04/06/1995 09:15 AM Senate FIN

                                                                               
       HOUSE BILL NO. 9                                                        
       "An Act relating to recovery of damages  from a minor's                 
  parent      or legal guardian when  property is destroyed by                 
  the minor."                                                                  
                                                                               
  Co-chair Halford invited  Representative Therriault to  join                 
  the committee.  Representative Therriault read the following                 
  statement:                                                                   
  "This victim's  rights legislation, which updates  a statute                 
  that  has  been on  the  books  since 1957,  is  intended to                 
  encourage responsibility among parents and  juveniles and to                 
  provide recourse  for victims who have lost  property. It is                 
  based on  the principal that the person having legal custody                 
  of  the  juvenile  who  caused   the  damage  is  monetarily                 
  responsible for the  loss.  This legislation  would increase                 
  the amount the victim may recover from $2,000 to $10,000.                    
                                                                               
  The  impetus  for the  interest in  this  bill is  partly an                 
  incident that occurred  last summer in which  vandals caused                 
  approximately $50,000 in damage to two schools in Fairbanks.                 
  Although the vandals  were caught,  the school district  was                 
  able  to recoup  only a  small fraction  of its loss.   This                 
  legislation  would ensure  that victims  of property  damage                 
  could recover a greater amount of their total loss.                          
                                                                               
  The bill was amended  by the Judiciary Committee to  add the                 
  words "as a result  of a knowing or intentional  act," which                 
  limits liability to damages that  were caused purposely, but                 
  includes unintentional  damages that  might be  caused as  a                 
  result of the intentional action.                                            
                                                                               
  The Committee  also added a  new section to  incorporate the                 
  intent of  House Bill  36.   It updates  the permanent  fund                 
  dividend law  that permits the  taking of  part or all  of a                 
  dividend to  satisfy a  judgment.  It  increases the  amount                 
  that can be recovered from a minor's permanent fund dividend                 
  for injury or  damage caused by  the minor from the  current                 
  $2,000  to  $10,000   to  maintain  the   parallel  recovery                 
  provision with the change being proposed in House Bill 9.                    
                                                                               
  The Finance Committee  further revised  the bill to  clarify                 
  that the legal custodian is relieved  of liability only if a                 
  run  away report is filed before  the damages are committed,                 
  and to limit liability to the responsible guardian."                         
                                                                               
                                                                               
  Representative Therriault  cited  the problems  of a  foster                 
  home situation.  Existing statute  limits, or precludes, any                 
  damages from being  assigned to  a foster parent  situation.                 
  When  a child is in foster care,  the facility is not liable                 
  for the damages incurred by the child.                                       
                                                                               
  There  was   extensive  discussion  regarding   the  various                 
  scenarios  of  responsibility  for  a  juvenile.  Discussion                 
  covered those parents who may have joint custody, one parent                 
  custody, visitation situations, and living with a non-family                 
  member.                                                                      
                                                                               
  Discussion  was  had with  Margot  Knuth, Department  of Law                 
  regarding the question of  custody. Rep. Therriault  brought                 
  attention   to  the  section   making  reference  the  legal                 
  guardian. He stated that the juvenile is always responsible.                 
  Under  the existing language,  the parent who  has taken the                 
  child in, would not be held liable because they are  not the                 
  legal custodian. When the child has run away, and the parent                 
  has  filed  a  run  away   report,  they  are  relieved   of                 
  responsibility.  The  person who has  taken them in, is  not                 
  held responsible.   The responsibility in this case would be                 
  the juvenile himself. The purpose of the bill is to strike a                 
  balance over the  control of the juvenile's  actions, giving                 
  the responsibility  back to the  person who  has raised  the                 
  child.                                                                       
                                                                               
  Senator Rieger suggested achieving  that balance by  leaving                 
  the language  as it is in Section  1, adding the clause that                 
  states, "the  person who  pays the  $10.0 has  the right  to                 
  recover from someone else maintaining the temporary custody.                 
  The court would  be the  one to decide  who is  responsible.                 
  This parallels the  strict liability laws.  Co-chair Halford                 
  stated that it could create going for the "deep pocket".  He                 
  stated his concern  regarding a difficult minor, who  may be                 
  in the custody  of one parent for  3 years and goes  back to                 
  the custody  of the other  parent and is  beyond discipline.                 
  The parent that tried the second  time, may not want to take                 
  the child back and assume the  possible $10.0 liability.  He                 
  asked  Rep. Therriault  to come  back to the  committee with                 
  language  defining  the  custody  issue which  protects  the                 
  innocent or non-responsible parent who  may have a liability                 
  that is not  intended.   Senator Sharp agreed  to help  Rep.                 
  Therriault on the  language.   No action was  taken and  the                 
  bill will be held.