ARIZONA HOUSE OF REPRESENTATIVES
Forty-third Legislature - First Regular Session
COMMITTEE ON APPROPRIATIONS
Minutes of Meeting
Tuesday, February 25, 1997
House Hearing Room 4 - 1:30 p.m.
(Tape 1, Side A)
Chairman Burns called the meeting to order at 1:36 p.m. and attendance was noted by the secretary.
Members Present
Mrs. Gray Ms. Weason Mrs. Knaperek, Vice Chairman
Mr. McLendon Mr. Weiers Mr. Burns, Chairman
Mr. Schottel Mr. Wong
Members Absent
Mr. Armstead Ms. Horton Mr. Nichols
Mr. Cooley Mrs. McGrath Mr. Verkamp (excused)
Mr. Groscost
Speakers Present
Representative Marilyn Jarrett, District 21
Gregory Gemson, Majority Research Analyst, House of Representatives
James Haas, Senior Deputy Public Defender, Maricopa County Public Defender's Office
Paul Mortensen, Executive Director, Arizona Auto Theft Authority (ATA)
DiAnne M. Tomlin, Administrative Services Officer, Arizona Auto Theft Authority (ATA)
Amy Talburt, Majority Intern, House of Representatives
Representative Freddy Hershberger, District 12
(Chairman Burns read the names of others present to testify but who did not speak, see pages 4, 6, 7, 8, 9, 12, 15, 18, 20, 21 and 22)
Bev Hermon, Executive Director, Arizona Association of Providers for People with Disabilities
Randall L. Gray, representing Provider Network, Mesa
Gale Bohling, Past President, Arizona Association of Providers for People with Disabilities
Roger Deshaies, Assistant Director, Division of Developmental Disabilities (DDD), Arizona Depart- ment of Economic Security (DES),
Andy Rinde, Executive Director, Arizona Association of Community Health Centers
Barry M. Aarons, Special Assistant to Governor Symington
Eric Reiman, M.D., Scientific Director, Samaritan P.E.T. Center; and Associate Professor of Psychiatry, University of Arizona
Barbara Robey, Director of Government Relations, Arizona School Boards Association (ASBA)
Diane Bishop, Education Policy Advisor to Governor Symington
Donald Vance, Volunteer Legislative Coordinator, American Association of Retired Persons (AARP)
Dean Miller, Senior Research Analyst, Arizona Tax Research Association (ATRA)
Representative Carolyn S. Allen, District 28
Nancy Wrona, Director, Air Quality Division, Arizona Department of Environmental Quality (ADEQ)
Sydney Hoff Hay, Phoenix, representing the Coalition for Auto Repair Equality (C.A.R.E.)
Bill Buck, President, Arizona Auto Hobbyist Council
Charlie Stevens, Attorney, representing Arizona State Chamber of Commerce and Western States Petroleum Association
Chris Bavasi, Mayor, Flagstaff
Marc Osborn, Legislative Liaison, Arizona Department of Commerce
James A. Hart, Assistant Director, Division of Children, Youth & Families, Arizona Department of Economic Security (DES)
Representative Mark Anderson, District 29
Brian C. McNeil, Policy Advisor to Governor Symington
Beth Rosenberg, Senior Program Associate, Children's Action Alliance (CAA)
Dr. Linda Blessing, Director, Arizona Department of Economic Security (DES)
Representative David L. Eberhart, District 19
Ed Wren, Attorney, representing Arizona Highway Patrol Association and Maricopa County Sheriff's
Department
Lynne Smith, Fiscal Analyst, Joint Legislative Budget Committee (JLBC)
Rick Kidder, Policy Advisor to Governor Symington
Gary Eyre, Deputy Associate Superintendent, Arizona Department of Education (ADE)
Bill Shover, Chairman of the Advisory Board, Project Challenge
Sam Buford, Scottsdale, representing Parents of Project Challenge
Diana Bailey, Higley, President, Project Challenge Parent Association
Audra Nelson, Student, Project Challenge
Andrew G. Chapa, Student, Project Challenge
Tamara Olshefski, Student, Project Challenge
Brigadier General David Rataczak, Assistant Adjutant General, Department of Emergency Military Affairs (DEMA)
Colonel John McMurdie, Resource Manager, Department of Emergency Military Affairs (DEMA)
Jodi Beckley, Legislative Analyst, Block Grants Committee
Diane Ross, Assistant Director, Division of Member Services, Arizona Health Care Cost Containment
System (AHCCCS)
Eddie L. Sissons, Executive Director, Arizona Justice Institute
Barbara Burkholder, Executive Director, Arizona Public Health Association
Art Portillo, Senior Vice President, Chicanos Por La Causa
Gene C. Blue, President, Arizona Opportunities Industrialization Center
Alton J. Washington, Human Services Director, City of Phoenix
Jack E. Shell, Superintendent, East Valley Institute of Technology (EVIT)
Wendy Briggs, Attorney, representing IBM
Marti Lavis, Legislative Liaison, Arizona Department of Health Services (DHS)
Mary E. Peters, Manager, Criminal Information Services, Arizona Department of Public Safety (DPS)
Maria Hoffman, Executive Director, Arizona Council of Centers for Children and Adults (ACCCA)
Lieutenant Rick Knight, Arizona Department of Public Safety (DPS)
Arlan Colton, Director, Arizona Preserve Initiative, Arizona State Land Department
Jeffrey Schmied, Fiscal Analyst, Joint Legislative Budget Committee (JLBC)
Betsy Bayless, Supervisor, Maricopa County Board of Supervisors
Lewis Tenney, Supervisor, Navajo County
Joe Arpaio, Sheriff, Maricopa County
Pete Shumway, representing Arizona Counties
Larry Richmond, representing Gila, Pinal, Santa Cruz, Mohave and Apache Counties
Michael Racy, Government Relations Director, Pima County
Gordon Mulleneaux, Associate Clerk of the Court, Maricopa County
Kevin Moran, representing Arizona Association of Community Health Centers
Jennifer Burns, Program Coordinator, Rural Health Association
* * *
Guest List (Attachment 1)
Chairman Burns announced that the meeting will recess to the sound of the gavel to permit Members
to attend Caucus.
THE MEETING RECESSED AT 1:39 p.m.
THE MEETING RECONVENED AT 2:43 p.m. All Members were present with the exception of
Mr. Armstead, Mr. Nichols and Ms. Weason (excused).
CONSIDERATION OF BILLS
Chairman Burns announced that the following bills will be held:
H.B. 2153, appropriation; DHS; extension - HELD
H.B. 2242, state lottery; omnibus - HELD
H.B. 2372, administrative hearings; transfer - HELD
H.B. 2375, successful schools - HELD
H.B. 2237, air quality program; amendments - HELD
* * *
H.B. 2044, auto theft prevention authority - DO PASS
Representative Marilyn Jarrett, District 21, sponsor, described H.B. 2044, which categorizes as a
Class 5 felony (subject to 1.5 years in prison and a $150,000 fine) the theft of any motor vehicle or
firearm valued at less than $250, and property valued at less than $250 taken from the person of
another. The bill was amended in the Government Reform and States' Rights Committee to include
$1.5 million from the insurance premium tax to fund the program. Mrs. Jarrett pointed out that
Arizona currently has the highest rate of auto theft in the nation. She responded to questions.
Gregory Gemson, Majority Research Analyst, House of Representatives, explained that the
appropriation included in the amendment would need to be backfilled from the general fund.
In response to a query by Mr. McLendon, Mrs. Jarrett said the fifty cents per car per year charge has
raised only $495,000 in six months - less than anticipated because of the large number of uninsured
vehicles on Arizona's roads. After summarizing the background to the bill, she acknowledged that
it is anticipated that $1.5 million will be needed each year to adequately fund the program.
James Haas, Senior Deputy Public Defender, Maricopa County Public Defender's Office, speaking
in opposition to the bill, contended that elevating the penalty for theft of property worth less than
$250 will result in more jury trials and increased costs. He pointed out that most car thieves are
young first-time offenders who plead guilty to a misdemeanor and go on with their lives.
Chairman Burns countered that many young offenders have stolen numerous vehicles before they are
caught and become classified as a first-time offender. He said the problem is a serious one, and
submitted that a greater penalty may have the effect of reducing the number of young people who
become first-time offenders.
Paul Mortensen, Executive Director, Arizona Auto Theft Authority (ATA), urged support for the bill.
DiAnne M. Tomlin, Administrative Services Officer, Arizona Auto Theft Authority (ATA), described
a multi-agency task force now reviewing the problem. Responding to questions, she said the task
force hopes to work in all areas of the state.
Mr. Gemson described an amendment prepared by Mr. Cooley (Attachment 2) which would rescind
the change from Class 6 to a Class 5 felony. Mrs. Jarrett said the issue has been addressed in other
legislation, and the amendment was not moved.
H.B. 2460, respite care; elderly; appropriation - DO PASS
Amy Talburt, Majority Intern, House of Representatives, summarized H.B. 2460 which directs
Arizona Department of Economic Security (DES) to establish a statewide program to provide respite
care for care givers of the elderly. $185,000 is appropriated from the general fund for fiscal year
1997-98 to implement the program.
Representative Freddy Hershberger, District 12, sponsor, described the benefits and cost savings that
are expected to be realized over institutionalizing patients, and emphasized that the amount sought
is minimal.
Ms. Horton voiced strong support for the program on humane, as well as financial grounds.
Chairman Burns read the names of those present in support of H.B. 2460 who did not speak:
John Templin, Chairman, Governor's Advisory Council on Aging
Anne Lindeman, Executive Secretary, Governor's Advisory Council on Aging
Donald Vance, Volunteer Legislative Coordinator, American Association of Retired Persons (AARP)
Information on respite clients was distributed (Attachment 4).
H.B. 2371, developmental disabilities; providers - DO PASS AMENDED
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized H.B. 2371
which allows Arizona Department of Economic Security (DES) to contract with a developmental
disabilities (DD) provider if the facility is licensed and meets the needs of the client. The bill was
amended in the Human Services Committee.
Mrs. Knaperek noted that a proposed amendment (Attachment 6) strikes the appropriation because
it is included in the state budget.
Bev Hermon, Executive Director, Arizona Association of Providers for People with Disabilities,
voiced strong support for H.B. 2371.
Randall L. Gray, representing Provider Network, Mesa, urged passage of the bill.
Gale Bohling, Past President, Arizona Association of Providers for People with Disabilities, expressed
support for H.B. 2371 and distributed a fact sheet on the appropriation (Attachment 7).
Roger Deshaies, Assistant Director, Division of Developmental Disabilities (DDD), Arizona Depart-ment of Economic Security (DES), responded to questions about costs. He noted that secured
supervision for twenty individuals costs the state approximately $100,000 per year.
H.B. 2467, premium sharing; pilot program - DO PASS
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized H.B. 2467
which establishes a Premium Sharing Demonstration Project to provide uninsured persons access to
medical services (see bill summary, Attachment 9). The bill was amended in the House Health
Committee.
(Tape 1, Side B)
Andy Rinde, Executive Director, Arizona Association of Community Health Centers, urged support
for the bill.
Chairman Burns read the names of others present in support of the bill but who did not speak:
David Landrith, Vice President, Policy and Political Affairs, Arizona Medical Association
Barbara Burkholder, Executive Director, Arizona Public Health Association
Laurie Lange, Vice President, Government Relations, Arizona Hospital & Healthcare Association
H.B. 2258, child protective services; hearings; appeals - DO PASS AMENDED
Amy Talburt, Majority Intern, House of Representatives, summarized H.B. 2258 which requires that
Arizona Department of Economic Security (DES) notify a person accused of abuse that a report has
been made, and permits a person to request that the report be amended or expunged in the central
registry. $1,400,000 is appropriated from the general fund for fiscal year 1998-99 to implement the
act. The bill was amended in the House Human Services Committee.
Representative Freddy Hershberger, District 12, sponsor, explained that the bill is intended to reduce
the number of lawsuits by giving an accused person an opportunity to respond.
Chairman Burns called attention to a proposed amendment that would keep the information out of
the central registry until it is known to be accurate, which he said is in response to a lawsuit filed by
an accused Arizona Boys' Ranch employee. Discussion followed.
H.B. 2533, Alzheimer's disease research; appropriation - DO PASS
Amy Talburt, Majority Intern, House of Representatives, summarized H.B. 2533 which appropriates
$1.2 million from the general fund to the State Board of Regents for fiscal year 1997-98 for
distribution to Arizona's universities and research centers, to be used for matching grants to fund
research on Alzheimer's disease using functional brain imaging techniques.
Barry M. Aarons, Special Assistant to Governor Symington, urged support for the bill. He noted that
3,600 patients with Alzheimer's disease are enrolled in the Arizona Health Care Cost Containment
System (AHCCCS), as well as others in the Arizona Long Term Care System (ALTCS), at huge cost
to the state.
Eric Reiman, M.D., Scientific Director, Samaritan P.E.T. Center; and Associate Professor of
Psychiatry, University of Arizona, explained that changes in the brain can be studied using magnetic
resonance imaging (MRI) techniques, which can lead to the ability to identify those persons at risk
for Alzheimer's disease. He added that Arizona has one of the nation's best brain imaging research
programs, and emphasized that H.B. 2533 would make it possible to capitalize on the facilities and
expertise now available at the state's universities and research centers. Dr. Reiman responded to
questions of Mr. Wong.
Chairman Burns read the names of others present in support of the bill but who did not speak:
Anne Lindeman, Executive Secretary, Governor's Advisory Council on Aging
Donald Vance, Volunteer Legislative Coordinator, American Association of Retired Persons (AARP)
Laurie Lange, Vice President, Government Relations, Arizona Hospital & Healthcare Association (AHHA)
Martin Shultz, Director, Government Relations, Arizona Public Service (APS); and Chairman,
Samaritan Health Service Board of Directors
Blake Anderson, Government Relations Coordinator, Arizona State University (ASU)
Janet Bingham, Assistant Vice President, University of Arizona Health Sciences Center
Rick Collins, System Director, Government Relations, Samaritan Health System
Greg Fahey, Associate Vice President, University of Arizona
H.B. 2412, education; parental choice grants - DO PASS
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized H.B. 2412
which provides for parental choice grants for students to enter alternative education programs as
prescribed (see bill summary, Attachment 14). A $10 million appropriation is made from the general
fund for fiscal year 1997-98 to fund the program.
Mr. Schottel, sponsor, urged support for the program, which he said is designed for those students
who are not successful in the school system.
Barbara Robey, Director of Government Relations, Arizona School Boards Association (ASBA),
spoke in opposition to the bill. She pointed out that the program would only apply to private schools,
which would include parochial schools, and hence may be unconstitutional. She added that evidence
of the success of voucher programs, such as the Milwaukee experiment, is scant and contradictory,
and she emphasized that public schools are the foundation of democratic society.
(Tape 2, Side A)
Chairman Burns opined that every child should have an opportunity to obtain the best education
possible.
Mrs. McGrath noted the low amount of grant money provided, and pointed out that the state would
save considerable money with the program.
Diane Bishop, Education Policy Advisor to Governor Symington, clarified the intent of the proposed
legislation, which she confirmed would be a cost-saving measure for the state. She urged support.
Donald Vance, Volunteer Legislative Coordinator, American Association of Retired Persons (AARP)
distributed an AARP paper on education funding (Attachment 15) in opposition to the bill.
Dean Miller, Senior Research Analyst, Arizona Tax Research Association (ATRA), pointed out that
the legislation could potentially save taxpayers millions of dollars, and would help ease overcrowding
in the state's schools. He urged support and responded to questions.
Chairman Burns read the names of others present in support of the bill who did not speak:
Monsignor Edward J. Ryle, representing Arizona Catholic Conference
Tim Lawless, Vice President, Public Affairs, Arizona Chamber of Commerce
H.B. 2438, air quality; voluntary vehicle retirement - SUBCOMMITTEE
Representative Carolyn S. Allen, District 28, sponsor, Chairman of the House Environment
Committee, speaking in support of both H.B. 2438, which creates a voluntary vehicle retirement
program for Maricopa County (see bill summary, Attachment 17), and H.B. 2309, appropriations; air quality (see discussion below), distributed a
Time Line for Serious Area Plan Development for Particulate Matter
and Carbon Monoxide
(Attachment 18). She pointed out that Maricopa County has been a nonattainment area for some years, and is now in danger of being reclassified as "serious"
by the federal Environment Protection Agency (EPA), which would result in numerous sanctions.
Mrs. Allen said it is important to show good faith effort, and urged support for both air quality bills
she has sponsored. She responded to questions.
Barry M. Aarons, Special Assistant to Governor Symington, pointed out that H.B. 2438 is a part of
the Governor's air quality program for the state, following recommendations of the Air Quality Task
Force. He said it is important to view the measure as part of the process to reduce the amount of
toxins in the air resulting from population growth, rather than as a means of placating the EPA. Mr.
Aarons said data shows that the measures sought would make a significant contribution to the
Valley's air, and that a similar program in San Diego has been fairly successful. He added his support
for an amendment proposed by Mr. Groscost (Attachment 19).
Nancy Wrona, Director, Air Quality Division, Arizona Department of Environmental Quality
(ADEQ), described the program and urged support.
(Tape 2, Side B)
Sydney Hoff Hay, Phoenix, representing the Coalition for Auto Repair Equality (C.A.R.E.), argued
that the assumption that older cars pollute more is seriously flawed. She contended that research
shows that vehicle maintenance, rather than vehicle age, is the critical issue in controlling pollution,
and pointed out that older vehicles that cannot pass the emissions test are already being taken off the
roads. Ms. Hoff Hay noted that a state repair program for low income individuals is rarely used because people are not aware of its existence, and added that the State of Virginia recently repealed
its vehicle scrappage program. She urged that funds should be invested in programs that can be
shown to clean the air, and against H.B. 2438.
Bill Buck, President, Arizona Auto Hobbyist Council, an organization of seventy-eight car clubs, said
while he is philosophically opposed to all kinds of scrappage programs, he can support an amended
H.B. 2438 as a compromise measure. Mr. Cooley interjected that an amendment he has been asked
to offer on behalf of the Council will not be made at this meeting, but when the bill reaches the Floor
of the House. Mr. Buck voiced his disappointment, and said the Council has worked hard to find
consensus on scrappage and to keep good cars on the roads. He said he supports
repair, retrofit
and
retire
, and cannot support the bill as presented.
Chairman Burns appointed the following Subcommittee to review H.B. 2438 and to report back to
the Committee:
Mr. Groscost, Chairman
Mr. Cooley
Ms. Horton
H.B. 2309, appropriations; air quality - DO PASS AMENDED
Amy Talburt, Majority Intern, House of Representatives, summarized H.B. 2309 which appropriates
money for air quality improvements (see bill summary, Attachment 20).
Barry M. Aarons, Special Assistant to Governor Symington, noted that H.B. 2309 is a part of the air
quality initiative proposed by the Air Quality Task Force. He added that the appropriation for signal
light synchronization, made in the House Environment Committee, is expected to have a significant
impact. He responded to questions.
Charlie Stevens, Attorney, representing Arizona State Chamber of Commerce and Western States
Petroleum Association, cited a history of the alternative fuels program begun in 1988, and relative
costs to remove pollutants from the air. He noted that Arizona's weather makes possible the oldest
fleet in the nation, and said it is important to support cost-effective programs. He urged rejection of
the bill as presented and responded to questions.
(Tape 3, Side A)
Chairman Burns read the names of others present in support of H.B. 2309 who did not speak:
Ken Driggs, Executive Director, Regional Public Transportation Authority
David M. Martin, Deputy Director, Arizona Rock Products Association
Tim Lawless, Vice President of Public Affairs, Arizona Chamber of Commerce
Joanna Holland, Public Affairs Director, Phoenix Chamber of Commerce
Randall Overmyer, Senior Planner, Arizona Department of Transportation (ADOT)
Martin L. Shultz, Director of Government Relations, Arizona Public Service (APS)
Knox Kimberly, Attorney, Arizona Association of Industries (AAI)
Barbara Burkholder, Executive Director, Arizona Public Health Association
Sandy Bahr, Legislative Liaison, Arizona Audubon Council
Strike page 2
Following discussion,
H.B. 2505, appropriation; sports training complex - DO PASS
Chris Bavasi, Mayor, Flagstaff, and Chairman of the Board of the High Altitude Sports Training
Complex, described the importance of high altitude training to athletes and pointed out that
Flagstaff's 7,000' elevation is the optimum altitude for training purposes. Mayor Bavasi described the
use of the facility by world class athletes, and urged support for the $190,000 appropriation for fiscal
year 1997-98. He responded to questions, and said he believes the economic benefits of the complex
reach beyond the City of Flagstaff.
Marc Osborn, Legislative Liaison, Arizona Department of Commerce, also representing Governor
Symington's Office, pointed out that both the City of Flagstaff and the State receive excellent
exposure when high profile athletes train at the complex. He said it is hoped that corporate
sponsorship will be found to help support the facility, and urged support for the appropriation.
H.B. 2537, children and family services - DO PASS AMENDED
Mrs. Knaperek, sponsor, described H.B. 2537, which establishes an Office of Children and Family
Services to coordinate programs and phase in a delivery system by January 1, 2000. An eleven-member reorganization committee is established, and $75,000 is appropriated from the general fund
for the consultant's salary for fiscal year 1999-2000. The bill was amended in the House Human
Services Committee.
(Mrs. Knaperek assumed the Chair)
H.B. 2359, adoption; church programs - DO PASS
Amy Talburt, Majority Intern, House of Representatives, summarized H.B. 2359 which requires that
Arizona Department of Economic Security (DES) establish and administer a child placement program
that uses local churches to inform the community about the need for adoptive homes. $250,000 is
appropriated to DES from the general fund to implement the program for fiscal year 1997-98.
James A. Hart, Assistant Director, Division of Children, Youth & Families, Arizona Department of
Economic Security (DES), responded to questions and urged support.
Representative Mark Anderson, District 29, sponsor, said the bill is designed to reach an untapped
resource in seeking homes for difficult-to-place older children. He pointed out that similar programs
have worked successfully in twenty other states, and that the results of the program will be shared
with the Legislature after one year.
(Tape 3, Side B)
Brian C. McNeil, Policy Advisor to Governor Symington, said he expects increasing support for the
program, and urged passage of the one-time appropriation.
Beth Rosenberg, Senior Program Associate, Children's Action Alliance (CAA), said she is aware of
127 children now in foster care who need permanent homes, as well as another 1,500 who are
expected to become available for adoption. She urged support.
Mr. Wong asked if it was intended that the bill include synagogues and other places of worship in
addition to churches. Mr. McNeil said the bill is intended to be broadly based.
Dr. Linda Blessing, Director, Arizona Department of Economic Security (DES), explained that the
program is designed to supplement current efforts.
(Mr. Burns resumed the Chair)
THE MEETING RECESSED AT 7:50 P.M.
THE MEETING RECONVENED AT 8:09 P.M. All members were present with the exception of
Mr. Armstead, Mr. Nichols, Mr. Verkamp (excused) and Ms. Weason (excused).
H.B. 2331, employees; accumulated sick leave; payment - DO PASS AMENDED
Representative David L. Eberhart, District 19, sponsor, described H.B. 2331 which allows state and
county employees with at least 500 hours of accumulated sick leave to receive specified percentages
upon retirement (see bill summary, Attachment 27). He distributed a Joint Legislative Budget
Committee (JLBC) memorandum dated February 25, 1997 (Attachment 28), a House of
Representatives memorandum dated February 24, 1997 (Attachment 29), and a memorandum from
Lynne Smith, JLBC, dated 2/24/97 (Attachment 30), with additional information on current costs and
the anticipated impact of the proposal. Mr. Eberhart cited the hidden cost of sick leave abuse, which
has been estimated as high as $1 million, because state employees tend to take accumulated sick leave
during the years immediately prior to retirement. He responded to questions, and noted that most
states now compensate their employees for unused sick leave upon retirement.
Mr. Groscost said it is important that all entities in the state be treated in the same manner, and
suggested that a cap might be necessary.
Mr. Eberhart said he supports a proposed 11-page amendment (Attachment 31), intended to replace
the amendment that passed out of the House Government Operations Committee.
Chairman Burns noted that Spencer Kamps, Legislative Liaison, Arizona Department of
Administration (ADOA), is present in support of the bill.
Ed Wren, Attorney, representing Arizona Highway Patrol Association and Maricopa County Sheriff's
Department, speaking in support of the bill, confirmed that many state employees take more sick
leave in their last working years before retirement, and more than city employees who are
compensated for their unused sick leave.
(Tape 4, Side A)
Lynne Smith, Fiscal Analyst, Joint Legislative Budget Committee (JLBC), responding to questions,
said while it has been estimated that the state could save $700,000 per year, there is no scientific
method to quantify the benefits.
Chairman Burns read the names of others present in support of the bill who did not speak:
David Mendoza, Legislative Director, American Federation of State, County and Municipal Employees (AFSCME) Council 97
Larry Wendt, Deputy Chief, Maricopa County Sheriff's Office
Lieutenant Rick Knight, Arizona Department of Public Safety (DPS)
The motion carried.
H.B. 2169, national guard; project challenge - DO PASS
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized H.B. 2169
which appropriates $1.8 million for fiscal year 1997-98, and $1.4 million for fiscal year 1998-99, from
the general fund to the Department of Emergency and Military Affairs to fund
Project Challenge
. The program is designed to improve the life skills, education and employment potential of youths who
have dropped out of high school.
A brochure describing
Project Challenge
, (Attachment 33), which is administered by the Arizona National Guard, was distributed.
Rick Kidder, Policy Advisor to Governor Symington, pointed out that
Project Challenge
has proved to be successful in changing young people who have dropped out of school from tax drains to
taxpayers. He urged support.
Chairman Burns explained that the appropriation is sought to compensate for an anticipated reduction
in federal dollars. He proposed that private participation should be explored.
Gary Eyre, Deputy Associate Superintendent, Arizona Department of Education (ADE), speaking
in support of the bill, explained that ADE testing of
Project Challenge
students has found their GED pass rate to be above the state average. He advised that the results of an output measures study of
484 program participants will be made available within a few days.
Bill Shover, Chairman of the Advisory Board,
Project Challenge
, described the excellent way the program is run by the Arizona National Guard and the changes he has observed in participants during
the five-month program. He explained that the program is currently operated at premises leased for
three years from Arizona State University (ASU) at Williams Gateway Airport, at a cost of $42,000
per year.
Sam Buford, Scottsdale, representing Parents of Project Challenge, cited a letter he wrote to
Governor Symington as a result of his son's life-changing experience in
Project Challenge
. He addressed what he described as an epidemic of dropouts and student violence in the nation, and
pointed out that $37 per student per day is a small price to pay for such a successful program.
Diana Bailey, Higley, President, Project Challenge Parent Association, described the differences she
has observed in her son since his participation in the program, which she said she believes saved his
life. She emphasized the importance of making the same opportunity available to other young people.
Audra Nelson, Student, Project Challenge, urged support for the program.
Andrew G. Chapa, Student, Project Challenge, explained that he has learned discipline, respect, time
management and leadership skills through participation in
Project Challenge
. He pointed out that the investment of time and effort in the young participants will be returned to society.
(Tape 4, Side B)
Mr. Chapa responded to questions.
Tamara Olshefski, Student, Project Challenge, asked that support continue for the program.
Brigadier General David Rataczak, Assistant Adjutant General, Department of Emergency Military
Affairs (DEMA), spoke in favor of continued support for the program.
Responding to questions of Members, Mr. Gemson explained how the requested appropriation was
calculated.
Colonel John McMurdie, Resource Manager, Department of Emergency Military Affairs (DEMA),
added that federal government funding has never been adequate and is no longer certain, and that the
rental cost for the property has increased. He explained that
Project Challenge
targets those young people who demonstrate a will to succeed, and responded to further questions.
H.B. 2478, welfare program reform; appropriations - DO PASS AMENDED S/E
Representative Mark Anderson, District 29, sponsor, described the strike-everything amendment to
H.B. 2478 (Attachment 35), which is an omnibus welfare system reform bill (see bill summary,
Attachment 36).
A letter from Carol Kamin, Executive Director, Children's Action Alliance (CAA) (Attachment 37),
raising concerns over funding for child care, was distributed by Rhian Evans, CAA Program
Associate.
Jodi Beckley, Legislative Analyst, Block Grants Committee, reviewed the key provisions of the bill
as amended in the House Block Grants Committee, and noted that the appropriation is the major
difference between the proposed strike-everything amendment and the bill as passed out of the
primary Committee. She responded to questions.
Ms. Horton called attention to three proposed amendments (Attachments 38, 39 and 40) with her
name on them.
Diane Ross, Assistant Director, Division of Member Services, Arizona Health Care Cost Containment
System (AHCCCS), said it is difficult to determine the number of people affected or to calculate the
fiscal impact, but as many as 5,700 individuals could be involved. She added that thirty individuals
fall into the long-term care system (LTCS), at an annual cost of $800,000.
Brian C. McNeil, Policy Advisor to Governor Symington, voiced support for the Horton amendment
that would grant waivers (Attachment 38).
Eddie L. Sissons, Executive Director, Arizona Justice Institute, added support for the Horton
amendments.
Barbara Burkholder, Executive Director, Arizona Public Health Association, speaking in support of
continued prenatal care for legal immigrants, pointed out that it has been estimated that every dollar
spent on prenatal care saves $3.38 in other costs.
Art Portillo, Senior Vice President, Chicanos Por La Causa, speaking in support of the bill, voiced
concern over a possible reduction in funding for job training.
Gene C. Blue, President, Arizona Opportunities Industrialization Center, also present in support of
H.B. 2478, urged that funding for job placement and training be increased.
Alton J. Washington, Human Services Director, City of Phoenix, pointed out that it is important to
support the goal of moving people from welfare to work, and requested continued funding for job
and life skills training.
Chairman Burns read the names of others present in support of H.B. 2478 but who did not speak:
Allan Brooks, President, Governing Board, East Valley Institute of Technology (EVIT)
Janet K. Regner, Executive Director, Arizona Community Action Association
Tim Lawless, Vice President, Public Affairs, Arizona Chamber of Commerce
Monsignor Edward J. Ryle, Arizona Catholic Conference
Ms. Beckley explained that the amendment has been prepared because of the unknown fiscal impact of the tax credit.
(Tape 5, Side A)
Mr. Groscost explained the purpose of the amendment and responded to questions.
Jack E. Shell, Superintendent, East Valley Institute of Technology (EVIT), explained that the facility,
which currently has 3,200 students, could be used year-round, and that increased costs would be
generated only by increased student enrollment.
Mr. McLendon pointed out that many other schools would like to receive state aid beyond 175 days.
Mr. Groscost said he believes EVIT is unique in the state in its ability to offer technical training, and
discussion ensued.
Ms. Horton explained her reasons for moving the amendment on behalf of legal immigrants currently
enrolled in the supplemental security income (SSI) program, but who could be abruptly terminated.
Representative Mark Anderson, District 29, Chairman, Block Grants Committee, pointed out that
an identical amendment failed in his Committee. He proposed that no decision be made until it is clear
how the federal government will handle the matter.
Wendy Briggs, Attorney, representing IBM, described the system for eligibility determination, and voiced support for the strike-everything amendment with the Weiers amendment. She responded to
questions.
H.B. 2507, centralization; fingerprinting requirements - DO PASS AMENDED
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized H.B. 2507
which provides for a single process for fingerprint background checks through the Arizona
Department of Public Safety (DPS).
(Tape 5, Side B)
Marti Lavis, Legislative Liaison, Arizona Department of Health Services (DHS), speaking in support
of the bill, pointed out that consolidation will save money.
Mr. Gemson summarized a proposed amendment (Attachment 46) that appropriates the sum of
$724,516 to fund the program.
Ms. Lavis explained that the appropriation is sought for program start-up costs.
Mary E. Peters, Manager, Criminal Information Services, Arizona Department of Public Safety
(DPS), detailed the equipment needed, and pointed out that the appropriation would be a one-time
cost. She responded to questions about funding.
Maria Hoffman, Executive Director, Arizona Council of Centers for Children and Adults (ACCCA),
representing 38 community-based treatment centers with 3,174 employees, described the extra costs
involved in duplicative fingerprinting which, she noted, are passed on to Arizona's taxpayers. She
responded to questions.
Lieutenant Rick Knight, Arizona Department of Public Safety (DPS), added his support for the program, which he said is expected to be self-funding after the first year. He responded to further
questions.
Chairman Burns asked Joint Legislative Budget Committee (JLBC) staff to prepare a fiscal note to
help determine if the amount sought is justified. Further discussion ensued.
The motion carried.
H.B. 2303, Arizona state land preserve initiative - DO PASS AMENDED
Representative Carolyn S. Allen, District 28, sponsor, speaking on behalf of the State Land
Conservation Task Force, described H.B. 2303, which appropriates $1 million from the general fund
for fiscal year 1997-98 to the Land Conservation Fund (see bill summary, Attachment 48). She
distributed copies of letters in support of the bill (Attachment 49).
(Tape 6, Side A)
Mrs. Allen pointed out that conservation is supported by the public, and that the $1 million
appropriation will not go far. She responded to questions.
Chairman Burns read the names of those present in support of the bill who did not speak:
Patricia Seitts, Executive Director, Desert Foothills Land Trust
Sandy Bahr, Legislative Liaison, Arizona Audubon Council
Jeff Kulaga, Government Relations Director, City of Scottsdale
Ken Travous, Executive Director, Arizona State Parks
Maria Baier, Policy Advisor to Governor Symington
William C. Scalzo, Director, Recreation Services Department, Maricopa County
C.B. "Doc" Lane, Director of Grower Affairs, Arizona Cattlemen's Association
Jim Walsh, The Nature Conservancy
Julie Sherman, Executive Director, Arizona Heritage Alliance
Arlan Colton, Director, Arizona Preserve Initiative, Arizona State Land Department, responded to
questions and explained that the matching grant program is expected, ultimately, to return the money
to the state.
The motion carried.
H.B. 2527, AHCCCS; county responsibility - TESTIMONY ONLY
Chairman Burns announced that testimony will be heard on H.B. 2527 but that no vote will be taken.
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized H.B. 2527
which eliminates county responsibility to provide hospitalization and medical care for indigent legal
aliens; freezes county contributions for long-term care services; and requires that AHCCCS conduct
preadmission screening and provide benefits for indigent tribal members of Arizona's reservations.
Jeffrey Schmied, Fiscal Analyst, Joint Legislative Budget Committee (JLBC), distributed and
reviewed a memorandum with attachments dated February 25, 1997 (Attachment 51), and a staff
memorandum in regard to a requested fiscal note (Attachment 52).
Betsy Bayless, Supervisor, Maricopa County Board of Supervisors, also representing the County
Supervisors Association (CSA), distributed a copy of a CSA presentation to JLBC on indigent health
care dated October 31, 1996 (Attachment 53), and a paper entitled "County Health Care - Health
Care and the Crisis in County Budgets" (Attachment 54). She urged support for H.B. 2527 as a
means to provide short-term relief, as a long-term solution to the problem is sought.
Lewis Tenney, Supervisor, Navajo County, testified that Navajo County cannot afford its indigent
health care costs, and could face bankruptcy unless the issue is addressed. Responding to questions
by Mr. Groscost, he advised that the County now spends between $2½ and $3 million of its total
$26 million budget on health care costs.
Mr. Groscost pointed out that patients on reservations can call to be taken by helicopter to Phoenix
hospitals because there is no health care facility in Navajo County, and because there is no one to
screen the patients' needs. Mr. Tenney confirmed that the County is unaware of the expenditure until
a bill is received for services.
Joe Arpaio, Sheriff, Maricopa County, pointed out that Maricopa County adds approximately 15,000
new residents each month, and said he believes the County and its criminal justice system cannot
survive in the face of further budget cuts. He urged support for H.B. 2527.
Pete Shumway, representing Arizona Counties, distributed a paper entitled "Arizona Counties Facing
Financial Crisis" (Attachment 55), and a Department of Health & Human Services letter to the
Navajo County Board of Supervisors demanding payment for indigent Native Americans (Attachment
56). He urged support for the bill.
(Tape 6, Side B)
Larry Richmond, representing Gila, Pinal, Santa Cruz, Mohave and Apache Counties, spoke on behalf
of H.B. 2527, but disputed the fiscal impact as estimated by JLBC. He noted that Representative Sue
Lynch, District 1, sponsor, requests support for the bill. Mr. Richmond emphasized that the current
system is broken and the bill represents only a temporary fix, and he offered to continue to work with
the Legislature to find a solution to the problem. He responded to questions.
Michael Racy, Government Relations Director, Pima County, pointed out that while County revenues
have been growing slowly, costs that cannot be controlled have increased at a rapid rate. A graph
showing state and county revenues was distributed (Attachment 57).
Chairman Burns noted that Laurie Lange, Vice President, Government Relations, Arizona Hospital
and Healthcare Association, asked that her opposition to H.B. 2527 be noted. He read the names of
others present in support of the bill but who did not speak:
Eddie Koury, County Manager, Navajo County
Larry Wendt, Deputy Chief, Maricopa County Sheriff's Office
Steven Besich, Administrator, Gila County Board of Supervisors
John Nelson, Finance Director, Gila County
Judith Allen, Clerk of the Court, Maricopa County, representing Arizona Association of Superior Court Clerks
Jerry Orrick, Executive Director, County Supervisors Association
Lori Carter, Director, Navajo County Indigent Health Care
Representative Debra Brimhall, District 4
H.B. 2545, registrar of contractors; technical correction - DO PASS
Mr. McLendon explained that H.B. 2545 makes a technical correction.
H.B. 2480, child support; omnibus - DO PASS AMENDED
Representative Freddy Hershberger, District 12, sponsor, described H.B. 2480 which makes
numerous changes in state child support policy (see bill summary, Attachment 59). A $600,000
appropriation for fiscal year 1997-98 was added in the House Human Services Committee.
Gordon Mulleneaux, Associate Clerk of the Court, Maricopa County, speaking in support of the
Groscost amendment to H.B. 2480, distributed a chart showing revenues from 1980 through 1998
(Attachment 61).
Chairman Burns read the names of others present in support of H.B. 2480 but who did not speak:
Nancy Mendoza, Assistant Director, Arizona Department of Economic Security (DES)
Kim Gillespie, Assistant Attorney General, Arizona Department of Economic Security (DES)
Tim Lawless, Vice President of Public Affairs, Arizona Chamber of Commerce (supports amendment)
H.B. 2147, appropriation; DHS; primary care capital - DO PASS AMENDED S/E
Gregory Gemson, Majority Research Analyst, House of Representatives, summarized a strike-everything amendment to H.B. 2147 (Attachment 63). He noted that $5 million is appropriated for
fiscal year 1997-98, $2 million for 1998-99 and $2 million for 1999-2000.
Kevin Moran, representing Arizona Association of Community Health Centers in support of the
strike-everything amendment, said it is designed to permit the construction of primary care clinics.
Andy Rinde, Executive Director, Arizona Association of Community Health Centers, distributed a
map showing potential primary care capital sites (Attachment 64), urged support, and responded to
questions.
(Tape 7, Side A)
There followed discussion of the cost of mobile medical clinics, which average between $150,000 and
$175,000 each.
Jennifer Burns, Program Coordinator, Rural Health Association, speaking in support of the strike-everything amendment, distributed an information sheet on Mobile Medical Clinics (Attachment 66).
H.B. 2153, appropriation; DHS; extension - HELD
Gregory Gemson, Majority Research Analyst, House of Representatives, explained that H.B. 2153,
which is an emergency measure pertaining to the Statewide Trauma Advisory Board, was prepared
prior to completion of the budget and is no longer needed.
Chairman Burns announced that H.B. 2153 will be held.
H.B. 2256, family builders pilot program - DO PASS AMENDED
Representative Freddy Hershberger, District 12, sponsor, described H.B. 2256, which establishes a
Family Builders Pilot Program through the Arizona Department of Economic Security (DES) (see
bill summary, Attachment 68), by privatizing some services.
James A. Hart, Assistant Director, Division of Children, Youth & Families, Arizona Department of
Economic Security (DES), said DES does not have the resources to follow up on many at-risk
families, who could be better served through the private sector. He pointed out that the proposal will
reduce DES intervention in families, urged support, and responded to questions.
Mr. Cooley voiced concern over constituents who continue to experience problems dealing with Child
Protective Services (CPS).
Chairman Burns read the names of others present in support of H.B. 2256 who did not speak:
Janice Tobin, Manager, Child Abuse Hotline, Arizona Department of Economic Security (DES)
Eric Bost, Deputy Director, Arizona Department of Economic Security (DES)
Maria Hoffman, Executive Director, Arizona Council of Centers for Children and Adults (ACCCA)
Beth Rosenberg, Senior Program Associate, Children's Action Alliance (CAA)
H.B. 2274, auditor general; special audit; procurement - DO PASS AMENDED
H.B. 2274 appropriates an undetermined amount from the general fund in fiscal year 1997-98 to the
Auditor General to conduct a special audit of the Department of Administration's state procurement
system.
The motion carried.
Without objection, the meeting was adjourned on Wednesday February 26, 1997 at 2:58 a.m.
_____________________________
Carole Price, Committee Secretary
(Attachments and tapes on file in the Office of the Chief Clerk.)
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