Legislature(2003 - 2004)
04/08/2004 08:00 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 08, 2004
8:00 AM
TAPES
SFC-04 # 76, Side A
SFC 04 # 76, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 8:00 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Fred Dyson
Senator Ben Stevens
Senator Donny Olson
Also Attending: REPRESENTATIVE BRUCE WEYHRAUCH; PORTIA PARKER,
Deputy Commissioner, Department of Corrections; MARK ANTRIM,
Commissioner, Department of Corrections; MARTHA MOORE, Department
of Health and Social Services; CINDY CASHEN, Executive Director,
Mothers Against Drunk Driving, Juneau Chapter; MONIQUE BARTEAUX,
16-year old student of Juneau-Douglas High School, representing
MADD and Youth In Action; SHELDON WINTERS, Attorney representing
State Farm Insurance
Attending via Teleconference: From Anchorage: DON SMITH,
Administrator, Alaska Highway Safety Office;
SUMMARY INFORMATION
HB 375-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 377-APPROP:MENTAL HEALTH BUDGET
The Committee adopted committee substitutes incorporating the
recommendations of the budget subcommittees. The bills were held in
Committee.
SB 336-CORRECTIONS: FEES/SURCHARGE
The Committee heard from the Department of Corrections. The bill
reported from Committee.
HB 213-PROVISIONAL DRIVER'S LICENSE
The Committee heard from the sponsor, the Alaska Highway Safety
Office, the Department of Health and Social Services, the
Department of Administration, Mothers Against Drunk Driving, Youth
In Action, the insurance industry and teenagers. The bill was held
in Committee.
Co-Chair Green chaired this portion of the meeting.
CS FOR HOUSE BILL NO. 375(FIN) am
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
and
CS FOR HOUSE BILL NO. 377(FIN)
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental health
program; and providing for an effective date."
Co-Chair Wilken moved to adopt SCS CS HB 375, 23-GH2040\C, as a
working draft
There was no objection and the committee substitute was ADOPTED.
Co-Chair Wilken moved to adopt SCS CS HB 277, 23-GS2042\S, as a
working draft.
The committee substitute was ADOPTED without objection.
Co-Chair Green ordered both bills HELD in Committee.
Co-Chair Wilken chaired the remainder of the meeting.
CS FOR SENATE BILL NO. 336(JUD)
"An Act imposing a correctional facility surcharge on persons
convicted of a crime under state law and on persons whose
probation is revoked; relating to fees and expenses for
interstate transfer of probation or parole; and providing for
an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, sponsored by the Senate Rules
Committee at the request of the Governor, "imposes a surcharge on a
person arrested and sentenced to a term of imprisonment. The amount
of the surcharge depends on the seriousness of the crime."
PORTIA PARKER, Deputy Commissioner, Department of Corrections,
testified this bill would impose $100 surcharge to those convicted
of a felony and a $50 surcharge to those convicted of a
misdemeanor. In addition, she stated a surcharge of $100 is imposed
to those serving probation, which is suspended unless the offender
violates the terms of their probation, the probation is revoked and
the offender is returned to custody.
Ms. Parker continued that this legislation would also impose a $100
application fee for probationers and parolees transferring
residency to another state under the interstate compact. She noted
most other states currently impose this fee. She furthered that
this provision would require that bond be posted before the
probationer or parolee could transfer to another state. She gave
the reason for this fee as the high expense to retrieve and
transport back to Alaska, an offender who has violated parole
conditions. She qualified this fee is far below the actual costs,
but would serve to offset the expenses. She added that most
jurisdictions, whether counties, municipalities or states, impose
these fees, commonly referred to as "booking charges" in amounts
from $50 to as high as $50 per day.
MARK ANTRIM, Commissioner, Department of Corrections, expressed the
proposed fee amounts are average or below average the amounts
charged in other jurisdictions. He added that the bonding fee
amount of $1250 is derived from U.S. Marshals Service calculations
based on the average cost of retrievals across the country.
Co-Chair Wilken asked why the fiscal note reflects a rapid increase
in costs, then levels off.
Ms. Parker replied this is a common with the implementation of all
new court fees or collections. She stated this fiscal note was
drafted based on other situations whereby new court fees were
imposed. She calculated the increase would level off at
approximately 60 to 65 percent collection rate, which is estimated
to be approximately $1.3 million.
Senator Dyson appreciated the intent of the legislation. He asked
if assets of a parolee could be seized to fulfill a standing
restitution order, if that parolee were returned to Alaska for
violation of parole conditions.
Commissioner Antrim replied that as a matter of practice, the
Department does not permit parolees or probationers to leave the
State if a restitution order is outstanding. He qualified that if
an offender flees the jurisdiction, the situation is different.
Senator Dyson clarified that parolees are not permitted to transfer
out of Alaska if a restitution order is outstanding.
Commissioner Antrim affirmed.
Senator Bunde pointed out that suspects are often encouraged to
plead guilty, as the costs to the State are lower if no trial is
involved. He wondered whether the proposed surcharge would provide
a disincentive to offenders to plead guilty.
Co-Chair Green offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
Senator Bunde objected for discussion.
Senator Bunde proposed waiving this fee for those who plead guilty.
Commissioner Antrim informed that the expenses incurred in booking
a suspect are significant, which this fee would partially offset.
Ms. Parker furthered that 90 percent of criminal cases are settled
either with a plea agreement or a bargaining of the charges
imposed. Therefore, she stated that an exemption for these
offenders would eliminate the majority of revenue generated from
the fee program.
Senator Bunde removed his objection to reporting the bill from
Committee.
Without objection, CS SB 336 (JUD) MOVED from Committee with fiscal
note #2 of $46,500 from the Department of Law.
CS FOR HOUSE BILL NO. 213(FIN)
"An Act relating to a provisional driver's license and to
issuance of a driver's license; and providing for an effective
date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, sponsored by Representative
Weyhrauch "implements a graduated driver's license three-tier
system that requires the issuance of provisional driver's licenses
to 16 to 17-year old drivers."
REPRESENTATIVE BRUCE WEYHRAUCH testified Mothers Against Drunk
Driving (MADD) and the Youth in Action group presented this concept
to him a year ago. He admitted he had had no idea of the
particulars of this issue, but after reading public policy
publications, he garnered more information.
Representative Weyhrauch informed that this legislation had six
hearings before the House Transportation Committee and additional
hearings before the House Finance Committee and the Senate State
Affairs Committee. He reported that 40 states have passed some
form of a graduated driver's license program.
Representative Weyhrauch commented that Alaska is unique in the
scope and types of drivers in both rural and urban areas.
Subsequently, he stated this legislation had to accommodate many
viewpoints and ideals.
[Note: The graphs utilized in this presentation were not provided
for inclusion into the record]
Representative Weyhrauch pointed to a graph showing that the
accident rate of every 1000 licensed drivers between the ages of 16
and 17 is significantly higher than the rest of the population.
Representative Weyhrauch presented another graph demonstrating the
higher crash rate per 10,000 trips for teens driving with
passengers in the vehicle. As the number of passengers increase, so
does the accident rate, he said. He stated that statistically, as
drivers age, they become more accustomed to the distractions around
them.
Co-Chair Wilken asked the source of this information.
Representative Weyhrauch cited the National Council of State
Legislatures.
Representative Weyhrauch indicated that most crashes involving teen
drivers occur in the hours after school and at night, according to
another graph.
Representative Weyhrauch stated this legislation applies portions
of statutes from other states. He admitted that teenagers would be
inconvenienced for the first six months they are driving. He told
of parents stressing the need for the new drivers to transport
siblings, which he assured this bill would allow. He also noted
this bill would also allow for certain driving in rural areas, such
as to and from fish camps.
Senator Olson asked the other exemptions provided in this bill.
Representative Weyhrauch replied that in addition to the
aforementioned, exemptions would also be provided for passengers
who are under the age of 21 and are the legal guardian of the
driver, and for children of the driver. He furthered that driving
to and from work is allowed until 1:00 am provided the driver is
traveling the "most direct [and] safe route."
Senator Olson pointed out that "midnight sun" has a role in summer
activities and he supported the exemption for off road driving in
rural areas.
DON SMITH, Administrator, Alaska Highway Safety Office, testified
via teleconference from Anchorage in support of the bill. He
asserted that the driving restrictions and additional training teen
drivers would receive would save lives and reduce accidents. He
opined that most teens would support the provisional driver's
license program once they understand the issue.
MARTHA MOORE, Department of Health and Social Services, testified
in Juneau and read a statement into the record as follows.
I have actually studied this using Alaskan statistics,
hospital statistics and mortality statistics; and in fact,
Alaska data on this particular point does reflect the national
statistics. Specifically, young drivers were almost three
times more likely than adults to be involved in crashes that
resulted in hospitalization of the crash victims, and 2.6
times more likely to be involved in a crash involving a
fatality. And also as well, the crashes were more likely to be
due to a human factor, which means something to do with driver
behavior.
An interesting study came out a couple years ago by the
Actuaries Institute for Highway Safety. It was a 20-year study
from 1975 to 1996. In it a couple of really important points
of the study, is that even though the overall death rates for
crash rates are declining, those for 16-year olds doubled in
that same 20-year period. The second point that came out of
that study was that the death rates of 17 to 19-year olds was
twice that of older drivers, but the death rate for 16-year
olds was three times that of older drivers.
The reason these 16-year olds are at such high risk is first
and foremost youth. Immaturity alone is the most significant
factor that puts these kids at risk. Inexperience is also a
factor, but older drivers with that same inexperience are not
as much at risk as the 16-year old. Also risk taking behavior,
which is typical often of teens and distractions while
driving, which just increases when other teens in the car.
But the good news in all of this is that since 1996, 38 states
have adopted a graduated licensing program. It has contributed
to drastically lowering the death and crash rates of 16-year
old drivers in those states.
This legislation does three important things. It helps youth
gain experience while practice driving under supervision of an
adult. It puts off licensures for six months; in that 16th
year of life, it doesn't sound like much but it's very
important, this six months - allowing them to gain the
maturity they need. It removes the highest risks factors for
the first six months of unsupervised driving by restricting
nighttime driving and teen passengers in the same car. For
these reasons, the Department supports the bill.
Senator Bunde commented that seatbelts also prevent death and
injury and spoke to recently passed legislation allowing failure to
wear a seatbelt be pursued as a primary offense.
Ms. Moore contended that this age group is least likely to "buckle-
up" and that although many factors increase risk, the single most
protective factor is seatbelt use.
Senator Bunde requested the sponsor consider requiring 16 and 17
year-old drivers to wear seat belts.
Representative Weyhrauch told of his experiences with his
children's adamant attitude in insisting seatbelt use by all
vehicle occupants.
Senator Dyson remarked that states implementing a provisional
drivers' license program have well documented reduced fatality and
accident rates. He asked if insurance rates for teen drivers have
been reduced in these states.
Representative Weyhrauch deferred to a representative of the
insurance industry. He cited earlier testimony that if this
provision driver's license program had been in place earlier, lives
would have been saved. He noted that insurance premiums increase
for accidents and traffic tickets, and therefore surmised this
program would assist in avoiding rate increases.
Representative Weyhrauch agreed with Ms. Moore that statistics for
Alaska are similar to national averages.
CINDY CASHEN, Executive Director, Mothers Against Drunk Driving
(MADD), Juneau Chapter, read her testimony into the record as
follows.
This is the MADD, Alaska Chapter's number one priority for
past two years and we're very grateful for this Committee to
hear it today. MADD advocates that each state adopt laws
provided for graduated licensing privileges to persons younger
than 21. Early driving experiences must be acquired in a lower
risk environment through extended restriction of no alcohol
use, primary seatbelt enforcement, limitations on nighttime
driving and teenage passengers.
According to the Alaska Highway Safety Office in the year 2000
there were 3,889 crashes involving 16 to 20-year old Alaska
teenagers. That's the highest figure, by over 1,000, of all
age groups. In the year 2001, that figure rose by over 500
involving 4,105.
In Alaska and other states, the hours between midnight and
6:00 a.m. are the most dangerous. In the year 2000, there were
168 alcohol-related crashes between 12:00 and 1:00 a.m. and
177 between 1:00 a.m. and 2:00 a.m. We don't want our kids out
on the street at that time. It's dangerous for them as well as
anyone else on the street.
I'd like to end - I took a look at Alaska Highway Safety
numbers at three places in Alaska of various populations:
Kodiak, Anchorage and Barrow. We wanted to see how the driving
numbers stood up with the teenagers there and if there was a
difference in their population, if it mattered. In Kodiak, 34
percent of all crashes involved teenage drivers, and in
Anchorage it was 28 percent and in Barrow it was 26 percent.
The Alaska rate was 28 percent. For evening crashes, which
involved teenage drivers: in Kodiak it was 22 percent,
Anchorage and Barrow both had 25 percent and all of Alaska was
26 percent. These figures come from the Alaska Highway Safety
Office. What this shows is that it doesn't matter where in
Alaska that teenagers need assistance with a three-tiered
graduated driver's license program.
Senator Bunde surmised that the witness supports that those subject
to the provisional license program should be subject to a primary
seatbelt law.
Ms. Cashen responded, "definitely."
MONIQUE BARTEAUX, 16-year old student of Juneau-Douglas High
School, representing MADD and Youth In Action, read her testimony
into the record as follows.
Today I'm here with MADD, as well as Youth In Action.
Together, they're focused on helping prevent underage drinking
and problems caused by it, such as driving drunk. I'm here
today to speak in favor of the GDL [graduated driver's
license] bill. I support this bill because I believe it will
help drop the amount of driving accidents involving teens. I
believe this because of states, like North Carolina, the car
crashes involving teens was dropped by 57 percent. Money-wise,
in California and Maryland, the report of money saved on
lifesaving and injury reduction, was much more than the cost
of administering the GDL program 74 to one.
In conclusion, I urge you to vote yes on the GDL bill.
Co-Chair Wilken recognized Ms. Barteaux as appearing in public
service announcements promoting the provisional drivers' license
program.
Representative Weyhrauch noted that some teens react to this
proposal negatively, but when explained how it would save lives and
involve minimal inconvenience their opposition lessens.
SHELDON WINTERS, Attorney representing State Farm Insurance,
addressed the issue of insurance premiums, informing that no
research has been done to determine whether the graduated drivers'
license program has resulted in reduced insurance rates. He pointed
out, however that most insurance companies offer discount programs
for youths that meet certain requirements, such as no accidents and
passage of a driver's education course. He acknowledged that
insurance claims "drive" rates, and since this program reduces
accidents, rates would be impacted.
Mr. Winters spoke from his experience as defense counsel in
numerous accident claims, citing the disproportionate number of
accidents involving young people licensed to drive for only a short
time. He pointed out that injuries occur to passengers and
occupants of other vehicles in addition to the teen drivers. He
indicated he could provide many examples of avoidable accidents
that would have not occurred if were this law in effect.
Mr. Winters agreed that when children are riding in vehicles with
their parents, they are often diligent about seatbelt use, but
questioned whether this diligence is as strong in situations of
teens riding with their peers.
Senator Bunde commented that despite high premiums, it is difficult
for insurance companies to operate in Alaska because of high loss
rates.
Mr. Winters agreed the loss rates are high in Alaska. He told of
discussions relating to medical malpractice and high loss rates. He
stressed that any efforts to reduce loss rates is beneficial.
DEVAN HARDY, teenager, testified via teleconference from Mat-Su,
about the numerous driving laws in existence that are ignored, such
as driving under the influence. She predicted this bill would only
encourage more rebellion and result in more teens running away from
home. She also remarked upon the high cost to enforce a graduated
drivers license program.
Senator Olson asked whether the witness supports or opposes this
bill.
Ms. Hardy opposed the bill, as she surmised teen drivers would not
obey the law.
Senator Bunde asked whether all laws pertaining to teenagers should
be repealed to eliminate teen rebellion.
SFC 04 # 76, Side B
Ms. Hardy answered no and further commented on restricted driving
privileges for teen drivers.
Co-Chair Green referenced subsection (1) to Sec. 28.15.057.
Restrictions on driver's license issued to a person under 18., in
Section 2 of the committee substitute, which reads as follows and
stipulates that a driver's license may not be issued unless the
person has:
(1) been licensed under an instruction permit issued
under AS 28.15.051 or under the law of another state with
substantially similar requirements for at least six months;
Co-Chair Green asked if the laws of other states have been
sufficiently reviewed to determine implementation.
DUANE BANNOCK, Director, Division of Motor Vehicles, Department of
Administration, testified via teleconference from an offnet
location about data the Division maintains regarding requirements
of other states with graduated drivers licenses programs. He
explained how the Division would review applications from teens
relocating from other states to determine whether to issue
provisional drivers licenses, based on the driving experience of
each teen applicant.
Senator Olson asked if nonresident teen drivers would be subject to
the graduated drivers licenses provisions.
Mr. Bannock replied that nonresident drivers licenses are valid for
90 days in Alaska.
Senator Bunde noted the effective date of January 1, 2005. He asked
if the graduated provisions for a license issued in December 2004
would go into effect in January 2005.
Representative Weyhrauch answered no; only licenses issued after
January 1, 2005 would be subject to the provisions of the program.
Senator Bunde asked whether enforcement would be difficult given
the two-year grandfather clause.
Representative Weyhrauch admitted it could be challenging, but
stressed this occurs each time similar age requirement changes are
enacted.
Senator Bunde asked what penalties would be imposed for
infractions.
Representative Weyhrauch responded the penalties would likely
relate to points against a drivers license, although he was unsure
the number of points each infraction would receive.
Co-Chair Wilken characterized this bill as significant legislation.
Co-Chair Wilken ordered the bill HELD in Committee.
Juneau-Douglas High School students participating in the Close-Up
program introduced themselves to the Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 08:55 AM
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