                                                                                                    
STACIE  KRALY, Chief  Assistant Attorney  General, Human  Services                                                              
Section, Department  of Law, provided  information on SB  151. She                                                              
began with the historical  context for SB 151 and  why the statute                                                              
was created. In  2005, the legislature debated and  passed SB 125,                                                              
the omnibus  licensing bill  which created  AS 47.32.  In addition                                                              
to  creating the  centralized licensing  statutes,  the bill  also                                                              
established  a new  article  under AS  47.05  related to  criminal                                                              
history and registry  provisions. The initial impetus  of adopting                                                              
these  statutes was  to  participate in  a  federal grant  program                                                              
related  to background  checks  for  persons providing  long  term                                                              
care. Then,  there was  a desire to  centralize and  formalize the                                                              
process by  which DHSS  conducted criminal  background checks  for                                                              
entities and  individuals who sought  to be licensed  providers or                                                              
who  are paid  by DHSS.  This would  include  persons who  receive                                                              
payment from  Medicaid, foster parents,  and assisted  living home                                                              
MS.  KRALY explained  that a  second component  of SB  125 was  to                                                              
create  a centralized  registry  so  DHSS  could rely  on  certain                                                              
civil findings  to bar persons  from owning, operating,  and being                                                              
an administrator of certain licensed facilities.                                                                                
MS. KRALY  related that over  the past  ten years, the  system has                                                              
worked  well, but  certain issues,  gaps, and  overlaps have  been                                                              
identified  within the current  statutes.  These issues have  come                                                              
to  the attention  of the  Department of  Law through  litigation,                                                              
administrative  hearings, and  in providing  day-to-day advice  in                                                              
how  to  interpret  the  statutes  and apply  them.  She  gave  an                                                              
example  of  Medicaid  fraud  being  included  under  the  central                                                              
registry  statute, when  it  should be  governed  by the  criminal                                                              
record check.                                                                                                                   
MS. KRALY  concluded that  in an  effort to  be efficient  back in                                                              
2005, the  department did not anticipate  some of the  issues that                                                              
would  arise  in  the  operationalization  of  the  statutes.  The                                                              
changes  in  SB 151  are  proposed  to  streamline the  system  to                                                              
improve  the proper  application  and  fairness under  the  system                                                              
going forward.                                                                                                                  
CHAIR STEDMAN requested a sectional analysis.                                                                                   
2:07:15 PM                                                                                                                    
MS. KRALY  said Section  1 (page  1) amends  44.62.330 to  clarify                                                              
that the  Office of  Administrative Hearings  would be  limited to                                                              
variances and reconsideration.                                                                                                  
SENATOR STOLTZE asked what "variance and reconsideration" means.                                                                
MS. KRALY  explained that it is  a process that allows  the person                                                              
who  has a  barring condition  to  petition the  department for  a                                                              
variance  or reconsideration  in order to  explain what  happened.                                                              
If the  committee decides to  grant a variance  the person  may be                                                              
authorized  to apply  for a  license.  If the  variance is  denied                                                              
there is an appeal process.                                                                                                     
2:08:29 PM                                                                                                                    
MS.  KRALY said  Section 2  (pages  1-4) repeals  and reenacts  AS                                                              
47.05.310  to remove  substantive  references  to the  centralized                                                              
registry  under  AS 47.05.330.  This  would  alleviate  confusion,                                                              
inconsistencies,  and redundancy  between the  two statutes.  This                                                              
section  would further  clarify  that individuals,  not  entities,                                                              
can  seek a  criminal background  check  and centralized  registry                                                              
Section 3  (pages 3-6) adds a  new statute AS 47.05.325  to mirror                                                              
the criminal  background check  statute (AS 47.05.310),  primarily                                                              
clarifying  that the  same  individuals who  would  be subject  to                                                              
review under the  criminal history check would also  be subject to                                                              
review  under   the  centralized  registry.  This   statute  would                                                              
further clarify  what types of  civil findings would  constitute a                                                              
bar  and would  clearly provide  that  only those  bars that  have                                                              
been subject  to due  process through  an administrative  or court                                                              
hearing  would apply.  This  section would  also  add a  paragraph                                                              
that would  include substantiations  by the  Department of  Health                                                              
and  Social Services,  Office  of  Children's Services  and  Adult                                                              
Protective Services  (reference to AS  47.17.040 and AS  47.24) as                                                              
a bar. This bill  makes other various edits and  revisions to make                                                              
the statute much more readable and streamlined.                                                                                 
Section 4  (page 6) repeals and  reenacts AS 47.05.330  to provide                                                              
for  the creation,  by regulation,  of  the centralized  registry.                                                              
This registry  would be the repository  of both names  and certain                                                              
civil  events  and would  be  used  to  determine whether  or  not                                                              
someone could be  approved to own, operate, be employed  of, or be                                                              
paid  by the  State to  provide services.  This section  separates                                                              
out the actual  registry from the substance and  process set forth                                                              
in section 3 of the bill.                                                                                                       
2:10:44 PM                                                                                                                    
MS. KRALY  said Section 5  (page 7) amends  AS 47.05.350  to limit                                                              
the use  of information  obtained  by an entity  or individual  as                                                              
well as provide  for immunity under this chapter  for relying upon                                                              
information  gathered  under this  chapter,  AS 47.05.310  and  AS                                                              
Section  6 (page  7)  Amends AS  47.05.360  to add  a new  section                                                              
indicating how  a person who gets  a notice identifying  a barring                                                              
condition  can  request  mistakes  to  be  fixed,  or  to  seek  a                                                              
variance or reconsideration.                                                                                                    
Section 7  (page 7)  Amends AS 47.05.390  to amend the  definition                                                              
of "entity" under this chapter.                                                                                                 
Sections  8  (pages  7-8)  Amends   AS  47.17.040  to  rename  the                                                              
registry  used  by the  Office  of  Children's Services  to  avoid                                                              
confusion.  This section  also clarifies  that this registry  will                                                              
include  substantiated findings  of abuse  or neglect  established                                                              
through  the  Department  of  Health  and  Social  Services.  This                                                              
amendment  further clarifies  that  this information  can be  used                                                              
for licensing both  in and out of this State and  confirms the due                                                              
process  protections before  placement  on  the central  registry,                                                              
which is a bar on the centralized registry under AS 47.05.330.                                                                  
2:12:47 PM                                                                                                                    
MS. KRALY  said Section 9  (page 8) mends  AS 47.17.040  to ensure                                                              
that notice and  opportunities for appeal are  afforded to persons                                                              
prior  to  placement  on  the  child   protection  registry.  This                                                              
section also provides additional definitions.                                                                                   
Section  10 (page  8) amends  47.32.070  to add  a new  subsection                                                              
that  allows licensing  history  to  be considered  in  evaluating                                                              
whether to  license or  place a  condition on  a license  under AS                                                              
Section  11   (page  8-9)  amends   AS  47.32.090  to   allow  the                                                              
Department  of  Health  and  Social  Services  to  investigate  an                                                              
employee, contractor,  or volunteer of  a licensed entity  and, if                                                              
conduct   that  did  not   comply  with   licensing  standard   is                                                              
substantiated,  place the  employee, contractor,  or volunteer  on                                                              
the centralized  registry.  Currently, state  law only allows  the                                                              
Department to  investigate and issue  findings against  the entity                                                              
2:14:06 PM                                                                                                                    
MS.  KRALY said  Section 12  (page  9) amends  AS 47.32.150(b)  to                                                              
allow a  person who  is issued a  fine as  part of an  enforcement                                                              
action to have the right to appeal the fine.                                                                                    
Section  13 (page  9) amends  AS  47.32.180 to  clarify that  when                                                              
there  is  a  joint investigation  of  a  licensed  facility,  the                                                              
Department  of Health  and  Social Services  is  allowed to  share                                                              
licensing  information with  a law enforcement  agency, which  may                                                              
also be investigating a crime.                                                                                                  
Section  14 (page  9)  amends AS  47.32.190  to  clarify that  any                                                              
division of  the Department of Health  and Social Services  who is                                                              
responsible  for licensing  may  gather and  share information  in                                                              
order to  implement this statute.  The current version of  the law                                                              
limits sharing  and access to the  Divisions of Public  Health and                                                              
Public Assistance,  which were the divisions who  were responsible                                                              
for licensing when  this law went into effect. At  this point, due                                                              
to changes  in organization,  licensing is done  by the  Office of                                                              
Children's Services,  Division of Health Care Services  and Public                                                              
Assistance. This  amendment simply allows those divisions  who are                                                              
responsible  for  licensing to  access  and share  information  to                                                              
implement this  chapter without  reference to specific  divisions.                                                              
This provides  the Department of  Health and Social  Services with                                                              
flexibility   to   implement   the    chapter   when   they   make                                                              
organizational changes in the future.                                                                                           
2:15:41 PM                                                                                                                    
MS. KRALY said  Section 15 (page 10) repeals  an unused definition                                                              
in  AS  47.05.390(l)  and  removes  a plan  of  correction  as  an                                                              
enforcement action from AS 47.32.140(d).                                                                                        
Section  16 (page  10) provides  for an  applicability section  to                                                              
ensure that  the criminal  or civil  conduct occurred  before, on,                                                              
or  after the  effective  date  of the  Act  is covered  by  these                                                              
Section  17  (page 10-11)  adds  instructions  to the  revisor  of                                                              
statutes  to  change  headings   in  statute  to  conform  to  new                                                              
language in the bill.                                                                                                           
Section 18 (page 11) provides for an immediate effective date.                                                                  
2:16:32 PM                                                                                                                    
SENATOR STOLTZE  asked if the only  a bar for licensure  is if the                                                              
person is convicted or adjudicated by reason of insanity.                                                                       
MS. KRALY  explained that  the statute provides  that if  a person                                                              
has been  charged with  a crime,  a conviction  is the  evidence a                                                              
bar is based upon.                                                                                                              
SENATOR STOLTZE asked  if it is based only on  convictions, not on                                                              
arrests, for example 20 arrests for domestic violence.                                                                          
MS.  KRALY replied  that  is correct  for  the barring  condition,                                                              
however,  under the  current regulatory  scheme for  day care  and                                                              
foster care  providers, there  is a  good judgement standard  that                                                              
would allow decisions to be made based on arrest information.                                                                   
SENATOR STOLTZE  asked whether the  fiscal note would  be impacted                                                              
by the passage of pending Court View legislation.                                                                               
MS. KRALY responded  that the impact of Court  View legislation on                                                              
DHSS remains  to be  seen. It  could create  an issue,  but during                                                              
the process  of licensing and  other purposes, the  arrest charges                                                              
would be identified, but are not a barring condition.                                                                           
2:20:18 PM                                                                                                                    
CHAIR STEDMAN opened and then closed public testimony.                                                                          
CHAIR STEDMAN held SB 151 in committee.                                                                                         

Document Name Date/Time Subjects
SB 72 Supporting Document Updated AARP CARE Act stats 1-29-16.pdf SHSS 2/1/2016 1:30:00 PM
SB 72
SB 72 Supporting Document Updated Map of CARE ACT states 1-29-16.pdf SHSS 2/1/2016 1:30:00 PM
SB 72
SB 72 Fiscal Note (HSS).pdf SHSS 2/1/2016 1:30:00 PM
SB 72
SB 124 version A.PDF SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Sponsor Statement.pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Letters of Support (14) - 1.19.2016.pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Backup Document - Sunset Review of the Alaska Commission on Aging Report #06-20090-15.pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Backup Document - ACoA State Plan FY16-FY19.pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Backup Document - ACoA Fact Sheet.pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Backup Document - ACoA Roster of Members.pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 124 Fiscal Note (HSS).pdf SHSS 2/1/2016 1:30:00 PM
SB 124
SB 151 ver A.pdf SHSS 2/1/2016 1:30:00 PM
SB 151
SB 151 Governor Transmittal Letter.pdf SHSS 2/1/2016 1:30:00 PM
SB 151
SB 151 Sectional Analysis.pdf SHSS 2/1/2016 1:30:00 PM
SB 151
SB 151 DHSS-RL-12-18-15.pdf SHSS 2/1/2016 1:30:00 PM
SB 151
SB 145 DHSS response to questions in 012716 S-HSS.pdf SHSS 2/1/2016 1:30:00 PM
SB 145
SB 147 DHSS response to Questions in 012716 S-HSS.pdf SHSS 2/1/2016 1:30:00 PM
SB 147