03/15/2002 09:10 AM Senate FIN

     SENATE BILL NO. 339                                                                                                        
     "An Act increasing fines for certain criminal offenses."                                                                   
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Donley  explained   this  bill's  intent  is  to  increase                                                            
criminal  fines. He  informed the  Committee  that individual  fines                                                            
have not  been modified since  1978 and corporation  fines  have not                                                            
been increased since 1990.                                                                                                      
                                                                                                                                
DIANE WENDLANDT,  Manager,  Division of  Collections, Department  of                                                            
Law,  testified   via  teleconference   from  Anchorage   to  answer                                                            
questions concerning this bill.                                                                                                 
                                                                                                                                
Senator  Hoffman inquired  as to  the Administration's  position  on                                                            
this bill.                                                                                                                      
                                                                                                                                
Ms.  Wendlandt  commented   she  is  an attorney   involved  in  the                                                            
collection of criminal  fines and does not know the Administration's                                                            
position.                                                                                                                       
                                                                                                                                
Co-Chair Donley  stated, "these fines  are challenging to  collect;"                                                            
however, it is important  that "the fine is high enough to be both a                                                            
deterrent and a penalty."  He expressed "it is appropriate to have a                                                            
higher level of criminal  fines," as a deterrent and to address "the                                                            
cost to  the criminal justice  system." He  referenced the  breakout                                                            
[copy on file] of fines for various crimes in other states.                                                                     
                                                                                                                                
Senator Ward  offered a motion  to move SB  339 from Committee  with                                                            
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Senator  Green opined  that these  fines are  "incredibly high"  and                                                            
asked "if there  is any point" to which fines are  raised where they                                                            
become "meaningless."                                                                                                           
                                                                                                                                
Co-Chair Donley gave examples  of where higher levels of fines might                                                            
be appropriate deterrents.                                                                                                      
                                                                                                                                
Senator Green asked if there is an option for lower fines.                                                                      
                                                                                                                                
Ms. Wendlandt  stated she  is not aware of  a minimum for fines,  as                                                            
her Division  is not supplied detailed  information on what  offense                                                            
correlate  to each fine from  the Court System.  She mentioned  that                                                            
Judges "enter a very large range" of fines.                                                                                     
                                                                                                                                
Co-Chair  Donley  voiced there  are  standards; however,  the  Court                                                            
System has the  discretion to demonstrate "flexibility  depending on                                                            
financial status  of a person" and  the crime that is committed.  He                                                            
mentioned that  the Committee could  opt for lower fine levels  or a                                                            
"reduced step up."                                                                                                              
                                                                                                                                
Senator Austerman stated  the fines in this bill are "permissive" as                                                            
presented.                                                                                                                      
                                                                                                                                
Senator Hoffman  contended there are "years of inflation"  to factor                                                            
in and that, when comparing  the proposed level of fines to fines in                                                            
other states, the fines seem appropriate.                                                                                       
                                                                                                                                
Co-Chair Donley  stated the actual rate of inflation  since the last                                                            
individual fine modification is 216 percent.                                                                                    
                                                                                                                                
Senator  Hoffman   noted  the  proposed   fines  in  the   bill  are                                                            
approximately four times higher than the current levels.                                                                        
                                                                                                                                
Co-Chair  Donley voiced  that  the fines  proposed in  the bill  are                                                            
"similar to  the higher end of the  rates" used by other  states. He                                                            
reiterated that the Committee could lower the fines.                                                                            
                                                                                                                                
Senator  Ward  again  voiced  his  motion to  adopt  the  bill  with                                                            
individual  recommendations   and  accompanying   fiscal  notes.  He                                                            
concurred with Senator  Austerman's comments that the proposed fines                                                            
are permissive and would  give judges "a tool" to use in determining                                                            
the appropriate level of fines.                                                                                                 
                                                                                                                                
There being no objection,  SB 339 was REPORTED out of Committee with                                                            
a new zero fiscal note  dated 3/15/02 from the Department of Law and                                                            
a new indeterminate  fiscal note, dated 3/15/02 from  the Department                                                            
of Administration.