03/26/1993 08:30 AM House FIN

  HB 79     An Act relating to recovery from a parent or legal                 
            guardian  of wilful  or  malicious destruction  of                 
            property by a minor.                                               
                                                                               
            CS HB  79 (FIN) was reported out of Committee with                 
            a  "do  pass" recommendation  and with  three zero                 
            fiscal  notes by  the  Department  of  Health  and                 
            Social Services  dated 2/10/93, the  Department of                 
            Administration dated 2/10/93 and the Department of                 
            Law dated 2/10/93.                                                 
  HOUSE BILL 79                                                                
                                                                               
       "An  Act relating  to recovery  from a parent  or legal                 
       guardian of wilful or malicious destruction of property                 
       by a minor."                                                            
                                                                               
  JENNY MURRAY, AID TO REPRESENTATIVE  CON BUNDE, testified in                 
  support  of  HB 79  and  stated that  the  legislation would                 
  increase  the  current cap  for  parental liability  from $2                 
  thousand dollars to what is allowable in district court, $50                 
  thousand dollars.   The bill would allow  owners of property                 
  damaged  wilfully  or  maliciously  by  a minor  to  recover                 
  monetarily from the minor's parents or legal guardian.  With                 
  this bill, victims of property damage may finally be able to                 
  recover a greater portion  of their losses as long  as those                 
  damages total less than $50 thousand dollars.                                
                                                                               
  Representative Parnell referenced Page 1, Line 10, and asked                 
  why  "destroys" was used  instead of "damages".   Ms. Murray                 
  stated  the  verbiage  was the  same  as  that  used in  the                 
  original  statute.     Representative  Parnell   recommended                 
  changing the language  with the advise of  the Department of                 
  Law.                                                                         
                                                                               
                                4                                              
                                                                               
                                                                               
  Co-Chair MacLean suggested that the $50 thousand dollar fine                 
  was too  harsh.  She asked if the  child could be covered by                 
  insurance.   Ms. Murray suggested that home  owners could be                 
  covered by  home owners  insurance.   She  pointed out  that                 
  legislation is geared toward the victims of property damage.                 
                                                                               
                                                                               
  Discussion  followed  regarding  the responsibility  of  the                 
  insurance  company  paying  the fees  of  damage  versus the                 
  parent's responsibility of the minor.  Co-Chair Larson asked                 
  accountability of parents of run-away  children.  Ms. Murray                 
  pointed out that the legal guardian is the responsible party                 
  if they had not  emancipated that child.  The  Department of                 
  Health and Social  Services is  involved in determining  the                 
  necessary process.                                                           
                                                                               
  Co-Chair MacLean questioned  the average rate paid  by other                 
  states.  Ms. Murray  pointed out that Alaska's rate  has not                 
  been  revised since  1967 and  is currently  lower than  the                 
  other maximums.   The average for most  states is $15  - $25                 
  thousand dollars.                                                            
                                                                               
  Representative Hoffman questioned the  rights of the injured                 
  party to collect the proposed fees.                                          
                                                                               
  (Tape Change, HFC 93-65, Side 2).                                            
                                                                               
  Ms. Murray  stated that upon  deciding that the  juvenile is                 
  guilty,   there   are   several   ways   to  determine   the                 
  responsibility such  as claiming the permanent  fund, taking                 
  their  personal  property,  etc.    Representative   Hoffman                 
  thought  this  would place  unfair  hardship on  the family.                 
  Representative Parnell reminded the Committee that there are                 
  exemptions  protecting  the  family's  equity.    Discussion                 
  followed regarding  protection the  minor's parents and  the                 
  victim's house insurance coverage.                                           
                                                                               
  Co-Chair Larson MOVED to amend Page  1, Line 7, by inserting                 
  "$10 thousand  dollars" and deleting "$2  thousand dollars".                 
  Representative  Foster  OBJECTED.   He  MOVED  to  amend the                 
  amendment to "$5 thousand dollars".   Representative Parnell                 
  OBJECTED.                                                                    
                                                                               
  A roll call was taken on the MOTION to amend the amendment.                  
                                                                               
       IN FAVOR:      Martin,   Brown,  Foster,   Grussendorf,                 
                      Hoffman, MacLean.                                        
                                                                               
       OPPOSED:       Parnell, Therriault, Hanley, Larson.                     
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
                                5                                              
                                                                               
                                                                               
  The MOTION PASSED, (6 - 4).                                                  
                                                                               
  A roll call was taken on the MOTION to adopt the $5 thousand                 
  dollar change.                                                               
                                                                               
       IN FAVOR:      Brown,   Foster,   Grussendorf,  Hanley,                 
                      Martin, Larson, MacLean.                                 
                                                                               
       OPPOSED:       Parnell, Therriault, Hoffman.                            
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED, (7 - 3).                                                  
                                                                               
  Representative Parnell MOVED to report CS HB 79 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS  HB 79  (FIN) was  reported out  of Committee with  a "do                 
  pass"  recommendation  and with  three  fiscal notes  by the                 
  Department of  Health  and Social  Services  dated  2/10/93,                 
  Department   of  Administration   dated   2/10/93  and   the                 
  Department of Law dated 2/10/93.