Legislature(2013 - 2014)SENATE FINANCE 532

03/18/2013 09:00 AM Senate FINANCE


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09:13:34 AM Start
09:14:36 AM SB56
10:47:56 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 56 RECLASSIFYING CERTAIN DRUG OFFENSES TELECONFERENCED
Heard & Held
+ SB 22 CRIMES; VICTIMS; CHILD ABUSE AND NEGLECT TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 18, 2013                                                                                            
                         9:13 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:13:34 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer  called the Senate Finance  Committee meeting                                                                    
to order at 9:13 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Fred  Dyson; Chuck Kopp, Staff,  Senator Fred Dyson;                                                                    
Forrest  Dunbar, Liman  Fellow;  Kris Sell,  Vice-President,                                                                    
Alaska Peace  Officers Association;  Lee Phelps,  Self; Kate                                                                    
Burkhart, Executive  Director, Advisory Board  on Alcoholism                                                                    
and Drug Abuse; Richard Svobodny, Self.                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Carmen  Gutierrez, Co-Chair,  Alaska  Prisoner Reentry  Task                                                                    
Force,  Anchorage;  Seth  McMillan,  Self,  Anchorage;  Walt                                                                    
Monegan,  Alaska  Native  Justice  Center,  Anchorage;  Rick                                                                    
Allen,  Director,  Office  of  Public  Advocacy,  Anchorage;                                                                    
Quinlan Steiner, Self, Anchorage.                                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 22     CRIMES; VICTIMS; CHILD ABUSE AND NEGLECT                                                                              
                                                                                                                                
          SB 22 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
SB 56     RECLASSIFYING CERTAIN DRUG OFFENSES                                                                                   
                                                                                                                                
          SB 56 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
Co-Chair  Meyer noted  that Senator  Hoffman had  an excused                                                                    
absence for the day.                                                                                                            
                                                                                                                                
SENATE BILL NO. 56                                                                                                            
                                                                                                                                
     "An Act relating to certain crimes involving                                                                               
     controlled substances; and providing for an effective                                                                      
     date."                                                                                                                     
                                                                                                                                
9:14:36 AM                                                                                                                    
                                                                                                                                
SENATOR FRED DYSON, offered that  the state had a propensity                                                                    
to over  criminalize offenses during  the past  few decades.                                                                    
He shared  that his office  was undergoing an effort  to get                                                                    
"smart on  crime" and  stated that  the legislation  was the                                                                    
first  step  in  that  effort.   He  pointed  out  that  the                                                                    
legislation reclassified  crimes involving small  amounts of                                                                    
drugs,  in  which  there  was  no  harm  and  no  intent  to                                                                    
distribute, from  a Class C  felony to Class  A misdemeanor.                                                                    
He  related the  growing prison  populations in  Alaska over                                                                    
the last 12  years and shared that currently,  60 percent of                                                                    
the population in the  state's corrections institutions were                                                                    
non-violent  offenders. He  remarked  that  the Goose  Creek                                                                    
Prison had a  cost of $250 million to the  state and pointed                                                                    
out that the Department  of Corrections (DOC) predicted that                                                                    
if the rate of incarceration  did not change, another prison                                                                    
the  same  size would  need  to  be  built  in 7  years.  He                                                                    
reported  that Legislative  Research Services  had indicated                                                                    
that  the bill  would avoid  10s of  millions of  dollars in                                                                    
costs every year.                                                                                                               
                                                                                                                                
CHUCK KOPP,  STAFF, SENATOR  FRED DYSON,  introduced himself                                                                    
and  Mr. Dunbar.  He related  that Mr.  Dunbar was  a recent                                                                    
graduate  of  Yale  Law  School  who  had  helped  with  the                                                                    
research  on the  bill as  part  of a  Liman Fellowship.  He                                                                    
related that  the current  cost of  the state's  drug policy                                                                    
was not sustainable  and emphasized that the  bill would not                                                                    
decriminalize  anything that  was currently  in the  law. He                                                                    
stated that  it would  still be against  the law  to possess                                                                    
any amount of a Schedule IA  or IIA drug. He shared that the                                                                    
essence  of SB  56 was  to set  a threshold  for what  was a                                                                    
felony amount  and offered that that  without establishing a                                                                    
threshold, the  state was not  being conscious of  the total                                                                    
impact  to  the  system.  He relayed  that  corrections  and                                                                    
independent researchers  had shown that by  classifying drug                                                                    
possession  for   small,  non-distributable  amounts   as  a                                                                    
felony,  the state  was  paying $54,000  per  year for  each                                                                    
person that was in prison for that long on a felony charge.                                                                     
He stated that  the bill treated drug  possession similar to                                                                    
the current treatment  of DUIs and explained  that the first                                                                    
two  possessions  would  be misdemeanors,  while  the  third                                                                    
violation would be a felony.  He stated that the legislation                                                                    
would  eliminate  the  felony   label  for  the  first  time                                                                    
offenders.  He  expounded  that  a  felony  label  prevented                                                                    
employment prospects,  affordable housing,  and professional                                                                    
licensing, which  had been determined  to be  variables that                                                                    
were   strongly  related   with   recidivism  and   domestic                                                                    
violence.                                                                                                                       
                                                                                                                                
Mr. Kopp spoke  to the sectional analysis of  the bill (copy                                                                    
of file).                                                                                                                       
                                                                                                                                
     Section 1                                                                                                                  
                                                                                                                                
     1.   Amends   the   criminal   statute   AS   11.71.040                                                                    
     (Misconduct  Involving  Controlled   Substance  in  the                                                                    
     Fourth Degree), raising the quantity  of Schedule IA or                                                                    
     IIA  controlled  substance needed  to  be  found in  an                                                                    
     offender's possession  that would precipitate  a felony                                                                    
     charge  from "any  amount" to  a quantity  that implies                                                                    
     distribution.                                                                                                              
                                                                                                                                
     2.  Establishes   that  the  quantity   possessed  that                                                                    
     implies distribution and opens  an offender to a felony                                                                    
     charge  is 15  or  more tablets,  ampules, or  syrettes                                                                    
     when the Schedule IA or IIA is found in such a form.                                                                       
                                                                                                                                
     3.  Further  establishes  that the  quantity  possessed                                                                    
     that implies  distribution and opens  an offender  to a                                                                    
     felony charge  is 3 grams  when the Schedule IA  or IIA                                                                    
     substance is  in the form  of a  preparation, compound,                                                                    
     or mixture.                                                                                                                
                                                                                                                                
     4. Creates  a carve out  for the substances  heroin and                                                                    
     Lysergic acid  diethylamide (LSD),  each of  which will                                                                    
     be  subject to  a stricter  felony quantity  limit: 500                                                                    
     milligrams for heroin and 300 milligrams for LSD.                                                                          
                                                                                                                                
     5.  Provides  for  an  "escalating  punishment"  system                                                                    
     wherein a  repeat offender found  in possession  of any                                                                    
     amount of  Schedule IA  or IIA  substance may  still be                                                                    
     prosecuted  for   Misconduct  Involving   a  Controlled                                                                    
     Substance  in the  Fourth  Degree-a  Class C  Felony-if                                                                    
     they  have  been  previously   convicted  of  any  drug                                                                    
     offense  defined in  AS 11.71.010  -  11.71.050 in  the                                                                    
     five years preceding the current offense.                                                                                  
                                                                                                                                
     6. Leaves unaffected any provisions  of this statute or                                                                    
     any  other controlled  substance statute  that empowers                                                                    
     law enforcement  and prosecutors to charge  and convict                                                                    
     distributors of controlled substances.                                                                                     
                                                                                                                                
     Section 2                                                                                                                  
                                                                                                                                
     1.  Provides  that  offenders found  in  possession  of                                                                    
     small quantities of Schedule  IA and IIA substances may                                                                    
     be prosecuted under  AS 11.71.050 (Misconduct Involving                                                                    
     a Controlled Substance in the  Fifth Degree), a Class A                                                                    
     Misdemeanor.                                                                                                               
                                                                                                                                
     2. Establishes that an offender  may be prosecuted of a                                                                    
     Misconduct  Involving  a  Controlled Substance  in  the                                                                    
     Fifth Degree  if they  are found with  any amount  of a                                                                    
     Schedule IA or  IIA substance up to  the felony limits,                                                                    
     above  which they  are  subject  to felony  convictions                                                                    
     under AS.71.040.                                                                                                           
                                                                                                                                
     3.  Establishes   the  felony  limit  as   15  tablets,                                                                    
     ampules, or syrettes if the  substance is found in such                                                                    
     a  form,  or  3  grams   if  found  in  a  preparation,                                                                    
     compound, or mixture.                                                                                                      
                                                                                                                                
     4. Includes  carve outs for  heroin and LSD,  for which                                                                    
     the  felony  limits will  be  500  and 300  milligrams,                                                                    
     respectively.                                                                                                              
                                                                                                                                
     Section 3                                                                                                                  
                                                                                                                                
     1.  Establishes  that  this  Act  applies  to  offenses                                                                    
     committed on  or after the  effective date of  the Act,                                                                    
     except that  references to previous convictions  in the                                                                    
     "escalating punishment"  or "three  strikes" provisions                                                                    
     of Section 1 include  convictions occurring before, on,                                                                    
     or after the effective date.                                                                                               
                                                                                                                                
     Section 4                                                                                                                  
                                                                                                                                
     1. Removes  conflicting language related to  Bath Salts                                                                    
     from the  MICS-4 and MICS-5 statute.  After the passage                                                                    
     of  this bill,  Bath  Salts will  be  treated as  other                                                                    
     Schedule  IIA  controlled  substances,  with  the  same                                                                    
     felony limits as, for example, methamphetamine.                                                                            
                                                                                                                                
     Section 5                                                                                                                  
                                                                                                                                
     1. Provides for an effective date.                                                                                         
                                                                                                                                
9:22:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted that Co-Chair  Kelly and Senator Bishop                                                                    
had joined the committee.                                                                                                       
                                                                                                                                
Vice-Chair Fairclough  pointed to the bill's  effective date                                                                    
and  asked  how  the  state would  handle  people  who  were                                                                    
already   incarcerated  if   the  legislation   passed.  She                                                                    
inquired if people who were  currently incarcerated would be                                                                    
able ask  for consideration under  the bill and  wondered if                                                                    
that  would be  a good  thing.  Mr. Kopp  replied that  they                                                                    
could ask  for consideration  under the  bill, but  that the                                                                    
main thing the  bill did was that it addressed  a future act                                                                    
if a  person did have  two prior convictions within  a five-                                                                    
year period.  He expounded that  the bill could result  in a                                                                    
felony for people that were  incarcerated for the third time                                                                    
and that it  did incorporate two prior acts.  He opined that                                                                    
if  the  question  pertained  to  whether  someone  who  was                                                                    
convicted under  the old law  could ask  for a felony  to be                                                                    
turned into a  misdemeanor, then he believed  the answer was                                                                    
no. He explained  that someone could make  a legal argument,                                                                    
but opined  that it would  not "hold water" because  the law                                                                    
would apply going forward.                                                                                                      
                                                                                                                                
Vice-Chair  Fairclough  mentioned  the high  and  escalating                                                                    
costs of  incarceration and inquired  if there was  a reason                                                                    
the state would  not want to have  mandatory drug counseling                                                                    
or "something else" that would  be the responsibility of the                                                                    
previously  convicted individual.  Mr.  Kopp responded  that                                                                    
the  questions were  excellent public-policy  questions that                                                                    
needed to be explored.                                                                                                          
                                                                                                                                
Vice-Chair Fairclough noted that it  had had been said for a                                                                    
number of  years that  the prisons in  Alaska were  full and                                                                    
that the state was picking up  the costs for people who were                                                                    
non-violent  drug   offenders.  She   wanted  to   see  some                                                                    
discussion  in the  future  regarding  the bill's  effective                                                                    
date and  noted that people  could be languishing  in prison                                                                    
because  of a  date versus  how the  state was  viewing that                                                                    
offense in the future.                                                                                                          
                                                                                                                                
Co-Chair Meyer noted that the  committee would probably hear                                                                    
some options  in the future  as the bill  progressed through                                                                    
the process.                                                                                                                    
                                                                                                                                
Senator Dunleavy observed that  he concurred with Vice-Chair                                                                    
Fairclough. He explained  that if there was a  way to "reach                                                                    
back" and  somehow mitigate "where  those folks are  now" in                                                                    
order to allow them fall  under the bill's concept, it would                                                                    
be something that he would look forward to.                                                                                     
                                                                                                                                
9:25:56 AM                                                                                                                    
                                                                                                                                
FORREST DUNBAR, LIMAN FELLOW, began a presentation titled                                                                       
"Reclassifying Nonviolent, Small Quantity Possession."                                                                          
(copy on file) He stated that he was on a fellowship that                                                                       
was being hosted by the Office of Public Advocacy (OPA),                                                                        
where he had conducted the research, but stressed that he                                                                       
did not represent OPA, the Department of Administration, or                                                                     
any other executive branch of government.                                                                                       
                                                                                                                                
Mr.  Dunbar spoke  to slide  2  titled "Reclassification  of                                                                    
Drug Possession."                                                                                                               
                                                                                                                                
        · SB 56 creates an "Escalating Punishment" system,                                                                      
          similar to the State's approach to DUI's or DV4's                                                                     
          (Domestic Violence in the 4th Degree). Key                                                                            
          features:                                                                                                             
                                                                                                                                
             · Reclassification    of     small    quantity,                                                                    
               nonviolent possession to a misdemeanor                                                                           
                                                                                                                                
             · "3-strikes" Rule. Repeat offenses= felony.                                                                       
                                                                                                                                
             · Strict quantity limits; over the limit =                                                                         
              implied distribution = felony.                                                                                    
                                                                                                                                
             · No restrictions placed on law enforcement or                                                                     
               prosecutors    to   pursue    drug   dealers,                                                                    
               regardless of quantity (i.e., any evidence                                                                       
               of selling drugs = felony).                                                                                      
                                                                                                                                
        · This should lead to reductions in:                                                                                    
                                                                                                                                
             · Prison admissions                                                                                                
                                                                                                                                
             · Legal and adjudication costs                                                                                     
                                                                                                                                
             · Low-risk offenders being placed on felony                                                                        
               probation                                                                                                        
                                                                                                                                
             · Collateral     consequences    for     simple                                                                    
               possession offenders                                                                                             
                                                                                                                                
             · Reduction in indirect costs, such as welfare                                                                     
               costs                                                                                                            
                                                                                                                                
        · Significant cost savings while maintaining public                                                                     
          safety.                                                                                                               
                                                                                                                                
Mr.  Dunbar  stated  that  the bill  only  applied  to  non-                                                                    
violent, small quantity possession offenses.                                                                                    
                                                                                                                                
Mr.  Dunbar  addressed  slide   3  titled  "Alaska's  Prison                                                                    
Population Growth."  He stated that  the graph on  the slide                                                                    
was from  DOC. He  noted that the  red line  represented the                                                                    
number of prison  beds that were available in  the state and                                                                    
pointed out  the jump in  2012-2013 when Goose  Creek Prison                                                                    
had  been brought  on line.  He stated  that the  blue line,                                                                    
which was the  prison population, had been  growing at about                                                                    
3 percent  a year, which  was more  than double the  rate of                                                                    
general  population growth.  He  related that  in 2013,  the                                                                    
lines crossed  and that  the state would  be faced  with the                                                                    
prospect of  building another  prison or  exporting Alaskans                                                                    
outside of the state.                                                                                                           
                                                                                                                                
Mr.  Dunbar discussed  slide 4  titled "Drivers  of Alaska's                                                                    
Prison Population Growth."                                                                                                      
                                                                                                                                
     1. Increased  admission for Felony Theft  in the Second                                                                    
     Degree-theft   of   property   valued   over   $500-and                                                                    
     increased  sentence   lengths  associated   with  these                                                                    
     offenses.                                                                                                                  
                                                                                                                                
     2. A 63% rise in prison admission for drug offenders,                                                                      
     particularly felony offenders convicted of possession                                                                      
     offenses.                                                                                                                  
                                                                                                                                
     >>Addressed by Senator Dyson's SB 56.                                                                                      
                                                                                                                                
     3. Increase in Petitions to Revoke Probation (PTRP's)                                                                      
     and probation violations.                                                                                                  
                                                                                                                                
     >>Connected to number of offenders on felony                                                                               
     probation; greatly impacted by SB 56.                                                                                      
                                                                                                                                
     •Source: DOC Memo, Factors Driving Alaska's Prison                                                                         
     Population Growth, at 1 (August 24, 2012).                                                                                 
                                                                                                                                
                                                                                                                                
Mr.  Dunbar discussed  a  2012 internal  memo  from DOC  and                                                                    
stated  that  it indicated  that  there  were three  primary                                                                    
drivers  of   the  prison  population  growth,   which  were                                                                    
displayed  on  the  slide.  He stated  SB  56  attempted  to                                                                    
address the  second point  on the slide,  but that  it would                                                                    
also have an  impact on the third point  because there would                                                                    
be fewer people on felony probation.                                                                                            
                                                                                                                                
Mr. Dunbar  spoke to  slide 5.  He stated  that in  the last                                                                    
five years,  there had been  a fairly large increase  in the                                                                    
number  of  charges  of Misconduct  Involving  a  Controlled                                                                    
Substance in  Fourth Degree  (MICS-4), which  was a  Class C                                                                    
felony. He  related that typically  a MICS-4  was prosecuted                                                                    
for anyone caught with any quantity  of a Schedule IA or IIA                                                                    
drug. He  thought that  a person  could also  receive MICS-4                                                                    
for  being caught  with  a large  quantity  of Marijuana  or                                                                    
having  Marijuana on  a school  ground. He  stated that  the                                                                    
bill addressed  the simple possession  offense and  left the                                                                    
other portions of MICS-4 untouched.  He added that the bill,                                                                    
in no  way, impacted  the difference Schedules  and reported                                                                    
that bath salts would remain a Schedule IIA substance.                                                                          
                                                                                                                                
9:29:26 AM                                                                                                                    
                                                                                                                                
Mr.   Dunbar   discussed    slide   6   titled   "Collateral                                                                    
Consequences from Small-quantity Drug Felonies."                                                                                
                                                                                                                                
   · First and foremost, barrier to employment:                                                                                 
                                                                                                                                
       o Medicare/Medicaid facilities - federal law                                                                             
                                                                                                                                
       o Anchorage School District - district policy                                                                            
                                                                                                                                
        o North Slope - Private HR decision                                                                                     
                                                                                                                                
   · Difficulty finding housing                                                                                                 
                                                                                                                                
   · Inability to qualify for certain federal benefits,                                                                         
     like Food Stamps                                                                                                           
                                                                                                                                
  · Ineligible to become a Village Public Safety Officer                                                                        
                                                                                                                                
   · Other barriers: stretched to 26 pages of appendices in                                                                     
     full report                                                                                                                
                                                                                                                                
   · SB 56 allows Alaskans to avoid many of these                                                                               
     consequences if they are not repeat offenders.                                                                             
                                                                                                                                
                                                                                                                                
Mr. Dunbar  stated that an important  consideration was that                                                                    
felons were,  in many ways,  removed as  functioning members                                                                    
of  society.  He  pointed  to the  first  bullet  point  and                                                                    
related that  even if  Alaska changed its  own laws,  all of                                                                    
the  collateral  consequences  would  not  be  affected.  He                                                                    
recalled that  during his research,  he had contacted  an HR                                                                    
firm  that hired  on the  North Slope.  He related  that the                                                                    
firm  did  not hire  most  felons  and  that even  for  non-                                                                    
violent, low-level  felons, it  required a  ten-year cooling                                                                    
off period.  He observed that the  Anchorage School District                                                                    
had  a  similar  policy  that required  ten  years  to  have                                                                    
elapsed  since   a  felony  conviction  in   order  to  gain                                                                    
employment.  He concluded  that  SB  56 removed  non-violent                                                                    
drug offenders from the "felony web."                                                                                           
                                                                                                                                
Mr.  Dunbar  spoke to  slide  7  titled "Reduced  Legal  and                                                                    
Adjudication  Costs." He  discussed  the  slide's graph  and                                                                    
related that partly because a  felony on one's record was so                                                                    
serious, they  were fought much  harder in  court; partially                                                                    
because of  this, it took  more than  twice as long  for the                                                                    
average  felony  case  to  reach  disposition  in  Anchorage                                                                    
courts as it did for  misdemeanor charges. He mentioned that                                                                    
the  increased time  to disposition  was  important to  note                                                                    
because  it led  to  higher costs  to  the prosecutors,  the                                                                    
court system, and to the defense agencies.                                                                                      
                                                                                                                                
Mr.  Dunbar addressed  slide 8  titled "Annual  Savings from                                                                    
Reduced  Legal and  Adjudication Costs."  He shared  that in                                                                    
his research, he  had tried to estimate what  the savings to                                                                    
the different defense agencies and  the courts would be from                                                                    
a  reduction  on  felony  charges.   He  reported  that  his                                                                    
research had found that there  would be between $400,000 and                                                                    
$800,000 in  annual savings, which  came from  the reduction                                                                    
in days, as well as from  other aspects. He explained that a                                                                    
grand jury did  not need to be empaneled  for a misdemeanor;                                                                    
also,  if a  misdemeanor  did  go to  trial,  it required  a                                                                    
smaller  jury  than  a  felony  did.  He  stated  that  most                                                                    
importantly,  typically  misdemeanor charges  involved  less                                                                    
experienced,   less   expensive   attorneys  on   both   the                                                                    
prosecution and the  defense. He stated that  he had reached                                                                    
out to the Department of  Law (DOL) during his research, but                                                                    
had been  unable to get  data from the  department regarding                                                                    
cost savings.                                                                                                                   
                                                                                                                                
Mr.  Dunbar spoke  to  slide 9  titled  "Projected Range  of                                                                    
Annual   Savings   to   DOC   from   Reduced   Incarceration                                                                    
Population."  He related  that  the largest  savings to  the                                                                    
state would be  in DOC. He stated that a  similar reform had                                                                    
been  passed   in  Colorado  and   had  been   attempted  in                                                                    
California  and   that  the   two  states'   equivalents  of                                                                    
Legislative  Research Services  performed  estimates of  the                                                                    
bed impact  of those reforms.  He relayed that  he attempted                                                                    
to  take  those estimates,  analogize  them  to Alaska,  and                                                                    
change them to meet the  Alaska's cost structure. He pointed                                                                    
out  that using  the estimates,  he had  found between  $1.5                                                                    
million and  $2 million in  cost savings within 4  years. He                                                                    
stated that Legislative Research  Services had conducted its                                                                    
own study  that used a  different methodology and  had found                                                                    
about $14 million  in annual costs. He pointed  out that the                                                                    
legislative  research's model  operated on  "costs" and  not                                                                    
"cost savings"  and emphasized that  the two  estimates were                                                                    
measuring slightly  different things; however  the estimates                                                                    
suggested that  there were millions of  dollars in potential                                                                    
costs savings  that could  be reached  through the  bill. He                                                                    
concluded that  he had  tried to  be very  conservative with                                                                    
his estimates.                                                                                                                  
                                                                                                                                
Mr. Dunbar discussed slide 10  titled "Public Safety: Map of                                                                    
Lower-48 States Where Drug Possession  is a Misdemeanor." He                                                                    
related  that  the map  depicted  the  14 states  where  the                                                                    
offense that the bill dealt  with was already a misdemeanor.                                                                    
He  pointed  out that  while  Alaska  would be  joining  the                                                                    
minority  of states,  it  would  be far  from  the first  to                                                                    
implement   the  policy.   He  shared   that  the   map  was                                                                    
interesting because  it showed that the  states were varied.                                                                    
He pointed  out that while  the states were  concentrated in                                                                    
the  Northeastern  U.S.,  they  included  poor  states  like                                                                    
Mississippi,   rich  states   like  New   York,  rural   and                                                                    
conservative  states like  Wyoming,  and  urban and  liberal                                                                    
states like Massachusetts.                                                                                                      
                                                                                                                                
9:34:18 AM                                                                                                                    
                                                                                                                                
Mr.  Dunbar  addressed  slide   11  titled  "Public  Safety:                                                                    
Statistical  Comparison." He  relayed that  he did  not have                                                                    
the  kind  of  data  that was  necessary  to  do  regression                                                                    
analysis  and  that  he  did   not  want  to  overstate  his                                                                    
conclusion. He  stated that he  was not claiming  that there                                                                    
was  a causal  link  between  making small-possession,  non-                                                                    
violent  drug offenses  a misdemeanor  and  "these kinds  of                                                                    
outcomes." She  related that it  was the case,  for whatever                                                                    
reason, that the states where  the offense was a misdemeanor                                                                    
had   lower  rates   of  violent   crime,  property   crime,                                                                    
incarceration,  and drug  use.  He opined  that the  slide's                                                                    
listed states probably  had lower rates of  drug use because                                                                    
they had  higher rates of  drug treatment, which  was proven                                                                    
more effective at actually reducing  drug use. He pointed to                                                                    
the  slide and  related that  it showed  that the  levels of                                                                    
drug treatment  were significantly higher in  states where a                                                                    
small-quantity, non-violent drug  offense was a misdemeanor.                                                                    
He stated  that a counter argument  to bills like SB  56 was                                                                    
that the  threat of a  felony was  needed to keep  people in                                                                    
drug treatment,  which was demonstrably not  the case; there                                                                    
were higher  drug treatment rates in  misdemeanor states. He                                                                    
believed that  Alaska had the  tools necessary by  using the                                                                    
Class  A  misdemeanor charge  in  order  to keep  people  in                                                                    
treatment.  He recalled  speaking with  prosecutors, judges,                                                                    
and  probations  officers  during   his  research,  who  had                                                                    
indicated that  between three and  nine months  of suspended                                                                    
time was  needed in order  to incentivize people to  stay in                                                                    
treatment;  this was  important  to note  because the  state                                                                    
could sentence up  to a year in  prison, as well as  up to a                                                                    
$10,000 fine  for a Class  A misdemeanor. He  concluded that                                                                    
the rates of  rape and domestic violence were  also lower in                                                                    
"misdemeanor states."                                                                                                           
                                                                                                                                
Mr. Dunbar discussed slide 12 titled "Conclusions."                                                                             
                                                                                                                                
        · Predicted outcomes from SB 56:                                                                                        
                                                                                                                                
            o Minimal impact on public safety.                                                                                  
                                                                                                                                
             o Large reduction in collateral consequences                                                                       
               for    offenders     and    improvement    in                                                                    
               employability.                                                                                                   
                                                                                                                                
             o Reduction in Probation Officer caseloads.                                                                        
                                                                                                                                
             o Between $5.77 and $10.31 million in savings                                                                      
               to the State over four years, increasing                                                                         
               thereafter   (LRS    estimates   considerably                                                                    
               larger).                                                                                                         
                                                                                                                                
Mr. Dunbar  believed that  the bill,  as it  was structured,                                                                    
would have a  minimal impact on public  safety. He discussed                                                                    
the third bullet point and  related that it was particularly                                                                    
important to  Anchorage because  the officer  caseloads were                                                                    
too  high there.  He  opined that  for  best practices,  the                                                                    
caseload per  officer should be  around 80, but that  it was                                                                    
currently around  120 cases in Anchorage.  He concluded that                                                                    
if the state  was able to bend the  prison population growth                                                                    
curve down and  put off the day that it  would have to build                                                                    
another  Goose  Creek  Prison, it  could  save  hundreds  of                                                                    
millions of dollars.                                                                                                            
                                                                                                                                
Co-Chair   Meyer  inquired   what  percentage   of  Alaska's                                                                    
criminal offenders  were in  prison for  non-violent crimes.                                                                    
Mr.  Dunbar believed  it  was 64  percent.  He offered  that                                                                    
around the  year 2000,  the majority  of people  in Alaska's                                                                    
correctional  facilities  were  violent offenders  and  that                                                                    
there had been  a large growth in the  number on non-violent                                                                    
offenders in the state's prisons since that time.                                                                               
                                                                                                                                
Co-Chair  Meyer inquired  if individuals  that were  charged                                                                    
with  possession  of  marijuana  or  cocaine  were  actually                                                                    
charged as  felons or  if it was  usually negotiated  into a                                                                    
misdemeanor.  Mr. Dunbar  clarified  that the  bill did  not                                                                    
affect marijuana laws and that  it was relatively infrequent                                                                    
to  be  charged  with  a felony  for  marijuana,  unless  it                                                                    
involved  a very  large  amount. He  related  that the  bill                                                                    
dealt with more serious drugs  and offered that depending on                                                                    
the  circumstances, marijuana  and cocaine  possessions were                                                                    
often negotiated  down to Class  A misdemeanors.  He pointed                                                                    
out  that there  was a  former prosecutor  online who  could                                                                    
speak  to the  question better,  but that  many people  were                                                                    
prison or had been charged with a felony for this offense.                                                                      
                                                                                                                                
Co-Chair Meyer  noted that there were  several people online                                                                    
from  law enforcement  and the  judicial  system that  could                                                                    
answer  his question.  He related  that  violence was  often                                                                    
associated with  drugs and that there  were multiple factors                                                                    
that went into  a judge's decision at  sentencing. He opined                                                                    
that the bill was a great  idea and felt that prisons should                                                                    
be for violent offenders.                                                                                                       
                                                                                                                                
Co-Chair Meyer OPENED public testimony.                                                                                         
                                                                                                                                
9:39:25 AM                                                                                                                    
                                                                                                                                
CARMEN  GUTIERREZ, CO-CHAIR,  ALASKA  PRISONER REENTRY  TASK                                                                    
FORCE, ANCHORAGE (via  teleconference), testified in support                                                                    
of  SB  56  and  provided   a  brief  history  of  her  work                                                                    
experience as a  criminal defense attorney in  the state, as                                                                    
well as her  time working for DOC. She related  that she had                                                                    
seen  a  number  of  lives  ruined  because  of  the  felony                                                                    
labeling and  incarceration that occurred  primarily because                                                                    
society had  decided that it was  appropriate to incarcerate                                                                    
the people that it was  mad at, as opposed incarcerating the                                                                    
people  that  it  was  afraid   of.  She  related  that  the                                                                    
incarceration  rates  for  non-violent criminals  had  risen                                                                    
dramatically   and  that   the  percentage   of  non-violent                                                                    
convictions  had increased  from 42  percent in  2002 to  62                                                                    
percent  in   2011.  She  pointed  out   that  DOC's  annual                                                                    
operating budget had also  increased dramatically since 2005                                                                    
and had grown  at an approximate annual rate  of 5.5 percent                                                                    
since that time. She stated  that the number of Alaskans who                                                                    
were being  charged and convicted  as felony  drug offenders                                                                    
was   growing  each   year,  despite   the  fact   that  the                                                                    
prosecuting attorneys and prosecutors  had the discretion to                                                                    
reduce some  of these  felony offenses to  misdemeanors. She                                                                    
shared  that the  incarceration rates  for both  misdemeanor                                                                    
and felony drug  offenses had increased by  63 percent since                                                                    
2002. In 2002, there were  967 admissions to DOC, which grew                                                                    
to  1,574 in  2010.  Additionally, from  2002  to 2010,  the                                                                    
admissions for felony drug offenders  in in DOC had risen by                                                                    
over 81 percent.  She noted that the average  length of stay                                                                    
for a felony  offender had also increased over  the last ten                                                                    
years; in 2002, the average stay  for a felon was 6.6 years,                                                                    
which had had  increased to 7.2 years by  2011. She remarked                                                                    
that the  cost of incarceration  was rising each  year along                                                                    
with  the increased  incarceration rates.  She offered  that                                                                    
increased costs, length of stay,  and the increase in felony                                                                    
labels  may "be  well and  fine" if  the state's  approaches                                                                    
were  effective in  reducing criminal  recidivism, but  that                                                                    
research had  shown that Alaska's approach  was not working.                                                                    
She related  that in November  of 2011, the  Alaska Judicial                                                                    
Council released  an updated version of  its 2007 recidivism                                                                    
study,  which  showed  that the  recidivism  rates  had  not                                                                    
improved.                                                                                                                       
                                                                                                                                
9:44:43 AM                                                                                                                    
                                                                                                                                
Ms.  Gutierrez stated  that  Alaska  still had  2  out of  3                                                                    
Alaskans returning to prison for  a probation violation or a                                                                    
new  offense  within  the  first 3  years  of  release.  She                                                                    
suggested that  Alaskans were not  receiving good  value for                                                                    
their criminal justice dollars and  submitted that the state                                                                    
was at a crossroad. She  discussed the high construction and                                                                    
operating costs of  the Goose Creek Prison.  She stated that                                                                    
in  1982,  1  out  of   every  90  Alaskans  was  under  the                                                                    
jurisdiction of DOC;  by 2007, that number  had increased to                                                                    
1 out of  every 38, which again increased to  1 out of every                                                                    
36  Alaskans by  2009. She  was supportive  of people  being                                                                    
accountable  for their  own conduct,  but  offered that  the                                                                    
issue was  how the state  dealt with  drug use that  did not                                                                    
involve distribution. She submitted  that research had shown                                                                    
that incarceration  for the simple possession  of controlled                                                                    
substances was not a  cost-effective or public-safety minded                                                                    
approach.  She  discussed  the  collateral  consequences  of                                                                    
felony  labeling   and  shared  that  the   consequences  to                                                                    
Alaskans were severe.  She stated that Alaska  had 492 state                                                                    
statutes  and  regulations   that  pertained  to  collateral                                                                    
consequences   for  criminal   convictions,  which   clearly                                                                    
impacted  an individual's  ability  to  find employment  and                                                                    
housing. She discussed her  experience with prisoner reentry                                                                    
issues at DOC  and related that some of  the state's largest                                                                    
corporate  landlords had  a blanket  policy not  to rent  an                                                                    
apartment  to any  individual who  had  a felony  conviction                                                                    
that was  not at  least 8  years old.  She offered  that the                                                                    
state was creating  a large class of Alaskans  who could not                                                                    
get a  second chance.  She opined that  the bill  would give                                                                    
Alaskans a  meaningful opportunity to  obtain rehabilitation                                                                    
for drug issues and pointed  out that under the legislation,                                                                    
a person would  still get felony on  their third conviction.                                                                    
She offered that the state  needed to look at more effective                                                                    
strategies  for  addressing  the  issue  of  criminality  in                                                                    
Alaska,   particularly   regarding   low-level,   non-violet                                                                    
offenses.                                                                                                                       
                                                                                                                                
9:51:26 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  observed that  Ms.  Gutierrez  had spent  a                                                                    
great deal of time and effort  on the issue and related that                                                                    
the committee appreciated her testimony.  He related that he                                                                    
personally  agreed with  Ms. Gutierrez,  but wanted  to hear                                                                    
more  about  the  bill.  He   offered  that  small  quantity                                                                    
possession  offenders should  not be  in prison,  but stated                                                                    
that there  was concern  with distributors of  narcotics. He                                                                    
assumed  that the  bill  did change  the  law regarding  the                                                                    
distribution of drugs and inquired  if that was correct. Ms.                                                                    
Gutierrez pointed  out that  Mr. Kopp  and Mr.  Dunbar could                                                                    
explain  in  greater  detail,  but that  the  bill  did  not                                                                    
address  the  issue   of  dealing  or  the   delivery  of  a                                                                    
controlled  substance. She  continued  to  explain that  the                                                                    
bill  did not  hamper  a prosecutor's  ability to  prosecute                                                                    
individuals  who   were  charged  with   dealing  controlled                                                                    
substances.  Co-Chair  Meyer  noted  that the  state  had  a                                                                    
problem  with  heroin  and oxycontin  and  that  the  people                                                                    
pushing those drugs should not be shown any leniency.                                                                           
                                                                                                                                
Co-Chair Kelly  pointed out  that the  bill only  applied to                                                                    
possession offenses.                                                                                                            
                                                                                                                                
SETH   MCMILLAN,  SELF,   ANCHORAGE  (via   teleconference),                                                                    
testified against  SB 56. He  discussed his  history working                                                                    
in law  enforcement and his recent  experience investigating                                                                    
street level drug trafficking. He  discussed his work in the                                                                    
capacity  of a  drug investigator.  He addressed  the bill's                                                                    
requirement of  two or more prior  convictions before making                                                                    
the possession of a Schedule IA  or IIA a Class C felony and                                                                    
related  that  the   Anchorage  District  Attorney's  Office                                                                    
regularly   made   pre-indictment    offers   of   Suspended                                                                    
Imposition  of Sentence  (SIS) for  the  first MICS-4;  this                                                                    
meant that  if the  defendant completed a  designated period                                                                    
without  committing  new  crimes,  the  conviction  was  set                                                                    
aside.  He pointed  out that  the SIS  effectively made  the                                                                    
bill's requirement  of two prior convictions  actually three                                                                    
convictions. He  discussed the weight and  amount thresholds                                                                    
of  certain  drugs  in  the  bill.  He  stated  that  number                                                                    
threshold  of   less  than  15  tablets   of  oxycodone  was                                                                    
unrealistic for  simple possession.  He relayed  the current                                                                    
street prices  for oxycodone, as  well as the  average daily                                                                    
usage of  an addict. He  offered that the threshold  of less                                                                    
than 3  grams of  a Schedule  IA or  IIA substance  was also                                                                    
unrealistic.  He  pointed  out  that the  street  price  for                                                                    
crystal methamphetamine  was around  $240 per gram  and that                                                                    
the average addict was rarely  in possession of more than .5                                                                    
grams to  1 gram.  He shared that  the average  street price                                                                    
for cocaine  was about  $100 per gram  and that  the average                                                                    
addict was rarely  in possession of more than .2  grams to 1                                                                    
gram; the  average amount was  even less for  crack cocaine.                                                                    
He offered that  dose of heroin was around .1  grams or less                                                                    
and shared  that the  street value of  that amount  was $50;                                                                    
the average user  was consuming .1 grams to  .4 grams daily.                                                                    
He stated  that the bill's  threshold exception of  .5 grams                                                                    
allowed for  misdemeanor possession  of 10  to 18  doses. He                                                                    
stated that  he had contacted  and reviewed the bill  with a                                                                    
former confidential  informant who used  to be a  heroin and                                                                    
methamphetamine dealer;  the informant  had agreed  that the                                                                    
legislation   would  empower   a  street-level   dealer.  He                                                                    
concluded that the bill  would establish misdemeanor amounts                                                                    
and  weight  thresholds   that  were  actually  distribution                                                                    
amounts,  that  the  requirement  for  previous  misdemeanor                                                                    
convictions before  becoming a  felony was  unrealistic, and                                                                    
that it would enable the street-level drug trafficker.                                                                          
                                                                                                                                
Co-Chair  Meyer  appreciated  Mr. McMillan's  work  on  bath                                                                    
salts, "spice", and other "so called" legal drugs.                                                                              
                                                                                                                                
9:56:59 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  requested a written  copy of  Mr. McMillan's                                                                    
testimony. Mr. McMillan responded in the affirmative.                                                                           
                                                                                                                                
WALT MONEGAN,  ALASKA NATIVE JUSTICE CENTER,  ANCHORAGE (via                                                                    
teleconference), spoke in  support of SB 56.  He shared that                                                                    
the bill  was a logical  and intuitive approach  to fighting                                                                    
addiction. He  shared that  he was  opposed to  the "scarlet                                                                    
letter" that  came with  a felony.  He was  sympathetic with                                                                    
the  previous testifier,  but stated  that the  bill did  so                                                                    
many positive  long-term things  within society.  He pointed                                                                    
out that the state  currently operated under the traditional                                                                    
"retributive   justice,  which   was  based   on  pain   and                                                                    
punishment,"   which  resulted   in  about   a  66   percent                                                                    
recidivism rate.  He pointed out  that several  years prior,                                                                    
the  state had  begun to  employ aspects  of a  "restorative                                                                    
justice," which were the therapeutic  courts. He shared that                                                                    
the  therapeutic courts  had proven  to  be very  effective,                                                                    
which had been  confirmed in studies by  the Alaska Judicial                                                                    
Council. He  shared that  Native participants  had responded                                                                    
well to the therapeutic court  programs. He offered that the                                                                    
state  needed to  consider the  downstream  aspects of  what                                                                    
having  a felony  conviction  did and  pointed  out that  it                                                                    
hindered employment,  housing, and other things.  He cited a                                                                    
study titled  "The Adverse  Childhood Experience  Study" and                                                                    
pointed out  that having a parent  in prison was one  of the                                                                    
ten factors that  led to health and  behavioral issues later                                                                    
in life. He opined that  the bill would help mitigate future                                                                    
downstream issues and  offered that it was  an investment in                                                                    
individuals and society.                                                                                                        
                                                                                                                                
10:01:33 AM                                                                                                                   
                                                                                                                                
RICK ALLEN,  DIRECTOR, OFFICE OF PUBLIC  ADVOCACY, ANCHORAGE                                                                    
(via teleconference), testified OPA's  support of the SB 56.                                                                    
He  shared that  there was  a devastating  impact of  felony                                                                    
convictions  on individuals  and families  and related  that                                                                    
the scope  was larger  than the  impacts on  an individual's                                                                    
employment prospects. He explained  that studies showed that                                                                    
having a  parent in  prison could  be just  as harmful  to a                                                                    
child as  witnessing or  experiencing domestic  violence. He                                                                    
continued  that children  with parents  in prison  were more                                                                    
likely to be  in need of aid or be  involved in the juvenile                                                                    
justice  system  and  pointed   out  that  either  of  these                                                                    
scenarios cost  OPA resources that could  be used elsewhere.                                                                    
He shared  that the district court  was able to deal  with a                                                                    
large volume of  cases in a timely and  efficient manner and                                                                    
that  the misdemeanor  disposition of  low-level drug  cases                                                                    
would  enable  OPA  to  use  less  expensive  attorneys.  He                                                                    
offered  that the  bill  should also  reduce  the amount  of                                                                    
litigation in  these matters, which  would result  in saving                                                                    
money  in attorney  time, travel,  and expert  witnesses. He                                                                    
opined  that  results  from  other  states  had  shown  that                                                                    
reclassification  would likely  have no  negative impact  on                                                                    
public  safety.  He  offered   that  the  legislation  would                                                                    
positively  impact the  lives of  OPA clients  and save  the                                                                    
state considerable resources.                                                                                                   
                                                                                                                                
QUINLAN  STEINER,  SELF,   ANCHORAGE  (via  teleconference),                                                                    
expressed his  support for  SB 56. He  stated that  the bill                                                                    
would  likely  have a  positive  impact  on an  individual's                                                                    
attempt at  rehabilitation. He offered that  the opportunity                                                                    
to take  personal responsibility for a  drug addiction would                                                                    
likely  divert a  significant number  of people  out of  the                                                                    
system without the consequences of felony convictions.                                                                          
                                                                                                                                
10:05:25 AM                                                                                                                   
                                                                                                                                
KRIS   SELL,    VICE-PRESIDENT,   ALASKA    PEACE   OFFICERS                                                                    
ASSOCIATION,  expressed the  association's opposition  to SB
56. She offered that  the bill's cost-savings estimates were                                                                    
not  reasonable  and  related that  the  Department  of  Law                                                                    
already  plea bargained  felonies  down  to misdemeanors  or                                                                    
dismissed them in  the face of likely  or sincere commitment                                                                    
to  treatment.  She related  a  story  that illustrated  her                                                                    
point.  She  stated  that the  bill  dealt  with  expensive,                                                                    
highly  addictive drugs,  which drove  users to  significant                                                                    
criminal  activities  and  that   although  there  had  been                                                                    
discussion about the  nature of the offense,  there had been                                                                    
no  reference  to whether  the  person  themselves was  non-                                                                    
violent or whether they were  committing other felonies. She                                                                    
related that  it would be easy  to be able to  put criminals                                                                    
into  "neat, constrained  little  boxes,"  but offered  that                                                                    
people  who were  experimenting with  heroin did  not go  to                                                                    
work all  day and  pay their bills.  She stated  that heroin                                                                    
was  a highly-addictive,  life-destroying drug  that pressed                                                                    
people  into  an  entire  lifestyle  of  crime.  She  warned                                                                    
against removing  the tools that  law enforcement  needed to                                                                    
address the  issue and  pointed out  that "this"  very small                                                                    
portion  of the  population committed  the vast  majority of                                                                    
crimes.                                                                                                                         
                                                                                                                                
Senator Bishop expressed appreciation  for the work of peace                                                                    
officers  and noted  that he  had been  a victim  of a  home                                                                    
burglary. Ms.  Sell observed that the  burglary had probably                                                                    
felt quite violent. Senator Bishop indicated that it had.                                                                       
                                                                                                                                
Senator Bishop observed that Alaska  had been fighting a war                                                                    
on drugs for  40 years and had spent billions  of dollars on                                                                    
the issue.  He inquired  what the  common sense  approach to                                                                    
the  problem of  drug use  was  and noted  that the  current                                                                    
approach  was not  working. Ms.  Sell acknowledged  that the                                                                    
current system was  not working and asserted that  she was a                                                                    
strong advocate  of accessible and available  treatment. She                                                                    
pointed out  that some addicts  had a brief period  of being                                                                    
open to  treatment, but that if  they were put on  a waiting                                                                    
list,  the  bureaucracy was  too  complicated,  or they  had                                                                    
other  mental-health problems  that were  not being  met, it                                                                    
became  necessary to  lock them  up for  public safety.  She                                                                    
pointed  out   that  the  ideal  system   would  help  these                                                                    
offenders,  but that  removing  the  consequences for  these                                                                    
types  of offenders  lengthened and  deepened their  career.                                                                    
She wondered  if the  committee wanted  to send  the message                                                                    
that experimenting with heroin was  the same type of offense                                                                    
as keeping an  envelope that you found with $100  in it. She                                                                    
concluded that removing the  consequences would not motivate                                                                    
people.                                                                                                                         
                                                                                                                                
10:12:03 AM                                                                                                                   
                                                                                                                                
LEE PHELPS,  SELF, testified against  SB 56. He  related his                                                                    
work experience  in drug enforcement in  Alaska. He recalled                                                                    
that prior  testimony had  stated that  the bill  dealt with                                                                    
non-violent offenders and  would not decriminalize anything,                                                                    
but  thought that  the bill  would  have several  unintended                                                                    
consequences. He  related that Misconduct  Involving Weapons                                                                    
in the  Second Degree was  currently a Class B  felony under                                                                    
AS 11.61.195. He  explained that it was currently  a Class B                                                                    
felony to possess a firearm  in the commission of an offense                                                                    
under AS 11.71.010  through 11.71.040, but that  if the bill                                                                    
were to  pass, someone  would be able  to legally  possess a                                                                    
firearm  while  also  possessing  methamphetamine,  cocaine,                                                                    
heroin,  or  oxycodone. He  opined  that  someone under  the                                                                    
influence of  those drugs  should not  be allowed  possess a                                                                    
firearm.   He  recalled   recently  arresting   someone  who                                                                    
possessed    two    firearms,     heroin,    cocaine,    and                                                                    
methamphetamine  and related  that the  individual had  been                                                                    
charged  with four  felonies; if  the bill  was passed,  the                                                                    
perpetrator would have  been charged instead with  a Class A                                                                    
misdemeanor. He  concluded that the  bill would  represent a                                                                    
gross injustice in protecting society if it were to pass.                                                                       
                                                                                                                                
Senator  Dunleavy thought  the last  several testifiers  had                                                                    
indicated that  reducing the penalties  would make  the drug                                                                    
problem  worse and  inquired if  doubling the  penalty would                                                                    
make  things better.  Mr. Phelps  replied that  what he  was                                                                    
saying was that  the bill would make a Class  B felony legal                                                                    
and pointed out that the  U.S. Supreme Court had stated that                                                                    
drugs and guns were associated with each other.                                                                                 
                                                                                                                                
Senator Dunleavy inquired  if the bill would  change the law                                                                    
so that  someone who had guns  and was doing drugs  would be                                                                    
charged with a  misdemeanor instead of a  felony. Mr. Phelps                                                                    
replied that they would not  be charged with a weapons crime                                                                    
at  all,  but  would  be  instead charged  with  a  Class  A                                                                    
misdemeanor for the possession  of the controlled substance.                                                                    
He noted  that from a  public safety standpoint, he  did not                                                                    
want anyone who had narcotics to also have a gun.                                                                               
                                                                                                                                
Senator Dunleavy inquired why  other testifiers that were in                                                                    
the  same business  as Mr.  Phelps had  a different  opinion                                                                    
about the legislation.                                                                                                          
                                                                                                                                
10:18:14 AM                                                                                                                   
                                                                                                                                
KATE  BURKHART,   EXECUTIVE  DIRECTOR,  ADVISORY   BOARD  ON                                                                    
ALCOHOLISM AND DRUG ABUSE, testified  the board's support of                                                                    
SB 56.  She stated that the  board had provided a  letter of                                                                    
formal support for  the bill and that it  had deliberated at                                                                    
length and  taken a formal  vote on matter. She  stated that                                                                    
the advisory board had weighed  the considerations that were                                                                    
being voiced  from the law  enforcement community,  but that                                                                    
because the  traditional justice  responses were  not always                                                                    
effective  at  dealing with  the  issue,  it had  felt  that                                                                    
access to  treatment was  a better  option. She  stated that                                                                    
the  effectiveness of  having access  to treatment  had been                                                                    
proven with  the therapeutic courts  in Alaska  and remarked                                                                    
that  the misdemeanor  process allowed  the courts  to order                                                                    
people into treatment.                                                                                                          
                                                                                                                                
Senator  Olson noted  that  the people  who  were out  there                                                                    
"where the rubber meets the  road," who dealt with criminals                                                                    
that may have  ill intent for society in  general, seemed to                                                                    
disagree  with Ms.  Burkhart's views  on  simply going  into                                                                    
treatment.  Ms. Burkhart  responded that  part of  the board                                                                    
members' deliberations was to  reflect on the experiences of                                                                    
board members  who were in  recovery themselves;  several of                                                                    
the board  members were in  recovery for  illicit narcotics.                                                                    
She related that the board  had members who had contact with                                                                    
the  criminal justice  system before  their recovery  period                                                                    
and  pointed out  that it  also had  providers of  treatment                                                                    
services that offered assistance  to people who were engaged                                                                    
with  the  criminal justice  system.  She  offered that  the                                                                    
discussion  had been  informed by  the experiences  of board                                                                    
members and the  public that it served,  which had indicated                                                                    
that while  many people had  ill intent,  characterizing all                                                                    
people  who  were in  possession  of  a  small amount  of  a                                                                    
Schedule IIA substance as someone  who was going to burgle a                                                                    
home was incorrect.  She shared that the board  had a member                                                                    
who had been addicted to  heroin and had never been involved                                                                    
in criminal  activity and furthered that  board members were                                                                    
persuaded  by  its experience,  as  well  as their  clients'                                                                    
experiences, when  it decided on  whether or not  to support                                                                    
the bill. She  related that the board dealt  with people who                                                                    
had not  been full-fledged addicts  yet, but that  as result                                                                    
of a  felony conviction, had  lost their jobs,  their access                                                                    
to  public  housing,  and their  ability  to  support  their                                                                    
families. She pointed out that  hardcore addicts did present                                                                    
a public safety  concern at times, but that  there were also                                                                    
people who  were experimenting  or were  not engaged  in the                                                                    
criminal  elements  who would  be  unable  to support  their                                                                    
families  as a  result of  a  felony. She  related that  the                                                                    
board  was trying  to balance  an appropriate  and effective                                                                    
response, but  admitted that the  members had not  looked at                                                                    
the legislation's financial consequences to the state.                                                                          
                                                                                                                                
Senator  Olson commented  that some  of the  board's members                                                                    
were recovering addicts and inquired  if the drug users that                                                                    
made it  to "that  level" were  a very  small subset  of the                                                                    
entire  segment of  society that  had "this  affliction." He                                                                    
offered  Ms. Burkhart's  assertion  in contrast  to the  two                                                                    
prior testimonies by law  enforcement officers. Ms. Burkhart                                                                    
believed that  the board members'  recovery was  a testament                                                                    
to the  effectiveness of treatment  services when  they were                                                                    
made available. She  related that there were  many facets to                                                                    
every  problem and  stated that  she represented  people who                                                                    
experienced  substance  abuse  disorders, the  providers  of                                                                    
services,  and the  families  and  communities. She  offered                                                                    
that she  was not  saying that  the board's  perspective was                                                                    
more important or  valid than that of  law enforcement, DOC,                                                                    
or policy makers,  but that it was part of  the many facets.                                                                    
She   concluded  that   balancing  all   of  the   competing                                                                    
experiences  and  perspectives  was why  policy  making  was                                                                    
hard. She added that the  board had approached the bill from                                                                    
its  own perspective,  but recognized  that law  enforcement                                                                    
had a different one.                                                                                                            
                                                                                                                                
10:24:41 AM                                                                                                                   
                                                                                                                                
Senator Bishop  expressed appreciation  for the work  of the                                                                    
Advisory Board on Alcoholism and Drug Abuse.                                                                                    
                                                                                                                                
Senator Dunleavy inquired if there  were more violent crimes                                                                    
associated with  alcohol or with people  under the influence                                                                    
of the drugs  that were covered in the  bill. Co-Chair Meyer                                                                    
stated  that  the  committee   would  finish  taking  public                                                                    
testimony before the question was addressed.                                                                                    
                                                                                                                                
10:26:01 AM                                                                                                                   
                                                                                                                                
RICHARD  SVOBODNY,   SELF,  expressed  concerns   about  the                                                                    
unforeseen consequences of SB  56. He discussed the revision                                                                    
of drug laws  in Alaska in 1982 and observed  that the state                                                                    
had  followed  a  model  that was  similar  to  the  federal                                                                    
government's   model.   He   explained  that   the   state's                                                                    
"Schedules"  on  controlled  substances were  generally  the                                                                    
same  as the  federal  government's system.  Alaska had  six                                                                    
schedules and the  federal system had five.  He related that                                                                    
a schedule of a drug was  based on what the perceived danger                                                                    
of  that   substance  was.  The   past  history,   use,  the                                                                    
biochemistry,  toxicity, the  history of  abuse, and  how it                                                                    
related to  other crimes were taken  into consideration when                                                                    
formulating   the  perceived   danger  and   scheduling.  He                                                                    
explained  that  Schedule  IA controlled  substances,  which                                                                    
included heroin  and oxycontin,  dealt with  substances that                                                                    
were viewed as  the most serious. He stated  that a Schedule                                                                    
VI substance  was marijuana. He stated  that the methodology                                                                    
in determining  which schedule  a drug  fell under  was laid                                                                    
out  in  statute.  He noted  that  testimony  regarding  the                                                                    
reasons  for  the bill's  proposed  change  was based  on  a                                                                    
factor  of  cost,  which  was not  envisioned  by  the  1982                                                                    
legislature when it  had made the criteria.  He related that                                                                    
the cost of  incarceration had not been  considered when the                                                                    
schedules were established and offered  it could be added to                                                                    
the bill as a determining factor in scheduling.                                                                                 
                                                                                                                                
Mr. Svobodny  stated that  one element  of state's  drug law                                                                    
pertained to  the nature of  the offense and that  the other                                                                    
part dealt  with the  prohibited conducted,  which consisted                                                                    
of six  difference degrees.  He pointed  out that  just like                                                                    
the schedules, the  most serious degrees started  on top. He                                                                    
related that Misconduct Involving  a Controlled Substance in                                                                    
the  First Degree  (MICS-1) was  an unclassified  felony and                                                                    
included  things like  distributing  heroin  to children  or                                                                    
being  involved  in  a continuing  criminal  enterprise.  He                                                                    
stated that  Misconduct Involving a Controlled  Substance in                                                                    
the  Sixth  Degree (MICS-6),  which  was  the least  serious                                                                    
degree,  was  the  possession  of less  than  one  ounce  of                                                                    
marijuana.  He stated  that the  bill only  addressed MICS-4                                                                    
and  Misconduct  Involving  a Controlled  Substance  in  the                                                                    
Fifth  Degree  (MICS-5)  offenses.   He  offered  that  bill                                                                    
attempted  to  balance  the prohibited  conduct  versus  the                                                                    
danger of the  drug. He wondered if it was  appropriate or a                                                                    
good  policy   decision  to  say   to  children   and  other                                                                    
prospective  users that  using heroin  or other  Schedule IA                                                                    
and  IIA drugs  was not  all that  serious of  a matter.  He                                                                    
added that the overriding  policy question was balancing the                                                                    
message that  would be sent to  the public with the  cost of                                                                    
incarceration.                                                                                                                  
                                                                                                                                
Mr.  Svobodny  stated   that  reclassifying  the  prohibited                                                                    
conduct was  not same model  that was used for  DUI offenses                                                                    
and related  that there were several  differences. The first                                                                    
difference was that the look  back period in the legislation                                                                    
was five  years, while  the look back  period was  ten years                                                                    
for DUIs. He  noted that DUI offenses  had mandatory minimum                                                                    
sentences, which did  not exist in the bill.  He shared that                                                                    
the bill's  structure was similar,  but was not the  same as                                                                    
DUI  offenses. He  related that  the bill  may be  the death                                                                    
knell of the therapeutic courts  and explained that it might                                                                    
result in  a substantial reduction  in the number  of people                                                                    
involved  in  those  courts. He  asserted  that  there  were                                                                    
basically  three groups  of people  who were  in therapeutic                                                                    
courts and  that they were  people with felony  DUIs, people                                                                    
with felony property offenses that  resulted from drugs, and                                                                    
people  with a  MICS-4,  which was  currently  a felony.  He                                                                    
shared  that  the  therapeutic courts  offered  an  SIS  for                                                                    
felony  drug  offenses  for people  that  went  through  the                                                                    
system, but  that the courts  were currently  having trouble                                                                    
getting  felons to  accept those  terms.  He explained  that                                                                    
drug addicts  would rather do 20,  30, or 60 days  at a time                                                                    
in jail and  that the state was  currently having difficulty                                                                    
getting  participants; furthermore,  if  the  offense was  a                                                                    
misdemeanor, "it's just not going to happen."                                                                                   
                                                                                                                                
Mr. Svobodny  recalled the comments of  a previous testifier                                                                    
who had  indicated that  there was  not enough  incentive in                                                                    
Bethel  for people  to go  into the  therapeutic courts  and                                                                    
related that if  the felony drug offenses  were changed into                                                                    
misdemeanors,  there would  be substantially  less incentive                                                                    
for people  to go into  those courts.  He noted that  it was                                                                    
important   to   remember   that   the   therapeutic   court                                                                    
represented zero jail time and  that what was offered was 24                                                                    
months of  probation and a  set aside conviction as  long as                                                                    
the person stayed  in the court; people who did  not do this                                                                    
may  get a  small  amount of  time in  jail  for the  small-                                                                    
quantity  felony drug  possession and  probation afterwards.                                                                    
He  offered that  one of  the reasons  that the  offense had                                                                    
been a felony  in the past was because the  offender was put                                                                    
on felony probation and was  getting help. He explained that                                                                    
the state  did not have probation  officers for misdemeanors                                                                    
and that  the offenders  would be on  their own.  He pointed                                                                    
out that California had  misdemeanor probation officers, and                                                                    
surmised  that  Colorado  likely had  misdemeanor  probation                                                                    
officers  as well.  He stated  that if  the state  wanted to                                                                    
deal  with  the  problem  of  spending  too  much  money  on                                                                    
incarceration, there needed  to be a mechanism  that was not                                                                    
currently in  the bill that  dealt with getting  people into                                                                    
treatment. He  pointed out that  the bill might be,  in many                                                                    
respects, a disincentive to treatment.                                                                                          
                                                                                                                                
Co-Chair Meyer  noted that the  committee had  questions for                                                                    
Mr.  Svobodny  and  wondered  if   he  could  summarize  his                                                                    
thoughts. Mr. Svobodny replied that  he had one more subject                                                                    
to quickly discuss.                                                                                                             
                                                                                                                                
10:39:42 AM                                                                                                                   
                                                                                                                                
Mr. Svobodny shared  that prosecutors had to  prove cases by                                                                    
the  "elements of  the crime"  and that  the bill  added two                                                                    
elements  that  would  be  required to  be  proved  for  the                                                                    
possession  of   a  small-quantity  of  certain   drugs.  He                                                                    
explained that legislation added  the elements of weight and                                                                    
prior offenses.  He noted that  the Alaska Court  System had                                                                    
been  claimed  that  the  bill   would  result  in  a  small                                                                    
reduction in the amount of  time for juries, but shared that                                                                    
dealing with the prior offenses  could be very difficult and                                                                    
would result  in bifurcated trials. He  explained that there                                                                    
would be two trials on  the same offense because of concerns                                                                    
regarding  prejudice.  He  related a  hypothetical  scenario                                                                    
that illustrated the potential  difficulties of dealing with                                                                    
prior  offenses and  offered that  the  bill would  increase                                                                    
litigation  issues.  He  referenced a  previous  comment  by                                                                    
Vice-Chair Fairclough  and stated  that if the  bill passed,                                                                    
everyone  who was  already in  jail  for a  MICS-4 would  be                                                                    
asking  the  court  for a  modification  of  sentence  under                                                                    
Criminal Rule  35; this represented unforeseen  increases in                                                                    
costs. He  discussed additional potential  litigation issues                                                                    
involved  with  the  bill.  He   related  that  DOL  had  an                                                                    
indeterminate fiscal  and surmised that that  the bill would                                                                    
result  in  cost savings  for  the  DOC; however,  it  would                                                                    
result in increased costs for  DOL early on. He related that                                                                    
typically, the  current treatment  was that a  young, first-                                                                    
time offender who was charged with  a MICS-2 or a MICS-3 was                                                                    
often  plea   bargained  down  to   a  MICS-4   because  the                                                                    
presumptive sentences  were viewed  as too high;  he thought                                                                    
that this would no longer happen under the bill.                                                                                
                                                                                                                                
Senator Dunleavy inquired  if the current laws  in the books                                                                    
were  working  as  intended. Mr.  Svobodny  replied  in  the                                                                    
negative  and  related  that the  state  was  not  currently                                                                    
dealing  with  the  addiction   problems  that  people  had.                                                                    
Senator  Dunleavy asked  if harsher  laws, easier  triggers,                                                                    
and  longer  sentences  would   eliminate  the  problem  and                                                                    
fulfill  the  original  intent  of  the  law.  Mr.  Svobodny                                                                    
replied in the negative.                                                                                                        
                                                                                                                                
Senator Olson  observed that Mr.  Svobodny was not  in favor                                                                    
of the  bill and  inquired if  that assumption  was correct.                                                                    
Mr. Svobodny  replied that  something had  to be  done about                                                                    
the amount of  people that were incarcerated  in Alaska, but                                                                    
opined that without a substantially  greater revision of the                                                                    
state's  drug  laws and  a  reallocation  of resources  from                                                                    
other  departments, the  bill would  not solve  anything. He                                                                    
concluded that  the bill  had potential  hidden consequences                                                                    
that needed to be considered.                                                                                                   
                                                                                                                                
Senator Bishop  inquired if  there was  a potential  loss of                                                                    
federal  funding  to  the   state's  police  departments  or                                                                    
treatment facilities  with the bill. Mr.  Svobodny responded                                                                    
that he  had not  thought about that  aspect, but  that U.S.                                                                    
Attorney General was dealing with  that kind of issue in the                                                                    
State of Washington and the  State of Colorado regarding the                                                                    
decriminalizing  marijuana  because  the U.S.  had  treaties                                                                    
that dealt with drugs on  certain levels. He offered that it                                                                    
may affect federal funding, but  that he had not looked into                                                                    
that particular area.                                                                                                           
                                                                                                                                
10:46:40 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
SB  56  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Meyer discussed  the format of the  joint House and                                                                    
Senate Finance Committee meeting  the following day, as well                                                                    
as the committee's agenda for the rest of the week.                                                                             
                                                                                                                                
SB 22 was SCHEDULED but not HEARD.                                                                                              
                                                                                                                                
10:47:56 AM                                                                                                                   
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:48 a.m.                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
2- SB 56 Sponsor Statement.pdf HJUD 4/8/2013 1:00:00 PM
SFIN 3/18/2013 9:00:00 AM
SB 56
4- CSSB 56(JUD) Section Analysis.pdf HJUD 4/8/2013 1:00:00 PM
SFIN 3/18/2013 9:00:00 AM
SB 56
6 SB56 - Summary of Changes.pdf HJUD 4/8/2013 1:00:00 PM
SFIN 3/18/2013 9:00:00 AM
SB 56
7 SB56 Research MICS-4 Report_01_15_13.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
8 SB56 Factors Driving AK Prison Pop Growth.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
10 SB56 LRS Fiscal Impact of Reclassifying Misconduct Involving a Controlled Substance IV.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
11 SB56 Letter of Support from Carmen Gutierrez.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
12 SB56 Wyoming Drug Law Comparison to Alaska - Copy.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
Kelly Meyer SB 56 ACLU Support 2013-03-15.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
Reclassification Presentation_Edited_03_14_13.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
SB056CS(JUD)-LAW-CRIM-03-12-13.pdf SFIN 3/18/2013 9:00:00 AM
SB 56
Kelly Meyer SB 22 ACLU Const'l Issues 2013-03-15.pdf SFIN 3/18/2013 9:00:00 AM
SB 22
SB 56 Support - Law Office of Sidney K Billingslea.pdf SFIN 3/18/2013 9:00:00 AM
SB 56