ALASKA STATE LEGISLATURE  SENATE STATE AFFAIRS STANDING COMMITTEE  February 18, 2020 3:30 p.m. MEMBERS PRESENT Senator Joshua Revak, Chair Senator John Coghill, Vice Chair Senator Mia Costello Senator David Wilson Senator Scott Kawasaki MEMBERS ABSENT  All members present COMMITTEE CALENDAR  SENATE BILL NO. 137 "An Act extending the termination date of the Board of Parole; and providing for an effective date." - HEARD & HELD SENATE BILL NO. 177 "An Act relating to driving without a license." - HEARD & HELD COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 109(EDC) AM "An Act relating to residency requirements for public school enrollment for certain children of active duty military and National Guard members." - HEARD & HELD SENATE BILL NO. 169 "An Act relating to special request registration plates celebrating the arts; and relating to the Alaska State Council on the Arts." - SCHEDULED BUT NOT HEARD PREVIOUS COMMITTEE ACTION  BILL: SB 137 SHORT TITLE: EXTEND BOARD OF PAROLE SPONSOR(s): SENATOR(s) MICCICHE 01/21/20 (S) PREFILE RELEASED 1/10/20 01/21/20 (S) READ THE FIRST TIME - REFERRALS 01/21/20 (S) STA, FIN 02/18/20 (S) STA AT 3:30 PM BUTROVICH 205 BILL: SB 177 SHORT TITLE: DRIVING WITHOUT A LICENSE: PENALTY SPONSOR(s): SENATOR(s) MICCICHE 02/05/20 (S) READ THE FIRST TIME - REFERRALS 02/05/20 (S) STA 02/18/20 (S) STA AT 3:30 PM BUTROVICH 205 BILL: HB 109 SHORT TITLE: MILITARY CHILDREN SCHOOL RESIDENCY WAIVER SPONSOR(s): REPRESENTATIVE(s) LEDOUX 03/25/19 (H) READ THE FIRST TIME - REFERRALS 03/25/19 (H) MLV, EDC 04/09/19 (H) MLV AT 1:00 PM GRUENBERG 120 04/09/19 (H) -- MEETING CANCELED -- 04/11/19 (H) MLV AT 1:00 PM GRUENBERG 120 04/11/19 (H) -- MEETING CANCELED -- 04/16/19 (H) MLV AT 1:00 PM GRUENBERG 120 04/16/19 (H) Heard & Held 04/16/19 (H) MINUTE(MLV) 04/18/19 (H) MLV AT 1:00 PM GRUENBERG 120 04/18/19 (H) -- MEETING CANCELED -- 04/23/19 (H) MLV AT 1:00 PM GRUENBERG 120 04/23/19 (H) Moved CSHB 109(MLV) Out of Committee 04/23/19 (H) MINUTE(MLV) 04/24/19 (H) MLV RPT CS(MLV) NT 6DP 04/24/19 (H) DP: KOPP, THOMPSON, JACKSON, TARR, TUCK, LEDOUX 05/08/19 (H) EDC AT 8:00 AM CAPITOL 106 05/08/19 (H) Heard & Held 05/08/19 (H) MINUTE(EDC) 05/10/19 (H) EDC AT 8:00 AM CAPITOL 106 05/10/19 (H) Moved CSHB 109(EDC) Out of Committee 05/10/19 (H) MINUTE(EDC) 05/11/19 (H) EDC RPT CS(EDC) NT 3DP 1NR 1AM 05/11/19 (H) DP: TUCK, DRUMMOND, STORY 05/11/19 (H) NR: HOPKINS 05/11/19 (H) AM: REVAK 02/03/20 (H) TRANSMITTED TO (S) 02/03/20 (H) VERSION: CSHB 109(EDC) AM 02/05/20 (S) READ THE FIRST TIME - REFERRALS 02/05/20 (S) STA, EDC 02/18/20 (S) STA AT 3:30 PM BUTROVICH 205 WITNESS REGISTER SENATOR PETER MICCICHE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SB 137. MICHAEL WILLIS, Intern Senator Peter Micciche Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced SB 137 on behalf of the sponsor. KRIS CURTIS, Legislative Auditor Legislative Audit Division Alaska State Legislature Juneau, Alaska POSITION STATEMENT: During the hearing on SB 137, reviewed the sunset audit for the Board of Parole. SENATOR PETER MICCICHE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SB 177. MICHAEL WILLIS, Intern Senator Peter Micciche Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced SB 177 on behalf of the sponsor. PETER MLYNARIK, Chief Soldotna Police Department Soldotna, Alaska POSITION STATEMENT: Expressed concern with Section 2 of SB 177. CORNELIUS SIMS, Lieutenant Alaska State Troopers Department of Public Safety Anchorage, Alaska POSITION STATEMENT: Expressed concern with Section 2 of SB 177. KACI SCHROEDER, Assistant Attorney General Criminal Division Department of Law Juneau, Alaska POSITION STATEMENT: Stated that the department is neutral on SB 177 and the policy call related to Section 2. REPRESENTATIVE GABRIELLE LEDOUX Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of HB 109. HEIDI TESHNER, Director Division of Finance and Support Services Department of Education and Early Development (DEED) Juneau, Alaska POSITION STATEMENT: Answered questions and provided information related to HB 109. DENEEN TUCK, Staff Representative Gabrielle LeDoux Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions and provided information related to HB 109. ACTION NARRATIVE 3:30:26 PM CHAIR JOSHUA REVAK called the Senate State Affairs Standing Committee meeting to order at 3:30 p.m. Present at the call to order were Senators Costello, Wilson, Kawasaki, Coghill, and Chair Revak. SB 137-EXTEND BOARD OF PAROLE  3:31:36 PM CHAIR REVAK announced the consideration of SENATE BILL NO. 137, "An Act extending the termination date of the Board of Parole; and providing for an effective date." 3:32:05 PM SENATOR PETER MICCICHE, Alaska State Legislature, Juneau, Alaska, sponsor of SB 137, stated that he stepped forward to sponsor this board extension because he recognizes the importance of extending the Board of Parole. 3:32:55 PM MICHAEL WILLIS, Intern, Senator Peter Micciche, Alaska State Legislature, Juneau, Alaska, introduced SB 137 paraphrasing the following sponsor statement: SB 137 extends the Board of Parole termination date of June 30, 2020 until June 30, 2025. Upon review of the recent Legislative Audit summary and the full audit report of the Alaska Board of Parole, it becomes apparent that in the opinion of our auditors, the Board of Parole is serving the public's interest by effectively evaluating prisoners' likelihood of recidivism and whether a prisoner poses a threat to the public. The Board of Parole serves an important role in guarding the safety of Alaskans by protecting the general public through the determination of parole- eligible prisoners' ability to become functioning members of society. The significance of the board has increased recently since the passage of HB 49 in 2019. Despite the repeal of SB 91, there has been a dramatic increase in the number of parole applicants due to a requirement that all eligible prisoners be given a hearing regardless of their own desire to apply for parole. This situation has strained the Board of Parole, but it has also revealed our state's reliance on the work of the Board. Auditors recommend the Legislature extend the board's termination date five years, which is three years less than the eight-year maximum allowed by statute. The reduced extension allows for review of recent changes to the board's statutes, impacts and responsibility revisions related to HB 49 and the need for continued oversight. We respectfully request your support for this important extension to the Alaska Board of Parole. He noted that Kris Curtis and Jeffrey Edwards were available to testify and answer questions. CHAIR REVAK asked Ms. Curtis to review the audit results. 3:35:22 PM KRIS CURTIS, Legislative Auditor, Legislative Audit Division, Alaska State Legislature, Juneau, Alaska, reviewed the sunset audit for the Board of Parole. She directed attention to the May 8, 2019 sunset audit of the Department of Corrections, Board of Parole that may be found in members' packets. She noted that is the last date of any field work so any changes to statutes governing the board after that date are not included in this audit. She reminded the members that the purpose of a sunset audit is to determine whether a board or commission is serving the public's interest and should be extended. She directed attention to Exhibit 3 on page 2 that depicts a table of the Schedule of Expenditures and Funding Sources for FY 16 through January 31, 2019. It shows that the expenditures for this board were primarily for personal services, travel, and office rental costs. She pointed out the large increase in expenditures starting in FY 17 and explained that it reflects the increase in the board's workload that resulted when Senate Bill 91 passed and became effective in January 2017. Five new positions were authorized to address the increase in the workload. She noted that this is discussed in more detail in the Background Information section that begins on page 5. 3:36:33 PM MR. CURTIS advised that the first few pages of the Background Information discuss the basics of parole. She directed attention to the bottom of page 8 that discusses how Senate Bill 91 changed parole and how that impacted the Board of Parole. She summarized the changes as follows: Senate Bill 91 significantly changed the board's statutes effective January 2017. First, it expanded discretionary parole for all offenders except unclassified or class A sex offenders. Prior to SB 91, offenders who committed their first class B felony or up to their second class C felony were eligible for discretionary parole after serving 25 percent of their sentences. Post SB 91, generally offenders who committed any number of A, B, or C felonies were eligible for discretionary parole after serving a quarter of their sentences. Secondly, SB 91 removed the discretionary parole application requirement. Prior to SB 91, prisoners initiated the parole process by submitting an application for parole and not all eligible prisoners submitted applications. SB 91 removed the application requirement from state law, which changed how the board approached discretionary parole hearings. Thirdly, SB 91 shortened the technical revocation hearing timeline. 3:38:01 PM MS. CURTIS directed attention to the Report Conclusions on page 11. She paraphrased the following excerpts: The audit concluded that the board responded in an effective and efficient manner to significant changes in parole laws. During the audit period, the board conducted meetings, made parole decisions, set parole conditions, and held revocation hearings in accordance with state law. [In accordance with AS 44.66.010(a)(2), the board is scheduled to terminate June 30, 2020.] We recommend the legislature extend the board's termination date five years to June 30, 2025, which is three years less than the eight year maximum allowed for in statute. The reduced extension is mainly in acknowledgment of recent changes to the board's statutes as well as anticipated changes and the need for continued oversight. 3:38:37 PM MS. CURTIS directed attention to Exhibits 5, 6, and 7 starting on page 12. These tables show the significant increase in discretionary parole hearings in 2017 and 2018, the number of parole hearing no-shows from 2015 through 2018, and the revocation parole hearings for that same timeframe. She paraphrased the following Report Conclusions: The increase in discretionary parole hearings, as shown in Exhibit 5, included a significant number of hearings that prisoners did not attend (no-shows). No- shows were the result of SB 91 eliminating the discretionary parole application process and mandating that hearings be held for all eligible prisoners regardless of whether a prisoner wanted discretionary parole. According to the board's executive director, prisoners may not want discretionary parole for various reasons including not willing to sign parole conditions and/or wanting to complete a sentence and leave with no parole conditions. Initially, parole officers and the board compiled parole packets and held hearings for no-shows in the same manner as conducted for prisoners who attended the hearings. This was not an effective use of resources given that parole is not granted if a prisoner does not attend the parole hearing. The board recognized the inefficiency and changed the procedures in November 2017. The new procedures require institutional parole officers to complete condensed parole packets (does not include release plans or parole conditions) for offenders that do not want discretionary parole and the board holds an abbreviated hearing. As shown in Exhibit 6, no-shows represented 21 percent of discretionary parole hearings in 2017 and 29 percent in 2018. According to board staff, the increase in discretionary parole hearings in 2017 led to an increased number of revocation hearings in 2017 (see Exhibit 7). This increase in workload was offset in 2018 by the use of an administrative sanction and incentive program (AS 33.05.020(g)) that allowed probation officers to impose sanctions without a hearing for the most common technical violations based on a decision-making guide created by Department of Corrections management. The board effectively coped with the increase in parole and revocation hearings by traveling to each correctional facility four times per year instead of two. The board also hired five new staff positions to address the increase in workload. The positions included one criminal justice technician, one hearing officer IV, and three hearing officer IIIs. 3:41:21 PM MS. CURTIS turned to the recommendations for improvement, starting on page 18, that were part of the audit. She highlighted that the reason for the reduced extension is solely because the board statutes continue to change and she believes increased oversight is prudent during this period. She discussed the following recommendations: Recommendation No. 1: The board's executive director  should improve procedures to ensure final revocation  hearings are performed timely.    The audit found that 16 percent of the revocation hearings tested were not performed within 120 days of the parolee's arrest. The late hearings were between five and 12 days late. Recommendation No. 2: The board's executive director  should work with DOC's commissioner to improve the  quality of telephonic hearings.  The audit identified poor quality telephone systems at four of 13 correctional facilities, including Yukon Kuskokwim Correctional Center, Wildwood Correctional Complex, Fairbanks Correctional Center, and Hiland Mountain Correctional Center. These facilities accounted for 495 (14 percent) of the parole and revocation hearings from calendar years 2015 through 11 2018. Recommendation No. 3: The board's executive director  should take steps to ensure regulations are properly  updated. The audit identified two sections of regulations were not properly updated [due to human error]. Recommendation No. 4: DOC's [Division of  Administrative Services] director should take steps to  ensure [the Alaska Correctional Management System]  complies with State information technology security  standards and national best practices. MS. CURTIS advised that the findings leading to Recommendation No. 4 were communicated to management in a separate, confidential letter. They were not included in the audit report to prevent the weaknesses from being exploited. 3:43:07 PM MS. CURTIS directed attention to the responses to the audit report, starting on page 33. The Department of Corrections commissioner agreed with the four findings and stated that the department was moving forward with corrective action within the constraints of its budget. Starting on page 35, the chair of the Parole Board concurred with the three recommendations directed at the board and described the planned corrective actions. CHAIR REVAK asked if there were committee questions. 3:43:47 PM SENATOR KAWASAKI asked about the timeline between Senate Bill 91, Senate Bill 54, and Senate Bill 49 and whether the rules and regulations for those pieces of legislation had been promulgated. He further asked if she anticipates revisiting these matters during the next audit in five years. MS. CURTIS responded that there were changes to the parole statutes the year after Senate Bill 91 passed. There were also significant statutory changes after May 2019 that this audit did not review. CHAIR REVAK noted who was available to answer questions. 3:45:12 PM SENATOR WILSON expressed interest in asking the Department of Law representative a question. 3:45:19 PM At ease 3:45:45 PM CHAIR REVAK reconvened the meeting and discerned there were no further questions. He opened and closed public testimony on SB 137 and encouraged the public to submit written testimony to ssta@akleg.gov. He noted that the fiscal note attached to the bill was zero. CHAIR REVAK stated that he would hold SB 137 in committee for future consideration. SB 177-DRIVING WITHOUT A LICENSE: PENALTY  3:47:20 PM CHAIR REVAK announced the consideration of SENATE BILL NO. 177, "An Act relating to driving without a license." 3:47:37 PM SENATOR PETER MICCICHE, Alaska State Legislature, Juneau, Alaska, sponsor of SB 177, described the bill as a simple cleanup. It addresses driving without a license, which HB 49 missed when it returned driving with a suspended or revoked license from an infraction to a potential class A misdemeanor. He said that omission left a significant gap for law enforcement and may encourage some less scrupulous people to never obtain a license. He said he would point out one issue after Mr. Willis presents the bill. 3:48:42 PM MICHAEL WILLIS, Intern, Senator Peter Micciche, Alaska State Legislature, Juneau, Alaska, introduced SB 177 speaking to the following sponsor statement: Senate Bill 177 seeks to resolve an inconsistency by eliminating a loophole in State law that allows two drivers who have committed nearly identical crimes to receive vastly different penalties. During the push in the first session of the 31st Legislature to improve Alaska's criminal justice laws, HB 49 included efforts to increase the consequences of driving with a suspended or revoked driver's license. However, it became clear that often individuals without current licenses had a relatively high probability of committing other crimes that were more difficult to discover due to the reduction in consequences resulting from SB 91. Although HB 49 successfully returned the consequences of driving with a revoked or suspended license to a potential Class A misdemeanor, driving without a license (when a license has never been issued) was missed in the bill. What should be a crime with equivalent punishment as that of nearly identical crimes, remains a simple violation. Under current law (AS 28.15.011) the severity of penalty for driving without a license is dependent upon whether the individual driving formerly possessed a license. If an individual operates a motor vehicle with a license that is canceled, suspended, revoked, or in violation of a limitation is potentially guilty of a Class A misdemeanor (AS 28.15.291(b)(1)). However, an individual who operates a vehicle without having any prior licensure is only guilty of a traffic infraction. This discrepancy impedes the efforts of law enforcement, is unjust, and requires immediate reconciliation. We respectfully request your support of this important legislation. 3:50:20 PM SENATOR MICCICHE advised that law enforcement has expressed concern that Section 2 could impact a youth who was caught driving without a license since a conviction could make their early driving years significantly more expensive. That is not the goal of the bill, he said. CHAIR REVAK asked if he wanted an amendment. SENATOR MICCICHE suggested the committee listen to the Department of Law before coming to a decision on whether or not to eliminate Section 2. 3:52:47 PM PETER MLYNARIK, Chief, Soldotna Police Department, Soldotna, Alaska, expressed appreciation that SB 177 closes the gap on driving without a license and concern that Section 2 would unduly impact a young person who drives without a license. These individuals would potentially have to carry the very expensive SR 22 insurance, he said. 3:55:00 PM CORNELIUS SIMS, Lieutenant, Alaska State Troopers, Department of Public Safety, Anchorage, Alaska, thanked the sponsor for introducing SB 177 to close the gap created by HB 49. He echoed Chief Mlynarik's concern that Section 2 could cause a minor who is convicted of driving without a license to be severely financially penalized once they are able to obtain a driver's license. 3:56:48 PM CHAIR REVAK opened public testimony on SB 177. Seeing none, he closed public testimony. 3:57:52 PM SENATOR WILSON asked if Ms. Schroeder could comment on Section 2 and whether or not the department supports the bill. 3:58:08 PM KACI SCHROEDER, Assistant Attorney General, Criminal Division, Department of Law, Juneau, Alaska, responded that the department is neutral on SB 177 and the policy call of whether or not Section 2 remains in the bill. She advised that she was available to answer questions. 3:58:39 PM CHAIR REVAK asked if someone who is underage could legally drive without a license on private property. MS. SCHROEDER responded that she would look that up and follow up with an answer. 3:59:07 PM SENATOR KAWASAKI asked what the maximum penalties are for a moving violation and for a class A misdemeanor. MS. SCHROEDER replied the penalty for an infraction is a fine up to $300 whereas a class A misdemeanor provides a prison term of up to one year. She pointed out that SB 177 has mandatory minimums associated with this particular class A misdemeanor. SENATOR KAWASAKI asked if she agrees that increasing the sanction to a class A misdemeanor would subject an individual who was convicted of that offense to high-risk SR 22 insurance when they are old enough to apply for a license. MS. SCHROEDER deferred to Lieutenant Sims on the insurance aspect. 4:00:51 PM CHAIR REVAK found no further questions and held SB 177 in committee for future consideration. 4:01:16 PM At ease HB 109-MILITARY CHILDREN SCHOOL RESIDENCY WAIVER  4:03:12 PM CHAIR REVAK reconvened the meeting and announced the consideration of CS FOR HOUSE BILL NO. 109(EDC) am, "An Act relating to residency requirements for public school enrollment for certain children of active duty military and National Guard members." 4:03:40 PM REPRESENTATIVE GABRIELLE LEDOUX Alaska State Legislature, Juneau, Alaska, sponsor of HB 109, stated that this bill allows military families to enroll their school-age children in school districts throughout the state once their parents have been issued orders to relocate to Alaska. This is particularly important to students in high school where classes required for graduation fill rapidly. It is also important when enrolling a student in a charter school, which is done through lotteries well before the start of school. HB 109 also gives parents 10 days after their children have started school to prove residency in the district. She noted that the Department of Defense (DoD) was trying to get similar legislation passed in all 50 states. 4:06:13 PM SENATOR COSTELLO asked what the enrollment timeline is in the Anchorage School District for charter schools and language immersion schools and how all districts would handle the first round of lotteries when some of the applicants were not in the state. She expressed interest in having one of the larger school districts or an education association comment on the bill at the next hearing. CHAIR REVAK asked Ms. Teshner to respond to the question. 4:07:22 PM HEIDI TESHNER, Director, Division of Finance and Support Services, Department of Education and Early Development (DEED), Juneau, Alaska, stated that she would work with the charter school coordinator and provide that information to the committee. SENATOR COSTELLO distinguished between a charter and a lottery. She expressed interest in the logistics of moving students on and off the waitlists as schools go through the process of putting a class together. REPRESENTATIVE LEDOUX opined that it would not be any more difficult to contact families that are out of state than if they were down the block because the communication would be via telephone or email. CHAIR REVAK said his concerns with the bill were quelled when he read that the military families would not enroll their students until their orders to relocate were issued. 4:09:48 PM SENATOR KAWASAKI noted that the packets have a May 14, 2019 letter from the Anchorage School District stating support for the bill but it does not mention charter schools or the lottery system. He asked how the average daily membership numbers are calculated and if this would have an impact on that calculation. MS. TESHNER advised that the four-week count period ends the fourth week in October. Those numbers fluctuate throughout the year as students move in and out and between school districts but the gains and losses tend to average out. All students counted during the October count period would be counted in the average daily membership (ADM) that is funded through the foundation formula. 4:11:45 PM SENATOR KAWASAKI asked if the student has to be in their seat in the district by the last day in the count period in October to be counted. MS. TESHNER responded it is a membership so the student only has to be enrolled during the count period. SENATOR KAWASAKI asked if a student would be counted if they were enrolled but not in the state on the last day of the count period in October. MS. TESHNER replied a student is counted if their enrollment paperwork is on file with the district. 4:12:50 PM SENATOR KAWASAKI said he and Senator Coghill have a large military contingent that will arrive in Fairbanks at an odd time next year so it is important to know how that will impact the average daily membership (ADM). SENATOR COGHILL said he believes this is a good policy call and many of the education questions will be addressed in the Education Committee. He added that it is clear that a student will be considered a resident when they apply and the family can submit the proof of residency 10 days after they [start school]. He said the Education Committee may discuss a true-up count during the year because villages and the military can have a very large impact on schools. CHAIR REVAK said it is a good point that the bill has a further referral. 4:15:21 PM SENATOR COSTELLO said she appreciates the intent of the legislation but she believes the residency question should be clarified because it could raise issues with the permanent fund dividend. CHAIR REVAK said his office was informed that this would not affect any other agencies. He opined that the operative language is that "a school district shall consider a student to be a resident." 4:16:58 PM At ease 4:18:41 PM CHAIR REVAK reconvened the meeting and asked Ms. Tuck to discuss the residency aspect of the bill. 4:18:48 PM DENEEN TUCK, Staff, Representative Gabrielle LeDoux, Alaska State Legislature, Juneau, Alaska, explained that the residency requirements for the permanent fund dividend would not affect SB 177 because the permanent fund rules are specific about when one has to be in the state to qualify for a PFD. For example, the school would count a student as a resident if they were here in October but they could not qualify for a dividend until they had lived in the state from January through December of the following year. The requirement is a full calendar year. 4:19:44 PM SENATOR COSTELLO suggested that a letter from the Permanent Fund Dividend Division that supports what was said in committee should travel with the bill. SENATOR KAWASAKI reviewed the residency requirements for a PFD in Title 43 and said he was comfortable with the residency issue in the bill. SENATOR WILSON said he would like to move to an average base count for schools instead of a date count. 4:22:03 PM MS. TUCK told Senator Coghill that she would give him the information the House Education Committee discussed about the ADM before the bill is heard in the Senate Education Committee. CHAIR REVAK advised that a response from the Permanent Fund Dividend Division was being distributed. Their perspective is that the bill does not present a residency issue for the PFD. 4:22:59 PM SENATOR COGHILL suggested the committee accept the offer from the sponsor to provide information about the ADM. 4:23:19 PM CHAIR REVAK asked the sponsor to send the ADM information to his office. He stated that he would hold HB 109 for future consideration. 4:24:00 PM At ease 4:24:14 PM CHAIR REVAK reconvened the meeting and reviewed the schedule for the next meeting. 4:24:59 PM There being no further business to come before the committee, Chair Revak adjourned the Senate State Affairs Standing Committee meeting at 4:24 p.m.