Legislature(2001 - 2002)
04/02/2002 04:14 PM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 97
"An Act relating to fees for probation and parole."
This was the second hearing for this bill in the Senate Finance
Committee.
Senator Ward, the bill's sponsor, explained that this legislation
was initially heard by the Committee during the first session of
the Twenty-Second Legislature; however, he stated, the bill was
held in Committee in order to determine how many states charge fees
to individuals on probation or parole; to determine fee collection
methods; and to determine the cost of administering the program.
Senator Ward informed the Committee that Alaska is the lone state
not charging probation and parole fees, and he commented that the
proposed committee substitute contains a provision that would allow
the State to contract with a private business to manage the fee
collection process.
WILLIAM GILBODI, President, Gragil Associates, Inc. testified from
an offnet site and informed the Committee that the company, which
is an accounts-receivable management firm located in Rockland,
Massachusetts, has been managing the billing and collecting of fees
for the state of Vermont, Department of Corrections, since 1997. He
explained that the company's contract with Vermont provides for
such things as: supervision fees; victim assistance and
compensation; victim restitution; transportation; and general fund
fines. He stated that the contract includes a 13.3 percent
contingency fee that is charged to the individuals on probation
rather than to the state. He explained that the contingency fee is
added to the monthly fees of the probationer, and if the monthly
fee is paid within 30 days of receipt, the contingency fee is
waived. He stated that the actual fee cost to probationers averages
approximately nine percent.
Senator Ward asked the testifier to explain the process whereby the
company is authorized to attach probationers' tax refunds for non-
payment of fees.
Mr. Gilbodi informed the Committee that this is the first year that
authorization was granted to attach probationer's tax refunds, and
he attested the process has been successful.
Senator Ward avowed that, were this legislation enacted, the
State's delinquent balances could be collected through attaching
probationers' Permanent Fund Dividends.
Senator Ward asked the testifier whether the collection process is
working well in the state of Vermont.
Mr. Gilbodi informed the Committee that Vermont's 2001 recovery
rate was 70 percent, and he reported that the recovery rate should
increase as a result of the authorization to attach Income Tax
Refunds for delinquent balances. He furthered that the company has
recently implemented a credit bureau reporting system that should
provide additional recovery rate increases.
Senator Ward informed the Committee that the Alaska Department of
Corrections has a current successful collection rate of ten
percent.
Co-Chair Donley reminded the Committee that representatives of the
Executive Branch recently testified to the Committee that the
State's collection rate is approximately 30 percent. He declared
that he considers this number to be "extremely low" as the
Department is authorized to attach individuals' Permanent Fund
Dividends. He asserted that the successful collection rate
demonstrated by the testifier's company affirms that the collection
rate should be higher, and he suggested that perhaps a private
institution rather than the Department of Corrections could provide
better collection management.
Senator Ward stated that the testifier's company, and others, would
submit proposals were this legislation enacted.
Co-Chair Kelly reminded the Committee that the Version "C"
committee substitute has not yet been adopted as a working draft.
SFC 02 # 45, Side B 05:02 PM
AT EASE 5:02 PM /5:06 PM
LINDA WILSON, Deputy Director, Public Defender Agency, Department
of Administration, testified from an offnet site to express that
the bill mandates the establishment of separate parole and
probation fees, and she stressed that this would require an
individual, on parole and probation at the same time, to incur
duplicate fees. She asked the Committee to address whether the
intent of the legislation is to collect dual fees, and she detailed
situations wherein a person could be simultaneously on parole and
probation, yet report to a single probation officer. She stressed
that the proposed language would result in duplication of efforts
that would negatively affect the Courts, the individual, and the
Parole Board. She urged the Committee to revise the language to
specify that a single fee would apply to individuals in this
situation.
Senator Ward stated that the bill currently contains mechanisms to
safeguard against the testifier's valid concern; however, the Court
could decide that dual fees were necessary. He added that some
states charge up to 26 different fees to individuals on probation
or parole, primarily, he continued, as a means to offset the cost
of providing parole and probationary programs.
AT EASE 5:10 PM / 5:17 PM
Co-Chair Kelly announced that this bill would be SET ASIDE and re-
addressed later in the meeting.
SENATE BILL NO. 97
"An Act relating to fees for probation and parole."
[This bill was heard earlier in the meeting.]
Senator Ward moved to adopt committee substitute Version "C" as a
working draft.
There being no objection, CS SB 97(FIN), Version 22-LS0338\C was
adopted as a working draft.
ROBERT BUTTCANE, Legislative & Administrative Liaison and Juvenile
Probation Officer, Division of Juvenile Justice, Department of
Health and Social Services, voiced that the Department is opposed
to probation fees that would affect individuals served by the
Department.
Ms. Wilson commented that the Version "C" committee substitute is
not available at the off-net site; however, she noted that Section
7 of Version "A" "indicates that the Parole Board shall revoke the
parole of a parolee who defaults on a payment." She asked the
Committee to consider an amendment to change the word "shall" to
"may" in order for the Parole Board to have an option in the
situation.
Senator Ward asserted his intent that the Parole Board should not
have the option of eliminating fees.
Ms. Wilson explained that if the Court has the ability to impose a
probation fee as specified in Section 6 of Version "A," then
provisions should be included to allow the Court the discretion to
revoke probation. She stated that Section 7 of Version "A" limits
this ability to the discretion of the Parole Board. She reiterated
that she does not have access to a copy of Version "C" and
apologizes if she is reading outdated language.
Co-Chair Kelly stated that Section 4(a) of Version "C" contains
language that states, "A Court granting probation, as defined in AS
33.05.080, shall require a periodic probation fee to be paid to the
Department of Corrections as a condition of probation based on
ability to pay." He surmised that this language allows the Court to
regulate whether it would be appropriate to "double up" on the
fines of the parolee.
Ms. Wilson agreed, but clarified that the bill contains two
different provisions: one that concerns probation and another that
concerns parole. She stressed that "the Court does not get involved
in parole, and Section 7 refers to the Parole Board."
Senator Ward moved to report the "Committee Substitute for Senate
Bill Number 97, Version 'C' out of Committee with individual
recommendations and accompanying note."
Senator Hoffman objected, and asked whether the adoption of Version
"C" would have any affect on the accompanying fiscal notes.
Senator Ward responded that while he does not agree with the
accompanying fiscal notes, they are applicable to Version "C."
A roll call was taken on the motion.
IN FAVOR: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley, Co-Chair Kelly
OPPOSED: Senator Hoffman, Senator Olson
The motion to report the bill from Committee PASSED (7-2)
CS SB 97(FIN) was REPORTED from Committee with a Department of
Health and Social Services fiscal note in the amount of $214,400
dated February 22, 2002, a Department of Corrections fiscal note,
dated March 1, 2002 in the amount of $16,600, and a Department of
Administration zero fiscal note dated April 1, 2002.
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