02/26/2002 09:17 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 97                                                                                                         
     "An Act relating to fees for probation and parole."                                                                        
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Ward  testified this bill  stipulates that probationers  and                                                            
parolees  under the jurisdiction  of the  Department of Corrections                                                             
must participate  in  their rehabilitation  by paying  a portion  of                                                            
their parole  or probation  expenses. He spoke  to the high  cost of                                                            
probation  and parole  to the government  and  stressed the  primary                                                            
purpose of  placing offenders  on probation  or parole is to  secure                                                            
employment.                                                                                                                     
                                                                                                                                
Senator  Ward  indicated  other  states  have  implemented   similar                                                            
programs. He stated it  has been shown that those affected offenders                                                            
make  the effort  to  stay employed  so  they are  able  to pay  the                                                            
necessary fees, and therefore avoiding returning to prison.                                                                     
                                                                                                                                
Senator Ward expressed  the intention is not to create a debtor jail                                                            
and  assured  this  legislation  would  not  cause  this.  He  noted                                                            
exceptions would be made for those who are unable to pay.                                                                       
                                                                                                                                
Senator Ward predicted  that despite victim's compensation and child                                                            
support payments, a significant  number of parolees and probationers                                                            
would be eligible to receive  a permanent fund dividend, which could                                                            
be  garnished  under  this  legislation  for  parole  and  probation                                                            
expenses.                                                                                                                       
                                                                                                                                
Senator Ward pointed  out that various broad based  taxes were under                                                            
consideration  in part to pay for the expenses related  to probation                                                            
and parole.                                                                                                                     
                                                                                                                                
Senator  Ward  remarked  this legislation  would  benefit  those  on                                                            
probation  and  parole.  He  stated  that  lack  of  a  job  is  one                                                            
"underlying  ill" causing  people to  commit crimes  because of  the                                                            
need  to fill  emptiness.  He commented  this legislation  offers  a                                                            
method for offenders to "earn their way back into society".                                                                     
                                                                                                                                
Senator Ward mentioned  the proposed interstate compact  relating to                                                            
monitoring   and  administering   probationers   and  parolees.   He                                                            
predicted other states would be reviewing cost options as well.                                                                 
                                                                                                                                
Senator  Ward  commented   this  program  could  be  cost-effective                                                             
provided  the collection  process is not  made burdensome  requiring                                                            
the addition of significant staff.                                                                                              
                                                                                                                                
Senator   Ward  noted  that   in  states   with  similar   programs,                                                            
probationers  and parolees who fail  to make the necessary  payments                                                            
are usually  in violation  of other conditions  of their release  as                                                            
well.                                                                                                                           
                                                                                                                                
Senator Ward  also pointed  out he proposed  this system during  the                                                            
Thirteenth Legislative Session, but was unsuccessful.                                                                           
                                                                                                                                
AT EASE 11:25 AM / 11:31 AM                                                                                                     
                                                                                                                                
BRUCE  RICHARDS,  Special Assistant,  Office  of  the Commissioner,                                                             
Department   of  Corrections  testified   via  teleconference   from                                                            
Anchorage about previous  attempts to require payments from parolees                                                            
and probationers  and  statutes to  this effect  that were in  place                                                            
from 1986 to 1991. He stated  the collection rate during that period                                                            
was  approximately   eight  percent.   He  qualified  the   proposed                                                            
legislation stipulates  collections would be performed  by a private                                                            
entity.  However,  he  informed   that  past  efforts  to  locate  a                                                            
collection agency  willing to assume these duties  were unsuccessful                                                            
because collection  agencies are "in  the business of taking  on bad                                                            
debt."  Instead, he  continued, a  local financial  institution  was                                                            
employed  to  establish  an  escrow  account  and  to  mail  monthly                                                            
statements  to  parolees  and  probationers,   but  did  not  pursue                                                            
collection of  late balances. Therefore, he stated,  the fiscal note                                                            
reflects   a   ten-percent   collection   rate  for   the   proposed                                                            
legislation.                                                                                                                    
                                                                                                                                
ROBERT BUTTCANE,  Legislative and  Administrative Liaison,  Division                                                            
of  Juvenile Justice,  Department  of  Health and  Social  Services,                                                            
testified   via  teleconference  from   Anchorage  to  explain   the                                                            
projected 80 percent collection  rate reflected in this Department's                                                            
fiscal  note.  He shared  that  in-house  discussions  were held  to                                                            
arrive at  this estimate,  that there is  no quantitative basis  for                                                            
this "subjective"  assumption and  that it is based on an  "absolute                                                            
best case scenario".  He noted the  Division has been successful  in                                                            
obtaining 87.7  percent payment rate  in court-ordered restitution.                                                             
Because  if  this,  he  said,  most  juvenile   offenders  could  be                                                            
motivated to comply with expectations imposed on them.                                                                          
                                                                                                                                
Co-Chair Donley asked Mr.  Richards the current repayment percentage                                                            
of restitution payments ordered for adult offenders.                                                                            
                                                                                                                                
Mr. Richards indicated he would provide the information.                                                                        
                                                                                                                                
Co-Chair Donley  had suggested the Department of Corrections  fiscal                                                            
note  should   indicate  that  the   number  of  new  parolees   and                                                            
probationers  affected by this legislation  would be phased  in over                                                            
several years.                                                                                                                  
                                                                                                                                
Co-Chair Kelly ordered the bill HELD in Committee.                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Pete Kelly adjourned the meeting at 11:40 AM.