Legislature(2003 - 2004)
03/19/2003 01:32 PM Senate JUD
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SB 2-PARENT LIABILITY FOR DAMAGE BY CHILD
SENATOR DYSON, sponsor of SB 2, informed members he introduced
this legislation at the request of several school districts and
the Alaska Association of School Boards (AASB). It removes the
liability limit of $10,000 for acts of vandalism. He said he
originally viewed this legislation as a simple matter, but as he
began "stumbling around in the legal woods," he stepped on
several other issues he was unaware of.
TAPE 03-9, SIDE B
SENATOR DYSON informed members that if version S of SB 2 were
adopted, it would be used as a partial revisor's bill to
eliminate some of the ambiguities in the law. It would also
establish that a court should pursue the minor that did damage
before pursuing the parent. It also clarifies that foster
parents, subsidized legal guardians, and subsidized adoptive
parents are not held liable for the actions of the behaviorally
challenged children for which they have accepted responsibility.
He asked that the committee adopt version S as the working
document.
SENATOR THERRIAULT moved to adopt version S of SB 2 as the
working document. There being no objection, it was so ordered.
SENATOR DYSON explained the changes in version S as follows:
· Section 1 deletes the $10,000 limit on parental liability
in existing law
· Section 2(c) exempts the legal guardian from liability
SENATOR DYSON said that provision created a lot of discussion.
He misspoke at the first hearing when he said legal guardians
would not be liable for the actions of a child who was actually
a ward of the state. Subsequently he found two cases that are
contradictory. Section 2(c) will set that matter straight in
statute. The Division of Family and Youth Services (DFYS) does
not have insurance, but the state does have risk management
insurance to provide protection. He continued explaining the
changes in version S.
· Section 3 clarifies that legal guardians are held harmless.
Subsection (b) specifies that parents who adopt a hard to
place child are also held harmless. Most of those adoptions
are subsidized because the children are likely to end up in
an institution or group home if the adoptive parents do not
get help.
· Subsection (d)(2) is new and clarifies that action may be
taken against the child.
SENATOR DYSON said that since he introduced the bill, he has
received a number of calls asking him why the law will go after
the parent and not the child who did the damage. The Division of
Legal Services told him that one could go after the child and
the child's assets, including dividends, until the debt is
satisfied. He said he is very pleased with the latest version of
the bill as it accomplishes several things that need to be
addressed and provides a clear trail for holding people
accountable.
SENATOR THERRIAULT asked if this language ties the exemption for
the legal guardian to state placed children only or whether a
family member who acts as a legal guardian, such as an uncle,
would be exempt.
MR. BRAD THOMPSON, Director of Risk Management, Department of
Administration (DOA), said that Senator Therriault's question is
answered in existing statute, AS 13.26.070. It reads, "A
guardian is not liable to third persons by reason of the
parental relationship for acts of the ward." That is the law
Senator Dyson is trying to correct because it conflicts with AS
34. He does not believe it is restricted to guardians through
the state's activity.
SENATOR FRENCH said Senator Therriault's question brings up the
most interesting policy call this legislation makes, that being
that it exempts guardians trying to "do good," such as
grandparents.
SENATOR ELLIS said he understands denying a student loan to a
child involved in a bad act until the debt is made good, but he
asked for an explanation of how a child's assets would be
attached.
SENATOR DYSON said he assumes that is within the court's purview
to decide what is appropriate. He expects it would most often
apply to a teenage minor who might own a car.
SENATOR ELLIS asked if the child would be required to pay back
100 percent of the debt owed before benefiting from a student
loan or any other state benefit.
SENATOR DYSON replied it is best to leave those decisions to the
court.
SENATOR THERRIAULT said he worked on the original statutory
language and at that time he heard from quite a few parents who
said that the state wouldn't let them control their children,
but the state would hand them the bill for damage done by the
children. Those parents cautioned they would use section 2 of
the statute so that when the children went to a movie, the
parents would call the police and report them as runaways. He
asked if Senator Dyson has heard similar comments.
SENATOR DYSON said he hasn't but a similar bill is working its
way through the House. In testimony before the House
committees, people have said that the first recourse is to a
homeowner's policy, and if the $10,000 limit is removed, some
homeowners' policies may increase. He also heard from parents
who said the state would not protect them when their children
are abusive, but wants to take everything they own if their
children do damage elsewhere.
SENATOR FRENCH noted that a judge might not read the recovery
against the minor provision to mean that the entire judgment
must be put on the minor so the court would have to collect from
the parents. He questioned whether the bill should contain a
provision that says the liability is joint and severable. That
way, the court would proceed against both in tandem, and if the
minor has easily recoverable assets, those would be taken first.
The committee took a brief at-ease.
2:40 p.m.
SENATOR ELLIS asked if the committee has information on the
largest dollar amount of an act of youth-induced vandalism.
SENATOR DYSON said he received some information from his school
district and believes the amount was between $300,000 and
$400,000.
SENATOR ELLIS said he participated in discussions about the
original legislation when the amount was increased from $2,000
to $10,000. This proposal is to have no limit. He said he agrees
with Senator Dyson that he resents paying for other people's
children who are out of control, but he encouraged members to
seriously consider the consequences of changing the liability
limit amount from $10,000 to no limit.
SENATOR DYSON told members the House version of the bill
contains a $25,000 limit and he believes this issue would be
dealt with in conference committee. He said all that parents
have is classic bankruptcy protection that allows them to keep
equity in their home.
CHAIR SEEKINS said he hates to see any family come to that, but
he hates to burden the public with the activities of an
unsupervised child. He said this bill would provide an
incentive for parents to know whom their children are with and
where they are. SB 2 was held in committee.
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