Legislature(2003 - 2004)
02/24/2004 01:54 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 24, 2004
1:54 P.M.
TAPE HFC 04 - 29, Side A
CALL TO ORDER
Vice Chair Meyer called the House Finance Committee meeting
to order at 1:54 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Eric Croft
Representative Hugh Fate
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
MEMBERS ABSENT
Representative Mike Chenault
ALSO PRESENT
Representative Ralph Samuels; Representative Beverly Masek;
Sara Nielsen, Staff, Representative Ralph Samuels; Pete
Ecklund, Staff, Representative Bill Williams
PRESENT VIA TELECONFERENCE
Steve Branchflower, Office of Victim Rights, Anchorage;
Diane Wendlandt, Chief Assistant Attorney General,
Corrections Support, Department of Law, Anchorage; Linda
Wilson, Public Defender Office, Department of
Administration, Anchorage
SUMMARY
HB 357 An Act relating to restitution; and providing for
an effective date.
CS HB 357 (JUD) was reported out of Committee with
a "do pass" recommendation and with indeterminist
note #1 by the Department of Administration and
indeterminist note #2 by the Department of Law.
HJR 20 Proposing amendments to the Constitution of the
State of Alaska repealing the prohibition on
dedicated funds.
HJR 20 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 357
An Act relating to restitution; and providing for an
effective date.
REPRESENTATIVE RALPH SAMUELS stated that HB 357 would
require judges to order restitution from criminals in all
cases where a victim suffered a financial loss. He added
that when financial losses of victims are ignored or given
less priority than the rights of criminals, they are being
victimized again. HB 357 would require judges to order
restitution in every case where a victim has suffered a
financial loss. Under present law, a judge may, but is not
required to do so. The change would ensure that offenders
are ordered to make realistic restitution payments to help
make the victim whole within a reasonable period of time.
Representative Samuels added that the bill would clarify
that a minor who has been ordered to pay restitution be
th
required to do so beyond their 19 birthday.
STEVE BRANCHFLOWER, (TESTIFIED VIA TELECONFERENCE), OFFICE
OF VICTIM RIGHTS, ANCHORAGE, offered to answer questions of
the Committee, noting that he supports the bill 100%.
Representative Stoltze inquired if there were any reasons
for not implementing the legislation. Representative
Samuels responded that the Constitution indicates that
intent. The legislation creates a statute to follow that
Constitution. He stated that a victim would want a payment
schedule in order to make that person "whole".
Representative Stoltze reiterated that it would be the
Legislature implementing the provisions of the Constitution.
He pointed out that more people voted for that than voted
against the Permanent Fund Dividend.
DIANE WENDLANDT, (TESTIFIED VIA TELECONFERENCE), CHIEF
ASSISTANT ATTORNEY GENERAL, CORRECTIONS SUPPORT, DEPARTMENT
OF LAW, ANCHORAGE, offered to answer any questions of the
Committee.
LINDA WILSON, (TESTIFIED VIA TELECONFERENCE), PUBLIC
DEFENDER OFFICE, DEPARTMENT OF ADMINISTRATION, ANCHORAGE,
testified that even though the State Constitution does give
the right to restitution, it is important that the victim
exercise that right and that "requiring restitution" when
the victim does not request it, could be problematic.
Representative Samuels referenced Page 1, Line 4, explaining
that the victim could decline restitution. There could be
cases in which, a family member would not want restitution
or put a financial mark on that person. Restitution can be
declined and that language is currently in the bill.
Representative Fate asked if there were any Statute of
Limitations on either making a payment program or the payout
in the future. Representative Samuels advised that if the
person were convicted of the crime, then the Statute of
Limitation would apply. The legislation becomes active
during the sentencing phase.
Co-Chair Harris noted his concern with the indeterminate
fiscal notes. Representative Samuels understood that the
Department of Law and the Public Defender Agency voiced
concern that there might be more restitution hearings
resulting from passage of the legislation. He argued it
could go either way, and noted that he did not support that
concept. Representative Samuels thought it would be a
minimal impact to the agencies.
Representative Foster MOVED to report CS HB 357 (JUD) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 357 (JUD) was reported out of Committee with a "do
pass" recommendation and with indeterminate note #1 by the
Department of Administration and indeterminate note #2 by
the Department of Law.
HOUSE JOINT RESOLUTION NO. 20
Proposing amendments to the Constitution of the State
of Alaska repealing the prohibition on dedicated funds.
REPRESENTATIVE BEVERLY MASEK explained that HJR 20 would add
a new section #18 to Article IX of the Constitution.
Specifically, if passed and adopted at the November 2004
general election, a dedicated fund would be established
requiring all taxes generated through the sale of motor
fuels to be placed in the fund for the express purpose of
maintaining Alaska's roads and highways. She added that
Alaska's Constitution prohibits dedicated funds except for
the Permanent Fund, Constitutional Budget Reserve (CBR) Fund
and those dedicated funds in existence prior to statehood.
She added that motor fuel taxes in all states are dedicated
in some fashion for road and highway maintenance.
Currently, in Alaska, motor fuel taxes are deposited in a
special highway fuel tax account in the general fund, which
allows them to be appropriated for any budget expense.
Representative Masek urged members to pass HJR 20 from
Committee.
Co-Chair Harris inquired if the gas tax was currently at
eight cents per gallon. Representative Masek replied it is.
Co-Chair Harris asked if it had been proposed to increase
that tax by twelve cents, making it total twenty cents per
gallon. Representative Masek noted that is the proposed
increase indicated in the Governor's bill.
Co-Chair Harris stated that the proposed intent for the
legislation would place before the voters a decision whether
or not a dedicated fund be created for all gas tax revenue
placing it in the dedicated fund for highway maintenance
use. Representative Masek acknowledged that was correct and
that the money would be used to maintain highways and
infrastructure. She stated that in the previous
Administration, the funding had been cut and some Department
of Transportation & Public Facilities workers were removed
from the Willow Maintenance station and the Kenai Peninsula.
She indicated that when Governor Murkowski took office,
those workers were placed back into those stations. During
the winter months, the workforce must be available. Passing
the resolution would help eliminate problems that have
occurred in the past.
Co-Chair Harris inquired why the founders of the
Constitution had a prohibition against dedicated funds.
Representative Masek did not know. Co-Chair Harris
understood that it was so the Legislature would have full
authority of monies available year to year.
Representative Croft acknowledged that was true and added
that at the time the Alaskan Constitution was written, other
states were declaring bankruptcy because they had all their
revenue sources dedicated to specific places.
Representative Fate mentioned that with passage of the
st
legislation, revenues received after December 1, 2004,
would be used to fund that fund. He asked the amount
anticipated and what additional money would need to be
placed into the fund so that from the inception date, there
would be enough.
Representative Masek responded that would be premature to
calculate. The resolution would only bring it to the people
for a vote. She did not know the fate of the Governor's
motor fuel tax bill. She reiterated that currently, the
State collects eight cents a gallon and it is placed back
into the general fund.
Representative Fate voiced concern that the fund would not
have enough capital to undertake projects that the voters
anticipate but the State would be "locked in". He asked if
the reference to highways and roads would include the
railroad. Representative Masek responded it would not.
Representative Stoltze questioned if the legislation would
help promote passage of the gas tax. Representative Masek
advised that this legislation has been proposed because of
the Governor's twelve-cent increase gas tax bill.
Representative Stoltze clarified that Representative Masek's
intent was anticipating that the tax would pass and this
legislation would then guarantee that it was used for the
intended purpose. Representative Masek acknowledged that
was correct.
Co-Chair Harris asked how much general fund money has been
spent yearly on highway maintenance. Representative Foster
replied $97 million dollars.
Co-Chair Harris asked how much the State generates from the
eight cents per gallon tax. Representative Foster responded
that it amounted to between $50-$60 million dollars. Co-
Chair Harris pointed out given that amount, the State spends
nearly $30 to $40 million dollars more on highway
maintenance then is generated. Representative Foster
commented that number would result from twenty cents per
gallon. At eight-cents per gallon, the amount would be much
less.
PETE ECKLUND, STAFF, REPRESENTATIVE BILL WILLIAMS,
interjected that at eight-cents per gallon, the number would
generated would be approximately $37 million dollars.
Co-Chair Harris declared that the State is currently
spending approximately $80 million dollars on highway
maintenance from the general funds. He stated that it
appears that all money brought into the State from the
current gas tax has been "dedicated" for highway
maintenance. Co-Chair Harris commented that he was
attempting "to get a handle" on how much money was being
spent from the general fund outside of the amount generated
from the gas tax.
Representative Hawker noted that there are a few funds that
have been "grandfathered" in. He asked if one of those
funds was a highway maintenance fund.
Representative Masek responded that there is one specific
fund called the King Salmon Stamp that places money back
into habitat restoration projects. She noted that there is
not a highway-dedicated fund at this time. Representative
Foster mentioned that there might be a marine highway fund.
Co-Chair Harris remarked that there is a marine highway fund
but that he did not believe it was dedicated. Co-Chair
Williams interjected that it is not a dedicated fund.
Co-Chair Harris stated that HJR 20 would be HELD in
Committee for further consideration.
Co-Chair Williams indicated that he would work with
Representative Masek's office on the proposed legislation.
HJR 20 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 2:16 P.M.
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