Legislature(2015 - 2016)BELTZ 105 (TSBldg)
02/19/2015 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB5 | |
| SB39 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 5 | TELECONFERENCED | |
| *+ | SB 39 | TELECONFERENCED | |
SB 5-RESTITUTION: PROPERTY AND INCOME LOSS
1:32:56 PM
CHAIR COSTELLO announced the consideration of SB 5. "An Act
relating to loss of income and valuing property for orders of
restitution."
1:33:31 PM
SENATOR PETER MICCICHE, sponsor of SB 5, described the
legislation as putting the rights of a victim of property theft
just ahead of the rights of the perpetrator. He related that the
Alaska Department of Public Safety (DPS) 2013 report shows that
Alaskans lost over $23 million due to property crime. This is an
increase of more than 12 percent from 2011. SB 5 seeks to
address this scourge by 1) strengthening restitution laws to
restore crime victims to a pre-crime condition; 2) clarifying in
statute that public policy favors having criminals compensate
victims for their loss, including loss of income; 3) defining
loss of income as the total loss of income a business or person
suffers as a result of not having the stolen property available
during the time it takes to obtain a replacement; and 4) giving
direction to the court in making determinations of loss for
restitution to value property as the market value of the
property. He provided an analogy of a roll of copper wire stolen
from the job site. The copper itself may cost $2,500, but it may
take another $10,000 to $20,000 in other costs before the
contractor is restored to a pre-offense condition.
SB 5 also addresses the decision in Lori Welsh v. State of
Alaska. The appellate court ruled that the victim of a theft
crime was not entitled to restitution that covered the loss of
income, because it would be an unjust enrichment of the crime
victim. SB 5 asks courts that are considering restitution to
restore businesses and crime victims to a pre-offense condition.
1:34:31 PM
SENATOR STEVENS joined the meeting.
1:36:55 PM
CHUCK KOPP, Staff, Senator Peter Micciche, elaborated on the
facts of the Welsh case. The crux of the argument was whether
restitution should be retail or wholesale value of the stolen
property. The appellate court reversed the district court order
stating that two restitution statutes AS 12.55.045(a) and AS
12.55.100(a)(2) seemingly were competing. The court deferred to
the more restrictive statute and commented that it had inferred
earlier that the legislature should work out the conflict. SB 5
reconciles the statutes and clarifies that loss of income should
be considered when the court considers restitution.
MR. KOPP provided a sectional analysis of SB 5 as follows:
Section 1 amends AS 12.55.045(a)(1) Restitution and
compensation, clarifying that our public policy favors
requiring criminals to compensate their victims not
only for damages and injury, but loss of income as
well.
Section 2 amends 12.55.045(n) to define "loss of
income" as the total loss of income a business or
person suffers as a result of not having stolen
property available during the time it takes to obtain
a replacement.
Section 3 amends AS 12.55.045 adding new subsection
(o) which directs the courts, in making determinations
of loss or damage for restitution, to value property
as the market value of the property at the time and
place of the crime or, if this cannot reasonably be
established, the cost of replacement within a
reasonable time after the crime.
This section adopts language currently used by the
courts in AS 11.46.980 to make determinations of
property value in criminal offenses against property
(i.e. theft, burglary, criminal trespass, vehicle
theft, arson, criminal mischief, forgery, business and
commercial offenses).
Section 4 amends AS 12.55.100(a) Conditions of
probation, clarifying how the court shall value
property when determining the amount of actual damages
or loss under this paragraph, establishing the same
standard as in Section 3.
Section 5 establishes that amendments in Sections 1-4
of the Act apply to an order of restitution for an
offense committed on or after the effective date of
the Act.
MR. KOPP stated that the bill has received strong support from
Alaska businesses and their representatives.
CHAIR COSTELLO asked Ms. Schroeder to review the fiscal impact
of the bill.
1:42:18 PM
KACI SCHROEDER, Assistant Attorney General, Criminal Division,
Department of Law (DOL), stated that SB 5 is not expected to
have any fiscal impact on DOL.
CHAIR COSTELLO noted that copies of the zero fiscal note are
included in the packets.
1:42:57 PM
CHRIS NETTELS, small business owner and representative, National
Federation of Independent Businesses, stated strong support for
SB 5. He related a personal story as the owner of a small
service business to illustrate the need for the legislation. A
snow machine was stolen from a job site after the job was
finished. Had it been stolen earlier, his business would have
lost the job.
CHAIR COSTELLO asked who will determine the market value of the
stolen property.
MR. KOPP replied it will be determined by the market at the time
and place where the crime occurs. He read the relevant provision
[in Section 4 on page 2, lines 27-31].
CHAIR COSTELLO asked if increasing the value of the item will
affect the level of the crime.
MR. KOPP replied theft of property valued from $750 to $25,000
will be a class C felony.
CHAIR COSTELLO asked if the difference in value could be
considered as a mitigating factor when sentencing juveniles.
1:47:26 PM
SENATOR MEYER joined the committee.
MR. KOPP responded that the bill clarifies the public policy of
restoring crime victims to a pre-offense condition when
considering sentencing and probation.
SENATOR STEVENS observed that the bill would take care of the
type of situation Mr. DeWitt cited when he wrote that far more
than the boat is harmed when a commercial fishing boat is
disabled during the fishing season.
MR. KOPP agreed.
1:50:05 PM
CHAIR COSTELLO closed public testimony.
1:50:10 PM
SENATOR GIESSEL moved to report SB 5 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO found no objection and announced that SB 5 is
reported from the Senate Labor and Commerce Standing Committee.