Legislature(2013 - 2014)SENATE FINANCE 532

02/25/2014 09:00 AM Senate FINANCE


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09:10:18 AM Start
09:11:15 AM SB64
10:13:00 AM SB138
10:13:33 AM Presentation: the Heads of Agreement and the Memorandum of Understanding, Risks, and Benefits
12:02:25 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 64 OMNIBUS CRIME/CORRECTIONS BILL TELECONFERENCED
Heard & Held
Presentation: The Heads of Agreement and the
Memorandum of Understanding, Risks and Benefits
Dept. of Natural Resources Commissioner Joe
Balash
Dept. of Revenue Deputy Commissioner Michael
Pawlowski
+ SB 138 GAS PIPELINE; AGDC; OIL & GAS PROD. TAX TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 23 KNIK ARM CROSSING; AHFC TELECONFERENCED
<Bill Hearing Postponed>
SENATE BILL NO. 64                                                                                                            
                                                                                                                                
     "An Act establishing  the Alaska Sentencing Commission;                                                                    
     relating to  jail-time credit  for offenders  in court-                                                                    
     ordered  treatment programs;  allowing  a reduction  of                                                                    
     penalties for offenders successfully completing court-                                                                     
     ordered  treatment programs  for  persons convicted  of                                                                    
     driving  while  under  the  influence  or  refusing  to                                                                    
     submit   to  a   chemical  test;   relating  to   court                                                                    
     termination  of a  revocation  of  a person's  driver's                                                                    
     license; relating  to limitation of  drivers' licenses;                                                                    
     relating  to conditions  of probation  and parole;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:11:15 AM                                                                                                                    
                                                                                                                                
SENATOR JOHN  COGHILL, related that  the bill had  the three                                                                    
overriding  goals of  improving public  safety, slowing  the                                                                    
growth  of  the  prison  population, and  saving  the  state                                                                    
money.  He related  that  if things  were  not changed,  the                                                                    
Senate Finance Committee might to  consider how to build the                                                                    
state's  next big  prison. He  stated  that the  bill was  a                                                                    
cooperative effort  between himself, Senator  Ellis, Senator                                                                    
French, and  Senator Dyson that  had been  under development                                                                    
for well  over a year and  half. He continued that  the bill                                                                    
was  the result  of many  hours  of testimony  and that  the                                                                    
sponsors had hammered  out a good piece  of legislation that                                                                    
the committee would  be able to appreciate.  He thought that                                                                    
there were  several things in  the bill that would  help the                                                                    
state turn  the corner on  a variety of things  that "really                                                                    
kicked the feet  out from under us," which was  the drug and                                                                    
alcohol problem  in Alaska. He  stated that  the legislation                                                                    
would  give   the  Department  of  Corrections   (DOC),  the                                                                  
Department  of Health  and Social  Services (DHSS),  and the                                                                  
Department  of  Law  (DOL)  real  tools  to  help  manage  a                                                                  
population  that  needed  better  avenues.  He  stated  that                                                                    
Alaska needed  to figure out how  to deal with the  issue of                                                                    
sobriety, as well as how  to keep people accountable and not                                                                    
spend the  most amount on  jail time.  He spoke of  the need                                                                    
let  people  have  as  much   freedom  as  possible  and  be                                                                    
productive while still protecting public safety.y.                                                                            
                                                                                                                                
                                                                                                                                
Senator  Coghill  related  that  in  his  mind,  there  were                                                                    
several  over-arching  aspects as  the  bill  was being  put                                                                    
together. He reported  that he had always had an  eye to the                                                                    
victim and  that in  Alaska, victims  were quite  often left                                                                    
without remedy.  He thought that  even as Alaska  was trying                                                                    
to  give  avenues for  those  who  had offended,  the  state                                                                    
wanted to make  sure that the public was safe  and  that the                                                                    
victims  were given  every opportunity  for restoration;  he                                                                    
thought that  there were avenues  to do this under  the 24/7                                                                    
Sobriety Program. He reported  that the 24-7 program allowed                                                                    
people to  be productive  while under  accountability, which                                                                    
allowed them  to pay restitution  in other ways;  he thought                                                                    
that the  bill fell  into what Senator  Dyson had  pushed on                                                                    
restorative justice.  He added  that the protection  for the                                                                    
victim  and   the  need  for  accountability   were  heavily                                                                    
embedded in  the bill  in the  most cost-effective  ways. He                                                                    
noted that the legislation  contained a sobriety program and                                                                    
established  the  Alaska  Criminal Justice  Commission  that                                                                    
would  study the  question of  whether there  were areas  of                                                                    
Alaska's  mandated  sentencing  laws  that  the  legislature                                                                    
should be looking at; the  bill would provide the commission                                                                    
with a  list of things to  think about and would  require it                                                                    
to come back to the legislature with a report.                                                                                  
                                                                                                                                
Senator  Coghill thought  that through  the Alaska  Criminal                                                                    
Justice  Commission,  it  was time  to  examine  how  Alaska                                                                    
looked at  its criminal code, mandatory  sentencing, and how                                                                    
the sentencing had fit in real  life; this would not be done                                                                    
with the  intent of how  to be soft on  crime, but to  be as                                                                    
real  as possible  in accountability.  He  stated that  that                                                                    
imbedded  in the  bill was  a  Probation Accountability  and                                                                    
Ccertain  en  Enforcement     ??(PACE)  program  that  acted                                                              
swiftly in  the event of  a parole violation. He  noted that                                                                    
the  sponsors were  requesting that  a  fund be  established                                                                    
within  the  bill that  would  allow  the  state to  have  a                                                                    
programmatic approach for those  exiting jail; he noted that                                                                    
were  several ways  to setup  of a  fund and  hoped that  he                                                                  
would have  a clearer  path forward on  that issue  the next                                                                    
time the bill was before the committee.                                                                                         
                                                                                                                                
Senator Coghill  noted that thresholds for  felony theft had                                                                    
not   been  adjusted   since  1978   and  thought   that  it                                                                    
represented  an important  thing  to  do because  currently,                                                                    
Alaska could produce  felons for things that  really did not                                                                    
rise  to  the   level  of  a  felony;     if  under  certain                                                                  
circumstances, they   more than  once they could be  a felon                                                                  
if they  offended more  than once. He  noted that  under the                                                                  
bill, some of these felonies  needed to be adjusted and that                                                                  
the  time  value   ofand  money  and  crime   needed  to  be                                                                  
considered. He noted  that the sponsors were  asking the DOC                                                                
epartment of  Corrections and the  Department of  Health and                                                                
Social Services DHSS  to assist in creating  better risk and                                                                  
needs  assessments.  He thought  that  the  bill would  help                                                                    
protect  the public  and keep  people  more accountable.  He                                                                  
reported that the Senate Judiciary  Committee had included a                                                                    
section for people  who picked up children and  did not have                                                                    
good identification; the section heldp  people to a level of                                                                  
accountability if they  did not have the right to  pick up a                                                                    
child at school. He concluded  that were multiple aspects in                                                                    
the   bill,  but   its  real   focus   was  public   safety,                                                                    
accountability,  and avoiding  building another  prison that                                                                    
would cost the state $300 million or more.                                                                                      
                                                                                                                                
9:18:25 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy pointed  to the  fiscal notes  attached to                                                                    
the bill and inquired if  the he bill's cost would represent                                                                  
an increase to  the budget or a transfer  from another area.                                                                  
Senator Coghill replied  that the way the  bill was written,                                                                    
it would  was a  general fund  appropriation to  the stated,                                                                  
but  added that  he would  have  his staff  propose ways  to                                                                    
decrease  that  cost  and  produce  a  CS.  He  stated  that                                                                    
decreasing  the  bill's  cost  really  revolved  around  the                                                                    
recidivism fund.  He observed that the  legislation did have                                                                    
an expected  savings that  was very  hard to  quantify which                                                                    
was  the reduction  in cost  of  keeping people  accountable                                                                    
outside of jail  versus a the higher  cost of incarceration.                                                                  
He  related that  the cost  savings  would be  very hard  to                                                                    
quantify,  but it  was expected  to occur.  He thought  that                                                                    
there  might  be an  estimation  of  what that  savings  was                                                                  
sometimes in the  future, but reiterated that  he was unsure                                                                  
if the DOCdepartment would be able to quantify the number.                                                                    
                                                                                                                                
9:20:30 AM                                                                                                                    
                                                                                                                                
JORDAN SCHILLING,  STAFF, SENATOR  JOHN COGHILL, spoke  to a                                                                    
PowerPoint  presentation  titled  "Senate  Bill  64  Omnibus                                                                    
Crime/Corrections bill" (copy on file).  He spoke to slide 1                                                                    
of the  presentation and read  off his talking  points (copy                                                                    
on file).:                                                                                                                    
                                                                                                                                
     SLIDE 1                                                                                                                    
                                                                                                                                
     Mr.  Chairman, thank  you for  hearing  Senate Bill  64                                                                    
     today in light of a full schedule.                                                                                         
                                                                                                                                
     Just to bring you up to speed on where SB 64 has been:                                                                     
     (2) senate state affairs                                                                                                   
     (2) joint judiciary                                                                                                        
     (7) senate judiciary                                                                                                       
                                                                                                                                
     The Senate Judiciary Committee  received input from the                                                                    
     Department  of Law,  Dept.  of  Corrections, the  Court                                                                    
     system,  Public  Defender,  and as  a  result  of  that                                                                    
     feedback, this CS was formed.                                                                                              
                                                                                                                                
     Today we go over version D.                                                                                                
                                                                                                                                
9:21:34 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
Mr. Schilling spoke to slide 2 and spoke from his talking                                                                     
points.:                                                                                                                      
                                                                                                                                
     SLIDE 2                                                                                                                    
                                                                                                                                
     The state  is not  receiving good  value for  the money                                                                    
     spent on  our corrections system.   2  out of 3  of our                                                                    
     prisoners  return  to  prison  quickly  after  release.                                                                    
     Most of these offenders return  in the first 6 months -                                                                    
     which  is one  of  the worst  recidivism  rates in  the                                                                    
     country.    So, we  must  ask  ourselves:   with  state                                                                    
     revenues  falling, is  this how  we want  to spend  our                                                                    
     money?                                                                                                                     
                                                                                                                                
                                                                                                                                
M                                                                                                                             
9:22:00 AM                                                                                                                    
                                                                                                                                
Mr. Schilling spoke to a graph  on slide 3 and reported that                                                                  
currently,   the price  of incarceration  was $159  per day,                                                                
per  inmate  and  was  about $54,000  per  year,  which  was                                                                    
approximately twice as much the cost in the Lower-48.                                                                           
                                                                                                                                
9:22:09 AM                                                                                                                    
                                                                                                                                
Mr. Schilling addressed slide 4 and read from his talking                                                                     
points.:                                                                                                                      
                                                                                                                                
     SLIDE 4                                                                                                                    
                                                                                                                                
     Today  Alaska  is  at  a   crossroads.  If  the  prison                                                                    
     population continues  to grow at its  current rate, the                                                                    
     state's prisons  will be, yet  again, at  full capacity                                                                    
     in  just two  years. So,  the state  must today  either                                                                    
     start  planning to  build a  new prison,  start sending                                                                    
     prisoners out-of-state,  or, look at programs  that are                                                                    
     proven to work - things  other states are doing today -                                                                    
     to reduce  recidivism, reduce our  DOC budget,  and put                                                                    
     off a  huge capital expense (and  an operating expense)                                                                    
     of building another prison.                                                                                                
                                                                                                                                
Mr. Schilling  related that  the graph on  slide 4  was from                                                                    
the  Legislative Finance  Division. He  stated that  the red                                                                    
line was the maximum capacity  of the prison system and that                                                                    
the blue  line was the  prisoner population. He  stated that                                                                    
the prison  population in Alaska  was growing at a  steady 3                                                                  
percent per  year and that in  2016, where the blue  and red                                                                    
lines  intersect,   was  when  the  system   would  be  over                                                                    
capacity. He stated that the  horizontal cells at the bottom                                                                    
of slide showed the budget and  relayed that the lately,  it                                                                
had increased about 7.3 percent per year.                                                                                       
                                                                                                                                
9:23:14 AM                                                                                                                    
                                                                                                                                
Co-Chair  Kelly  requested  Mr.   Schilling  to  repeat  the                                                                    
figure.  Mr. Schilling  confirmed that  the corrections  the                                                                  
corrections  budget  had  been increasing  7.3  percent  per                                                                  
year.                                                                                                                           
                                                                                                                                
9:23:20 AM                                                                                                                    
                                                                                                                                
Mr.  Schilling  pointed to  slide  5  and read  his  talking                                                                  
points.:                                                                                                                      
                                                                                                                                
     SLIDE 5                                                                                                                    
                                                                                                                                
     Many states  have been  faced with  the same  problem -                                                                    
     the  problem of  needing a  new  prison every  5 or  10                                                                    
     years.   Those  states  identified  the things  driving                                                                    
     their prison  growth and developed policies  to address                                                                    
     them.                                                                                                                      
                                                                                                                                
     Over  the  last  couple  years,   15  of  those  states                                                                    
     actually closed prisons.                                                                                                   
                                                                                                                                
     Texas and  Kansas were among  the first states  to make                                                                    
     some big changes.  Texas  was faced with building 4 new                                                                    
     prisons.   Instead of doing  that, they funded  some of                                                                    
     these programs, and they ended  up not needing a single                                                                    
     new prison,  and they  actually closed  a prison  a few                                                                    
     years later… so  we can look to what  other states have                                                                    
     done to see what works.                                                                                                    
                                                                                                                                
     Kentucky's  omnibus corrections  bill  is projected  to                                                                    
     save them $420 million over the next 10 years.                                                                             
                                                                                                                                
     Arkansas'  omnibus  bill  is   expected  to  save  $875                                                                    
     million.                                                                                                                   
                                                                                                                                
     We haven't done  much in corrections reform.   The vast                                                                    
     majority of  Alaska's criminal statutes  were rewritten                                                                    
     in  1982. The  Alaska criminal  code was  based on  the                                                                    
     best  research  at  the time.  Research,  however,  has                                                                    
     continued to advance during the  last 25 years and much                                                                    
     has been  learned about effective  ways to  address our                                                                    
     prison problem                                                                                                             
                                                                                                                                
9:24:29 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 6 and related that the bill                                                                       
had three main goals, which were to increase public safety,                                                                     
reduce recidivism, and reduce costs.                                                                                            
                                                                                                                                
M                                                                                                                             
9:24:38 AM                                                                                                                    
                                                                                                                                
Mr. Schilling addressed slide 7 and spoke from his talking                                                                  
points.:                                                                                                                      
                                                                                                                                
     SLIDE 7                                                                                                                    
                                                                                                                                
     Now, the  DOC has  similar goals.  This is  the mission                                                                    
     statement of the Department of Corrections.                                                                                
                                                                                                                                
     1) Secure confinement                                                                                                      
                                                                                                                                
     2) Reformative programs                                                                                                    
                                                                                                                                
     3) Community Reintegration                                                                                                 
                                                                                                                                
     That   mission  is   pulled  right   from  the   Alaska                                                                    
     Constitution.    So,  it's not  that  their  goals  are                                                                    
     wrong, but it's how  they allocate resources to achieve                                                                    
     those goals.                                                                                                               
                                                                                                                                
M                                                                                                                             
9:25:02 AM                                                                                                                    
                                                                                                                                
Mr. Schilling spoke to the charts on slide 8 and read from                                                                  
his talking points:                                                                                                             
                                                                                                                                
     SLIDE 8                                                                                                                    
                                                                                                                                
     This is how they allocate those resources.                                                                                 
     The  Department  places  a  major  emphasis  on  secure                                                                    
     confinement,  and   barely  any   emphasis  reformative                                                                    
     programs  or community  reintegration.   Yet those  are                                                                    
     the very areas where we can affect recidivism.                                                                             
                                                                                                                                
     If we  keep doing  the same  thing, we'll  keep getting                                                                    
     the same results.  These  are the results we're getting                                                                    
     right now.                                                                                                                 
                                                                                                                                
Mr. Schilling  discussed the  top pie chart  on slide  8 and                                                                    
stated  that it  depicted  how DOC  allocated its  full-time                                                                    
positions; 86 percent of the  positions were focuseds on the                                                                  
warehousing aspect, 4 percent  wereas focused on reformative                                                                  
programs, and 10 percent wereas for  supervised release.                                                                    
                                                                                                                                
9:25:39 AM                                                                                                                    
                                                                                                                                
Mr. Schilling directed the committee's attention to the                                                                         
graph on slide 9 and addressed his talking points.:                                                                           
                                                                                                                                
     SLIDE 9                                                                                                                    
                                                                                                                                
     The Department  of Corrections made  this graph  and it                                                                    
     shows the drop  in recidivism over the  past few years.                                                                    
     While  it   may  look  like  a   dramatic  decrease  is                                                                    
     occurring, you'll  notice this is about  1.5% reduction                                                                    
     over  4  years.    That's  not  enough,  and  it's  not                                                                    
     happening  quick  enough.  At  that  rate,  our  prison                                                                    
     system will  be at capacity  by 2016. And 63%  is still                                                                    
    one of the highest recidivism rates in the country.                                                                         
                                                                                                                                
M                                                                                                                             
9:26:12 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 10 and spoke from his talking                                                                   
points.                                                                                                                         
                                                                                                                                
   SLIDE 10                                                                                                                     
                                                                                                                                
   SB 64 has 8 main pieces to address our recidivism                                                                            
   problem:                                                                                                                     
     ·  SB 64 establishes  a 24/7  Sobriety Program  used to                                                                    
        prevent offenders from drinking.  The program                                                                           
        includes twice-a-day alcohol testing and swift                                                                          
        punishment if alcohol is consumed.                                                                                      
     ·  SB 64 creates the Alaska Criminal Justice Commission                                                                    
        to evaluate the system and make recommendations.                                                                        
     ·  SB 64 expands a  program called P.A.C.E. which  is a                                                                    
        different way of doing probation that prevents                                                                          
        violations and new crimes.                                                                                              
     ·  SB 64 requires the  Dept. of Corrections  to conduct                                                                    
        more assessments of their prisoners.                                                                                    
     ·  SB 64 establishes a Recidivism Reduction fund in the                                                                    
        Department of Corrections to grant money to                                                                             
        transitional re-entry programs.                                                                                         
     ·  SB 64 increases the felony theft threshold from $500                                                                    
        to $750.  The threshold was established in 1978 and                                                                     
        has never been adjusted for inflation.                                                                                  
                                                                                                                                
        o Lastly, SB 64 incentivizes treatment and expands                                                                      
          the ability to get credit for time in treatment.                                                                      
                                                                                                                                
Mr. Schilling inquired if Co-Chair Kelly would like him to                                                                      
go through the bill section by section. Co-Chair Kelly                                                                          
replied in the affirmative.                                                                                                     
                                                                                                                                
9:27:35 AM                                                                                                                    
                                                                                                                                
Mr. Schilling pointed to slide 11 and addressed his talking                                                                     
points.:                                                                                                                      
                                                                                                                                
     SLIDE 11                                                                                                                   
                                                                                                                                
     The first  3 sections  of the  bill fill  a gap  in our                                                                    
     criminal codes relating to attempted child abduction.                                                                      
                                                                                                                                
     These sections  of the bill resulted  from an amendment                                                                    
     in Senate Judiciary.                                                                                                       
                                                                                                                                
Mr. Schilling  related that  while the  first 3  Sections of                                                                    
the legislation  did not deal  directly with  recidivism, it                                                                  
had a strong public safety aspect.                                                                                              
                                                                                                                                
                                                                                                                                
9:27:59 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 12  and spoke from his talking                                                                    
points.:                                                                                                                      
                                                                                                                                
     SLIDE 12                                                                                                                   
                                                                                                                                
     If a  potential abductor goes to  a school/daycare, and                                                                    
     attempts  to pick  up a  child that  doesn't belong  to                                                                    
     them, the only  charge currently on the  books that can                                                                    
     be made against the person is Criminal Mischief.                                                                           
                                                                                                                                
     These   sections   create   a   crime   of   "custodial                                                                    
     interference in the 2nd degree" if an attempted                                                                            
     abduction like that is made.                                                                                               
                                                                                                                                
9:28:41 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough inquired  if there  were comments  or                                                                    
discussions  about   cases  of   custody  in   and  divorces                                                                
situations in  the Senate Judiciary Committee.  She wondered                                                                    
what would  happen if  a mom  who had  custody of  her child                                                                    
sent a neighbor to pick up  the kids and that because of the                                                                    
volatility of  the situation, a  restraining order,  or some                                                                    
other unkownsituation,  the school  did not want  to release                                                                  
to a  friend who the child  knew;. sShe wondered how  this a                                                              
situation like the  one described above would  be dealt with                                                                  
and pointed out thought that  the father might claim that it                                                                  
was  an abduction.  Mr. Schilling  responded that  it was  a                                                                    
good question and relayed that  the issue had been discussed                                                                    
in  the   Senate  Judiciary   Committee.  He   directed  the                                                                    
committee's  attention  to   page  2  on  line   16  of  the                                                                    
legislation and  stated that it  was where the  language was                                                                    
added  that  stated  that  in   order  for  a  crime  to  be                                                                    
committed, a person must have no  legal right to pick up the                                                                    
child; the  language had been  added to address the  type of                                                                    
situation  that Vice-Chair  Fairclough had  referred to.  He                                                                    
explained that if someone who had  custody of a child gave a                                                                    
person permission to pick that  child up, that would suffice                                                                    
as a legal right.                                                                                                               
                                                                                                                                
                                                                                                                                
M9:29:56 AM                                                                                                                   
                                                                                                                                
Mr. Schilling addressed  slide 13 and related  that the next                                                                  
15 sections  of the  bill, which  were Sections  4-19, dealt                                                                    
with Alaska's felony theft threshold.                                                                                           
                                                                                                                                
                                                                                                                                
9:30:08 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  directed the  committee's attention  to slide                                                                    
14 and discussed hise talking points.:                                                                                      
                                                                                                                                
     SLIDE 14                                                                                                                   
                                                                                                                                
     Sections 4-19 address the felony theft threshold.                                                                          
     The  dividing line  between a  misdemeanor theft  and a                                                                    
     felony  theft is  $500.   If you  steal something  over                                                                    
     $500,  it's a  felony.   If you  steal something  under                                                                    
     $500,  it's a  misdemeanor.   That  dividing line,  the                                                                    
     felony  threshold, was  established by  the legislature                                                                    
     over 30 years ago.                                                                                                         
                                                                                                                                
     Because that  amount has never been  adjusted, it fails                                                                    
     to take  into account 30  years of inflation.   $500 in                                                                    
     1978  had  much  more  purchasing power  than  it  does                                                                    
     today.   In fact, $500  in 1978 is equivalent  to $1800                                                                    
     today.  In other words,  what amounted to a misdemeanor                                                                    
     30 years ago may now constitute a felony.                                                                                  
                                                                                                                                
9:30:44 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 15  and related that the graph                                                                    
showed  where Alaska  was compared  to other  states on  the                                                                    
West Coast  regarding felony  theft thresholds.  He reported                                                                  
that Alaska  had was  one of  the last  holdouts that  had a                                                                    
felony threshold rate this low  for theft. He added that the                                                                    
graph needed  to be updated  and that not only  had Colorado                                                                    
adjusted  theirs in  2007, but  that  it had  done so  again                                                                  
recently.  He  stated  that  property  crimes  made  up  the                                                                    
largest portion  of Alaska's felonies and  that the sponsors                                                                    
were seeking  a modest increase  in the threshold  from $500                                                                    
to $750.                                                                                                                        
                                                                                                                                
9:31:19 AM                                                                                                                    
                                                                                                                                
Mr.  Schilling  addressed  slide  16  and  stated  that  the                                                                  
following  statutes  were  those   that  would  need  to  be                                                                    
adjusted  if the  felony theft  threshold  was changed  from                                                                    
$500 to $750:                                                                                                                   
                                                                                                                                
     Theft 2nd degree                                                                                                           
     Theft 3rd degree                                                                                                           
     Theft 4th degree                                                                                                           
     Concealment of merchandise                                                                                                 
     Removal of identification marks                                                                                            
     Unlawful possession                                                                                                        
     Issuing a bad check                                                                                                        
     Fraudulent use of an access device                                                                                         
     Vehicle theft in the 1st degree                                                                                            
     Criminal mischief 3rd degree                                                                                               
     Criminal mischief 4th degree                                                                                               
     Criminal mischief 5th degree                                                                                               
     Criminal simulation                                                                                                        
     Misapplication of property                                                                                                 
     Defrauding creditors.                                                                                                      
                                                                                                                                
Mr. Schilling spoke  to slide 16 and stated  that the reason                                                                    
that  there  were  15  sections in  the  bill  dealing  with                                                                    
statutes was because  of the of the number of  them  of them                                                                
that were affected by the threshold change.                                                                                   
                                                                                                                                
Mr. Shilling read from his talking points:                                                                                      
                                                                                                                                
     A  felony  conviction  carries  lifelong  consequences.                                                                    
     There are  thousands of consequences and  barriers that                                                                    
     follow a felony for the rest of his or her life.                                                                           
                                                                                                                                
     A felony  conviction greatly diminishes the  ability of                                                                    
     that individual to lead a productive life.                                                                                 
                                                                                                                                
     This problem disproportionately  affects those in rural                                                                    
     Alaska.  A  basic window, if broken  in Anchorage might                                                                    
     only be  a misdemeanor, but  that same window  in rural                                                                    
     Alaska   could  trigger   a  felony.     As   inflation                                                                    
     continues, this problem will get worse.                                                                                    
                                                                                                                                
     One criticism  we have heard  is that some  think theft                                                                    
     will increase.                                                                                                             
                                                                                                                                
                                                                                                                                
Co-Chair Kelly  inquired if the sponsor  had had discussions                                                                    
about the  $750 dollar  amount and thought  that it  did not                                                                    
seem achieve  that much. Mr.  Schilling responded  that when                                                                    
Senator Coghill  had originally introduced the  idea several                                                                    
years  prior, the  suggested new  threshold had  been $2,500                                                                    
and that when  the bill was again  reintroduced the previous                                                                    
session,  it was at $1,500 ,  but and it was amended down to                                                              
$1,000;  it was  then  amended  again down  to  $750 in  the                                                                    
Senate Judiciary  Committee. He  agreed that the  number was                                                                    
not very significant if it was going by inflation.                                                                              
                                                                                                                                
9:32:40 AM                                                                                                                    
                                                                                                                                
CoCo-Chair  Kelly thought  that  the threshold  in the  bill                                                                  
needed to  higher than $750  and inquired  if the cost  of a                                                                    
dented fender  in the charge  of criminal mischief  would be                                                                    
applied under the legislation.  Mr. Schilling responded that                                                                    
Co-Chair Kelly was correct.                                                                                                     
                                                                                                                                
                                                                                                                                
9:33:10 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough believed  that  small businesses  are                                                                    
the  ones advocating  for a  smaller threshold  because they                                                                    
felt that breaking a storefront  window in Anchorage rose to                                                                    
the level of a felony.                                                                                                          
                                                                                                                                
                                                                                                                                
Vice-Chair  Fairclough referenced  slide 15  and noted  that                                                                    
only 10 states were provided.  She inquired if the 10 states                                                                    
on  the slide  were  the  bottom 10  and  requested a  range                                                                    
inside  of  the U.S.  where  the  level  might be  set.  She                                                                    
recalled that  the bill had been  originally introduced with                                                                    
a new felony  theft threshold of $2,500 and  now appeared to                                                                    
still  be  second to  the  bottom  at  $750. She  felt  that                                                                    
businesses were not aware of  how much the current threshold                                                                    
was costing  the state  in the form  of corrections  and the                                                                    
Alaska  Court System.  She understood  the offense  and that                                                                    
perhaps  if businesses  wanted to  keep  the threshold  low,                                                                    
they could  help carry the  burden. Mr.  Schilling responded                                                                    
that  Vice-Chair Fairclough  was correct  in that  not every                                                                    
state was listed  on slide 15 and that there  were, in fact,                                                                  
states  that had  a  lower such  threshold  than Alaska.  He                                                                    
stated that  it was also  true that the  National Federation                                                                    
of  Independent  Business  had pushed  back  on  the  bill's                                                                    
concept.                                                                                                                        
                                                                                                                                
9:34:44 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  directed the  committee's attention  to slide                                                                    
20  and thought  that it  was important  to understand  that                                                                    
theft  under  $500  was  still a  class  A  misdemeanor  and                                                                    
carried  up to  a year  in jail  and up  to a  $10,000 fine;                                                                    
furthermore, these  crimes would not go  unpunished, but the                                                                    
threshold was  being adjusted to  track the  original intent                                                                    
of the legislature when it had put in the $500 limit.                                                                           
                                                                                                                                
                                                                                                                                
9:35:04 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  wondered what the bar  graph on slide                                                                    
15 represented  inside of the  U.S. She inquired  whether it                                                                    
represented the  high and the  low or another  category. Mr.                                                                    
Schilling  responded that  the x-axis  was showing  a dollar                                                                    
amount and  that Alaska's  current bar  was about  $500; the                                                                    
numbers next to the bars  were the years that the thresholds                                                                    
had been  established. He noted that  Alaska's threshold was                                                                    
established  in 1978,  but the  state just  above it  on the                                                                  
chart, which  was Nevada, had  a threshold of $650  that was                                                                    
established in 2011.                                                                                                            
                                                                                                                                
                                                                                                                                
9:35:43 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  commented that  there were  50 states                                                                    
and that  she was looking for  a range. She inquired  if the                                                                  
chart's states reflected the high  and the low or were there                                                                    
numbers that  were not  shown on  the extrapolation  for the                                                                    
graph.  Mr.  Schilling  responded  that the  graph  did  not                                                                    
reflect a high  or low range, but that he  would produce the                                                                    
information for the committee.                                                                                                  
                                                                                                                                
Vice-Chair Fairclough  stated that she  was trying to  get a                                                                    
range for the  committee. Mr. Schilling replied  that he had                                                                    
a seen   a low  threshold of about  $300, but that  he could                                                                
not recall  which state  that was;  he believed  that $2,000                                                                    
was the new threshold for Colorado.                                                                                             
                                                                                                                                
Vice-Chair  Fairclough  inquired  if Mr.  Schilling  thought                                                                    
that  the  high  was  Colorado   at  $2,000.  Mr.  Schilling                                                                    
responded that he believed that it was.                                                                                         
                                                                                                                                
9:36:29 AM                                                                                                                    
                                                                                                                                
Mr. Schilling spoke  to slide 17 and. He  related that there                                                                  
had been  concerns by the  business community that  the bill                                                                    
would result  in increased crime  and theft;  however, other                                                                    
states had not seen  those effects from similar legislation.                                                                    
He  pointed to  slide 17,  18, and  19's graphs  and related                                                                    
that  they graphs  had come  from the  PEW Research  Center,                                                                  
which  had conducted  a lot  of  research on  the issue.  He                                                                    
noted that Arkansas had raisedchanged  its threshold in 2011                                                                  
and that instances of theft remained unchanged.                                                                                 
M                                                                                                                             
9:36:55 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed  slide 18 and related  that Ohio had                                                                
increased its threshold in 2011;  theft had actually dropped                                                                    
there since then.                                                                                                             
                                                                                                                                
9:37:00 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 19  and pointed out that South                                                                    
Carolina  had doubled  its threshold  in 2012;  again, crime                                                                    
was steady.                                                                                                                     
                                                                                                                                
                                                                                                                                
9:37:06 AM                                                                                                                    
                                                                                                                                
Mr. Schilling addressed  slide 20 and related that  it was a                                                                
visual representation of what the sections did.                                                                                 
                                                                                                                                
Mr. Shilling spoke to his talking points for slide 20:                                                                          
                                                                                                                                
     These sections also raise the lower threshold of $50                                                                       
     that sits between a class A misdemeanor and a class B                                                                      
     misdemeanor to $250.                                                                                                       
                                                                                                                                
     So, we propose to increase the threshold to $750.                                                                          
     It's a modest amount, but it's a step in the right                                                                         
     direction.                                                                                                                 
                                                                                                                                
9:37:28 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  inquired why the threshold  was being                                                                    
changed if there were results that  showed it did not make a                                                                    
difference on the crime rates.    Mr. Schilling replied that                                                                  
the purpose it  was to reduce the number of  people who were                                                                
receivingbeing felonies es for  crimes above $500, but under                                                                
$750. He  furthered that  the sponsor  was trying  to reduce                                                                    
the collateral  consequences that  followed someone  for the                                                                    
rest of their  lives if they received  a felony convictions.                                                                  
He  offered  that  it  was becoming  easier  and  easier  to                                                                    
receive a felony conviction.                                                                                                    
                                                                                                                                
                                                                                                                                
9:38:06 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  thought that  the point  was that  the crime                                                                    
level  did not  go up  as a  result of  the changing  the of                                                                  
felony  theft  threshold;  it could  benefit  the  state  by                                                                  
having  the cost  be  a lot  less with  the  same amount  of                                                                    
crime.  He observed  that  the sponsor  was  also trying  to                                                                    
address a human  element with the change, but  that it could                                                                    
not be quantified.                                                                                                              
                                                                                                                                
9:38:27 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough requested  that  the presentation  be                                                                    
directed back to slide 17 and  noted that when she looked at                                                                    
the graphs,   she saw something  different. She offerednoted                                                                
that  in Arkansas,  it  appeared as  though  theft had  been                                                                    
trending  downward  until  the  threshold  had  been  raised                                                                    
there. Mr. Schilling responded that  the uptick in the graph                                                                    
was right  before the  state had  changed the  threshold and                                                                    
that it appeared to him as  though the line  level was level                                                                  
at the point at which it was changed.                                                                                           
                                                                                                                                
Vice-Chair  Fairclough  observednoted   that  there  was  an                                                                  
inflection downward in  one of the categories  of theft. Mr.                                                                  
Schilling replied in the affirmative.                                                                                           
                                                                                                                                
9:39:09 AM                                                                                                                    
                                                                                                                                
Senator Bishop requested  the average age of  peoples of the                                                                  
felons whothat  committed felony theft. He  wondered if most                                                                
of these types  of crimes were committed by  people who were                                                                    
18  and 19  years  old and  expressed that  he   added  that                                                                  
wanted  to help  paint  the picture.  He  added that  felony                                                                  
theft could be  a barrier to a young person  who was seeking                                                                    
employment and  noted that it  prohibited these  people from                                                                  
working on the pipeline. Mr.  Schilling responded  that that                                                                  
he would work  with the Alaska Ccourt  Sysystem to determine                                                                
if that was a number that he could obtain.                                                                                      
                                                                                                                                
Vice-Chair Fairclough inquired if  there had been discussion                                                                    
regarding in the Senate Judiciary  Committee about a judge's                                                                  
discretion  related to  the bill.  She relayedted  that some                                                                  
judges had indicated to her  that  sometimes the legislature                                                                  
was so prescriptive in what  it did that there was sometimes                                                                    
very  little  latitude  for  judges  to  consider  what  was                                                                    
happening in  the court room  or to an individual  who might                                                                    
be a troubled child who threw  a rock or might be a multiple                                                                    
offender. She  further clarified  the question  and wondered                                                                    
if  the  discussion  of giving  judges  the  flexibility  of                                                                    
weighing  an individual  perpetrator's circumstances  in his                                                                    
decision.  Mr. Schilling  responded that  the issue  had not                                                                    
been discussed  specifically in regards to  the felony theft                                                                    
threshold, but  that he understood  that giving  judges very                                                                  
little discretion was a problem.                                                                                                
                                                                                                                                
9:41:19 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough recalled the  example of a mischievous                                                                    
child breaking a window and  thought that perhaps exceptions                                                                    
could be made in certain  cases. She appreciated the work of                                                                    
the bill's  sponsor but had  heard from the  judicial system                                                                    
that the legislature was getting  very prescriptive and that                                                                    
a   having  justice   versus   prescriptive  penalties   was                                                                    
something that was sometimes out of judges' hands.                                                                          
                                                                                                                                
9:42:07 AM                                                                                                                    
                                                                                                                                
Mr.  Schilling  addressed  slide  22 and  read  off  of  his                                                                    
talking points.                                                                                                               
:                                                                                                                             
     SLIDE 21                                                                                                                   
                                                                                                                                
     Alaska has, for  decades, been in a  long struggle with                                                                    
     alcohol.    It  has reached  epidemic  proportions  and                                                                    
     costs the state millions each  year.  The societal cost                                                                    
     of  alcohol is  huge too  -  from FASD  and suicide  to                                                                    
     domestic violence and sexual assault.                                                                                      
                                                                                                                                
     Alcohol is a factor in many  (if not most) crimes - For                                                                    
     example,  alcohol  is  involved   in  75%  of  domestic                                                                    
     violence offenses --  and if we can  address that area,                                                                    
     alcohol  abuse,  we  could  see  a  huge  reduction  of                                                                    
     recidivism in Alaska.                                                                                                      
                                                                                                                                
     Sections 20-22 establish 24/7 in pre-trial.                                                                                
                                                                                                                                
     24/7 Sobriety is  a program developed in  2005 in South                                                                    
     Dakota.   It  curbs alcohol  use, it  makes the  public                                                                    
     safer, and  it reduces  recidivism.   The best  part is                                                                    
     that it costs the state next-to-nothing.                                                                                   
                                                                                                                                
     24/7 Sobriety  is a  growing trend in  the U.S.   There                                                                    
     are 3  states with  an established  program (SD,  ND, &                                                                    
     MT),  11 states  with pending  legislation, and  5 more                                                                    
     states operating pilots.                                                                                                   
     The program has one goal:  sobriety 24 hours per day, 7                                                                    
     days a week.  The program requires the participant to:                                                                     
                                                                                                                                
     1) refrain from alcohol and                                                                                                
     2) show up twice-a-day for a breath alcohol test.                                                                          
                                                                                                                                
     (The court may also  order remote monitoring in certain                                                                    
     cases.)                                                                                                                    
                                                                                                                                
9:43:42 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
Mr. Schilling  spoke to slide  22 and discussed  his talking                                                                    
points.:                                                                                                                      
                                                                                                                                
     Participation  in  the program  can  be  required as  a                                                                    
     condition of probation, parole, or pre-trial.                                                                              
                                                                                                                                
     So, if  an offender commits  a crime, and alcohol  is a                                                                    
     factor in that  crime, the court can  order that person                                                                    
     on  24/7  Sobriety,  either as  a  condition  of  their                                                                    
     release before  trial, or as  part of  their probation.                                                                    
     It is  a particularly effective program  for repeat DUI                                                                    
     offenders.                                                                                                                 
                                                                                                                                
                                                                                                                                
9:43:56 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  requested that Mr.  Schilling address   the                                                                  
how  remote  monitoring  would work  in  rural  Alaska.  Mr.                                                                    
Schilling deferred  to DOC regarding where  the department's                                                                    
monitors  could  and could  not  be  used; however,  he  had                                                                    
information later in the presentation  that would cover some                                                                    
of the devices and ways that it would work in rural Alaska.                                                                     
                                                                                                                                
9:44:24 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  continued to  address slide  22 and  spoke to                                                                    
his talking points:                                                                                                             
                                                                                                                                
     So, if  an offender commits  a crime, and alcohol  is a                                                                    
     factor in that  crime, the court can  order that person                                                                    
     on  24/7  Sobriety,  either as  a  condition  of  their                                                                    
     release before  trial, or as  part of  their probation.                                                                    
     It is  a particularly effective program  for repeat DUI                                                                    
     offenders.                                                                                                                 
                                                                                                                                
                                                                                                                                
9:44:38 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  addressed slide 23 and  discussed his talking                                                                    
points.:                                                                                                                      
                                                                                                                                
     SLIDE 23                                                                                                                   
                                                                                                                                
     All testing fees  are paid by the  participant, so it's                                                                    
     a self-funded program.  The  cost is anywhere from $4-5                                                                    
     dollars per day,  which the offender pays  - and that's                                                                    
     enough to sustain the program.                                                                                             
                                                                                                                                
                                                                                                                                
9:44:52 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  discussed slide 24 and  addressed his talking                                                                    
points:                                                                                                                         
                                                                                                                                
     SLIDE 24                                                                                                                   
                                                                                                                                
     There  are  several ways  to  test:   in-person,  ankle                                                                    
     bracelet,    home-based   device,    or   a    portable                                                                    
     Breathalyzer.    While  in  the  program,  participants                                                                    
     remain  in society,  conduct their  daily lives,  go to                                                                    
     work,    pay   their    fees,    and   fulfill    their                                                                    
     responsibilities, as long as they remain sober.                                                                            
                                                                                                                                
Mr. Schilling spoke  to slide 24 and stated  that the device                                                                    
on the  far left  side was a  portable breathalyzer  and the                                                                  
one in  the middle  was a home-based  device that  was being                                                                    
used in a pilot program in  Anchorage; the device on the far                                                                    
right was an ankle device  referred to as the SCRAM bracelet                                                                    
and was something that DOC was using.                                                                                           
                                                                                                                                
9:45:28 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  discussed slide 25 and  addressed his talking                                                                    
points.:                                                                                                                      
                                                                                                                                
     SLIDE 25                                                                                                                   
                                                                                                                                
     Someone can be  on the program anywhere from  a week to                                                                    
     a couple years.                                                                                                            
                                                                                                                                
     The program  was based  on personal  responsibility and                                                                    
     accountability, backed  by swift and  certain sanctions                                                                    
     if there  is a violation.   If the offender  blows hot,                                                                    
     they receive a swift  sanction (arrested immediately, a                                                                    
     quick hearing,  and a short jail  sentence, usually 1-3                                                                    
     days.)                                                                                                                     
                                                                                                                                
                                                                                                                                
M                                                                                                                             
9:45:52 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 26 and read from his talking                                                                    
points.:                                                                                                                      
                                                                                                                                
     SLIDE 26                                                                                                                   
                                                                                                                                
     The  program works.  Most people  on  the program  quit                                                                    
     drinking  completely,  and  another 30%  quit  drinking                                                                    
     after their first couple violations.                                                                                       
                                                                                                                                
     24/7  Sobriety  is  a public  safety  measure.    South                                                                    
     Dakota has  been collecting data  on their  program for                                                                    
     almost  10   years  now,  and  the   results  are  very                                                                    
     exciting.                                                                                                                  
                                                                                                                                
                                                                                                                                
Mr. Schilling pointed to slide 27 and addressed his talking                                                                     
points.:                                                                                                                      
                                                                                                                                
     SLIDE 27                                                                                                                   
                                                                                                                                
     They have seen  a 9% decrease in  domestic violence and                                                                    
     a  12%  decrease in  drunk  driving.   The  program  is                                                                    
     reducing recidivism and saving them money.                                                                                 
                                                                                                                                
     The bottom  line is:  a  majority of the people  in the                                                                    
     program quit  drinking completely, and that's  good for                                                                    
     public safety and good for the budget.                                                                                     
                                                                                                                                
9:46:29 AM                                                                                                                    
                                                                                                                                
Mr. Schilling addressed slide 28 and read from his talking                                                                      
points.:                                                                                                                      
                                                                                                                                
     SLIDE 28                                                                                                                   
                                                                                                                                
     The next  section, 23, makes  changes to  AS 12.55.027.                                                                    
     This  section  of  law lays  out  the  requirements  to                                                                    
     receive credit for time served in a treatment program.                                                                     
                                                                                                                                
     By relaxing  these requirements on  treatment programs,                                                                    
     the   program   can   offer   better   treatment,   and                                                                    
     participants  can more  readily  earn  credit for  time                                                                    
     served   there.     Remember,  offenders   have  little                                                                    
     incentive to  enter (and pay  for) a  treatment program                                                                    
     if they won't get credit for their time.                                                                                   
                                                                                                                                
                                                                                                                                
9:47:06 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 29 and spoke to his talking                                                                       
points.:                                                                                                                      
                                                                                                                                
     For   25   years,   it  was   the   Court   that   made                                                                    
     determinations  of  what  counted as  credit  for  time                                                                    
     served  in  a  treatment  program, based  on  years  of                                                                    
     caselaw,  starting with  Nygren  v. State  in 1983.  In                                                                    
     2007 the legislature enacted this section of law.                                                                          
                                                                                                                                
     Now,  it is  laid  out  in statute,  and  is much  more                                                                    
     restrictive  than it  was pre-2007.   It  leaves little                                                                    
     room for an offender  to participate in activities that                                                                    
     programs would like to provide,  such as going to a job                                                                    
     center, attending church,  vocational classes, or going                                                                    
     to AA and NA meetings.                                                                                                     
                                                                                                                                
     If  we  relax  the  requirements in  this  statute,  it                                                                    
     encourages  rehabilitation  and treatment,  and  allows                                                                    
     treatment  programs to  do  more.   And  it brings  the                                                                    
     statute more  in-line with how  things were  done prior                                                                    
     to 2007.                                                                                                                   
                                                                                                                                
     The  way these  changes  are written  in  SB 64,  we're                                                                    
     still preventing  credit for  time served for  going to                                                                    
     dinner and a movie.                                                                                                        
                                                                                                                                
     So, SB  64 says that  in order  to get credit  for time                                                                    
     served, one must  live in a treatment  facility and can                                                                    
     only get a "day pass"  for things like employment, voc.                                                                    
     tech classes, AA or NA  meetings, and any other purpose                                                                    
     that  is directly  related to  their  treatment.   This                                                                    
     encourages treatment,  which is  by far  less expensive                                                                    
     than a prison bed.                                                                                                         
                                                                                                                                
9:48:39 AM                                                                                                                    
                                                                                                                                
Mr. Schilling related that Sections 26 through 28 of the                                                                        
bill dealt with the expansion of PACE.                                                                                        
a program called Probation Accountability and Certain                                                                         
Enforcement (P.A.C.E).                                                                                                        
                                                                                                                                
Mr. Schilling pointed slide 30 and discussed his talking                                                                        
points.:                                                                                                                      
                                                                                                                                
     SLIDE 30                                                                                                                   
                                                                                                                                
     When an offender is put  on probation, they are given a                                                                    
     list of  things they  can't do  - like  use drugs.   If                                                                    
     they  violate  the  conditions of  their  probation  by                                                                    
     using drugs,  it's called  a "probation  violation" and                                                                    
     that can  trigger you going  back to jail.   In Alaska,                                                                    
     we have a big problem  with people on probation getting                                                                    
     these   violations  or   committing   new  crimes   and                                                                    
     repeatedly coming  back into  the prison system.   This                                                                    
     revolving  door of  people  coming in  and  out of  the                                                                    
     prisons  is one  of  the biggest  drivers  of our  high                                                                    
     recidivism rate. But more  important to this committee,                                                                    
     it  is  one   of  the  biggest  cost   drivers  to  the                                                                    
     Department of Corrections.                                                                                                 
                                                                                                                                
9:49:28 AM                                                                                                                    
                                                                                                                                
Mr. Schilling spoke to slide 31 and addressed his talking                                                                       
points.:                                                                                                                      
                                                                                                                                
     SLIDE 31                                                                                                                   
                                                                                                                                
     There is a  way to stop this revolving door.   There is                                                                    
     a different way  of doing probation and  it's a program                                                                    
     called   P.A.C.E.   (Probationer   Accountability   and                                                                    
     Certain Enforcement).                                                                                                      
                                                                                                                                
Mr.  Schilling pointed  to the  pie  graph on  slide 31.  He                                                                    
related that the green slice  represented 14 percent and was                                                                    
the amount of people who were serving time currently solely                                                                   
based on a probation violation.                                                                                                 
                                                                                                                                
Mr. Schilling continued to address slide 31 and read from                                                                       
his talking points.:                                                                                                          
                                                                                                                                
     ..it was  first developed  in Hawaii  and is  now being                                                                    
     used in 17 other states.   It reduces the number of re-                                                                    
     arrests, reduces  the amount  of drug use,  reduces the                                                                    
     number of  missed appointments, and  ultimately reduces                                                                    
     the number of people going back to jail.                                                                                   
                                                                                                                                
     It's an  intensive program for offenders  who have been                                                                    
     identified  as  likely  to violate  the  conditions  of                                                                    
     their  probation.   The program  involves frequent  and                                                                    
     random drug  tests and responds  to any  violation with                                                                    
     swift, certain, and short terms of incarceration.                                                                          
                                                                                                                                
     Probation-as-it's-currently-done-today comes  with high                                                                    
     rates  of  violations.    For  example,  despite  rules                                                                    
     requiring  sober living,  probation-as-usual oftentimes                                                                    
     affords  offenders  opportunities   to  continue  using                                                                    
     drugs, which  in most cases means  continuing to commit                                                                    
     other crimes.  Drug testing  tends to be too infrequent                                                                    
     and  sanctions are  too  rare and  too  delayed.   When                                                                    
     sanctions  are  imposed, they  tend  to  be too  severe                                                                    
     (months, or occasionally years,  in prison) rather than                                                                    
     a 2-3 day jail term.                                                                                                       
                                                                                                                                
     P.A.C.E.  takes away  the discretion  of the  Probation                                                                    
     Officer because  when someone  violates a  condition of                                                                    
     his or her probation  by, for example, testing positive                                                                    
     for  drugs or  missing an  appointment, under  P.A.C.E,                                                                    
     that individual is arrested  immediately and brought to                                                                    
     court within 72 hours. At  the court hearing, the judge                                                                    
     imposes a sanction  of a short jail  term, commonly two                                                                    
     to three  days.   If the offender  violates his  or her                                                                    
     terms again, the process is  repeated.  In short, every                                                                    
     single probation violation is  dealt with quickly and a                                                                    
     sanction  is imposed  each time.    In contrast,  under                                                                    
     "probation as  usual," revoking someone's  probation or                                                                    
     holding a  court hearing might not  occur until several                                                                    
     probation violations  are reported.   As a  result, the                                                                    
     process can require several  costly court hearings over                                                                    
     a six-month  period and can be  generally characterized                                                                    
     as anything but "swift and certain."                                                                                       
                                                                                                                                
     This is more intensive probation,  but it can be scaled                                                                    
     at  low cost.   In  Hawaii,  the program  grew from  35                                                                    
     probationers   to  more   than   1400  without   adding                                                                    
     courtrooms, judges,  court clerks, police  officers, or                                                                    
     jail cells.  To begin  putting a tourniquet on our rate                                                                    
     of  recidivism, this  bill  establishes PACE  statewide                                                                    
     immediately,  which   the  Department   of  Corrections                                                                    
     estimates needing additional personnel for.                                                                                
                                                                                                                                
Mr. Schilling observed that the  bill did have a fiscal note                                                                    
that  accounted for  the need  of  the additional  personnel                                                                    
within DOC.                                                                                                                     
                                                                                                                                
9:52:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  observed that the  fiscal note for  the bill                                                                    
was for  about $1.6  million and inquired  if there  was any                                                                  
way to anticipate  the savings that it would  result in. Mr.                                                                    
Schilling  replied  that there  were  ways  to estimate  the                                                                    
savings and believed that the  sponsor had a report from the                                                                    
Division of Legislative Research  to that effect. He thought                                                                    
that the report  was in members' packets (copy  on file) and                                                                    
stated  that further  along in  the  presentation, he  would                                                                    
discuss the  reduced number  of days  in prison  that people                                                                    
had under P.A.C.E.                                                                                                              
                                                                                                                                
9:52:51 AM                                                                                                                    
                                                                                                                                
Mr. Schilling continued to address  slide 32 and stated that                                                                    
P.A.C.E.  probationers were  55  percent less  likely to  be                                                                    
arrested for a new crime and  were 72 percent less likely to                                                                    
use drugs.  He noted that  the graph depicted  a precipitous                                                                    
drop   off  after   the  first   violation  of   a  positive                                                                    
urinalysis.                                                                                                                     
                                                                                                                                
                                                                                                                                
9:53:14 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  spoke to  slide 33  and stated  that P.A.C.E.                                                                    
probationers   were  61   percent   less   likely  to   skip                                                                    
appointments.                                                                                                                   
                                                                                                                                
9:53:22 AM                                                                                                                    
                                                                                                                                
Mr.  Schilling  addressed  to  slide  34  and  relayed  that                                                                    
P.A.C.E.  probationers  were   ultimately  53  percent  less                                                                    
likely to have  their probations revoked, which  was where a                                                                    
cost savings  could be  found because  they were  not coming                                                                    
back to prison.                                                                                                                 
                                                                                                                                
9:53:37 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  spoke to slide  35. He stated that  the graph                                                                    
also  reflected  the  likelihood of  P.A.C.E.  probationers'                                                                    
probation being revoked, but it  reflected the state's pilot                                                                    
P.A.C.E. program in Anchorage.                                                                                                  
                                                                                                                                
9:53:47 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed  slide 36 and stated  that it showed                                                                    
how  many less  days a  P.A.C.E probationer  would spend  in                                                                    
prison;  they served  48 percent  fewer days  in prison.  He                                                                  
reported that  when the cost  of incarceration was  $160 per                                                                    
day, a 48  percent decrease was huge. He  observed that each                                                                    
new probation  officer in Alaska  paid for their  own salary                                                                    
and benefits if they kept just  2 people out of prison for a                                                                    
year.                                                                                                                           
                                                                                                                                
9:54:17 AM                                                                                                                    
                                                                                                                                
Mr. Schilling  directed the  committee's attention  to slide                                                                    
37 and discussed his talking points.:                                                                                         
                                                                                                                                
     SLIDE 37                                                                                                                   
                                                                                                                                
                                                                                                                                
     The  Department  of  Corrections evaluates  inmates  to                                                                    
     figure  out  their  risks  and needs.    This  type  of                                                                    
     evaluation can give  the DOC an idea  of the underlying                                                                    
     reasons that  person committed the  crime like  if they                                                                    
     have  a substance  abuse or  a  mental health  problem.                                                                    
     Based on this  assessment, you have a good  idea if the                                                                    
     offender  needs  to  be  in   PACE,  if  he  could  use                                                                    
     substance abuse or  mental health treatment, basically,                                                                    
     discovering what the underlying issue is.                                                                                  
                                                                                                                                
9:54:45 AM                                                                                                                    
                                                                                                                                
Mr.  Schilling spoke  to slide  38 and  related his  talking                                                                    
points.:                                                                                                                      
                                                                                                                                
     SLIDE 38                                                                                                                   
                                                                                                                                
     The  department   uses  a  54-item   assessment,  which                                                                    
     identifies  problem areas  in  an  offender's life  and                                                                    
     helps predict their likelihood of recidivating.                                                                            
                                                                                                                                
     The assessment looks into  10 areas like family/marital                                                                    
     issues, attitudes,  substance abuse or  alcohol issues,                                                                    
     etc.                                                                                                                       
                                                                                                                                
     However,  when someone  is sentenced  to serve  time in                                                                    
     prison here in  Alaska, more often than not,  we do not                                                                    
     evaluate  or assess  that person.    The Department  of                                                                    
     Corrections  assesses  less  than half  of  the  felons                                                                    
     coming  through the  system,  and  assesses hardly  any                                                                    
     misdemeanants,  even   though  misdemeanants   are  the                                                                    
     future felons.                                                                                                             
                                                                                                                                
     You can't  link an offender  to treatment if  you don't                                                                    
     assess  them.   You  can't  understand the  underlying,                                                                    
     root causes for their crimes if you don't assess them.                                                                     
     In   speaking  with   the   department,  a   risk-needs                                                                    
     assessment takes about 45 minutes to complete.                                                                             
                                                                                                                                
                                                                                                                                
Mr. Schilling addressed slide 39 and read fromaddressed his                                                                   
talking points.:                                                                                                              
                                                                                                                                
     SLIDE 39                                                                                                                   
                                                                                                                                
     So, this section [Section 29]  of the bill requires the                                                                    
     Department to  perform a  risk-needs assessment  on all                                                                    
     offenders who have  been sentenced to 30  days or more.                                                                    
     This will mean a significant  increase in the number of                                                                    
     assessments  the  Department conducts.  The  Department                                                                    
     estimates needing  additional probation officers  to do                                                                    
     these assessments.                                                                                                         
                                                                                                                                
9:55:54 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly wanted the record to reflect that Co-Chair                                                                       
Meyer had rejoined the committee.                                                                                               
                                                                                                                                
9:56:14 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 40 and relayed his talking                                                                        
points.:                                                                                                                      
                                                                                                                                
     SLIDE 40                                                                                                                   
                                                                                                                                
     When  someone has  served their  entire sentence,  they                                                                    
     are released  from prison.  Every  state releases their                                                                    
     prisoners  differently.   Some  states transition  that                                                                    
     person  into a  halfway  house or  some  other type  of                                                                    
     gradually phased  re-entry.   But here in  Alaska, more                                                                    
     often than  not, these prisoners are  released into the                                                                    
     parking  lot  of  the   prison  without  any  resources                                                                    
     whatsoever.   This  is one  of the  root causes  of our                                                                    
     high recidivism  rate -  we dress  them in  the clothes                                                                    
     they entered prison with, and  we release them into the                                                                    
     parking lot.   They don't have first month's  rent or a                                                                    
     deposit,  and they  can't get  a job.   They  certainly                                                                    
     can't  afford  treatment.  And  if  you're  from  rural                                                                    
     Alaska,  you're  probably  being  released  in  a  city                                                                    
     you're unfamiliar with. So, as  a result, many of those                                                                    
     recently  released go  straight to  a homeless  shelter                                                                    
     and are back in jail in no time.                                                                                           
                                                                                                                                
     It's this approach  to re-entry that is  the main cause                                                                    
     of  Alaska's  high  recidivism  rate.  Of  all  of  the                                                                    
     recidivism  we're  seeing, most  of  it  occurs in  the                                                                    
     first 6 months.                                                                                                            
                                                                                                                                
     If,  during  those first  6  months  after release,  we                                                                    
     could, put them in a  transitional re-entry program - a                                                                    
     place  with  a  structured environment,  sober  living,                                                                    
     treatment,  and  help getting  a  job  or education  in                                                                    
     their  own  communities  -- we  could  greatly  improve                                                                    
     their chances of not reoffending.                                                                                          
                                                                                                                                
                                                                                                                                
9:57:13 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed slide 44 and related his talking                                                                        
points.:                                                                                                                      
                                                                                                                                
     This section  creates a  fund to  start those  types of                                                                    
     programs.  This fund  will distribute money to programs                                                                    
     that  have  those 4  things:    case management,  sober                                                                    
     living, substance abuse treatment, and work placement.                                                                     
                                                                                                                                
     By putting  some focus on re-entry,  we can drastically                                                                    
     reduce  our rate  of recidivism.   This  fund would  be                                                                    
     managed by the Department of Corrections, which comes                                                                      
     with a fiscal impact to administer the fund.                                                                               
                                                                                                                                
                                                                                                                                
9:57:34 AM                                                                                                                    
                                                                                                                                
Mr. Schilling discussed  slide 46 and related  that the bill                                                                    
established  the Alaska  Criminal Justice  Commission, which                                                                    
was  simply a  commission  that would  review, analyze,  and                                                                    
evaluate  the  effect  of  laws  and  practices  within  the                                                                    
state's criminal justice system.  He stated that an original                                                                    
CS to  the bill had  the commission  set at 17  members, but                                                                    
the  amount had  been reduced  to 12;  the commission  had a                                                                    
sunset date established of 5 years.                                                                                             
                                                                                                                                
9:57:58 AM                                                                                                                    
                                                                                                                                
MrR.  Schilling  addressed  slide  47 and  stated  that  the                                                                  
Alaska  Criminal  Justice  Commission had  some  powers  and                                                                    
duties  that   were  essentially   pulled  from   the  state                                                                    
constitution,  did  not  have  an  executive  director,  was                                                                    
staffed  by the  Alaska  Judicial Council,  and provided  an                                                                    
annual report to the legislature each year.                                                                                   
                                                                                                                                
9:58:07 AM                                                                                                                    
                                                                                                                                
Mr.   Schilling  discussed   slide   49   and  related   the                                                                    
applicability and  transitional provisions  in the  bill. He                                                                    
noted that the  bill had an effective date of  July 1 of the                                                                    
current year; however, the legislation  gave DOC the ability                                                                    
to start working on the regulations immediately.                                                                                
                                                                                                                                
9:58:51 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:12:06 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
Copy of FN - SB 64 - AJC - 2-15-14.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - 24x7 Sobriety Overview.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Alaska Corrections Infographic II.jpg SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Alaska Corrections Infographic.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - DOC Inmate Population FY03-FY20.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Felony Theft Graph.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - How DOC Allocates Resources.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Letter of Support - Catholic Social Services.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Letter of Support - NCSL.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Letter of Support - NFIB.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Letter of Support - PSEA.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Newsminer Article.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - PACE Research Report.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - PEW on HOPE-PACE.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Recidivism Curve.PNG SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Sectional Analysis.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Sponsor Statement.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - Summary of Changes.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - The Fiscal Case for Corrections Reform.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 - What Other States Are Doing.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB064CS(JUD)-ACS-TRC-02-17-14.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - ADM 2.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - ADM 3.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - ADM.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - COR.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - CRT.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - DHS.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - GOV.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 - Fiscal Note - LAW.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
022514 SFIN Presentation on MOU Risks and Benefits.pdf SFIN 2/25/2014 9:00:00 AM
Alaska Natural Gas
SB 64 (FIN) Presentation Sh.ppsx SFIN 2/25/2014 9:00:00 AM
SB 64
SB64 Backup Documents - Testimony.pdf SFIN 2/25/2014 9:00:00 AM
SB 64
SB 64 Testimony NFIB.pdf SFIN 2/25/2014 9:00:00 AM
SB 64