Legislature(1995 - 1996)
02/14/1996 09:10 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
February 14, 1996
9:10 A.M.
TAPES
SFC-96, #24, Sides 1 & 2
SFC-96, #25, Side 1
CALL TO ORDER
Senator Rick Halford, Co-chair, convened the meeting at
approximately 9:10 A.M.
PRESENT
In addition to Co-chairman Halford, Co-chairman Frank,
Senators Phillips, Sharp, Donley, Rieger and Zharoff were
present when the meeting was convened
Also Attending: Representative Con Bunde; Patty Swenson,
Administrative Assistant to Rep. Bunde; Anne Carpeneti,
Criminal Division, Department of Law; Tom Wright,
Administrative Assistant to Rep. Ivan; Bob Jenkins,
Executive Director, Alaska Public Broadcasting Commission;
Bob Bartholomew, Deputy Director, Income & Excise Audit
Division, Department of Revenue; Dave Tonkovich, Fiscal
Analyst, Legislative Finance Division; and aides to
committee members.
SUMMARY INFORMATION
CS FOR HOUSE BILL NO. 38(JUD) am
"An Act relating to criminal sentencing; relating to
good time credit; relating to the availability for good
time credit for offenders convicted of certain first
degree murders; relating to definite sentences, parole,
good time credit, pardon, commutation of sentence,
modification or reduction of sentence, reprieve, furlough,
and service of sentence at a correctional restitution
center for offenders with at least three serious felony
convictions; and amending Alaska Rule of C r i m i n a l
Procedure 35."
Testimony was given by the sponsor of the bill, Rep. Con
Bunde. Amendment #4, submitted by Senator Donley was moved
and adopted. Amendment #2 was withdrawn and Amendment #3
failed adoption. SCSCSHB 38 (FIN) was reported out with
fiscal notes from the Alaska Court System, $167.9;
Department of Public Safety, zero; Department of
Corrections, zero; Department of Law, $213.3; Senate Finance
Committee/Department of Administration (Public Defender
Agency), $106.6 and Senate Finance Committee/Department of
Administration (Office of Public Advocacy), $106.6.
HOUSE BILL NO. 269
"An Act relating to credits against certain taxes for
contributions to certain public educational radio and
television networks and stations and to endowments for
public educational radio and television networks; and
providing for an effective date."
Testimony was given in support of HB 269 by Tom Wright,
Administrative Assistant to Representative Ivan. Testimony
was also given by Bob Bartholomew. HB 269 was held for
further discussion.
HOUSE BILL NO. 38
"An Act relating to criminal sentencing; relating to
the availability for good time credit for offenders
convicted of certain first degree murders; relating to
mandatory life imprisonment, parole, good time credit,
pardon, commutation of sentence, modification or
reduction of sentence, reprieve, furlough, and service of
sentence at a correctional restitution center for
offenders with at least three s e r i o u s f e l o n y
convictions; and amending Alaska Rule of
CriminalProcedure 35."
Representative Con Bunde was invited to join the committee.
Co-chairman Halford advised that amendment #1 was previously
adopted and that amendments #2, 3 and 4 would be reviewed.
Senator Zharoff called attention to a letter from the
Department of Law correcting their position on the bill
that they neither support nor oppose HB 38. Senator
Phillips appreciated letter from Anne Carpeneti.
Senator Donley referred to amendment #4 and the existing law
requiring mandatory ninety-nine year sentences for very
serious classes of homicide. This amendment would extend
the prohibition on good time to those crimes currently
subject to the mandatory ninety-nine year term of
imprisonment. An ascending level of punishment must be kept
for more serious crimes and homicide ought to have the most
serious level of punishment in the statutes.
Senator Rieger commented on release under furlough and what
types exist. Senator Donley stated there is furlough for
personal family matters, the early furlough program, death
in the family; furlough also refers to when the prisons are
overcrowded and they decide to let someone loose early.
This is a special classification not relevant to parole,
probation, mandatory or discretionary parole. This is a
creative way to free up room in the prisons.
Representative Bunde advised furlough only applies to
medical, family visitation or funeral and furloughed person
would be accompanied by a corrections officer. In cases of
murder there is no furlough. Discussed "good time".
Senator Rieger referenced the medical furlough and when the
measure was pushed through so federal funds could be picked
up for medical care and doesn't want to catch something here
that will cost the State a lot of money.
Senator Donley stated that his amendment #4 just conforms
this to the prohibition on any type of furlough for the
third strike bill. Someone who falls in this category is
banned from any type of furlough.
Representative Bunde commented that there is furlough
allowed but they must be accompanied by a corrections
office.
Senator Frank asked for further clarification on this
amendment. Senator Donley stated that any third time
offender who falls under this bill would not be eligible for
furloughs or good time. This would include anyone under the
ninety-nine year mandatory homicide statute also. Senator
Sharp also commented on the amendment regarding good time.
Co-chairman Halford concurred and stated there would be no
fiscal impact on this amendment. He also voiced his concern
that no administration would try to furlough people
convicted of the worst aggravated murder.
Representative Bunde also concurred and felt amendment #4
did not fall out of the scope of the bill.
Co-chairman and Senator Phillips discussed Senator Rieger's
comments on medical furlough and the costs. Co-chairman
Frank also voiced concern over release of a long term
prisoner with terminal illness and then they could pay for
their own medical.
Co-chairman Halford advised that WITHOUT OBJECTION amendment
CS.
Senator Donley introduced amendment #3 and his concern over
"good time" for multiple offenders. A reoffender can be put
back in for the term of their probation or any discretionary
parole period but they don't lose their good time. This
bill will take away good time between the second and third
offense.
Representative Bunde commented that "good time" only applies
after you are the third time loser. A second time felony
offender could still get out on good time. Senator Donley
advised that the amendment #3 provided that a second time
felony offender would lose good time earned for first
offense. Senator Phillips agreed.
Senator Frank asked if second offense would generally be a
presumptive sentence and Senator Donley advised that a
second felony offense would be. The judge would have no
discretion in the sentence other than with aggravators. He
would have flexibility in dealing with how much of the
former mandatory and discretionary parole that could be
reinstated. An offender under this amendment would have to
go back and serve any good time earned in addition to the
sentence. Senators Donley and Phillips discussed a
hypothetical armed robbery and how under this amendment the
"good time" earned for the second stretch would be lost and
the offender would have to go back and serve any good time
earned on the first offense. A judge would be prevented
from running this concurrent with the sentence imposed.
Representative Bunde voiced concern in protection of the
public and what can be afforded. This amendment would have
significant fiscal impact. The idea is laudable but would
prefer that it be drawn as a separate bill. He agreed with
Senator Phillips that the concept of his bill is to lock up
the offender but doesn't feel that locking up a second time
felony offender for an additional three years, earned "good
time", would serve as a detriment. Would rather achieve a
bill for the worst predators that is still affordable.
Senator Donley called to the attention of his colleagues
that we are faced with a federal mandate that states are
complying with for truth in sentencing, which requires that
an 85% standard be adopted. States not adopting this
standard will lose federal funds. Our liberal "good time"
provision would not comply with this standard.
Representative Bunde agreed that this was a good amendment
and would support a new bill.
Senator Phillips commented on the fiscal impact and would
this kill the bill. Representative Bunde advised that he
made a number of compromises that he would not have made if
not concerned about the fiscal impact. Co-chairman Halford
will defer to the sponsor.
Senator Zharoff voiced concern in keeping the criminals off
the street and that by imposing service of "good time" on
second felony offense this would keep the offender off the
street long enough so they would not commit the same crime
again. Representative Bunde concurs with the premise.
Department of Corrections is constitutionally required to
rehabilitate people and "good time" is used as a reward for
rehabilitation. "Good time" keeps convicts reasonably
happy and something to work towards. The fiscal drag of
including this amendment will keep the three strikes bill
from passing. However, Senator Zharoff felt that keeping an
offender in for a longer period of time would mean that upon
release they would be in an older age group and therefore a
lessor potential of committing a third offense.
Representative Bunde agreed but would rather see the good
pass now than wait for the perfect which may not be
possible.
Upon a vote taken amendment #3 FAILED ADOPTION.
Senator Donley introduced amendment #2. The maximum monetary
penalty for murder is $500,000. Under Alaska State law the
maximum is only $75,000. Under the amendment class A felony
should be $250,000 and $500,000 for homicide. We are
severely under the Federal standards and courts should
have the discretion to issue these kinds of fines if
appropriate in these serious cases. Representative Bunde
agreed with the goal but not the vehicle. It goes outside
the scope of the basic three strikes bill. The gain is not
worth the challenge to the bill. Would support a second
bill on this matter.
Senator Halford inquired as to if a fine proposal was ever
received from the Court System. Senator Rieger stated he
would be happy to work with Senator Donley on a day fines
bill that he has in subcommittee to see if some penalties
can be drafted that make some sense.
Senator Donley WITHDRAWS amendment #2 pending consultation
with the prosecutors. The bill is discretionary and only
gives judges more options.
Senator Sharp MOVES SCSCSHB 38 (FIN) as amended with
accompanying fiscal notes with individual recommendations.
Senator Donley commented on discrepancy between public
defender and prosecutor fiscal notes. He had no objection
to moving the bill and Co-chairman Halford agreed. Senator
Donley felt it would be important to talk to the criminal
justice folks; specifically in Bethel there is a full time
public defender but the prosecutor just flies in
occasionally. A serious need for additional prosecutors was
indicated. This also included Kotzebue. Appropriate fiscal
notes would help deal with this imbalance between the
prosecutors and the defense. Co-chairman Halford stated he
was willing to changing the recommendation on the fiscal
notes. Senator Frank commented on how this money could be
allocated between OPA and the Public Defender. Some
discussion was held regarding possible allocations. Senator
Rieger inquired would there be a slow down on the
calendaring of trials because of the budget. Senator Donley
again referred to the collateral attacks as discussed at the
last hearing. Senator Frank commented on the possibility of
limiting the use of funds to look at prior convictions.
Senator Donley said that he was still looking into this
matter.
Co-chairman Halford stated that there was a proposal to
amend the fiscal notes splitting an equal amount between the
public defenders and the public advocates. NO OBJECTION
being heard SCSCSHB 38 (FIN) with individual recommendations
and modifications to the fiscal notes was MOVED out of
committee.
HOUSE BILL NO. 269
"An Act relating to credits against certain taxes for
contributions to certain public educational radio and
television networks and stations and to endowments for
public educational radio and television networks; and
providing for an effective date."
Tom Wright, staff to Representative Ivan was invited to join
the committee and offered this testimony regarding HB 269.
Referred to work draft numbered 9-LS0937\Z. Changes in CS
title reflect the removal of those sections addressing the
fisheries taxes from the CS. Sections 2, 4, 6, 8, and 10
would reduce the amount of the tax credit for the next
$300,000 in contributions from 100% to 90%. Also included
is a change in the sunset date from December 31, 2000, to
December 31, 2001. Sections 3, 5, 7, 9 and 11 the changes
in these sections reflect the amended portion of the
sections where the contribution for the next $300,000 has
been reduced from 100% to 90%. Credits may not exceed
$320,000 through December 31, 2001. The amount in the
version passed by the House totaled $350,000. In the CS
previously before you sections 12 through 16 establishing
credits for fisheries taxes were deleted. The section that
allowed tax credits for shared revenues in the fish taxes by
both the state and municipalities was also deleted. Final
change was in the effective date in section 13 which was
changed from January 1, 1966 to January 1, 1997. Advised
co-chairman Halford that this would require a resolution on
a title change and a new fiscal note.
Co-chairman Halford noted that the fiscal notes are two-
sided; one being a savings in the Department of
Administration and the other is a revenue loss in the
Department of Revenue. No conclusion has been reached at
this time. Requested document showing existing University
credit system, the proposed changes in the original bill and
the proposed changes in the CS so questions on first
$100,000, the next "X" amount, the percentage and the
limitation on the overall percentage of business or
corporations tax return can be focused on. Then the
negative revenue fiscal note can be balanced with the
beneficial fiscal note in the administration fiscal note.
Tom Wright indicated that a fiscal note was received from
the Department of Revenue based on the present CS.
Co-chairman Frank voiced concern over institutional
advertising on a public broadcasting station. Tom Wright
said that Public Broadcasting Commission could better
address the concerns. Senator Sharp also voiced same
concerns. Would also like to see, whenever any publicity is
given on a donation resulting from legislation, a disclaimer
in the news article stating these funds are an actual
reduction of this corporation's tax liability to the State
of Alaska. Co-chairman Frank and Senator Sharp discussed
the fact that the public is deceived on this matter.
Senator Phillips deals with the subcommittee that handles
public television and noted that if public television were
eliminated then there would be a balance regarding the
current State share general fund dollars. Co-chairman
Halford advised that the latest fiscal note reads $2.6
million per year. Co-chairman Frank discussed question of
distribution of our public treasury. Money for public
broadcasting has been appropriated in a lump sum basis and
it has been doled out in a fair fashion throughout the
State. Concern for smaller stations in outlying areas and
that this may be the only communication system in rural
Alaska. Senator Phillips responded as to division of funds
between public radio and public television. Senator Halford
cautioned the effect of cuts on smaller area public
broadcasting stations and possible options that could be
explored.
Tom Wright informed the committee there is a non-profit
public broadcast endowment trust benefiting the small
stations. It represents all public broadcast stations at
this time and can be donated to by anyone in order to help
the small stations out.
Senator Zharoff voiced concern about advertising also.
Bob Jenkins, Executive Director, Alaska Public Broadcasting
Commission was invited to join the committee. He said the
Alaska Public Broadcasting Commission fully supports this
bill and is consistent with long-term planning that is
ongoing. Federal grant of $954,000 funded the satellite
interconnection. Several regional radio networks have
formed consortiums to share facilities. Advised co-chairman
Frank that public broadcasting stations are restricted from
accepting advertising. Explained function of endowment
trust. Co-chairman Halford felt there would be less concern
about the taxpayer choices if it were going through a more
public system rather than a trust. Mr. Jenkins advised that
the two are interrelated and interdependent. Pointed out
the sunset provision and its primary benefit may be in the
five-year period to fuel a trust that works off the
endowment principal.
Bob Bartholomew, Deputy Director, Income & Excise Tax
Division was invited to join the committee and explained
that no more than a $320,000 credit could be taken across
all the taxes. There is a limit of $320,000 covering all
the taxes. Explained attempt to estimate the increase that
would happen both on education institution side of the
credit or the public broadcasting and the current estimate
of what the total potential loss in revenue is. The maximum
contribution would be limited to $400,000 and $320,000 would
be credited against state taxes. Tax liability cannot be
reduced below fifty percent. Multiple corporations must
file under parent corporation and the parent takes the
credit. A quick overview was given. Voiced concern over
the intent of credit and noted that the department is
willing to discuss the problems. In answer to Senator
Zharoff's question advised that the fiscal note is based on
current legislation. It is not a high figure when the trend
over the past few years is looked at. Tried to strike a
balance between the old and new corporations and their
contributions.
(tape changed to SFC-96, #25, Side 1
Co-chairman Halford questioned regarding maximum exposure on
large corporations and difficulties faced by the smaller
corporations and the combination of credits.
Bill held before the committee awaiting further information
from the Department of Administration.
ADJOURNMENT
The meeting was adjourned at approximately 10:41 A.M.
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