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Alaska State Legislature· HB 96VETOED BY GOVERNOR

HOME CARE EMPLOYMENT STANDARDS ADV BOARD, the official text

Shown verbatim: the complete text as captured from the official page posted by the Alaska State Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
Enrolled HB 96 
 Establishing the Home Care Employment Standards Advisory Board; relating to payment for 
 personal care services; and providing for an effective date. 
 _______________ 
 * Section 1. AS 44.29 is amended by adding new sections to read: 
 Article 10. Home Care Employment Standards Advisory Board. 
 Sec. 44.29.900. Home Care Employment Standards Advisory Board. The 
 Home Care Employment Standards Advisory Board is established in the department. 
 Sec. 44.29.905. Composition of the board. The board consists of 
 (1) the commissioner of health or the commissioner's designee, who 
 shall serve as the chair and is a nonvoting member, except in the case of a tie; 
 (2) the commissioner of labor and workforce development or the 
 commissioner's designee, who is a nonvoting member; and 
 (3) eight members appointed by the commissioner of health, as 
 follows:

(A) two voting members who represent covered providers, 
 including at least one agency that provided at least 700,000 units of personal 
 care services during the previous calendar year and one agency that provides 
 habilitation services; 
 (B) two voting members who represent direct care workers, at 
 least one of whom is a labor representative of at least 300 direct care workers; 
 a member appointed under this subparagraph may not be a representative of an 
 organization or association that advocates for the interests of covered providers 
 or agencies that provide covered services; 
 (C) one voting member who is an enrollee or a representative 
 of enrollees receiving covered services; 
 (D) one voting member who represents the office within the 
 department with responsibility for rate review; 
 (E) one nonvoting member who represents the Alaska 
 Commission on Aging or another organization that represents seniors in the 
 state; and 
 (F) one nonvoting member who represents the Governor's 
 Council on Disabilities and Special Education established under AS 44.29.600 
 or another organization that represents people with disabilities in the state. 
 Sec. 44.29.910. Term of office, vacancies, and removal of appointed 
 members. (a) The members of the board appointed under AS 44.29.905(3) serve two- 
 year terms and may be reappointed. 
 (b) A member of the board appointed under AS 44.29.905(3) serves at the 
 pleasure of the commissioner, except that the commissioner shall remove a member 
 who no longer meets the qualifications of the seat for which the member was 
 appointed. 
 (c) The commissioner may appoint an individual to fill a vacancy under 
 AS 44.29.905(3) only after providing public notice of the vacancy and soliciting 
 applications for the appointment. The commissioner shall fill the vacancy within six 
 months after the date the vacancy occurs. An appointment to fill the vacancy is for the 
 remainder of the unexpired term.

Sec. 44.29.915. Meetings. The board shall meet at the call of the chair. The 
 board shall meet at least three times each year and shall hold additional meetings as 
 often as necessary to accomplish the duties of the board. A meeting may be held by 
 teleconference or other electronic means. At each meeting, the board shall provide 
 time for public testimony. 
 Sec. 44.29.920. Quorum. A majority of the voting members of the board 
 constitute a quorum for the transaction of business, and a majority of a quorum present 
 at a meeting is sufficient to approve a recommendation of the board. 
 Sec. 44.29.925. Compensation. Members of the board receive no 
 compensation for service on the board but are entitled to per diem and travel expenses 
 authorized for boards and commissions under AS 39.20.180. 
 Sec. 44.29.930. Powers and duties of the board. (a) The board shall 
 (1) advise and consult with the department on the medical assistance 
 program payment rates for covered services and payment rate adequacy and 
 compliance with federal requirements regarding reporting of payment adequacy data; 
 (2) investigate matters related to the wages, working conditions, and 
 workforce adequacy of workers providing covered services in the state, including 
 (A) the adequacy of wages, benefits, and other compensation to 
 ensure the provision of quality services and sufficient levels of recruitment and 
 retention; 
 (B) the sufficiency of levels of recruitment for and retention of 
 workers, particularly in an area that is not on a road system; 
 (C) the sufficiency of service levels of and the effect of service 
 level reductions on covered services, as the services pertain to wages and 
 working conditions; 
 (D) the adequacy and enforcement of training requirements; 
 (E) the effect of workforce shortages on service recipients and 
 on family members and friends of service recipients providing unpaid care, 
 including compliance with federal requirements to report information to the 
 United States Department of Health and Human Services, Centers for 
 Medicare and Medicaid Services, regarding wait times for covered services

and the percentage of authorized hours for covered services; 
 (F) the economic impact of achieving a living wage for direct 
 care workers and reducing levels of unpaid care; 
 (G) the adequacy of payment practices and policies related to 
 the payment rates of certified providers of covered services; and 
 (H) the effect of the state's long-term care system on wages and 
 working conditions. 
 (b) A state agency that receives a reasonable request for data, information, or 
 testimony from the board shall comply with the request as soon as is reasonably 
 practicable, and, when the board requests direct testimony for a board meeting, the 
 head of the agency or the designee of the head of the agency shall appear at the 
 meeting and provide testimony. 
 Sec. 44.29.935. Biennial report. (a) The board shall biennially prepare a 
 written report in digital format, submit the report to the commissioner, the legislative 
 committees having jurisdiction over health and social services, and the senate 
 secretary and the chief clerk of the house of representatives, and notify the legislature 
 that the report is available. The commissioner shall make the report available to the 
 public on the department's Internet website. 
 (b) The biennial report must be based on the results of the board's 
 investigation under AS 44.29.930(a)(2) and must include key findings and 
 recommendations regarding 
 (1) rates and service levels of covered services; 
 (2) adequacy of rates and service levels of covered services to ensure 
 the provision of quality services, improved recruitment and retention, and compliance 
 with federal standards; 
 (3) safe and healthy working conditions for workers providing covered 
 services; 
 (4) reducing any barrier to recruiting for and retaining workers 
 providing covered services throughout the state, particularly in an area that is not on a 
 road system; 
 (5) reducing the level of unpaid care in the state and systemic

overreliance on family members and friends of service recipients who provide unpaid 
 care; and 
 (6) sufficiency of covered services payment adequacy data and access 
 to care metrics. 
 (c) The department shall take the recommendations of the board into 
 consideration when setting rates for covered services. If the rate set by the department 
 for a covered service differs significantly from the rate recommended by the board, the 
 commissioner shall notify the board and the chair of each legislative committee having 
 jurisdiction of health and social services in writing. 
 Sec. 44.29.940. Publication of reports. On July 1 of each year, or within 30 
 days after receiving the biennial report from the board, the department shall publish on 
 the department's publicly available Internet website an annual report containing the 
 weighted average of and median hourly wages, by agency, for workers providing 
 covered services. 
 Sec. 44.29.945. Definitions. In AS 44.29.900 - 44.29.945, 
 (1) "board" means the Home Care Employment Standards Advisory 
 Board; 
 (2) "commissioner" means the commissioner of health; 
 (3) "covered provider" means an eligible Medicaid provider certified 
 by the department to provide one or more covered services; 
 (4) "covered services" means 
 (A) chore services provided under a section 1915(k) option 
 under 42 U.S.C. 1396n; 
 (B) hourly respite services provided under a waiver in 
 accordance with 42 U.S.C. 1396 - 1396p; 
 (C) personal care services; 
 (D) habilitation services; 
 (5) "department" means the Department of Health; 
 (6) "direct care worker" means an individual who is employed by a 
 covered provider to provide one or more covered services; 
 (7) "habilitation services" means services designed to assist individuals

in acquiring, retaining, and improving the self-help, socialization, and adaptive skills 
 necessary to reside successfully in home and community-based settings, provided 
 under a waiver in accordance with 42 U.S.C. 1396 - 1396p; 
 (8) "personal care services" means services provided under a section 
 1915(k) option under 42 U.S.C. 1396n, under AS 47.07.030, or under a waiver in 
 accordance with 42 U.S.C. 1396 - 1396p. 
 * Sec. 2. AS 47.07.045 is amended by adding new subsections to read: 
 (f) Except as provided in (g) of this section, an agency providing home and 
 community-based services shall pay as compensation and benefits to its employees 
 performing personal care services, 
 (1) beginning July 1, 2027, at least 70 percent of the total annual 
 amount of funding the agency receives for personal care services from the department; 
 and 
 (2) beginning July 1, 2030, at least 80 percent of the total annual 
 amount of funding the agency receives for personal care services from the department. 
 (g) The department may grant to an agency providing home and community- 
 based services a hardship exemption from the requirements of (f) of this section if the 
 agency is facing extraordinary circumstances or is a small provider, as defined by the 
 department. The department shall adopt regulations establishing procedures and 
 objective criteria for granting a hardship exemption under this subsection. An agency 
 that is granted a hardship exemption shall pay as compensation and benefits to its 
 employees performing personal care services, 
 (1) beginning July 1, 2027, at least 60 percent of the total annual 
 amount of funding the agency receives for personal care services from the department; 
 and 
 (2) beginning July 1, 2036, at least 80 percent of the total annual 
 amount of funding the agency receives for personal care services from the department. 
 (h) The amount calculated under (f) and (g) of this section for compensation 
 and benefits paid to employees may not include costs expended on employees by an 
 agency for personal protective equipment, required training, and travel costs such as 
 mileage reimbursement or public transportation.

(i) In this section, "personal care services" has the meaning given in 
 AS 44.29.945. 
 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 APPOINTMENTS AND FIRST MEETING. (a) The first meeting of the Home Care 
 Employment Standards Advisory Board established under AS 44.29.900, added by sec. 1 of 
 this Act, must take place on or before October 1, 2027. 
 (b) The commissioner of health shall appoint all board members under 
 AS 44.29.905(3), added by sec. 1 of this Act, before the board's first meeting. 
 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 MEDICAID STATE PLAN. To the extent necessary to implement this Act, the 
 Department of Health shall amend and submit for approval by the United States Department 
 of Health and Human Services the state plan under AS 47.07.045, as amended by sec. 2 of 
 this Act. 
 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 CONDITIONAL EFFECT; NOTIFICATION. (a) Section 2 of this Act takes effect 
 only if, and to the extent that, on or before January 1, 2027, the United States Department of 
 Health and Human Services 
 (1) approves amendments submitted in accordance with sec. 4 of this Act; or 
 (2) determines that approval of the amendments to the state plan under 
 AS 47.07.045 is not necessary. 
 (b) The commissioner of health shall notify the revisor of statutes in writing within 30 
 days after the United States Department of Health and Human Services approves amendments 
 to the state plan or determines that approval is not necessary under this section. 
 * Sec. 6. If sec. 2 of this Act takes effect, it takes effect on the day after the date on which 
 the United States Department of Health and Human Services approves the amendments to the 
 state plan submitted under sec. 4 of this Act or determines that approval is not necessary 
 under sec. 5 of this Act. 
 * Sec. 7. Except as provided in sec. 6 of this Act, this Act takes effect July 1, 2027.
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