Legislature(2023 - 2024)BELTZ 105 (TSBldg)

04/18/2024 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SCR 3 HOUSING SHORTAGE;PUBLIC-PRIV. PARTNERSHIP TELECONFERENCED
Moved SCR 3 Out of Committee
-- Public Testimony --
*+ HB 146 REGULATION OF FIREWORKS TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 265 CHILD SEXUAL ABUSE MATERIAL TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ HB 286 CRIME VICTIM RESTITUTION TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                HB 286-CRIME VICTIM RESTITUTION                                                                             
                                                                                                                                
4:23:38 PM                                                                                                                    
CHAIR  KAWASAKI   reconvened  the   meeting  and   announced  the                                                               
consideration of CS FOR HOUSE  BILL NO. 286(STA) "An Act relating                                                               
to victim restitution and compensation."                                                                                        
                                                                                                                                
4:24:02 PM                                                                                                                    
REPRESENTATIVE   JULIE  COULOMBE,   District  11,   Alaska  State                                                               
Legislature,  Juneau, Alaska,  sponsor of  HB 286.  She delivered                                                               
the sponsor statement:                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       Sponsor Statement                                                                                      
                HB 286  Crime Victim Restitution                                                                              
                         (33-LS1012\S)                                                                                        
                                                                                                                                
     House Bill  286 seeks  to make  a clarification  in the                                                                    
     current  Alaska  statute regarding  victim  restitution                                                                    
     for  crimes.  Currently,  AS  12.55.045(a)  allows  the                                                                    
     court  to order  a defendant  convicted of  a crime  to                                                                    
     make  restitution  to  the victim  of  that  crime  for                                                                    
     injuries  related to  counseling,  medical, or  shelter                                                                    
     services. However,  the statute  does not  provide much                                                                    
     clarity  on  what  type   of  services  would  qualify,                                                                    
     resulting   in  fewer   prosecutors  asking   for  that                                                                    
     particular type  of restitution.  HB 286  would clarify                                                                    
     that   lost    income,   child   care,    elder   care,                                                                    
     transportation, or  any other expenses  incurred during                                                                    
     the victim's  participation in legal action  related to                                                                    
     the case  (such as  the investigation  or prosecution),                                                                    
     would be eligible for restitution.                                                                                         
                                                                                                                                
     HB  286  will  strengthen  the ability  of  victims  to                                                                    
     receive compensation  for costs  related to  their time                                                                    
     spent  in  court,  and  make   it  more  difficult  for                                                                    
     convicted defendants to  appeal restitution payment for                                                                    
     the  costs that  their  actions have  inflicted on  the                                                                    
     victim.   This  is   particularly  relevant   to  cases                                                                    
     involving  domestic violence,  as  the continuation  of                                                                    
     court  cases  involving  restitution can  result  in  a                                                                    
     perpetuation of the cycle of abuse.                                                                                        
                                                                                                                                
REPRESENTATIVE  COULOMBE  noted  that   HB  286  originated  from                                                               
discussions  with  the  Office  of  Victims'  Rights  during  the                                                               
interim.  The  office  had  expressed  frustrations  in  securing                                                               
specific  restitution for  victims,  leading to  the creation  of                                                               
this legislation.  She said  her office  worked closely  with the                                                               
Department  of Law  (DOL) and  the  courts to  refine the  bill's                                                               
language. She added that representatives  from DOL and the courts                                                               
were present to  answer questions from the  committee. She shared                                                               
that   her  staff   member,  Jordan   Wright,  could   deliver  a                                                               
presentation or  a sectional analysis  of the bill,  depending on                                                               
the chair's preference.                                                                                                         
                                                                                                                                
4:25:39 PM                                                                                                                    
JORDAN  WRIGHT,  Staff,  Representative  Julie  Coulombe,  Alaska                                                               
State Legislature, Juneau, Alaska, presented  on HB 286. He moved                                                               
to slide  2 and  described the Office  of Victims'  Rights, which                                                               
operates similarly to  an inspector general's office.  As part of                                                               
the  legislative  branch,  it  is  designed  to  avoid  potential                                                               
conflicts  with other  state offices.  He described  the office's                                                               
role in  advocating for  victims in  court and  investigating any                                                               
complaints  they  have.  The  office  collaborates  with  various                                                               
criminal justice  organizations to gather and  share information.                                                               
He  clarified  that  the  Office of  Victims'  Rights  is  funded                                                               
through  forfeited  Permanent  Fund Dividend  (PFD)  checks  from                                                               
convicted criminals, as outlined in AS 43.23.005.                                                                               
                                                                                                                                
4:26:42 PM                                                                                                                    
MR. WRIGHT moved  to slide 3 and described  statute changes under                                                               
HB 286.  He explained  that HB  286 aims  to clarify  the current                                                               
statute, making it easier for  prosecutors to secure compensation                                                               
for  victims   for  various  expenses   incurred  due   to  their                                                               
involvement  in legal  proceedings.  These  expenses may  include                                                               
lost income,  childcare, transportation, or any  costs related to                                                               
attending court or participating in an investigation.                                                                           
                                                                                                                                
4:27:13 PM                                                                                                                    
MR. WRIGHT  moved to slide  4 and read the  intent of HB  286. He                                                               
said  the purpose  of the  language in  HB 286  is to  strengthen                                                               
victims'  ability  to  request   compensation  for  these  costs,                                                               
thereby  ensuring  they are  not  financially  burdened by  their                                                               
involvement in the criminal justice process.                                                                                    
                                                                                                                                
4:27:41 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  if there is a  current definition for                                                               
restitution in existing law.                                                                                                    
                                                                                                                                
4:27:49 PM                                                                                                                    
REPRESENTATIVE  COULOMBE expressed  her belief  that there  is an                                                               
existing definition  in current law.  However, she deferred  to a                                                               
representative from  the Department of  Law to respond  to ensure                                                               
accuracy.                                                                                                                       
                                                                                                                                
4:28:15 PM                                                                                                                    
SENATOR CLAMAN shared his appreciation  for the intent of HB 286,                                                               
noting  that  it  aligns  with  what  he  frequently  hears  from                                                               
victims. He emphasized that while  victims often seek resolution,                                                               
many  express  dissatisfaction   with  the  current  compensation                                                               
process. However,  even with forfeited PFD  funds from prisoners,                                                               
the   compensation   victims   receive  does   not   meet   their                                                               
expectations.  Victims often  hope for  restitution to  make them                                                               
whole,  but their  experiences often  fall  short. Some  victims,                                                               
after  spending  significant  time   and  effort  navigating  the                                                               
system, end  up with minimal compensationsometimes   as little as                                                               
$500 to $1,500. He recalled  speaking with Angela Harris, a woman                                                               
who was  stabbed at a library,  and how she received  only $2,200                                                               
to  $3,200  from the  Office  of  Victims' Rights.  He  expressed                                                               
concern  that   the  system  creates   a  false   expectation  of                                                               
restitution  that   cannot  truly   address  the   financial  and                                                               
emotional losses  victims face.  He expressed strong  support for                                                               
the legislation  but raised  concerns about  the gap  between the                                                               
system's  promises and  the actual  support  victims receive.  He                                                               
wondered why, in the current  economic climate, the system is not                                                               
capable of fully compensating victims for their losses.                                                                         
                                                                                                                                
4:30:25 PM                                                                                                                    
REPRESENTATIVE  COULOMBE acknowledged  the concerns  raised about                                                               
victim  compensation  and  restitution. She  explained  that  the                                                               
issue had  been discussed extensively, especially  in relation to                                                               
the  changes within  DPS. She  said she  became involved  in this                                                               
matter due  to her role as  the subcommittee chair for  DPS. As a                                                               
result, she  started researching the various  victim services the                                                               
department  was  addressing,   particularly  focusing  on  victim                                                               
restitution   and   related   challenges.  DPS   was   undergoing                                                               
significant restructuring,  including the creation of  a separate                                                               
division focused  specifically on  victimization. This  was aimed                                                               
at addressing some of the  gaps in victim services, including the                                                               
process for  accessing restitution.  However, she  confirmed that                                                               
there  are still  limitations  on the  available  funds and  that                                                               
victims  often  face  significant  barriers  in  accessing  these                                                               
resources. She acknowledged  that there are strict  limits on the                                                               
compensation that can  be requested, which vary  depending on the                                                               
type of  crime. While  DPS is actively  working to  improve these                                                               
processes, the  Office of  Victims' Rights  expressed frustration                                                               
over the  inability to even get  the ball rolling in  some cases.                                                               
Some requests  for compensation were  either being denied  or not                                                               
even considered,  further complicating the situation.  She agreed                                                               
that the  funding for victim  compensation needs to  be corrected                                                               
and  that ongoing  efforts to  improve  the system  are still  in                                                               
progress.                                                                                                                       
                                                                                                                                
4:31:54 PM                                                                                                                    
SENATOR CLAMAN  spoke to  the Office of  Victims' Rights  role as                                                               
part of the  legislative branch. He reflected on  the decision to                                                               
place the office  within the legislative branch,  noting his lack                                                               
of  involvement  in  that  decision. He  also  reflected  on  the                                                               
challenges facing public safety  in Alaska, particularly in rural                                                               
areas,  which experience  some  of the  highest  rates of  sexual                                                               
abuse and assault  in the country. He stressed  the importance of                                                               
increased resources  for public  safety, specifically  to enhance                                                               
investigations and  prosecutions of perpetrators. He  pointed out                                                               
that while victim compensation is  crucial, victims often express                                                               
frustration  with the  lack of  progress in  holding perpetrators                                                               
accountable.  Given   the  limited  budget,  he   said  he  would                                                               
prioritize allocating more funds  to public safety and increasing                                                               
resources for  DPS to bolster  investigations. He  expressed that                                                               
if  he  had to  choose  between  allocating additional  funds  to                                                               
victim  restitution   and  more  resources  for   DPS,  he  would                                                               
prioritize the latter.                                                                                                          
                                                                                                                                
4:33:39 PM                                                                                                                    
REPRESENTATIVE  COULOMBE highlighted  recent  efforts to  address                                                               
public  safety and  victim  compensation,  particularly in  rural                                                               
Alaska.  She  shared  that  her subcommittee  in  the  House  has                                                               
advocated  for   substantial  increases   in  funding   for  DPS,                                                               
including the  addition of 10  new Public Safety  Officers (PSOs)                                                               
and new  investigators dedicated  to tackling sexual  assault and                                                               
sex  crimes. These  efforts stemmed  from  feedback and  requests                                                               
from  the  public,  emphasizing  the  pressing  need  to  enhance                                                               
investigations in rural areas. She  spoke to the current state of                                                               
victim restitution,  noting that much  of the funding  comes from                                                               
permanent   contracts   from    incarcerated   individuals,   but                                                               
questioned  whether  this is  the  best  long-term solution.  She                                                               
suggested  that  alternative  sources for  restitution  could  be                                                               
explored. The Victim Crime Compensation  Board has been improving                                                               
its  processes  by  adding  staff,   which  has  led  to  greater                                                               
efficiency  and  a more  streamlined  system.  While funding  was                                                               
previously  not   seen  as  the   primary  issue,  there   was  a                                                               
significant need for more personnel  to manage restitution claims                                                               
effectively. Both the conviction  process and victim compensation                                                               
efforts are being actively addressed.                                                                                           
                                                                                                                                
4:35:10 PM                                                                                                                    
SENATOR  WIELECHOWSKI  cited  AS   12.55.045  (a),  line  10;  he                                                               
requested a definition of "other person."                                                                                       
                                                                                                                                
4:35:34 PM                                                                                                                    
REPRESENTATIVE   COULOMBE   discussed  restitution   eligibility,                                                               
specifically  the  language  that   allows  the  court  to  order                                                               
restitution when credible evidence  is presented. HB 286 includes                                                               
provisions   for   victims  as   well   as   public  or   private                                                               
organizations, such  as those  providing counseling,  medical, or                                                               
shelter services for the victim.  She expressed concern about the                                                               
interpretation of  the law and  the potential inclusion  of those                                                               
directly  affected  by  the  crime, such  as  family  members  of                                                               
victims. She acknowledged that she is  not a lawyer but wanted to                                                               
highlight the  need for clarity  around the scope  of individuals                                                               
or entities eligible for restitution under the bill.                                                                            
                                                                                                                                
4:36:58 PM                                                                                                                    
SENATOR CLAMAN asked why AS  12.55.045 (a), lines 6-7 exclude any                                                               
mention of the loss of income.                                                                                                  
                                                                                                                                
REPRESENTATIVE COULOMBE asked him to clarify his question.                                                                      
                                                                                                                                
4:37:34 PM                                                                                                                    
SENATOR  CLAMAN asked  for clarification  on the  use of  capital                                                               
letters and brackets to indicate  text that is being removed from                                                               
existing statute.  He inquired why certain  provisions were being                                                               
removed  and   expressed  concern  about  the   impact  of  these                                                               
deletions.                                                                                                                      
                                                                                                                                
4:37:41 PM                                                                                                                    
REPRESENTATIVE  COULOMBE  explained  that   the  issue  with  the                                                               
statutory language, which was indicated  with capital letters and                                                               
brackets, stemmed  from a  mistake in a  previous version  of the                                                               
bill.  She  clarified that  the  error  had been  identified  and                                                               
corrected during the House State Affairs committee process.                                                                     
                                                                                                                                
CHAIR KAWASAKI  confirmed that the  correct version of HB  286 is                                                               
the "S"  version, which does  not contain the  statutory language                                                               
error.                                                                                                                          
                                                                                                                                
4:38:24 PM                                                                                                                    
CHAIR KAWASAKI announced invited testimony for HB 286.                                                                          
                                                                                                                                
4:38:45 PM                                                                                                                    
KATHY HANSEN,  Senior Staff Attorney,  Office of  Victims' Rights                                                               
(OVR),  Anchorage,  Alaska, invited  testimony  for  HB 286.  She                                                               
noted  that she  has  served as  an attorney  for  the Office  of                                                               
Victims' Rights for the past  20 years. She outlined the proposed                                                               
changes  to  the  restitution  statute  in  HB  286,  which  were                                                               
requested  by OVR.  She  noted that  OVR  attorneys assist  crime                                                               
victims   by   providing   legal  representation,   advising   on                                                               
restitution  claims,  and  helping  resolve  any  legal  disputes                                                               
regarding  restitution.  She  highlighted  two  recent  Court  of                                                               
Appeals cases  that raised questions  about whether  courts could                                                               
award  restitution for  lost wages  victims incur  when attending                                                               
criminal  court  proceedings: Keane  Smith  v.  State (2022)  and                                                               
Sealy v. State (2023). These  cases brought uncertainty regarding                                                               
victims' rights to compensation for  lost wages due to attendance                                                               
at court proceedings.                                                                                                           
                                                                                                                                
MS.  HANSEN said  that HB  286  seeks to  explicitly affirm  that                                                               
victims  are  entitled to  restitution  for  lost wages  incurred                                                               
while  attending  court  hearings  related  to  the  crime.  This                                                               
provision  would not  require additional  funding,  as it  simply                                                               
ensures the court  can award restitution for such  losses as part                                                               
of  the judgment  against  the defendant.  The  bill would  track                                                               
existing federal  law on  restitution for  criminal cases  and is                                                               
intended to  provide clear guidelines for  judges and prosecutors                                                               
in Alaska.  It aims  to create  uniformity and  predictability in                                                               
restitution   awards  and   ensure   that   victims  are   fairly                                                               
compensated for expenses that prevent  them from exercising their                                                               
constitutional   rights   to   attend  court   proceedings.   She                                                               
emphasized the  importance of passing  HB 286 to reduce  the need                                                               
for  victims to  litigate these  restitution issues  and to  save                                                               
court  resources. She  also referenced  a  recent Alaska  Supreme                                                               
Court decision,  Brennan Grubb  v. B (2024),  in which  the court                                                               
recognized the  legislature's trend in expanding  victims' rights                                                               
to restitution.  This decision further  underscores the  need for                                                               
clearer guidelines in HB 286.                                                                                                   
                                                                                                                                
4:43:14 PM                                                                                                                    
MS. HANSEN referenced the case  of the David Grunwald homicide as                                                               
an  example of  the  financial hardship  victims  may face  while                                                               
attending court hearings. Katie  Grunwald, David's mother, had to                                                               
attend numerous  court hearings  over a period  of more  than two                                                               
years  involving multiple  co-defendants. During  this time,  she                                                               
incurred lost wages,  which should be recognized  as a legitimate                                                               
claim  for  restitution.  She  addressed  a  question  raised  by                                                               
Senator  Claman about  funding, clarifying  that the  funding for                                                               
OVR  primarily  comes  from  the   forfeited  PFDs  of  convicted                                                               
criminals. She noted that the  OVR's entire operating budget is a                                                               
small fractionabout 1 percent or lessof this pot of money.                                                                      
                                                                                                                                
4:44:15 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked for  clarification on  the procedural                                                               
process  of restitution,  noting that  it seems  to be  a heavily                                                               
litigated area.  He asked if  it was correct  to say that  when a                                                               
victim is  harmed by  a crime,  they would  first go  through the                                                               
conviction process,  and then  the victim  would need  to provide                                                               
evidence  of  the  damages  they've suffered.  He  asked  if  the                                                               
purpose  of HB  286 is  to  define what  restitution victims  are                                                               
entitled to.                                                                                                                    
                                                                                                                                
4:44:44 PM                                                                                                                    
MS. HANSEN explained  that after the defendant  is sentenced, the                                                               
victim would have  the opportunity to submit  documentation and a                                                               
total  amount  requested  for  restitution  to  the  prosecutor's                                                               
office. This  information would be  shared with the  defense, who                                                               
has 30  days to  object. If  no agreement  is reached,  a hearing                                                               
would be  scheduled where  the victim  would provide  live, sworn                                                               
testimony  in   court  with  the  defendant   present,  answering                                                               
questions about their  losses. The court would then  make a final                                                               
decision on the restitution award.                                                                                              
                                                                                                                                
4:45:24 PM                                                                                                                    
SENATOR  WIELECHOWSKI inquired  whether  restitution for  victims                                                               
typically  covers  only  specific   expenses  like  lost  income,                                                               
childcare, elder  care, transportation, and other  similar costs.                                                               
He  asked if  there have  been any  instances in  the past  where                                                               
courts ordered restitution for pain  and suffering or other types                                                               
of damages.                                                                                                                     
                                                                                                                                
4:45:50 PM                                                                                                                    
MS. HANSEN clarified that under  current Alaska law, non-economic                                                               
damages such  as punitive damages  and pain and  suffering, which                                                               
may be awarded  in a civil case, are not  permitted in a criminal                                                               
case.  Therefore, only  economic  damages, such  as lost  income,                                                               
childcare,  and  other  related   expenses,  can  be  ordered  in                                                               
criminal cases.                                                                                                                 
                                                                                                                                
4:46:09 PM                                                                                                                    
SENATOR WIELECHOWSKI  posed a hypothetical  scenario in  which an                                                               
individual  is a  victim of  assault,  unable to  work for  three                                                               
months, and  as a result,  their employer loses income.  He asked                                                               
whether the  employer would be  considered an "other  person" who                                                               
could apply for restitution under the current statute.                                                                          
                                                                                                                                
4:46:44 PM                                                                                                                    
MS.  HANSEN  replied that  theoretically,  an  employer could  be                                                               
considered an "other person" eligible  to request restitution for                                                               
financial losses, such as lost  income resulting from an assault.                                                               
She  clarified  that there  is  no  current legal  definition  of                                                               
"restitution" in  the Alaska statute.  The phrase  "other person"                                                               
in  AS 12.55.045  is meant  to include  individuals or  entities,                                                               
like insurance companies, that suffer  financial loss as a result                                                               
of  a  crime,  as  confirmed   by  appellate  case  law.  In  the                                                               
hypothetical  scenario presented,  if  the  employer's claim  for                                                               
restitution was  contested by the  defendant, the  employer would                                                               
need to  litigate the issue  in a restitution hearing,  where the                                                               
judge would  make the  final decision. She  noted that  OVR would                                                               
not  represent  non-statutory  victims, meaning  they  would  not                                                               
assist  with litigation  involving  employers  or other  entities                                                               
seeking restitution.                                                                                                            
                                                                                                                                
4:47:42 PM                                                                                                                    
SENATOR   WIELECHOWSKI   expressed   concern  about   the   broad                                                               
definition  of   "other  person"  in  the   restitution  statute,                                                               
suggesting that it could lead  to unintended consequences such as                                                               
employers   or    insurance   companies    seeking   restitution,                                                               
potentially  crowding  out  compensation meant  for  victims.  He                                                               
cited the possibility  of a government entity claiming  a loss of                                                               
tax  revenue  due to  an  individual's  job loss.  He  questioned                                                               
whether there had been any  discussions about narrowing or better                                                               
defining  what   constitutes  an  "other  person"   eligible  for                                                               
restitution.                                                                                                                    
                                                                                                                                
4:48:29 PM                                                                                                                    
MS.  HANSEN responded  that in  her experience  over the  last 20                                                               
years, she has  not seen abuses of the  statute. She acknowledged                                                               
that  she sees  only a  small percentage  of cases  where victims                                                               
contact OVR  for legal representation. She  referenced a reported                                                               
decision  called 'LONIS,'  which addresses  whether an  insurance                                                               
company  could  seek  restitution,  and offered  to  provide  the                                                               
committee with the case for further review.                                                                                     
                                                                                                                                
CHAIR KAWASAKI requested that information in writing.                                                                           
                                                                                                                                
4:49:36 PM                                                                                                                    
CHAIR KAWASAKI  inquired whether  the list of  restitution items,                                                               
such as  compensation for  lost income,  child care,  elder care,                                                               
and transportation, could be considered  an exclusive list rather                                                               
than an inclusive  one. He expressed concern that  a more general                                                               
definition of  restitution might be better  than specifying these                                                               
particular items,  as there could  be other types  of restitution                                                               
that are not currently considered.  He suggested that the law may                                                               
need  to be  revisited in  the future  to address  any unforeseen                                                               
expenses.                                                                                                                       
                                                                                                                                
4:50:18 PM                                                                                                                    
MS. HANSEN explained  that the reason the  restitution items were                                                               
specifically outlined  in HB  286 was to  align with  the federal                                                               
statute, allowing for the use  of reported decisions from federal                                                               
jurisdictions  as a  guide  for Alaska  courts.  This would  help                                                               
apply victim restitution law  uniformly, potentially saving money                                                               
and resources.  The phrase  "including, but  not limited  to" had                                                               
been considered  to address any  potential gaps in the  list, but                                                               
it  was ultimately  excluded after  legal  review. She  suggested                                                               
that the sponsors  might be able to provide  further insight into                                                               
that decision.                                                                                                                  
                                                                                                                                
4:51:11 PM                                                                                                                    
REPRESENTATIVE  COULOMBE  replied  that  she does  not  have  any                                                               
additional information to provide.                                                                                              
                                                                                                                                
4:51:29 PM                                                                                                                    
CHAIR KAWASAKI opened public testimony on HB 286.                                                                               
                                                                                                                                
4:51:56 PM                                                                                                                    
BRENDA STANFILL, representing  self, Anchorage, Alaska, testified                                                               
in support of HB 286. She  said she is the Executive Director for                                                               
the  Alaska  Network  on Domestic  Violence  and  Sexual  Assault                                                               
(ANDVSA), which  represents 24 member programs  across the state,                                                               
direct  services  for victims  of  domestic  violence and  sexual                                                               
assault.  She shared  her experience  as a  member of  the Alaska                                                               
Criminal Justice  Commission, noting the challenges  victims face                                                               
in  the criminal  justice system.  While the  1994 constitutional                                                               
amendment granted  victims the right to  receive restitution from                                                               
offenders,  the  current  law  lacks  clarity  on  what  expenses                                                               
qualify  for restitution.  This ambiguity  has created  confusion                                                               
for both victims and prosecutors.  HB 286 would help address this                                                               
by clearly  outlining expenses such  as lost income,  child care,                                                               
elder   care,   transportation,   and  other   necessary   costs,                                                               
particularly  those  related   to  attending  court  proceedings.                                                               
Studies  show   restitution  helps  reduce  long-term   harm  for                                                               
victims,  fosters trust  in the  justice  system, and  encourages                                                               
future crime reporting.  She urged support for HB  286 to provide                                                               
clear  guidance  on  what   constitutes  restitution  in  Alaska,                                                               
ensuring victims are properly compensated.                                                                                      
                                                                                                                                
4:55:26 PM                                                                                                                    
CHAIR KAWASAKI closed public testimony on HB 286.                                                                               
                                                                                                                                
4:55:45 PM                                                                                                                    
SENATOR CLAMAN inquired  about the amount of  restitution paid in                                                               
Alaska, asking  for data on  how much is collected  annually, how                                                               
much is  paid out, and  how many individuals  receive restitution                                                               
payments.                                                                                                                       
                                                                                                                                
4:55:59 PM                                                                                                                    
MS.  MEADE  said the  court  collects  restitution on  behalf  of                                                               
victims,  with   a  small  team  in   the  administrative  office                                                               
dedicated  to this  task  full-time. She  explained  that when  a                                                               
defendant is  incarcerated, no restitution can  be collected from                                                               
their PFD because it is redirected  to a different state fund. As                                                               
a result,  restitution cannot be  collected from  an incarcerated                                                               
individual's  PFD  until  they are  released.  Some  incarcerated                                                               
individuals  may  earn small  amounts  through  prison jobs,  and                                                               
occasionally,  those   earnings  are   sent  to  the   court  for                                                               
restitution payments, but this does  not significantly impact the                                                               
overall collection process. Restitution  is more commonly paid in                                                               
cases  involving  crimes such  as  guiding  or fishing  offenses,                                                               
where the  defendants generally have more  financial means, while                                                               
restitution from  defendants incarcerated for crimes  under Title                                                               
11  is more  challenging. She  provided data  from the  last five                                                               
years, stating  that around 1,500 restitution  orders totaling $7                                                               
million were issued, but only  about $2.5 million, or 36 percent,                                                               
was collected and  paid to victims. The collection  rate for 2023                                                               
has been  lower, at 13 percent,  but she expects this  to rise as                                                               
defendants  are  released  from  prison  and  their  PFDs  become                                                               
available for garnishment.  Businesses, particularly Walmart, are                                                               
the most frequent  recipients of restitution due  to theft cases.                                                               
The second-largest  recipient is the Violent  Crimes Compensation                                                               
Board (VCCB),  which provides  immediate financial  assistance to                                                               
victims before  restitution is fully  paid. Other  entities, such                                                               
as  the  Department  of  Health and  Social  Services  (DHSS)  in                                                               
Medicaid fraud  cases, and insurance  companies like  State Farm,                                                               
also receive restitution.                                                                                                       
                                                                                                                                
5:02:02 PM                                                                                                                    
SENATOR CLAMAN  asked if there  is any estimate of  the resources                                                               
spent by the court, public  defenders, and prosecutors to collect                                                               
the $2.5  million in restitution, not  including private counsel.                                                               
He asked how much is being  invested in terms of court and public                                                               
resources to collect restitution,  given the total amount ordered                                                               
versus what has actually been collected.                                                                                        
                                                                                                                                
5:02:31 PM                                                                                                                    
MS. MEADE replied  that the process of  collecting restitution is                                                               
quite efficient. She  explained that the public  defender and the                                                               
state prosecutor are  not involved in this process.  In the past,                                                               
the  collections  unit  within  DOL  handled  it,  but  that  was                                                               
dissolved  around  six or  seven  years  ago.  With no  one  else                                                               
handling restitution collections, the  court made the decision to                                                               
dedicate one and a half staff  members to ensure that victims are                                                               
able  to  collect  their  restitution.  This  is  considered  the                                                               
primary cost of fulfilling these  orders. The court uses a global                                                               
writ to  the PFD  and has  established a system  with the  PFD to                                                               
facilitate garnishments for restitution collections.                                                                            
                                                                                                                                
5:03:23 PM                                                                                                                    
SENATOR CLAMAN  asked if it is  fair to say that,  as a practical                                                               
matter, the  compensation for being a  victim of a crime  may not                                                               
be large  in the grand scheme  of things, but at  least the state                                                               
is  getting a  good  return  on its  investment  to collect  that                                                               
money.  He  added  that  while  the  compensation  might  not  be                                                               
significant, the  state is not  spending a large amount  of money                                                               
to collect it.                                                                                                                  
                                                                                                                                
5:03:45 PM                                                                                                                    
MS.  MEADE replied  that she  understands what  he is  saying and                                                               
agrees with  the sentiment.  The court system  is quite  proud of                                                               
its ability  to provide this  service with just 1.5  persons. She                                                               
added that  the hardest part of  the process is keeping  track of                                                               
the victims' addresses.                                                                                                         
                                                                                                                                
5:04:03 PM                                                                                                                    
CHAIR KAWASAKI asked how much  money other persons get versus the                                                               
victim of the potential crime like Walmart.                                                                                     
                                                                                                                                
5:04:30 PM                                                                                                                    
MS. MEADE explained  that Walmart would be  considered the victim                                                               
of  theft because  they  are  the ones  who  absolutely lost  the                                                               
money. The term "other person"  was added by the legislature when                                                               
they passed the statute. This  was discussed in the loan-in-case,                                                               
as  the  legislature's  intent  was to  ensure  that  anyone  who                                                               
suffered in any  way due to the crime could  be reimbursed by the                                                               
defendant, to the  extent that economic damage  had occurred. The                                                               
damage  caused by  the  crime must  be related  to  it, and  this                                                               
principle  was further  clarified  in the  case  that Ms.  Hansen                                                               
referred to. This  case, which was recently  decided, refined the                                                               
statute  and highlighted  that the  damage must  be a  reasonably                                                               
foreseeable  consequence   of  the   crime.  For   example,  when                                                               
someone's  legs are  broken, it  is  reasonably foreseeable  that                                                               
they might incur  medical bills, and the  insurance company might                                                               
have to cover  the costs. These are all  compensable damages, and                                                               
Lowe's  would  be the  direct  victim  of  the  theft in  such  a                                                               
situation. The  state is  considered a  direct victim  if someone                                                               
commits  Medicaid  fraud and  takes  state  funds that  were  not                                                               
theirs.  From   her  understanding,  "other  person"   is  simply                                                               
intended to ensure  that the statute does not  exclude anyone who                                                               
has suffered as a result of the crime.                                                                                          
                                                                                                                                
5:05:47 PM                                                                                                                    
CHAIR  KAWASAKI asked  for more  information  regarding how  much                                                               
money the "other persons" receive  compared to the actual victims                                                               
of  the potential  crime. He  referenced Walmart  and Sportsman's                                                               
Warehouse as  examples, noting that these  entities often receive                                                               
restitution.  He  asked  for  a broad  explanation  of  how  this                                                               
process works.                                                                                                                  
                                                                                                                                
5:06:14 PM                                                                                                                    
MS.  MEADE replied  that Walmart  and  Sportsman's Warehouse,  as                                                               
businesses,  are considered  the victims  in cases  of theft,  as                                                               
they  are  the  ones  who  lost the  money.  The  "other  person"                                                               
category was added  by the legislature to ensure  that anyone who                                                               
suffers due  to a  crime, in  any way, can  be reimbursed  by the                                                               
defendant  for  economic  damages.  This  includes  victims  like                                                               
insurance  companies,  which may  cover  medical  costs or  other                                                               
expenses  related to  the crime.  She  noted that  a recent  case                                                               
refined this  understanding, clarifying that the  damages must be                                                               
a reasonably  foreseeable consequence of the  crime. For example,                                                               
if  someone  is  injured,  it's  foreseeable  that  an  insurance                                                               
company might have to pay  medical expenses, making them eligible                                                               
for  restitution.  The "other  person"  designation  is meant  to                                                               
include all parties  that have suffered economic harm  due to the                                                               
crime,   ensuring  that   no  one   is   excluded  from   seeking                                                               
restitution.                                                                                                                    
                                                                                                                                
5:07:17 PM                                                                                                                    
REPRESENTATIVE COULOMBE  noted that  she did  not put  forth this                                                               
bill forward to resolve all  restitution issues in the state. She                                                               
suggested that this is one step the state could take.                                                                           
                                                                                                                                
5:07:41 PM                                                                                                                    
SENATOR  WIELECHOWSKI asked  whether restitution  to a  victim or                                                               
another   person   injured  by   the   offense   is  limited   to                                                               
compensation.  He referenced  a previous  question, inquiring  if                                                               
restitution  only  covers  compensation  or if  it  could  extend                                                               
beyond that.                                                                                                                    
                                                                                                                                
5:07:59 PM                                                                                                                    
REPRESENTATIVE COULOMBE deferred to  a representative from DOL to                                                               
respond.                                                                                                                        
                                                                                                                                
SENATOR WIELECHOWSKI suggested that HB 286 would be litigated.                                                                  
                                                                                                                                
REPRESENTATIVE  COULOMBE   explained  that  restitution   is  not                                                               
limited to the  listed forms of compensation, despite  the use of                                                               
the  term   "limited  to."   She  noted   that  there   had  been                                                               
conversations  in  the  other   legislative  chamber  about  this                                                               
interpretation. Based on her  understanding, the original statute                                                               
was too broad, leading to  significant issues with requests being                                                               
made repeatedly.  The items  listed in  the revised  statute were                                                               
meant  to clarify  and specify  the scope  of restitution  rather                                                               
than impose strict limitations.                                                                                                 
                                                                                                                                
5:08:58 PM                                                                                                                    
SENATOR WIELECHOWSKI sought  clarification on whether restitution                                                               
could cover compensation for lost  income, childcare, elder care,                                                               
transportation, and potentially more.                                                                                           
                                                                                                                                
5:09:07 PM                                                                                                                    
REPRESENTATIVE COULOMBE replied yes.                                                                                            
                                                                                                                                
5:09:10 PM                                                                                                                    
SENATOR  WIELECHOWSKI asked  if  "compensation for  the value  of                                                               
lost  income" applies  broadly  to  all lost  income  or only  to                                                               
income lost  during the victim's or  other person's participation                                                               
in  the investigation  or prosecution.  He pointed  out that  the                                                               
wording  could  be interpreted  in  two  ways and  asked  whether                                                               
expenses  such as  childcare are  covered comprehensively  due to                                                               
the offense or only if  they are incurred during participation in                                                               
the investigation or prosecution.                                                                                               
                                                                                                                                
5:09:58 PM                                                                                                                    
REPRESENTATIVE  COULOMBE asked  for  clarification regarding  his                                                               
question about litigation.                                                                                                      
                                                                                                                                
5:10:10 PM                                                                                                                    
SENATOR  WIELECHOWSKI asked  for clarification  using an  example                                                               
involving childcare expenses. He  inquired whether a victim could                                                               
receive  restitution  for  the   full  two  months  of  childcare                                                               
expenses  incurred  as  a  result  of  the  offense,  or  if  the                                                               
restitution would  only cover childcare expenses  incurred during                                                               
the   victim's   or   other   person's   participation   in   the                                                               
investigation, prosecution, or a  court proceeding related to the                                                               
offense.                                                                                                                        
                                                                                                                                
5:10:27 PM                                                                                                                    
REPRESENTATIVE   COULOMBE   clarified  her   understanding   that                                                               
restitution includes expenses related  to the litigation process.                                                               
She explained that if a person  is harmed and unable to take care                                                               
of their children, any childcare  expenses incurred for attending                                                               
the trial  or participating in  litigation would be  covered. She                                                               
said that all such related expenses would be included.                                                                          
                                                                                                                                
5:11:08 PM                                                                                                                    
CHAIR KAWASAKI held HB 286 in committee.                                                                                        

Document Name Date/Time Subjects
HB 146 Ver B.PDF SSTA 4/18/2024 3:30:00 PM
HB 146
HB146 Sectional Analysis Version B 5.8.23.pdf SSTA 4/18/2024 3:30:00 PM
HB 146
HB146 Summary of Changes Ver A to B 5.8.23.pdf SSTA 4/18/2024 3:30:00 PM
HB 146
HB0146 DPS Zero Fiscal Note.pdf SSTA 4/18/2024 3:30:00 PM
HB 146
HB 146 DPS Follow-Up.pdf SSTA 4/18/2024 3:30:00 PM
HB 146
HB 146 Transmittal Letter 03.28.23.pdf SSTA 4/18/2024 3:30:00 PM
HB 146
CSHB286 Additional Documents- Yani Morley Letter of Support.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
CSHB286 Bill Hearing Request 3.07.24.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
CSHB286 JUD-ACS 2.05.34.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
CSHB286 Sectional Analysis ver B 2.27.24.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
CSHB286 Sponsor Statement 2.08.24.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
CSHB286 Summary of Changes ver. B 2.27.24.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
CSHB286 ver B 2.28.24.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
HB286 ver A.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
Letter of Support ANDVSA HB 286.pdf SSTA 4/18/2024 3:30:00 PM
HB 286
HB 265 - JPD Letter of Support.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - v.B.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - Sectional Analysis.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - PowerPoint Presentation.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - Letters of Support & Back-Up Information.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - DOA-PDA Fiscal Note.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - DOA-OPA Fiscal Note.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - DPS-ASTD Fiscal Note.pdf SSTA 4/18/2024 3:30:00 PM
HB 265
HB 265 - DOL-CJL Fiscal Note.pdf SSTA 4/18/2024 3:30:00 PM
HB 265