Legislature(2007 - 2008)BELTZ 211

04/30/2007 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 8 MENTAL HEALTH PATIENT RIGHTS:STAFF GENDER TELECONFERENCED
Moved CSSB 8(JUD) Out of Committee
*+ SB 157 TRAFFICKING/PROSTITUTION/SEXUAL ABUSE TELECONFERENCED
Scheduled But Not Heard
+ SB 145 MUNIS IMPOUND/FORFEIT MOTOR VEHICLE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 128 ALCOHOL LOCAL OPTION PROVISIONS
Moved CSSB 128(JUD) Out of Committee
       CSSB 145(CRA)-MUNIS IMPOUND/FORFEIT MOTOR VEHICLE                                                                    
                                                                                                                                
2:44:58 PM                                                                                                                    
CHAIR FRENCH announced  the consideration of SB  145. [Before the                                                               
committee was CSSB 145(CRA.)                                                                                                    
                                                                                                                                
SENATOR  McGUIRE, sponsor  of  SB 145,  explained  that the  bill                                                               
would  implement   an  option  for   municipalities  to   set  up                                                               
procedures  to impound  and forfeit  vehicles of  individuals who                                                               
have  amassed $1,000  or more  in delinquent  traffic fines.  She                                                               
said  the Municipality  of Anchorage  brought  the idea  forward,                                                               
because  1,017 of  its individuals  have  a total  of over  $7.57                                                               
million in unpaid traffic fines.  One person in the community has                                                               
43 different  citations totaling  almost $10,000 and  another has                                                               
70 traffic citations  totaling nearly $8,000. She  said that this                                                               
law  is  meant  to  target the  habitual,  repeat  offenders  who                                                               
blatantly  disregard  public  safety  and  refuse  to  pay  their                                                               
citation fines.  Many refuse to  pay the fines because  they know                                                               
the municipality has no recourse.                                                                                               
                                                                                                                                
The Anchorage  Assembly unanimously  passed an ordinance  on this                                                               
same issue  making it a misdemeanor  for anyone to drive  if they                                                               
have at least 3 unpaid traffic  tickets. SB 145 does not do that;                                                               
it is  simply a tool  that municipalities may  use and it  has no                                                               
fiscal  impact to  the  state. Individuals  stopped  by a  police                                                               
officer under  these circumstances  would lose their  vehicle for                                                               
30 days.  To get it back,  the individual would have  to pay $390                                                               
in  administration fees  plus towing  and storage  fees. This  is                                                               
meant to  be a deterrent  and a  reminder to encourage  people to                                                               
pay their traffic fines in a timely manner.                                                                                     
                                                                                                                                
2:48:35 PM                                                                                                                    
SENATOR McGUIRE  referred to  a proposed  amendment to  allow the                                                               
department  of labor  to  help a  municipal  attorney track  down                                                               
individuals  who  have  civil or  criminal  fines  or  penalties.                                                               
Currently  the  municipality  has  had  difficulty  getting  that                                                               
cooperation, she said.  The idea is for the  municipality and the                                                               
department to  have a written  agreement specifying:  the purpose                                                               
of the  information; a description  of the  information provided;                                                               
the procedure  for transmitting, securing, using  or disposing of                                                               
the information; and the method  of reimbursement of the cost for                                                               
providing the information.                                                                                                      
                                                                                                                                
SENATOR McGUIRE  opined that this  will be a useful  tool because                                                               
people  who amass  these  fines  might skip  around  in terms  of                                                               
employment and might  be difficult to track  down. The department                                                               
of labor is most likely to  have that information, and this is an                                                               
effort to  ask it to  cooperate and help the  municipality locate                                                               
those individuals.  The bill  does two  things; one  is mandatory                                                               
and the other is optional, she said.                                                                                            
                                                                                                                                
2:50:13 PM                                                                                                                    
SENATOR THERRIAULT  calculated the  average per person  amount of                                                               
the unpaid  traffic fines  and expressed  amazement. He  asked if                                                               
the  municipality has  any  information about  the  value of  the                                                               
vehicles that these individuals are driving.                                                                                    
                                                                                                                                
SENATOR McGUIRE  replied the point  of the bill  isn't value-for-                                                               
value;  the idea  is to  get people's  attention by  taking their                                                               
vehicle.                                                                                                                        
                                                                                                                                
SENATOR THERRIAULT  asked if  he has to  think about  lending his                                                               
car to  his neighbor  if he/she  one of  the individuals  who has                                                               
amassed large traffic fines.                                                                                                    
                                                                                                                                
SENATOR  McGUIRE  said yes;  hopefully  people  will become  more                                                               
careful about  lending their  vehicle. We're trying  to set  up a                                                               
situation  where   it's  a  deterrent,  but   clearly  the  local                                                               
governing authority will have to  establish a procedure of notice                                                               
before taking someone's vehicle, she said.                                                                                      
                                                                                                                                
2:53:26 PM                                                                                                                    
SENATOR  WIELECHOWSKI,  referring  to   subsection  (r)  in  bill                                                               
section 1, asked  if this applies only to  municipalities and not                                                               
other legally designated forms of government.                                                                                   
                                                                                                                                
SENATOR McGUIRE replied this bill  only applies to municipalities                                                               
as defined by statute.                                                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI  asked if the  department of  labor supports                                                               
this provision.                                                                                                                 
                                                                                                                                
CHAIR FRENCH said representatives from  the Department of Labor &                                                               
Workforce Development,  the Office  of the Attorney  General, and                                                               
the Municipality of Anchorage have signed up to testify.                                                                        
                                                                                                                                
2:54:18 PM                                                                                                                    
PAULA  SCAVERA, Special  Assistant, Office  of the  Commissioner,                                                               
Department of  Labor & Workforce  Development (DOLWD),  said some                                                               
of  the questions  are more  applicable to  Larry McKinstry,  the                                                               
attorney  who represents  the department  of this  issue. She  is                                                               
available to answer questions.                                                                                                  
                                                                                                                                
2:55:00 PM                                                                                                                    
SENATOR WIELECHOWSKI asked if the  fiscal note applies to the new                                                               
subsection (r).                                                                                                                 
                                                                                                                                
MR. SCAVERA  said yes.  The first  two years  will come  from the                                                               
general fund  because there  won't be receipts,  but the  bill is                                                               
written  such   that  any   costs  will  be   paid  for   by  the                                                               
municipality.                                                                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if there  are any  legal hurtles  to                                                               
overcome to provide this information to a municipal government.                                                                 
                                                                                                                                
MS.  SCAVERA,  referring  to  a   proposed  amendment,  said  the                                                               
department  has  worked  with  the  sponsor  to  accommodate  new                                                               
federal regulations related to  trading information. She deferred                                                               
to Mr. McKinstry for further explanation.                                                                                       
                                                                                                                                
2:56:21 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked if the  department of  labor provides                                                               
information to other non-state agencies or organizations.                                                                       
                                                                                                                                
MS.  SCAVERA  explained  that  by   federal  and  state  law  the                                                               
department  is   required  to  provide  information   to  certain                                                               
entities. Child support is one example.                                                                                         
                                                                                                                                
2:57:04 PM                                                                                                                    
CHAIR  FRENCH  asked  Mr.  McKinstry  to  respond  to  the  legal                                                               
question.                                                                                                                       
                                                                                                                                
LARRY MCKINSTRY,  Assistant Attorney General, Department  of Law,                                                               
explained  that  disclosure  of   this  type  of  information  is                                                               
governed  by  both  state  statute  and  federal  regulation.  In                                                               
general, wage  and unemployment  information is  confidential and                                                               
is held  by the department  solely for the administration  of the                                                               
unemployment  insurance benefit  program. There  are a  number of                                                               
exceptions, but anything that the  state gives up pursuant to the                                                               
state  statute must  also comply  with  the federal  regulations.                                                               
"It's a somewhat complex problem  of trying to figure out whether                                                               
or  not a  specific request  or  a specific  type of  information                                                               
falls within one of those written exceptions," he said.                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI   referenced  Chapter  20  of   the  Alaska                                                               
Employment Security Act  and said the first  sentence defines the                                                               
purpose, which  is to promote employment  security. He questioned                                                               
whether adding the provision does in fact do that.                                                                              
                                                                                                                                
MR.  MCKINSTRY  expressed uncertainty  about  the  thrust of  the                                                               
question.  He explained  that the  statute  would typically  hold                                                               
this  type  of  information  confidential unless  it's  used  for                                                               
unemployment  purposes.   This  provision  would  create   a  new                                                               
exception for  the collection of  fines and any  civil judgments.                                                               
The provision  broadens the  scope of the  purpose for  using the                                                               
information, he added.                                                                                                          
                                                                                                                                
SENATOR  WIELECHOWSKI, referring  to subsection  (r), asked  what                                                               
kind  of   information  the  department  would   provide  to  the                                                               
municipal attorney.                                                                                                             
                                                                                                                                
MR.  MCKINSTRY said  specifically the  information would  include                                                               
the name and  address of the employee as well  as the identifying                                                               
information of  the employer. That  would make it easier  for the                                                               
municipality  to  locate  the  person  who  has  the  outstanding                                                               
tickets or judgment.                                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI  asked if just  the name and address  of the                                                               
employee would be included.                                                                                                     
                                                                                                                                
MR. MCKINSTRY said that's his understanding.                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI asked  how  quickly  the information  would                                                               
have  to be  provided  and if  the  state might  be  liable to  a                                                               
municipality if it failed to provide the information.                                                                           
                                                                                                                                
MR.  MCKINSTRY said  he understands  that the  requests would  be                                                               
ongoing and  that the  information would  be exchanged  through a                                                               
database that's  set up by  the municipality and the  state. With                                                               
regard to  liability exposure,  there will have  to be  a written                                                               
agreement  between  the  entities  that  complies  with  all  the                                                               
restrictions that come with the  federal regulation. "That should                                                               
in fact  protect the  state from  any potential  liabilities," he                                                               
said. If  the information is  denied the municipality  would need                                                               
to litigate,  but once the  database is established  the exchange                                                               
of information will be quite straightforward.                                                                                   
                                                                                                                                
3:03:16 PM                                                                                                                    
SENATOR WIELECHOWSKI  noted that  paragraph (4)  on page  2, says                                                               
that  within   the  agreement   there  must   be  a   "method  of                                                               
reimbursement  for  the  cost   of  providing  the  information."                                                               
Presumably the fiscal note should be zero, he said.                                                                             
                                                                                                                                
MR.  MCKINSTRY  said his  understanding  is  that there  will  be                                                               
significant up-front costs  to set up the  database exchange, but                                                               
after  that  the  long-term  costs  should  be  covered.  Federal                                                               
regulations make  it very  clear that  it's a  state cost  if the                                                               
information is provided for purposes  other than unemployment, he                                                               
said.                                                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI  asked if he's  saying that the  state would                                                               
be fully reimbursed for the  general fund expenditures through FY                                                               
2013.                                                                                                                           
                                                                                                                                
MR. MCKINSTRY said his understanding  is that those costs are for                                                               
accounting,  staffing to  maintain  the database,  and to  ensure                                                               
that the information exchange occurs when it should.                                                                            
                                                                                                                                
MS.  SCAVERA  added that  the  fiscal  note  is designed  to  use                                                               
general  funds  the first  two  years  and after  that  statutory                                                               
designated  receipts will  be used.  Federal dollars  can not  be                                                               
used.                                                                                                                           
                                                                                                                                
3:06:11 PM                                                                                                                    
SENATOR  THERRIAULT asked  why  it's not  possible  to start  out                                                               
using statutory designated program receipts.                                                                                    
                                                                                                                                
MS. SCAVERA said the work has  to be started before entering into                                                               
an agreement with the municipalities.  Doing the disclosures will                                                               
require two  fulltime positions and  one for about one  month per                                                               
year. More  municipalities will want  to come on board  over time                                                               
and each  will require  a separate  memorandum of  agreement, she                                                               
said.                                                                                                                           
                                                                                                                                
CHAIR FRENCH held SB 145 in committee.                                                                                          

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