Bill Summary – FastDemocracy

State of Alaska
                                                             Fiscal Note
                                                                                               Bill Version:                   CSSB 1(HSS)
 2019 Legislative Session
                                                                                               Fiscal Note Number:             2
                                                                                               (S) Publish Date:               4/10/2019
 Identifier:        SB001-DHSS-MS-3-22-2019                                     Department:        Department of Health and Social Services
 Title:             REPEAL CERTIFICATE OF NEED PROGRAM                          Appropriation: Medicaid Services
 Sponsor:           WILSON                                                      Allocation:        Medicaid Services
 Requester: (S) HSS                                                             OMB Component Number:                 3234
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                (Thousands of Dollars)
                                                 Included in
                                    FY2020       Governor's
                                Appropriation      FY2020                                             Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2020        FY 2020       FY 2021                       FY 2022             FY 2023         FY 2024         FY 2025
 Personal Services
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits                                                  3,526.1                       3,526.1            3,526.1          3,526.1         3,526.1
 Miscellaneous
 Total Operating                            0.0           0.0       3,526.1                       3,526.1            3,526.1          3,526.1         3,526.1
 Fund Source (Operating Only)
 1002 Fed Rcpts (Fed)                                                           2,468.3           2,468.3            2,468.3          2,468.3         2,468.3
 1003 GF/Match (UGF)                                                            1,057.8           1,057.8            1,057.8          1,057.8         1,057.8
 Total                                            0.0              0.0          3,526.1           3,526.1            3,526.1          3,526.1         3,526.1
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None
 Total                                            0.0              0.0                 0.0             0.0               0.0              0.0              0.0
 Estimated SUPPLEMENTAL (FY2019) cost:                                    0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2020) cost:                                         0.0                (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                  No
 If yes, by what date are the regulations to be adopted, amended or repealed?                                  N/A
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version based on the Governor's February 13, 2019 FY2020 amended budget request.
 Prepared By:             Linnea Osborne, Manager                                                                     Phone:       (907)465-6333
 Division:                Medicaid, Allocation, and Audit Services                                                    Date:        03/22/2019
 Approved By:             Sana Efird, Administrative Services Director                                                Date:        03/22/19
 Agency:                  Office of Management and Budget
Printed 4/10/2019                                                        Page 1 of 2                                                        Control Code: plMYA
                                                                                                         CSSB 1(HSS) - Fiscal Note 2
                                                FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                 BILL NO. SB001
2019 LEGISLATIVE SESSION
Analysis
   The certificate of need process requires health service providers to obtain approval of the commissioner before building
   or remodeling health care facilities or purchasing equpment costing more than an established capital expenditure
   threshold. Under AS 18.07.031, the existing expenditure threshold for requiring a certificate of need is $1.5 million.
   Alaska is one of 31 states and the District of Columbia to have a Certificate of Need program.
   Senate Bill 001 would repeal the Certificate of Need program, effective July 1, 2020 (start of FY2021). With the repeal of
   this program, there will be increased costs to Medicaid services due to expenditures not being averted by denial or partial
   denial of a proposed Certificate of Need project. The increase in costs shown on page one is reflective of the most recent
   denial or partial denial of a Certificate of Need application for a facility covered under this component. With the passage
   of this bill, there would have been no review and approval process, and the increased costs to the Medicaid program
   would have occurred.
   Note: This fiscal impact analysis looks at the expenditures that were averted by a denial or partial denial of a proposed
   Certificate of Need project over the last ten years then adjusted for the Medicaid utilization percentage to come up with
   the annual amount.
(Revised 9/05/18 OMB/LFD)                                                                                         Page 2 of 2
SB001-DHSS-MS-3-22-2019                                       Page 2 of 2                                              Control Code: plMYA
Statutes affected: 
SB0001A, AM SB 1, introduced 01/16/2019: 18.20.400, 26.23.020, 26.23.140, 18.20.410, 18.07.111, 47.32.900, 47.12.990, 18.20.499, 18.26.220, 18.07.021, 18.07.031, 18.07.035, 18.07.041, 18.07.043, 18.07.045, 18.07.051, 18.07.061, 18.07.071, 18.07.081, 18.07.091, 18.07.101, 21.86.030, 44.64.030, 47.80.140
SB0001B, AM CSSB 1(HSS), introduced 04/10/2019: 18.20.400, 26.23.020, 26.23.140, 18.20.410, 18.07.111, 47.32.900, 47.12.990, 18.20.499, 18.26.220, 18.07.021, 18.07.031, 18.07.035, 18.07.041, 18.07.043, 18.07.045, 18.07.051, 18.07.061, 18.07.071, 18.07.081, 18.07.091, 18.07.101, 21.86.030, 44.64.030, 47.80.140