Legislature(2013 - 2014)BELTZ 105 (TSBldg)

02/25/2013 01:30 PM Senate JUDICIARY


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01:34:38 PM Start
01:35:56 PM Confirmation Hearing
01:39:18 PM SB43
02:35:20 PM SB22
03:08:26 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Select Committee on Legislative Ethics
Antoinette "Toni" Mallott, Juneau
+= SB 43 PROPERTY CRIMES TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+= SB 22 CRIMES; VICTIMS; CHILD ABUSE AND NEGLECT TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                     SB  43-PROPERTY CRIMES                                                                                 
                                                                                                                                
1:39:18 PM                                                                                                                    
CHAIR COGHILL  announced the  consideration of  SB 43.  [CSSB 43,                                                               
labeled 28-LS0401\U  was before the committee.]  He opened public                                                               
testimony.                                                                                                                      
                                                                                                                                
1:39:58 PM                                                                                                                    
NEISJE STEINKRUGER, retired superior  court judge, clarified that                                                               
she was  speaking for  herself to  provide information  about the                                                               
resources  used in  the criminal  justice  system. She  explained                                                               
that over  the past two  decades, a  number of crimes  have moved                                                               
from a misdemeanor  to a felony, which has shifted  work from the                                                               
district court  to the  superior court.  She noted  that district                                                               
courts handle  misdemeanor cases  and impose  sentences of  up to                                                               
one  year and  superior  courts handle  felony  cases and  impose                                                               
sentences of more  than one year. She pointed  out that penalties                                                               
for theft crimes have not shifted  to the "bigger hammer" but the                                                               
sheer numbers of theft cases can have an impact on the system.                                                                  
                                                                                                                                
JUDGE  STEINKRUGER said  "the felony  machine"  uses the  biggest                                                               
hammer everywhere along the way, the  first of which is the grand                                                               
jury. Whenever someone  is charged with a felony,  the case first                                                               
goes before a  grand jury. Depending on the  location, between 30                                                               
and 60  private citizens  are called every  month for  grand jury                                                               
selection.  At least  18 citizens  are selected  along with  6-10                                                               
alternates.  Again  depending on  location,  those  jurors go  in                                                               
every week  for one to  three months to do  one to three  days of                                                               
work. People often are unaware of  the impact this has on private                                                               
citizens, but it's a big part of the felony machine, she said.                                                                  
                                                                                                                                
The  second part  of the  machine is  the witnesses'  time. Quite                                                               
often law  enforcement officers  are called  to testify  in grand                                                               
jury but  private citizens  must testify as  well. There  is also                                                               
significant Department of  Law time. Once a case is  charged as a                                                               
felony, the court  appoints counsel and that  involves the Public                                                               
Defender Agency and/or the Office  of Public Advocacy. Because of                                                               
the  way these  crimes  are  set out,  it  takes the  experienced                                                               
people in these offices to handle felonies.                                                                                     
                                                                                                                                
The case  is then handled  in superior  court and because  it's a                                                               
felony, it  is seldom resolved  quickly. Often there  are felony-                                                               
level  bail  hearings,   which  mean  time  for   the  court  and                                                               
continuances.  Once there  is a  plea agreement  or the  trial is                                                               
over,  the Department  of Corrections  (DOC)  potentially has  to                                                               
prepare  a presentence  report, assign  a probation  officer, and                                                               
the person is on felony probation.                                                                                              
                                                                                                                                
JUDGE STEINKRUGER  said the criminal  justice system  has limited                                                               
resources  so it's  important to  look at  the whole  package and                                                               
decide  how  to spend  those  limited  resources. She  asked  the                                                               
committee to consider  whether it wanted to spend  it on domestic                                                               
violence, sexual  assault, child  abuse, and violence  in general                                                               
or on  things that aren't  at the  highest end of  public safety.                                                               
She  highlighted that  in  misdemeanor cases  the  judge has  the                                                               
discretion to  sentence up  to one year,  and that  sentences for                                                               
felony theft are almost uniformly under one year.                                                                               
                                                                                                                                
1:50:14 PM                                                                                                                    
SENATOR DYSON asked  what percentage of felony  theft cases plead                                                               
out before they go to trial.                                                                                                    
                                                                                                                                
JUDGE  STEINKRUGER  estimated  that  now it  would  be  about  95                                                               
percent.                                                                                                                        
                                                                                                                                
CHAIR COGHILL said he appreciates the context of her testimony.                                                                 
                                                                                                                                
1:51:41 PM                                                                                                                    
CHRIS  NETTELS, President,  GeoTek Alaska,  Inc., Anchorage,  AK,                                                               
said he was also testifying  on behalf of the National Federation                                                               
of Independent  Businesses to  ask the committee  not to  pass SB
43, which would increase the  $500 felony threshold for theft and                                                               
property offenses. He reported numerous  incidents of stealing at                                                               
his business property,  four of which were thefts  valued at $500                                                               
or  more.  In  the  past  two  or  three  years  he  has  seen  a                                                               
significant increase  in the  numbers of  petty thefts  valued at                                                               
$200  to $300,  but  in the  last year  there  have been  several                                                               
thefts valued between $1,000 and $3,500.                                                                                        
                                                                                                                                
MR.  NETTELS   expressed  concern  that  increasing   the  felony                                                               
threshold will have the unintended  consequence of increasing the                                                               
numbers of some  crimes. He said he understands  the argument for                                                               
increasing  the  felony  threshold   because  of  inflation,  but                                                               
wonders if all laws will  be similarly inflation proofed. He also                                                               
asked if the penalties would drop if deflation occurs.                                                                          
                                                                                                                                
He concluded that  the $500 felony threshold has  served well and                                                               
he did not support passage of SB 43.                                                                                            
                                                                                                                                
1:54:48 PM                                                                                                                    
CHAIR COGHILL, speaking as the  sponsor, said he certainly had no                                                               
argument about  how violated somebody feels  when thievery occurs                                                               
in their business.                                                                                                              
                                                                                                                                
SENATOR DYSON commented that inherent  in the foregoing testimony                                                               
is the notion that thieves know  when the value of a theft passes                                                               
from a misdemeanor to a felony,  and make decisions based on that                                                               
knowledge. He asked if that's a logical deduction.                                                                              
                                                                                                                                
MR. NETTELS  said yes;  he opined  that if  the bill  passes, the                                                               
word will  get out and it  will encourage people to  take on more                                                               
risk in stealing things.                                                                                                        
                                                                                                                                
1:56:49 PM                                                                                                                    
CHAIR COGHILL  asked if  he'd had  trouble making  a case  to the                                                               
police or courts in felony theft cases.                                                                                         
                                                                                                                                
MR. NETTELS said  no, although he had never received  a follow up                                                               
call or had  any property returned in any of  the five reports he                                                               
filed with the police.                                                                                                          
                                                                                                                                
CHAIR COGHILL  asked Detective  Plummer if  the police  were more                                                               
likely  to respond  to  a felony  theft report  as  opposed to  a                                                               
misdemeanor theft report.                                                                                                       
                                                                                                                                
1:58:34 PM                                                                                                                    
}DETECTIVE  ROSS  PLUMMER,  Anchorage  Police  Department  (APD)*                                                               
Municipality  of   Anchorage*  Anchorage,   AK,  said   yes.{  He                                                               
explained  that  APD  detectives  work felony  cases  and  patrol                                                               
officers are responsible for follow  up on misdemeanor cases, but                                                               
call volumes leave  little time for follow up.  If a misdemeanant                                                               
suspect isn't  caught right  away or  if there  isn't a  tip that                                                               
locates  the suspect,  the chance  of  closing the  case is  very                                                               
small.                                                                                                                          
                                                                                                                                
CHAIR  COGHILL  asked  if  a  felony  theft  would  receive  more                                                               
detective-level involvement.                                                                                                    
                                                                                                                                
DETECTIVE   PLUMMER  said   yes;   felony   thefts  receive   two                                                               
screenings, one by  patrol and the second  by detectives, whereas                                                               
misdemeanor thefts receive just one screening by patrol.                                                                        
                                                                                                                                
CHAIR COGHILL asked  if businesses had a valid  fear that raising                                                               
the felony  threshold would cause  misdemeanor thefts  to receive                                                               
less police attention.                                                                                                          
                                                                                                                                
DETECTIVE PLUMMER acknowledged that there was that chance.                                                                      
                                                                                                                                
2:01:18 PM                                                                                                                    
NANCY  MEADE,   General  Counsel,  Alaska  Court   System  (ACS),                                                               
Anchorage, AK,  directed attention to  the charts in  the packets                                                               
of criminal theft charges and disposition for 2012.                                                                             
                                                                                                                                
MS. MEADE  reviewed the  class C felony  and class  A misdemeanor                                                               
criminal theft  charges filed  in 2012 and  noted that  the 3,611                                                               
total   charges   were   split  evenly   between   felonies   and                                                               
misdemeanors.  The  conclusion,  she said,  is  that  misdemeanor                                                               
thefts come into the courthouse at  about the same rate as felony                                                               
thefts.                                                                                                                         
                                                                                                                                
2:05:12 PM                                                                                                                    
MS. MEADE  reviewed the 2012  criminal theft  charge dispositions                                                               
affected by SB 43, which show  that there were more than twice as                                                               
many misdemeanor  theft convictions as felony  theft convictions.                                                               
In 2012, there  were 1,208 misdemeanor convictions  for theft and                                                               
512 felony convictions for theft.                                                                                               
                                                                                                                                
MS. MEADE referenced an earlier  question and pointed out the low                                                               
trial  rate. Of  the  493  theft 2  felony  convictions: 13  were                                                               
guilty after trial,  443 were guilty after a guilty  plea, and 31                                                               
were guilty after a no contest plea.                                                                                            
                                                                                                                                
The  statistics show  that less  than  one-third of  the theft  2                                                               
class C  felony charges  ended in  convictions. Of  1,738 charges                                                               
filed,  493  resulted  in  convictions and  995  resulted  in  no                                                               
convictions. By  comparison, there  were 869 convictions  and 578                                                               
no convictions for theft 3 class A misdemeanors.                                                                                
                                                                                                                                
MS. MEADE  noted another factor  with theft  2 is that  there are                                                               
more   dispositions  than   charges,   which   means  that   some                                                               
convictions are  coming from  somewhere else.  She said  a likely                                                               
conclusion is that  some cases were dismissed  when the defendant                                                               
accepted a guilty plea to a  lesser charge. Although there may be                                                               
other  explanations, it's  clear that  at least  some of  the 952                                                               
dismissals were charged  in the theft 2 category  but disposed in                                                               
the theft 3 category. She said  she didn't have exact numbers but                                                               
several  hundred wouldn't  be an  unreasonable estimate  based on                                                               
these statistics.                                                                                                               
                                                                                                                                
2:09:31 PM                                                                                                                    
SENATOR DYSON surmised  that a $600 theft often is  disposed as a                                                               
misdemeanor.                                                                                                                    
                                                                                                                                
MS.  MEADE said  the statistics  don't provide  that information,                                                               
but it's not illogical.                                                                                                         
                                                                                                                                
SENATOR DYSON asked about the  process for getting citizen rights                                                               
returned after serving time for a felony conviction.                                                                            
                                                                                                                                
MS. MEADE deferred the question.                                                                                                
                                                                                                                                
2:11:06 PM                                                                                                                    
JEFF JESSE,  Chief Executive Officer, Alaska  Mental Health Trust                                                               
Authority (AMHTA), Anchorage, AK, testified  in support of SB 43.                                                               
He said he  looks at the bill from several  perspectives based on                                                               
his work experience  and he appreciates the  concerns of business                                                               
regarding professional  thieves. However,  they take a  much more                                                               
sophisticated  approach to  crime  than his  clients. He  related                                                               
that when he was a juvenile  public defender he was struck by his                                                               
clients'   lack   of   sophistication  in   either   anticipating                                                               
consequences or taking basic steps to avoid detection.                                                                          
                                                                                                                                
MR.  JESSE   stated  that  the  unintended   consequence  of  not                                                               
increasing the felony  theft threshold to keep  up with inflation                                                               
is that  more mental health beneficiaries  receive felony charges                                                               
and that precludes them from  therapeutic courts. He acknowledged                                                               
that the system self-corrects somewhat  with more plea agreements                                                               
to  lesser  charges,  but   expressed  continuing  concern  about                                                               
limiting access  to therapeutic courts.  He highlighted  that the                                                               
idea of therapeutic court is  to keep people from cycling through                                                               
the system.                                                                                                                     
                                                                                                                                
MR  JESSE said  his other  concern relates  to the  barrier crime                                                               
issue. Among  other obstacles, a  convicted felon  faces numerous                                                               
barriers to  employment despite the  knowledge that the  best way                                                               
to reduce  recidivism is to ensure  that a person has  a job that                                                               
provides a legitimate means of support.                                                                                         
                                                                                                                                
MR.  JESSE  reiterated  both his  sympathy  for  businesses  that                                                               
suffer  theft  crimes  and  his belief  that  people  who  aren't                                                               
necessarily professional  criminals need to  be treated in  a way                                                               
that gets them out of  the cycle of criminal behavior. Increasing                                                               
the penalty, stigmatizing them,  and reducing their opportunities                                                               
to avoid recidivism is not the answer.                                                                                          
                                                                                                                                
2:15:52 PM                                                                                                                    
JANET MCCABE, Partners  For Progress, testified in  support of SB
43.  She said  that PFP  has long  been concerned  that too  many                                                               
nonviolent Alaskans  are in prison.  Ten years ago,  the majority                                                               
of  prisoners  were  violent offenders,  whereas  today  over  60                                                               
percent of prisoners  are serving time for  a nonviolent offense.                                                               
The consequence is  that the state is spending a  lot of money on                                                               
incarceration  that otherwise  could be  spent for  education and                                                               
infrastructure.                                                                                                                 
                                                                                                                                
She highlighted that because of  outdated felony thresholds, many                                                               
nonviolent offenders  receive felony sentences for  stealing what                                                               
would  have been  valued  at  $200 in  1978.  She suggested  that                                                               
Alaska should follow what all  other western states have done and                                                               
raise the felony threshold.                                                                                                     
                                                                                                                                
MS.  MCCABE cited  statistics that  show that  95 percent  of all                                                               
prisoners return to the community,  but that felons face over 400                                                               
legal  barriers to  life in  the community.  Most felons  find it                                                               
difficult  to rent  an  apartment or  find  employment and  often                                                               
can't  even  qualify  for  food stamps.  She  related  that  even                                                               
conservative  Texas  Representative   Jerry  Madden  has  advised                                                               
legislators to lock  up true felons and help the  others join the                                                               
lawful community.  She urged  the committee  to follow  that wise                                                               
advice and pass SB 43.                                                                                                          
                                                                                                                                
2:18:57 PM                                                                                                                    
SEAN CROUSORE,  District Loss Prevention Coordinator,  Fred Meyer                                                               
stores of Alaska, testified in opposition  to SB 43. He said that                                                               
Fred  Meyer  is  a  full-line  grocery  and  general  merchandise                                                               
retailer that would suffer if SB 43 were to pass.                                                                               
                                                                                                                                
He explained that  thievery has changed over the  years and today                                                               
Fred Meyer  faces professionals who steal  merchandise like Dyson                                                               
vacuum cleaners,  KitchenAid mixers, iPods, and  flat screen TVs.                                                               
He said  the prices  of these products  have deflated  over time,                                                               
which  means that  the theft  of three  or four  flat screen  TVs                                                               
doesn't  reach  the  $1,500 threshold  that  the  bill  proposes.                                                               
Furthermore, the  items that professional thieves  steal are very                                                               
low margin  and the cost  comes out  of the stores'  profits from                                                               
which wages and benefits for nearly 3,000 associates are paid.                                                                  
                                                                                                                                
He asked  the committee  to reconsider  the legislation.  It will                                                               
lead to more theft and a bigger hit to retailers' profits.                                                                      
                                                                                                                                
2:25:27 PM                                                                                                                    
CHAIR COGHILL  asked if  Fred Meyer had  any trouble  getting the                                                               
police to respond to misdemeanor thievery.                                                                                      
                                                                                                                                
MR. CROUSORE said no; Fred Meyer  tries to bring only those cases                                                               
to the police that it can prove intent.                                                                                         
                                                                                                                                
CHAIR COGHILL said his written testimony would be welcome.                                                                      
                                                                                                                                
2:26:32 PM                                                                                                                    
TOM STENSON, Legal Director, ACLU  of Alaska, said he expected to                                                               
hear  testimony   from  retailers  that  thieves   are  currently                                                               
stealing just  under $500  because they know  the boundary  for a                                                               
felony. That wasn't the case.  The committee heard that people on                                                               
the street  will know that  the felony standard has  changed, but                                                               
not that people's behavior is  affected by the current low felony                                                               
standard.                                                                                                                       
                                                                                                                                
He  said  the   written  testimony  from  Fred   Meyer  was  that                                                               
professional thieves  are stealing  two Dyson vacuum  cleaners or                                                               
four  flat screen  TVs, but  Dyson vacuum  cleaners cost  between                                                               
$300  and $500  so a  theft of  two vacuums  is already  a felony                                                               
offense.  Based on  that testimony,  the  current $500  statutory                                                               
limit doesn't appear to make any difference to people.                                                                          
                                                                                                                                
MR. STINSON pointed  out that unlike robbery,  homicide, rape, or                                                               
assault, theft offenses are ones  where commercial operators like                                                               
Fred Meyer  can manage  security to  discourage theft.  He opined                                                               
that some  commercial stores  want to  pass the  costs associated                                                               
with their  business on to the  state. That doesn't seem  like an                                                               
appropriate use  of state  resources and it's  not clear  that it                                                               
would deter anybody, he stated.                                                                                                 
                                                                                                                                
2:31:50 PM                                                                                                                    
CHAIR COGHILL stated that he would not close public testimony.                                                                  
                                                                                                                                
SENATOR  MCGUIRE asked  the  sponsor to  consider  both a  $1,000                                                               
threshold and using  the criminal conspiracy statues  to make the                                                               
crimes  stackable.  She  said  she  didn't  see  any  reason  for                                                               
retailers  to change  their advertising,  because  stealing is  a                                                               
crime in the state of Alaska.                                                                                                   
                                                                                                                                
CHAIR COGHILL held SB 43 for further consideration.                                                                             

Document Name Date/Time Subjects
Felony Theft bill.pdf SJUD 2/25/2013 1:30:00 PM
SJUD 3/1/2013 1:30:00 PM
SB 43
Final Sectional for SB 43.docx SJUD 2/25/2013 1:30:00 PM
SB 43
Letter from NFIB.pdf SJUD 2/25/2013 1:30:00 PM
SB 43 Letter from NFIB
ACLU Letter ofSupport 2013.pdf SJUD 2/25/2013 1:30:00 PM
Ltter from ACLU
FredMeyerTestimonySB43.doc SJUD 2/25/2013 1:30:00 PM
SJUD 3/1/2013 1:30:00 PM
SB 43
Graph of felony thefts in US.pdf SJUD 2/25/2013 1:30:00 PM
Graph for SB 43
NCSL Felony thresholds.pdf SJUD 2/25/2013 1:30:00 PM
NCSL Felony Thresholds