HOUSE FINANCE COMMITTEE February 11, 1993 2:45 P.M. TAPE HFC 93 - 20, Side 2, #000 - end. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 2:45 P.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Martin Representative Parnell Representative Therriault Representatives Hoffman, Grussendorf and Navarre were not present for the meeting. ALSO PRESENT John Laravee, Vice-President, International Association of Residential & Community Alternatives, Boston, Mass.; Representative Cliff Davidson. SUMMARY INFORMATION PRESENTATION BY: JOHN LARAVEE, VICE-PRESIDENT International Association of Residential & Community Alternatives CAMBRIDGE ENERGY RESEARCH ASSOCIATES HB 73 An Act relating to state and local taxation and other state regulation as affected by the Alaska Native Claims Settlement Act, as amended, and related federal statutes; and providing for an effective date. HB 73 was WAIVED from Committee. INTERNATIONAL ASSOCIATION OF RESIDENTIAL & COMMUNITY ALTERNATIVES JOHN LARAVEE, VICE-PRESIDENT, INTERNATIONAL ASSOCIATION OF RESIDENTIAL AND COMMUNITY ALTERNATIVES, reviewed written testimony. [Attachment #1]. He noted in sentencing and corrections, the country as a 1 whole is experiencing a uniform crisis of crowding in prisons, overloading of probation and parole, and a deterioration of public image which has significantly impacted the system's products, punishment, deterrence and rehabilitation. He stressed that the business of criminal justice hasn't learned anything from this crisis. Mr. Laravee recommended the concept of "intermediate sanctions" which could provide an opportunity to debate questions and define the purpose and expectations of criminal justice. These would afford a fundamental change in the way people think about sentencing. According to the Alaska Sentencing Commission, Intermediate Punishments offer a way to keep sentencing practices and prison capacity in balance by: 1. Overtaxed prisons are undermining respect for the justice system; 2. Prisons are too costly to serve as the principal sanction; 3. Prisons are not the elixir for crime. The premise of which intermediate sanctions are based is that the justice system deals with a wide range of offenders as measured by: 1. The seriousness of their crime; 2. The risk they present to public safety; 3. And their needs. Intermediate sanctions are intended to bridge the gap between prison and probation, between 24-hour incarceration and once a month or less probation contacts. Mr. Laravee stated that intermediate sanctions, rather than adding it to a stable of programs, must be approached in a purposeful way: 1. They must provide value. The purpose and expectations for intermediate sanctions must be clearly defined, and stated in terms of outcomes, not in terms of introducing more programs. 2. Intermediate sanctions, and the stated purpose and expectations, must obtain legitimacy and support. 3. Intermediate sanctioning systems must be tailored to the social, political and economic environment 2 of the community. 4. There must be a range of credible sanctions tied together by agreed upon policy. 5. Individual sanctions in the range must have integrity and capability of doing what they were designated to do. 6. Offenders must be targeted for specific sanctions. 7. Intermediate sanctioning systems must be adequately financed. Mr. Laravee concluded with three summary points. 1. Simply creating and funding community corrections programs is not enough. For them to be used properly intermediate sanctions must be integrated into the state's accepted punishment policy. 2. In determining the appropriate sanction for the offender, don't get caught in the "more is better" trap. What can result is an overly expensive, rigid program in which no offender can successfully and no agency can properly deliver. 3. To succeed, it simply requires leadership. Representative Parnell asked what would be required to adequately fund "intermediate sanctions" in Alaska. Mr. Laravee explained this information would depend on outcome expectations and at that time allocating resources in that way. He added, the first eighteen months of probation is the critical period of time. Usually the first six months are when most violations occur. He recommended supervision be stopped after eighteen months. He added that the State does not need to look at expansion of dollars but rather check how the allocated funds are currently spent. Several states have changed their sentencing policy rather than expand beds. He summarized that creating expectations based on fiscal realities is important. Representative Davidson asked further clarification of the necessary specifications for intermediate sanctions. He asked the components of tailoring to local options. Mr. Laravee replied that it is necessary to discover those programs through research and then introduce those into communities if they are appropriate for that community. It is necessary to know who are the offenders, what are their 3 needs, understanding their risk factors, what could the community provide to address those needs and where will the program fill in. The program must be tailored to the local community in terms of the inmate population, resources and the interest of the community which includes local tolerance. Representative Parnell asked that a copy of the residential and community alternatives be presented to the Correction's subcommittee. Mr. Laravee agreed. HOUSE BILL 73 "An Act relating to state and local taxation and other state regulation as affected by the Alaska Native Claims Settlement Act, as amended, and related federal statutes; and providing for an effective date." Co-Chair MacLean provided the Committee with a memorandum to Co-Chair Larson regarding "waiving" of HB 73. [Attachment with federal amendments made to the Alaska Native Settlement Act (ANCSA) in 1991. Representative Martin asked if the change would affect only corporation property. Co-Chair MacLean stated HB 73 would affect corporation and village corporation property; also homeowners property which they own for a twenty year period would be taxed under this federal law. Representative Martin asked at which point would it become individual property. Co-Chair MacLean explained the property would become taxable once it becomes "double-up". This law is already in existence. Co-Chair Larson MOVED TO WAIVE HB 73 to the next committee of referral. There being NO OBJECTIONS, it was so ordered. CAMBRIDGE ENERGY RESEARCH ASSOCIATES (CERA) CONTRACT/OIL PRICE FORECASTS Co-Chair Larson provided the Committee with Attachment #3, a Memorandum from Mike Greany, Legislative Fiscal Analyst, regarding the Cambridge Energy Research Associates (CERA) Contract/Oil Price Forecasts. He noted a request from the Senate Finance Co-Chairs to accept the Cambridge oil price forecasting services for a period of one year for an amount not to exceed $17.5 thousand dollars. Representative Martin inquired how often a report would be 4 made available from CERA. Co-Chair Larson explained the services Cambridge would provide as a retainer client: * Their quarterly World Oil Watch publication; * Special oil reports and fax alerts; * Two seats to their annual conference; * Regular phone access and teleconference participation in a joint House/Senate Finance Committee meeting (to be held in March or April, 1993). Co-Chair Larson MOVED to honor the request of the Senate Finance Committee and pay half the amount billed by CERA to provide the contract. There being NO OBJECTIONS, it was so ordered. ADJOURNMENT The meeting adjourned at 3:25 P.M. 5