03/29/2018 01:30 PM House FINANCE

HOUSE BILL NO. 216                                                                                                            
                                                                                                                                
     "An Act  relating to transfers from  the dividend fund;                                                                    
     creating the  restorative justice account;  relating to                                                                    
     appropriations  from  the restorative  justice  account                                                                    
     for  payments  for  and   services  to  crime  victims,                                                                    
     operating  costs  of  the Violent  Crimes  Compensation                                                                    
     Board,  operation  of   domestic  violence  and  sexual                                                                    
     assault programs, mental  health services and substance                                                                    
     abuse  treatment   for  offenders,   and  incarceration                                                                    
     costs; and providing for an effective date."                                                                               
                                                                                                                                
3:46:49 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  relayed  that  the bill  sponsor  was  not                                                                    
feeling  well.  The  committee would  only  be  hearing  the                                                                    
changes to the bill as shown in the committee substitute.                                                                       
                                                                                                                                
ERIC  CORDERO-GIORGANA,  STAFF, REPRESENTATIVE  CHUCK  KOPP,                                                                    
reviewed  the  changes  in   the  committee  substitute.  In                                                                    
Section 6, the minimum range  was lowered to total less than                                                                    
100  percent of  the full  amount.  The change  was made  to                                                                    
provide more  discretionary opportunity for  the legislature                                                                    
to appropriate  funds. He directed  attention to  table that                                                                    
showed changes in percentage ranges.  He expanded that there                                                                    
had  been  an  ongoing   conversation  with  the  Office  of                                                                    
Management  and Budget,  the  Legislative Finance  Division,                                                                    
and  several other  stakeholders to  formulate a  range that                                                                    
all the entities were comfortable with.                                                                                         
                                                                                                                                
Co-Chair Seaton asked for a presentation of the bill.                                                                           
                                                                                                                                
Mr. Cordero-Giorgana  reminded that  HB 216  established the                                                                    
Restorative Justice  Account. He  continued that  the second                                                                    
change would  change the  effective date  from July  2018 to                                                                    
January 2019.                                                                                                                   
                                                                                                                                
Co-Chair Seaton asked for more detail.                                                                                          
                                                                                                                                
Mr.  Cordero-Girogana   relayed  that   30  years   ago  the                                                                    
legislature had  established an account from  Permanent Fund                                                                    
Dividends  that no  longer belonged  to offenders.  The fund                                                                    
was designed  to help victims,  but over time the  funds had                                                                    
been used  for other things.  The original recipient  of the                                                                    
funds  was the  Violent Crimes  Compensation Board.  Most of                                                                    
the funds  currently went to  the Department  of Corrections                                                                    
to pay for inmate healthcare. The  intent of the bill was to                                                                    
set a priority list to put victims first.                                                                                       
                                                                                                                                
Mr. Cordero-Girogana continued that  the entities that could                                                                    
potentially receive  the funds was not  changing. The change                                                                    
was  a  list  of  percentages  and  priorities,  along  with                                                                    
discretion for  the legislature  to appropriate  those funds                                                                    
if they were available. Some  of the entities were no longer                                                                    
being funded  due to the  volatility of the  Permanent Fund.                                                                    
He  discussed the  gap in  compensation and  restitution. He                                                                    
spoke of the huge  backlog in court-ordered restitution. The                                                                    
majority  of victims  were owed  less than  $1000. The  bill                                                                    
added the  opportunity for  the legislature  to put  some of                                                                    
the money toward restitution through  the Office of Victim's                                                                    
Rights.                                                                                                                         
                                                                                                                                
Co-Chair  Seaton  would  have  the  bill  presented  by  the                                                                    
sponsor at a later time.                                                                                                        
                                                                                                                                
3:51:51 PM                                                                                                                    
                                                                                                                                
Representative  Wilson wanted  to  understand  Section 6  on                                                                    
page 5 and 6. She wondered if the percentages were added.                                                                       
                                                                                                                                
Mr. Cordero-Giorgana responded in  the affirmative and noted                                                                    
that there  had been  changes to the  ranges since  the last                                                                    
committee presentation.                                                                                                         
                                                                                                                                
Representative  Wilson  MOVED  to ADOPT  proposed  committee                                                                    
substitute for HB 216, Work Draft (30-LS0572\L).                                                                                
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Seaton wanted  to ensure  the public  was familiar                                                                    
with the version of the bill being considered.                                                                                  
                                                                                                                                
Representative   Kawasaki  asked   for   information  on   a                                                                    
memorandum that  discussed dedicated  funds. He  thought the                                                                    
percentages were  added to  address the  matter, but  he did                                                                    
not see the explanation.                                                                                                        
                                                                                                                                
Mr.   Cordero-Giorgana  would   make  sure   to  bring   the                                                                    
information back to the committee.                                                                                              
                                                                                                                                
Representative  Wilson  asked  about  the  percentages.  She                                                                    
thought the  percentages offset the  reason for the  list of                                                                    
priorities in the bill.                                                                                                         
                                                                                                                                
Mr.  Cordero-Giorgana referred  to a  memo from  Legislative                                                                    
Legal  Services  (copy  on  file).  It  indicated  that  the                                                                    
legislature  had the  discretion to  appropriate any  amount                                                                    
regardless of the percentage or  priority as proposed in the                                                                    
bill. He thought the language acted as a guideline.                                                                             
                                                                                                                                
Co-Chair  Seaton   noted  that  the   percentages  reflected                                                                    
historic use of the fund.                                                                                                       
                                                                                                                                
HB  216  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Seaton reviewed the agenda for the following day.