Legislature(2019 - 2020)SENATE FINANCE 532

05/03/2019 09:00 AM FINANCE

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Heard & Held
Heard & Held
                 SENATE FINANCE COMMITTEE                                                                                       
                        May 3, 2019                                                                                             
                         9:04 a.m.                                                                                              
9:04:03 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair von Imhof called the Senate Finance Committee                                                                          
meeting to order at 9:04 a.m.                                                                                                   
MEMBERS PRESENT                                                                                                               
Senator Natasha von Imhof, Co-Chair                                                                                             
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Mike Shower                                                                                                             
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Shareen  Crosby,  Staff,  Senator  Natasha  von  Imhof;  Rob                                                                    
Carpenter,  Analyst, Legislative  Finance Division;  Senator                                                                    
Cathy Giessel;  John Skidmore, Director,  Criminal Division,                                                                    
Department of Law.                                                                                                              
PRESENT VIA TELECONFERENCE                                                                                                    
Jeff Edwards, Executive Director, Alaska Board of Parole,                                                                       
SB 19     APPROP: CAPITAL BUDGET; SUPPLEMENTAL                                                                                  
          SB 19 was HEARD and HELD in committee for further                                                                     
SB 34     PROBATION; PAROLE; SENTENCES; CREDITS                                                                                 
          SB 34 was HEARD and HELD in committee for further                                                                     
SENATE BILL NO. 19                                                                                                            
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,       supplemental      appropriations,                                                                    
     reappropriations,  and   other  appropriations;  making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
9:04:53 AM                                                                                                                    
Co-Chair von Imhof relayed that  the committee had heard the                                                                    
bill on March  12, 2019, at which time  public testimony had                                                                    
been taken.                                                                                                                     
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for SB  19,  Work  Draft 31-GS1904\K  (Caouette,                                                                    
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
9:05:55 AM                                                                                                                    
SHAREEN CROSBY, STAFF, SENATOR  NATASHA VON IMHOF, discussed                                                                    
the changes  to the  bill. She  stated that  when evaluating                                                                    
projects,  the  priorities of  the  capital  budget were  to                                                                    
maximize federal match, ensure  health and safety, determine                                                                    
reasonable  deferred maintenance,  and protecting  access to                                                                    
resources through  bridges, roads, airports, and  ports. She                                                                    
discussed  the changes  to the  legislation and  highlighted                                                                    
the following appropriations in the bill:                                                                                       
     Page 2, Line 16                                                                                                            
     Department   of   Commerce,  Community   and   Economic                                                                    
     Alaska  Energy  Authority      Rural  Outdoor  Lighting                                                                    
     Efficiency Retrofit                                                                                                        
     $1,000,000 GF                                                                                                              
     Page 2, Line 19                                                                                                            
     Department   of   Commerce,  Community   and   Economic                                                                    
     Alaska Railroad: Seward Dock Replacement                                                                                   
     $3,100,000 GF                                                                                                              
     Page 2, Line 24                                                                                                            
     Department of Commerce, Community and Economic                                                                             
     Alaska Travel Industry Association (ATIA)                                                                                  
     $7,420,000 GF                                                                                                              
Ms.  Crosby  said that  Page  3  reflected funding  for  the                                                                    
Alaska  Marine Highway  System (AMHS)  and additional  small                                                                    
district grants.                                                                                                                
Ms. Crosby continued with the line items:                                                                                       
     Page 4, Line 13                                                                                                            
     Department of Corrections                                                                                                  
     Juneau    Lemon Creek Correctional Center Laundry                                                                          
     $420,000 GF                                                                                                                
Ms.  Crosby noted  that intent  language had  been added  on                                                                    
Page 5,  Line 30, to  allocate up to $2,000,000  of Pittman-                                                                    
Robertson  federal   funds  for  agreements   with  nonstate                                                                    
entities,  the  Alaska  Mental Trust  Authority,  and  local                                                                    
governments  that provided  the required  federal match  for                                                                    
eligible Pittman-Robertson projects.                                                                                            
Ms. Crosby  continued with the  line items. Page 6,  line 12                                                                    
included  $47,600,000  for statewide  deferred  maintenance.                                                                    
She  noted that  the monetary  request was  the same  as the                                                                    
governors,  but the  fund sources had been  changed. Line 18                                                                    
was a state  match of $500,000, for federal  funds that went                                                                    
directly to the Code Blue Project.                                                                                              
9:11:13 AM                                                                                                                    
Ms. Crosby  continued to  address the  changes to  the bill.                                                                    
Line  29   listed  $2,500,000   for  the   Arctic  Strategic                                                                    
Transportation  and  Resources  and  was  the  same  as  the                                                                    
governors   request.  She  relayed  that Page  7,  line  17,                                                                    
reflected  the  addition  of  $120,000  for  the  Jonesville                                                                    
Public   Use  Area   Management   Plan,  specifically,   for                                                                    
detailing the  expenditure and  scope of  the work  from the                                                                    
Department of Natural Resources.  She furthered that Line 32                                                                    
reflected    receipts    of   $250,000    from    snowmobile                                                                    
registrations for the Snowmobile Trail Development Program.                                                                     
Page 8,  line 3,  showed $2.5 million  for the  South Denali                                                                    
Visitors   Center, which  was 10  percent of  the governors                                                                     
total  request.  Line  5  reflected  the  addition  of  $1.4                                                                    
million in  federal funds for  the Specialty Crop  Grant for                                                                    
Peony Research.  She said that  Line 20 listed  the addition                                                                    
of  $1 million  for the  Alaska Housing  Finance Corporation                                                                    
(AHFC)  Cold Climate  Housing Research,  Line  24 showed  $5                                                                    
million in GF and $2 million  in other funds for AHFC Energy                                                                    
Programs  Weatherization.   Page  9,  Line  8,   listed  the                                                                    
addition  of $1.75  million for  AHFC  Teacher, Health,  and                                                                    
Public Safety  Professional Housing.  She relayed  that Line                                                                    
13  and  16 added  funds  for  AMHS,  $3 million  and  $13.5                                                                    
million,  respectively. She  shared  that Line  26 showed  a                                                                    
reduction  of  $2.5 million,  down  to  $12.5 million,  with                                                                    
intent  language  encouraging   the  department  to  improve                                                                    
standard operating procedures for fleet management.                                                                             
9:14:24 AM                                                                                                                    
Senator  Olson  considered  the $2.5  million  decrease  for                                                                    
fleet management. He asked whether  the decreased funds were                                                                    
federal funds.                                                                                                                  
ROB  CARPENTER,   ANALYST,  LEGISLATIVE   FINANCE  DIVISION,                                                                    
stated that the funds were  comprised of collected fees from                                                                    
all agencies for the rental and leasing of state equipment.                                                                     
9:15:09 AM                                                                                                                    
Ms. Crosby  continued to  address the  changes to  the bill.                                                                    
She spoke to Page 10, line  4, which were $60 million, which                                                                    
came back in  $690 million federal match. She  said that $25                                                                    
million had  been added  in the  CS and  was a  fully funded                                                                    
match  to maximize  the federal  highway funds.  She remined                                                                    
the  committee that  the  funds had  been  changed from  the                                                                    
governors  reappropriation from the  M/V Tustumena. She said                                                                    
that  intent language  had been  added  to Lines  9 and  20,                                                                    
requesting  a  quarterly  report   form  the  Department  of                                                                    
Transportation and Public Facilities (DOT&PF) on projects.                                                                      
Ms.  Crosby  addressed  Page  11,  line  13,  pertaining  to                                                                    
University   deferred  maintenance.   She   said  that   the                                                                    
governors   original  request  had been  increased  from  $5                                                                    
million to $10 million;  the current UA deferred maintenance                                                                    
backlog was $1.2 billion.                                                                                                       
Ms. Crosby  addressed page 12,  which reflected  the funding                                                                    
sources, by agency, for Section 1.                                                                                              
Ms. Crosby  looked at Section  4 on page 17,  which included                                                                    
FY  19  Supplemental  Capital   Projects  requested  by  the                                                                    
9:17:32 AM                                                                                                                    
Co-Chair Stedman  informed the public  that in an  effort to                                                                    
maintain   a   positive   working  relationship   with   the                                                                    
administration, the legislature  had extended the governor's                                                                    
deadline for submitting budget amendments.                                                                                      
9:18:18 AM                                                                                                                    
Senator Bishop  appreciated that  funds had remained  in the                                                                    
bill for  the Statewide Per- and  Polyfluoroalkyl Substances                                                                    
9:18:43 AM                                                                                                                    
Ms. Crosby  addressed Sections 5 and  6 on pages 19  and 20,                                                                    
which  listed  fund sources  for  Section  4. She  spoke  to                                                                    
Section  7, which  was the  Department of  Corrections (DOC)                                                                    
Inmate Health Supplemental for $3  million, requested by the                                                                    
governor. Section 8 contained  standard language for RPLs or                                                                    
receipts.   Section  9   contained  standard   language  for                                                                    
agencies to  collect and expend  insurance claims.  Line 20,                                                                    
Section  10 contained  national Petroleum  Reserve    Alaska                                                                    
Impact Grant Program language for FY 19 and FY 20.                                                                              
Ms. Crosby looked at page 24  of the CS, Sections 11 and 12.                                                                    
Section  11a was  a  $200,000 grant  for  earnings from  the                                                                    
Exxon  Valdez  oil  spill restoration  fund  to  the  Prince                                                                    
William Sound  Science Center. Section  11b was  $125,000 in                                                                    
lapsing  cruise  funds going  to  the  Railroad Seward  Dock                                                                    
Ms. Crosby addressed 12a, which  was a $125,000 supplemental                                                                    
reappropriation  requested  by  the governor  for  abandoned                                                                    
school site assessments.  She said that 12b  stated that the                                                                    
proceeds from the sale of  Department of Education and Early                                                                    
Development  (DEED)  state-owned   land  in  Sitka  received                                                                    
during  the fiscal  years  ending June  30,  2020, June  30,                                                                    
2021,  and  June  30,  2022,  are to  be  allocated  to  Mt.                                                                    
Edgecumbe boarding school. state-owned lands sold in Sitka                                                                      
9:21:02 AM                                                                                                                    
Co-Chair Stedman clarified that the  lands were held by DEED                                                                    
for the  boarding school  and if  the properties  were sold,                                                                    
the benefit should be for the school.                                                                                           
9:21:52 AM                                                                                                                    
Ms. Crosby  addressed Page 25,  line 10; which  combined the                                                                    
request for troopers, wildlife  troopers, and VPSO equipment                                                                    
into one appropriation of $659,958,000.                                                                                         
Ms. Crosby moved to Page 26,  Section 14a - sale of any AMHS                                                                    
assets went  to the AMHS  Vessel Replacement Fund.  She said                                                                    
that  14b stated  that reappropriation  of  $1.6 million  in                                                                    
completed project harbor project  funds would be returned to                                                                    
the harbor facility matching grant  fund. Section 15 was the                                                                    
governor  requested, late  amendment, for  receipt authority                                                                    
for the  Alaska Gasline Development Corporation  (AGDC), not                                                                    
to exceed $25 million.                                                                                                          
9:23:07 AM                                                                                                                    
Senator  Wielechowski   was  curious  about   the  statutory                                                                    
designated   program  through   which   the  Department   of                                                                    
Environmental  Conservation (DEC)  could receive  up to  $25                                                                    
Co-Chair von  Imhof did not  know the exact program  but did                                                                    
know  that this  item  had  been seen  over  the years.  She                                                                    
believed  that  the  receipt authority  was  to  finish  the                                                                    
Federal  Energy Regulatory  Commission  (FERC) process.  She                                                                    
said that  large oil companies  that were doing  business in                                                                    
the state  were interested in  seeing the FERC  process meet                                                                    
completion. The  analysis had shown  that an  additional $25                                                                    
million for the next 18 to  24 months in order to finish the                                                                    
analysis and permitting.                                                                                                        
Senator  Wielechowski had  no  problem  with the  completion                                                                    
with the  FERC process  but was curious  of the  fund source                                                                    
for the appropriation.                                                                                                          
Mr.  Carpenter stated  that the  cited fund  source was  the                                                                    
statutory designated program  receipts, which included third                                                                    
party, non-state. Non-federal receipts coming to the state.                                                                     
9:24:40 AM                                                                                                                    
Co-Chair  Stedman  recalled  that  there  were  hundreds  of                                                                    
millions of dollars invested in  the FERC permit, which held                                                                    
value even  if there was  no project. He wondered  whether a                                                                    
financial  summary  of  the  cost  to  the  state  could  be                                                                    
provided to the committee.                                                                                                      
Co-Chair von Imhof added that  Mr. Carpenter could request a                                                                    
short summary from AGDC of the  cost of the FERC process and                                                                    
what timeframe that was expected for completion.                                                                                
9:26:38 AM                                                                                                                    
Senator Hoffman  thought that  the timeframe  for completion                                                                    
of the process was critical information.                                                                                        
9:26:55 AM                                                                                                                    
Ms. Crosby relayed that she had notes from AGDC:                                                                                
      Senate proposes very limited receipt authority to                                                                      
        permit AGDC  to accept  $25  million of  third-party                                                                    
        money to help complete  defined tasks at  hand; very                                                                    
        narrow proposal  versus last  years  denied  request                                                                    
        for unlimited receipt authority.                                                                                        
      Should  AGDC   successfully   attract   third-party                                                                    
        funding, it sends a very powerful market signal that                                                                    
        Alaska LNG is on the right course.                                                                                      
      AGDC taking very measured approach to Alaska LNG                                                                       
        project, focusing  on  FERC  permitting and  partner                                                                    
        engagement so the state does not have to pay, build,                                                                    
        run Alaska LNG.                                                                                                         
      AGDC will continue to consult with legislature at                                                                      
        every decision point along the way.                                                                                     
      There is no loss of project control to the state at                                                                    
        this funding level.                                                                                                     
      The third-party funding would allow AGDC to extend                                                                     
        remaining funds further and off-set the need for any                                                                    
        additional state funds at this point  when the state                                                                    
        is in a budget crunch.                                                                                                  
9:28:08 AM                                                                                                                    
Co-Chair  Stedman  pointed  out  that  Alaska  Oil  and  Gas                                                                    
Conservation  Commission (AOGCC)  was  the regulatory  body;                                                                    
and just  because an entity  received a permit did  not mean                                                                    
that  there was  a project.  FERC could  issue multiple  LNG                                                                    
export  permits   across  the  country  but   that  did  not                                                                    
guarantee that a project would be built. He                                                                                     
9:28:53 AM                                                                                                                    
Ms. Crosby  continued to  page 27  and addressed  Section 16                                                                    
pertaining  to the  District 10  library reappropriation  to                                                                    
another library  in the  same district.  Section 17  was the                                                                    
scope change  of the project  in District 35-36.  Section 18                                                                    
was  the reappropriation  of the  Office  of the  Governors                                                                     
lapsing funds back to their  office, as requested. She added                                                                    
that the word   redistricting  had been added  to the langue                                                                    
to accommodate census language in the section.                                                                                  
9:29:41 AM                                                                                                                    
Senator Wielechowski spoke to Section 18, lines 27-30:                                                                          
      estimated  balance of  $1,100,000, are  reappropriated                                                                    
     to  the  Office  of  the  Governor  for  capital  costs                                                                    
     relating  to  advancing   the  governors   initiatives,                                                                    
     including  elections  voting   system  replacement  and                                                                    
     security,   and   state   government   efficiency   and                                                                    
     consolidation initiatives.                                                                                                 
Senator  Wielechowski asked  whether there  was more  detail                                                                    
available about the aspects of the section.                                                                                     
Ms.  Crosby stated  that there  were  election systems  that                                                                    
needed upgrades.  She offered to  get more  information from                                                                    
the administration.                                                                                                             
Senator Wielechowski was interested  to understand what kind                                                                    
of  voting   system  replacement  and  security   was  being                                                                    
Co-Chair  von Imhof  echoed  Senator Wielechowskis   request                                                                    
for more information on Section 18.                                                                                             
9:30:47 AM                                                                                                                    
Senator Micciche  recalled that there had  been an increment                                                                    
denied in  the Operating  Budget that  was being  covered by                                                                    
reappropriations  in the  Capital Budget.  He stressed  that                                                                    
these were  not additional  funds but unexpended  funds from                                                                    
the past.                                                                                                                       
Ms. Crosby agreed.                                                                                                              
9:31:22 AM                                                                                                                    
Senator  Shower spoke  to his  understanding of  the states                                                                     
election  system.  He  shared   that  the  director  of  the                                                                    
Division of  Elections had testified  that the  division was                                                                    
currently under a bid for proposals.                                                                                            
9:31:54 AM                                                                                                                    
Senator Wielechowski  was curious about the  items listed in                                                                    
the beginning of  Section 18. He wondered why  the money was                                                                    
not being spent on what had been previously authorized.                                                                         
Ms. Crosby agreed to provide the information later.                                                                             
9:32:38 AM                                                                                                                    
Ms.  Crosby moved  to  page 28,  Section  19; pertaining  to                                                                    
reappropriation   of   Legislative   funds   back   to   the                                                                    
Legislature  for Legislative  Capital  Projects. Section  20                                                                    
pertained to  the Alaska Housing  Capital Corporation.   She                                                                    
detailed that her  office had met with every  agency and had                                                                    
scrubbed  any lapsing  funds.  She stated  that  due to  the                                                                    
fiscal  situation, it  was decided  that  all lapsing  funds                                                                    
would go into one fund  entitled, the Alaska Housing Capital                                                                    
Corporation  Fund, where  the funds  would  remain until  FY                                                                    
Co-Chair von  Imhof detailed  that the  reason for  the fund                                                                    
movement was due  to the long list  of reappropriations. She                                                                    
said  that time  constraints  prevented  the legislature  to                                                                    
reappropriate them  individually; the additional  time would                                                                    
allow the legislature to plan  for FY 2020 and reappropriate                                                                    
equivalently across  projects while  also knowing  the final                                                                    
9:34:42 AM                                                                                                                    
Senator  Micciche was  curious  about  the Sterling  Highway                                                                    
road widening  (Page 31,  line 29). He  noted that  the road                                                                    
was  very busy  in the  summer and  assumed that  before the                                                                    
funds  were swept  that a  status  of the  project had  been                                                                    
investigated and  that DOT  had agreed  that the  funds were                                                                    
not needed in the immediate.                                                                                                    
Ms. Crosby stated that all  funds that were lapsing had been                                                                    
approved by the respective agencies.                                                                                            
9:35:42 AM                                                                                                                    
Senator Bishop  thought some of  the projects dated  back to                                                                    
2007 and could be closed out.                                                                                                   
Co-Chair von  Imhof stated all  projects would be  closed by                                                                    
Juneau  2019,  and had  been  approved  by their  respective                                                                    
9:36:20 AM                                                                                                                    
Senator Wielechowski  requested more  information concerning                                                                    
Page  30,  line  12  and   Page  31,  line  25,  which  were                                                                    
reappropriations that effected his district.                                                                                    
9:36:47 AM                                                                                                                    
Senator  Shower  expressed  concern  for  the  combining  of                                                                    
appropriations on  Page 25, line  10. He said that  he would                                                                    
be monitoring the issue.                                                                                                        
9:37:46 AM                                                                                                                    
Co-Chair  von   Imhof  reminded   that  the   committee  was                                                                    
discussing  $5.4 million  that  could  be reappropriated  as                                                                    
general funds,  matching funds, or  to give  districts funds                                                                    
for playgrounds,  parks, etc. She  stressed that  by putting                                                                    
the  funds into  a big  slush fund,  it was  possible ensure                                                                    
that  all  districts  received   the  same  amount;  or,  an                                                                    
argument  could be  made  line by  line.  She asserted  that                                                                    
those  discussions  would  occur  in  the  next  legislative                                                                    
9:38:49 AM                                                                                                                    
Co-Chair Stedman  explained that conversations  had occurred                                                                    
with the other  body concerning how to deal  with the funds.                                                                    
He thought  the proposed action  was the fairest  way handle                                                                    
the funds at this time.  He emphasized that accounting would                                                                    
ensure that information on the  genesis of the project funds                                                                    
was known.  He stated that the  action was to close  out all                                                                    
the old projects around the state and move forward.                                                                             
Co-Chair   von   Imhof   added   that   school   bond   debt                                                                    
reimbursement was still on a  hiatus. She suggested that the                                                                    
$5.4   million  could   come  in   handy  for   school  debt                                                                    
renovation. She believed that waiting  a year to revisit how                                                                    
the money should be spent was prudent.                                                                                          
9:41:24 AM                                                                                                                    
Senator Micciche  appreciated Co-Chair von  Imhof's approach                                                                    
on the matter.                                                                                                                  
9:41:56 AM                                                                                                                    
Senator Olson asked whether any  of the $5.4 million balance                                                                    
included   lapsing  grants   by   Department  of   Commerce,                                                                    
Community and Economic Development.                                                                                             
Mr.  Carpenter  informed that  some  of  the funds  included                                                                    
lapsing grants. He could not speak to the amount.                                                                               
9:42:31 AM                                                                                                                    
Ms. Crosby agreed  to provide Senator Olson  with an amount.                                                                    
She addressed Section  21 of the bill,  which covered lapsed                                                                    
provisions.  Line 19  of Section  22  was the  retroactivity                                                                    
clause. Section 23 through 25 contained effective dates.                                                                        
Ms.  Crosby  referenced   a  document  entitled  "Multi-year                                                                    
Agency Summary - FY 2020 Senate Structure" (copy on file).                                                                      
9:43:42 AM                                                                                                                    
Senator  Hoffman   asked  about   the  specificity   of  the                                                                    
effective date.                                                                                                                 
Mr.  Carpenter  said  that  May  15    had  been  chosen  in                                                                    
anticipation  that  it   would  be  the  last   day  of  the                                                                    
legislative session.                                                                                                            
9:44:15 AM                                                                                                                    
Senator  Wielechowski asked  for  more detail  on the  ASTAR                                                                    
project, Page  6, lines  29 and  30. He  wanted to  know how                                                                    
much  had  been appropriated  and  how  the money  had  been                                                                    
Ms.  Crosby  was  happy to  provide  additional  details  to                                                                    
Senator Wielechowski.                                                                                                           
Co-Chair von  Imhof recalled that  the project was a  way to                                                                    
connect the North Slope communities with broadband.                                                                             
9:45:12 AM                                                                                                                    
Senator Olson  recalled that there was  a commercial impetus                                                                    
to move the project forward.                                                                                                    
Co-Chair von  Imhof thought some  of the  guiding principles                                                                    
of the capital  budget had been not only  health and safety,                                                                    
but connecting Alaskans to each  other, and providing access                                                                    
to healthcare,  education, and resources. She  felt that the                                                                    
ASTAR project embodied those principals.                                                                                        
9:45:56 AM                                                                                                                    
Senator Wielechowski  asked about the South  Denali Visitors                                                                    
Center, Page  8, lines 3  and 4. He wanted  more information                                                                    
about how the  funds would be used. He  wondered whether the                                                                    
state would  assume ownership  or receive  financial benefit                                                                    
from the investment.                                                                                                            
Co-Chair von Imhof  stated that request was  intended to get                                                                    
the project started  and begin planning. She  thought it was                                                                    
dependent upon the  level of the state's  involvement in the                                                                    
future.  There  was  an  expectation that  a  fee  would  be                                                                    
charged at  the center. There was  a lot of pressure  on the                                                                    
Denali park  and another entrance closer  to Anchorage could                                                                    
relieve  some  of that  pressure.  She  reiterated that  the                                                                    
project was in the planning stages.                                                                                             
9:47:32 AM                                                                                                                    
Senator  Bishop  thought  there  was  a  goal  to  fund  the                                                                    
Division of  Parks and  Outdoor Recreation  entirely through                                                                    
designated general funds.                                                                                                       
9:48:02 AM                                                                                                                    
Ms.  Crosby  noted  that the  Legislative  Finance  Division                                                                    
would have  capital budget reports posted  to their website.                                                                    
She  relayed that  the statewide  total for  the budget  was                                                                    
$1,385,715,700. The  UGF total  was $172,086,300;  DGF total                                                                    
was  $55,112,000;  other  funds  totaled  $114,491,300;  and                                                                    
federal funds totaled $1,044,026,100.                                                                                           
Co-Chair von  Imhof WITHDREW her OBJECTION.  She stated that                                                                    
amendments were due by noon Monday, May 6, 2019.                                                                                
Co-Chair  Stedman thanked  Co-Chair von  Imhof for  her hard                                                                    
work on  the capital budget.  He discussed his past  work on                                                                    
the  capital budget  and recalled  the tremendous  amount of                                                                    
work it took to craft the budget.                                                                                               
Co-Chair von Imhof thanked her  staff Shareen Crosby and Rob                                                                    
9:50:33 AM                                                                                                                    
Senator Bishop echoed the comments of Co-Chair von Imhof.                                                                       
SB  19  was   HEARD  and  HELD  in   committee  for  further                                                                    
SENATE BILL NO. 34                                                                                                            
     "An Act  relating to probation;  relating to  a program                                                                    
     allowing  probationers to  earn  credits for  complying                                                                    
     with  the conditions  of probation;  relating to  early                                                                    
     termination of probation;  relating to parole; relating                                                                    
     to  a program  allowing  parolees to  earn credits  for                                                                    
     complying with  the conditions  of parole;  relating to                                                                    
     early  termination of  parole; relating  to eligibility                                                                    
     for discretionary  parole; relating  to good  time; and                                                                    
     providing for an effective date."                                                                                          
9:50:51 AM                                                                                                                    
Co-Chair von  Imhof stated that  the committee's  intent was                                                                    
to  hear an  overview of  the  bill. She  noted that  public                                                                    
testimony would be  taken on all crime bills at  the 1:30 pm                                                                    
JOHN  SKIDMORE, DIRECTOR,  CRIMINAL DIVISION,  DEPARTMENT OF                                                                    
LAW, addressed the bill. He  informed the committee that the                                                                    
bill  focused on  probation and  parole and  would highlight                                                                    
how balance was  returned to the criminal  justice system to                                                                    
ensure   that  the   sanctions   that   were  imposed   were                                                                    
appropriate. He said  that he would discuss  the ability for                                                                    
someone to  end their  probation early, as  well as  who was                                                                    
eligible  for discretionary  parole. He  relayed that  these                                                                    
issues  were important  because when  someone was  placed on                                                                    
parole the  courts had  already found  that that  person was                                                                    
guilty  of  a   crime,  these  were  the   efforts  to  keep                                                                    
individuals in compliance  with the law as  they returned to                                                                    
society. He spoke to the sections of the bill:                                                                                  
     Section 1 Eliminates language related to caps on                                                                         
     technical violations of probation under AS 12.55.110.                                                                      
     Section 2 Eliminates language related to caps on                                                                         
     technical violations of probation under AS 12.55.110.                                                                      
Mr.  Skidmore  stated  that  when   someone  was  placed  on                                                                    
probation the  court sets conditions on  them: dont  consume                                                                    
alcohol,  report  to  your  probation  officer,  dont   have                                                                    
contact with certain people,  maintain employment, and other                                                                    
conditions  set  in probation.  He  said  that when  someone                                                                    
violated  those   conditions,  they   needed  to   face  the                                                                    
consequences.  He   said  that   technical  caps   had  been                                                                    
implemented in order to limit  the amount of time that could                                                                    
be  imposed  as  a  penalty,  modeled  after  the  Probation                                                                    
Accountability with Certain  Enforcement (PACE) program that                                                                    
supported swift and certain sanctions.  He lamented that the                                                                    
caps  had not  worked  as hoped;  people  would be  released                                                                    
before hearings  occurred and then  go on to  commit further                                                                    
violations.  Without the  hearing, violations  that happened                                                                    
subsequent  to release  but prior  to a  hearing, would  not                                                                    
carry  proper weight  for accountability.  He lamented  that                                                                    
people were not being held accountable for their crimes.                                                                        
9:55:00 AM                                                                                                                    
Senator  Wielechowski asked  whether  the department  agreed                                                                    
that  had the  system worked  properly, it  would have  been                                                                    
retained.  He asked  whether  there  was a  way  to fix  the                                                                    
problem rather than abandon caps altogether.                                                                                    
Mr. Skidmore stated that the  program was resource intensive                                                                    
and  successful  only when  applied  to  a small  number  of                                                                    
people.  He  did  not  believe that  the  program  could  be                                                                    
resourced to the point where  it could work on the statewide                                                                    
level. He added that the  PACE program would still exist for                                                                    
certain offenses, selected by the courts, but would not be                                                                      
applied uniformly for all probationers across the state.                                                                        
9:56:38 AM                                                                                                                    
Mr. Skidmore addressed Section 3:                                                                                               
     Section  3  Makes  the recommendation  of  a  probation                                                                  
     officer for  early termination of  probation permissive                                                                    
     and at  the discretion  of the probation  officer. Also                                                                    
     eliminates the timeline for  when such a recommendation                                                                    
     must   be   made.   Maintains  requirement   that   the                                                                    
     probationer is  in compliance with their  conditions of                                                                    
     probation  and  has  completed   all  of  the  required                                                                    
     treatment programs.  Also maintains the  prohibition on                                                                    
     unclassified  felony,   sexual  felony,   and  domestic                                                                    
     violence  offenders from  being  recommended for  early                                                                    
Mr. Skidmore claimed that recent criminal justice reform                                                                        
had taken discretion away from probation officers. He said                                                                      
that the bill would rectify the issue.                                                                                          
9:58:11 AM                                                                                                                    
Mr. Skidmore spoke to Section 4 and Section 5:                                                                                  
     Section 4 Allows a person  to obtain a driver's license                                                                  
     if  they have  been convicted  of felony  driving while                                                                    
     under the influence and has  not also been convicted of                                                                    
     a  crime against  a  person, if  the  license has  been                                                                    
     revoked for 10 years and  in the preceding 10 years the                                                                    
     person  has not  been  convicted of  a driving  related                                                                    
     criminal offense or a felony.                                                                                              
     Section 5 Allows a person  to obtain a driver's license                                                                  
     if  they  have  been  convicted of  felony  refusal  to                                                                    
     submit  to  a  chemical  test and  has  not  also  been                                                                    
     convicted of a  crime against a person,  if the license                                                                    
     has been revoked  for 10 years and in  the preceding 10                                                                    
     years the  person has not  been convicted of  a driving                                                                    
     related criminal offense or a felony.                                                                                      
Mr. Skidmore said that the sections would allow for a path                                                                      
for a person to get their driver license back. He noted                                                                         
that the administration supported the sections.                                                                                 
9:59:20 AM                                                                                                                    
Mr. Skidmore discussed Sections 6 and 7:                                                                                        
     Section  6 Reduces  amount of  time that  a probationer                                                                  
     may  decrease  their  length   of  probation  for  good                                                                    
     behavior  to  1/3.  Also  requires  the  credit  to  be                                                                    
     awarded  up front  similar to  statutory good  time for                                                                    
     Section 7  Prohibits those convicted of  a sex offense,                                                                  
     unclassified  felony, felony  crime  against a  person,                                                                    
     and  domestic  violence  crime against  a  person  from                                                                    
     earning credit against their period of probation.                                                                          
Mr. Skidmore  lamented that  under the  current law  the 1/1                                                                    
ratio was significant when combined  with other changes made                                                                    
to probation  by past reform efforts,  additionally, the way                                                                    
that the  earned compliance  credits were  currently written                                                                    
into  statute had  resulted in  significant litigation  that                                                                    
occurred in time accounting.                                                                                                    
10:01:14 AM                                                                                                                   
Mr. Skidmore addressed Section 8 of the bill:                                                                                   
     Section  8  Amends duties  of  a  probation officer  to                                                                  
     require that a  probation officer consider recommending                                                                    
     early  termination of  probation.  Also eliminates  the                                                                    
     requirement  to  use  administrative  sanctions  before                                                                    
     filing a petition to revoke.                                                                                               
Mr. Skidmore said that the  section made clear under the law                                                                    
that  the  recommendation  from   a  probation  officer  was                                                                    
supported and authorized under the law.                                                                                         
10:02:42 AM                                                                                                                   
Senator Wielechowski thought Section  8 seemed to be counter                                                                    
to  the   department's  philosophy.  He  thought   that  the                                                                    
elimination  of administrative  sanctions limited  responses                                                                    
to positive or negative behavior.                                                                                               
Mr.  Skidmore   stated  that  the  issue   was  still  under                                                                    
discussion within the department.                                                                                               
Senator Wielechowski  asked about the possibility  of giving                                                                    
probation  officers  the  ability to  impose  administrative                                                                    
sanctions without having to go to a judge.                                                                                      
Mr. Skidmore  did not think  there would be an  objection to                                                                    
give  parole and  probation officers  the ability  to impose                                                                    
administrative  sanctions. He  noted  that  the bill  simply                                                                    
removed  the requirement.  He  thought  that the  department                                                                    
could   support   probation   officers   using   their   own                                                                    
10:04:17 AM                                                                                                                   
Co-Chair  von  Imhof  let  the   committee  know  that  Jeff                                                                    
Edwards, Director  of the Parole  Board, would  be available                                                                    
for questions.                                                                                                                  
10:04:30 AM                                                                                                                   
Mr. Skidmore discussed Sections 9 through 15:                                                                                   
     Section  9 Requires  an  application for  discretionary                                                                  
     parole to  be submitted  to the  parole board  before a                                                                    
    person can be considered for discretionary parole.                                                                          
     Section 10  Clarifies that a  person who  is ineligible                                                                  
     for a good  time deduction from their  sentence is also                                                                    
     ineligible  for discretionary  parole. Also,  prohibits                                                                    
     certain crimes from  being considered for discretionary                                                                    
     parole. These are the same  crimes that were ineligible                                                                    
    for discretionary parole prior to January 1, 2017:                                                                          
          .notdef Non-sex class A felonies (Robbery 1, Assault 1,                                                               
          Arson 1);                                                                                                             
          .notdef B felonies if the person had one or more prior                                                                
          felony convictions;                                                                                                   
          .notdef C felonies if the person had two or more prior                                                                
          felony convictions; and                                                                                               
          .notdef B and C sex felonies (Sexual Assault 2, Sexual                                                                
          Abuse of a Minor 2, Distribution of Child                                                                             
     Section  11   Raises  the  amount  of   time  a  person                                                                  
     sentenced   for   an  unclassified   offense   (murder,                                                                    
     kidnapping) before they  are eligible for discretionary                                                                    
     parole from  one-third to one-half  of the  active term                                                                    
     of imprisonment  or the mandatory minimum  whichever is                                                                    
     greater. Also  requires persons  convicted of  B felony                                                                    
     level  drug  distribution  to  serve  one-half  of  the                                                                    
     active  term   of  imprisonment  before  they   can  be                                                                    
     considered for discretionary parole.                                                                                       
     Section  12 Eliminates  a  presumption  of release  and                                                                  
     thereby  returns discretion  back to  the parole  board                                                                    
     when determining release on discretionary parole.                                                                          
     Section 13  Allows the parole  board to make  a person,                                                                  
     who  does   not  meet  the   factors  in   section  10,                                                                    
     ineligible for  further consideration  of discretionary                                                                    
     parole  or to  have  the person  serve additional  time                                                                    
     before they  can be considered again  for discretionary                                                                    
     Section   14   Conforming    language   regarding   the                                                                  
     requirement that  a person fill out  an application for                                                                    
     discretionary parole.                                                                                                      
     Section   15    Outlines   application    process   for                                                                  
     discretionary  parole.  Ensures  that the  prisoner  is                                                                    
     furnished with a copy of the prepare report.                                                                               
Mr.  Skidmore   grouped  them   together  as   the  sections                                                                    
pertained to  discretionary parole. He stated  that criminal                                                                    
justice reform had affected  discretionary parole in several                                                                    
ways. First, the crimes that  were eligible to be considered                                                                    
for discretionary  parole were  expanded. When a  person was                                                                    
sentenced   by   the   courts,  there   was   mandatory   or                                                                    
discretionary   parole.   Discretionary   parole   was   not                                                                    
automatic  but at  the discretion  of the  parole board.  He                                                                    
referenced the movie "Shawshank  Redemption." He shared that                                                                    
mandatory parole  meant that a  person had been  released on                                                                    
parole because  they had behaved  while in custody.  He said                                                                    
that mandatory  parole was  used for  population management.                                                                    
He reiterated that here had  been restrictions on the people                                                                    
eligible  to  apply  for  discretionary  parole,  which  was                                                                    
expanded through criminal justice  reform. Secondly, the way                                                                    
in which the Parole  Board exercised discretion was altered;                                                                    
under criminal justice reform, when  an individual reached a                                                                    
certain  period of  incarceration,  and  application was  no                                                                    
longer    necessary,   and    parole   was    an   automatic                                                                    
consideration.  Thirdly, the  Parole Board  was directed  to                                                                    
presume  that  everyone  that  reached  a  certain  date  of                                                                    
incarceration should be released  unless there was clear and                                                                    
convincing evidence that they were a danger to society.                                                                         
10:08:01 AM                                                                                                                   
Mr.  Skidmore  summarized that  all  these  issues would  be                                                                    
resolved by the legislation be  returning them to where they                                                                    
had been before the reform legislation.                                                                                         
10:08:21 AM                                                                                                                   
Mr. Skidmore  noted that there  were additional  things that                                                                    
changed  in the  bill  in other  committees. He  highlighted                                                                    
Section  11,   which  discussed  discretionary   parole.  He                                                                    
pointed to  Section 7, which identified  certain crimes that                                                                    
had   different   parameters    for   discretionary   parole                                                                    
10:09:21 AM                                                                                                                   
Co-Chair  Stedman  had  some  concerns  with  the  issue  of                                                                    
discretionary  parole.   He  wondered   about  discretionary                                                                    
parole for people convicted of murder.                                                                                          
JEFF EDWARDS,  EXECUTIVE DIRECTOR,  ALASKA BOARD  OF PAROLE,                                                                    
ANCHORAGE    (via   teleconference),    addressed   Co-Chair                                                                    
Stedman's  question. He  stated that  the change  meant that                                                                    
before  any  inmate  convicted of  a  classified  crime  was                                                                    
eligible to appear before the  board, they had to serve half                                                                    
of their prison term.                                                                                                           
Co-Chair   Stedman   asked   how   many   individuals   were                                                                    
incarcerated for the  crime of murder that  would be subject                                                                    
to  the change  proposed in  the  bill. He  asked how  often                                                                    
discretionary parole was granted to murderers.                                                                                  
Mr.  Edwards  did not  have  the  information available.  He                                                                    
recalled  that individuals  convicted  of  murder, that  had                                                                    
been considered  for early release,  had been found  to have                                                                    
served at least half of their sentence.                                                                                         
10:11:51 AM                                                                                                                   
Co-Chair Stedman  maintained his  concern for  early release                                                                    
of murderers. He referenced a  notorious criminal that could                                                                    
have  been considered  a nice  guy.  He asked  how a  first-                                                                    
degree  murderer  could ever  be  qualified   good time   or                                                                    
mandatory parole.                                                                                                               
Mr.   Edwards   thought    Mr.   Skidmore   had   accurately                                                                    
differentiate  between discretionary  and mandatory  parole.                                                                    
The average  murder in the first-degree  sentence was around                                                                    
80  years.  Under mandatory  release,  the  inmate would  be                                                                    
released  after serving  two-thirds of  the sentence;  under                                                                    
the current  law they could  be eligible after  serving only                                                                    
one-third,  the legislation  changed  that  to one-half.  He                                                                    
said  that  under  the statutory  good  time  clause,  every                                                                    
eligible inmate  shall receive good  time for  good behavior                                                                    
while in prison.                                                                                                                
10:13:55 AM                                                                                                                   
Co-Chair Stedman  asked about  Second Degree  murder charges                                                                    
and  eligibility for  discretionary parole.  He asked  about                                                                    
the different charges for murder.                                                                                               
Mr.  Skidmore  noted that  the  categories  for murder  were                                                                    
murder in  the first  degree, murder  in the  second degree,                                                                    
manslaughter, and criminally negligent homicide.                                                                                
Co-Chair  Stedman  asked  to concentrate  on  second  degree                                                                    
Mr.  Edwards  replied that  concepts  were  the same.  Under                                                                    
Section  11  of  the  bill, the  required  time  served  was                                                                    
increased  to one-half  of time  served. He  noted that  the                                                                    
mandatory  parole  did  not  change   in  SB  34,  only  the                                                                    
eligibility to apple for discretionary  parole. He found the                                                                    
average sentence length for murder  in the second degree was                                                                    
40 years;  under current law,  the person would  be eligible                                                                    
for  mandated release  after serving  two-thirds of  the 40.                                                                    
The maximum sentence for murder  in the second degree was 99                                                                    
10:16:01 AM                                                                                                                   
Co-Chair Stedman presumed that 40  years was the average for                                                                    
second  degree murder,  with  eligibility for  discretionary                                                                    
parole after 20  years, mandatory after 26  years, with good                                                                    
Mr. Edwards replied in the affirmative.                                                                                         
Co-Chair  Stedman thought  that releasing  a murderer  early                                                                    
for  good behavior  was  problematic,  particularly for  the                                                                    
families of  victims. He  thought that  tighter requirements                                                                    
for parole should be considered.                                                                                                
10:17:37 AM                                                                                                                   
Senator Wielechowski was curious  about recidivism rates for                                                                    
those released  on parole.  He had  seen charts  that showed                                                                    
the age  at which  people committed  crimes. He  thought the                                                                    
age peaked in the 20s  and then decreased. He was interested                                                                    
in the cost of keeping elderly inmates in jail.                                                                                 
10:18:57 AM                                                                                                                   
Senator  Micciche   asked  about  unclassified   crimes  and                                                                    
discretionary parole eligibility.                                                                                               
Mr. Skidmore  stated that  previous criminal  justice reform                                                                    
had expanded the categories of  those that were eligible for                                                                    
discretionary parole. He  said that the intent of  SB 34 was                                                                    
to revert to  what the law said prior to  SB 91. He stressed                                                                    
that   the  legislature   had  the   power  to   adjust  the                                                                    
eligibility crimes within the bill.                                                                                             
10:20:53 AM                                                                                                                   
Senator Micciche  agreed with Co-Chair Stedman  that all the                                                                    
crimes  removed  from   discretionary  parole  were  serious                                                                    
crimes, which he thought seemed counter to logic.                                                                               
10:21:53 AM                                                                                                                   
Senator Hoffman followed up  on Co-Chair Stedman's concerns.                                                                    
He  asked where  the state  stood on  parole for  first- and                                                                    
second-degree murder.                                                                                                           
Mr. Skidmore said he could provide the information later.                                                                       
Senator Hoffman the requested the  information could help in                                                                    
comparing Alaska with other states.                                                                                             
Co-Chair von Imhof thought it  was fair to give Mr. Skidmore                                                                    
and  the department  some time  to  gather information.  She                                                                    
wanted  to continue  moving the  bill forward.  She stressed                                                                    
that  significant  policy  change  needed  to  be  discussed                                                                    
within the next ten days.                                                                                                       
10:23:40 AM                                                                                                                   
Senator Wilson pondered  whether the state was  too tough on                                                                    
crime or not tough enough.                                                                                                      
10:23:51 AM                                                                                                                   
Senator  Wielechowski referenced  Section  9.  He had  heard                                                                    
that   40  percent   to  50   percent   of  prisoners   were                                                                    
beneficiaries of  the Alaska  Mental Health  Trust Authority                                                                    
(AMHTA).  He asked  whether eligible  people  could be  left                                                                    
sitting in  prison just because  they failed to fill  out an                                                                    
Mr. Skidmore thought the question  was best addressed to the                                                                    
Mr. Edwards  noted that  there would  be an  assigned parole                                                                    
officer   to   assist   inmates   in   the   completion   of                                                                    
applications. If  a prisoner  could not  fill out  their own                                                                    
application, their  assigned parole officer would  help them                                                                    
fill out the application.                                                                                                       
10:25:41 AM                                                                                                                   
Co-Chair von Imhof understood that  parole was a contentious                                                                    
issue. She asked to return to  the topic at another time and                                                                    
continue discussion of the rest of the bill.                                                                                    
Co-Chair Stedman  commented that  he would  like information                                                                    
on what  the federal penalties  were for some of  the topics                                                                    
10:26:55 AM                                                                                                                   
Senator Micciche considered toughness  on crime and wondered                                                                    
about what  state had the  worst results. He  referenced FBI                                                                    
data  that put  Alaska at  829 violent  crimes per  100,000,                                                                    
which was  7 times the lowest  state of Maine and  twice the                                                                    
national average.                                                                                                               
10:27:32 AM                                                                                                                   
Co-Chair von  Imhof appreciated  the robust  discussion. She                                                                    
thought  Sections   9,  10,  and   11  called   for  further                                                                    
discussion in the future.                                                                                                       
10:27:47 AM                                                                                                                   
Mr. Skidmore addressed Section 16:                                                                                              
     Section  16 Gives  a parole  officer the  discretion to                                                                  
     make  a  recommendation  to the  parole  board  that  a                                                                    
     person's  parole be  terminated. Maintains  requirement                                                                    
     that  the  probationer  is  in  compliance  with  their                                                                    
     conditions of  probation and has  completed all  of the                                                                    
     required   treatment  programs.   Also  maintains   the                                                                    
     prohibition on unclassified  felony, sexual felony, and                                                                    
     domestic violence offenders  from being recommended for                                                                    
     early termination.                                                                                                         
Mr. Skidmore discussed Section 17:                                                                                              
     Section  17 Eliminates  language referencing  technical                                                                  
     violations of parole under AS 33.16.215.                                                                                   
Mr. Skidmore spoke to Section 18:                                                                                               
     Section 18 Allows  the parole board to  toll time while                                                                  
     the parolee is in violation  status. This is similar to                                                                    
     how probation works when a  probationer is in violation                                                                    
     status.  Under  this  provision, the  parolee's  parole                                                                    
     time  will  not  continue  to   run  while  the  parole                                                                    
     violation is under consideration by the parole board.                                                                      
Mr. Skidmore highlighted Sections 19 and 20:                                                                                    
     Section 19  Reduces amount of  time that a  parolee may                                                                  
     decrease their  length of parole  for good  behavior to                                                                    
     1/3. Also  requires the credit  to be awarded  up front                                                                    
     similar to statutory good time for prisoners.                                                                              
     Section 20 Prohibits those convicted  of a sex offense,                                                                  
     unclassified  felony, felony  crime  against a  person,                                                                    
     and  domestic  violence  crime against  a  person  from                                                                    
     earning credit against their period of parole.                                                                             
10:29:56 AM                                                                                                                   
Mr. Skidmore spoke to Section 21:                                                                                               
     Section 21  Prohibits a person  from earning  good time                                                                  
     for time spent on electronic monitoring post-sentence.                                                                     
He  asserted  that  electronic monitoring  was  a  different                                                                    
scenario, and good  time was not needed in the  same way for                                                                    
people in    hard beds (in a facility) in order to                                                                              
incentivize good behavior.                                                                                                      
Mr. Skidmore discussed Section 22:                                                                                              
     Section   22  Eliminates   the  requirement   that  the                                                                  
     Department  of  Corrections  submit  a  report  to  the                                                                    
     Alaska  Criminal   Justice  Commission   regarding  the                                                                    
     sanctions  imposed under  the administrative  sanctions                                                                    
     program which is repealed in this bill.                                                                                    
10:31:14 AM                                                                                                                   
Mr. Skidmore addressed Section 23:                                                                                              
     Section 23 Repealer section.                                                                                             
He stated that the section dealt with repealers in the                                                                          
bill. There were several repealers that dealt with                                                                              
technical caps and administrative sanctions.                                                                                    
Mr. Skidmore continued to Section 24:                                                                                           
     Section 24  Requires the  Department of  Corrections to                                                                  
     develop  a  needs   assessment  of  all  rehabilitative                                                                    
     services  for  each institution,  including  education,                                                                    
     treatment,  vocational  education, secular  and  faith-                                                                    
     based,   and  pro-special   program  and   report  that                                                                    
     information to the legislature.                                                                                            
He felt that rehabilitative services should be discussed in                                                                     
future policy concerning criminal reform.                                                                                       
10:32:33 AM                                                                                                                   
Senator Bishop appreciated Mr. Skidmore's comments about                                                                        
Section 24. He relayed that he did not want to waste money.                                                                     
10:33:12 AM                                                                                                                   
Mr. Skidmore addressed Section 25 and Section 26:                                                                               
     Section 25 Applicability.                                                                                                
     Section 26  Effective date. This  bill takes  effect on                                                                  
     July 1, 2019.                                                                                                              
He  noted  that  any  adjustments  that  were  made  in  the                                                                    
legislation   would    not   apply   to    those   currently                                                                    
10:34:08 AM                                                                                                                   
Senator  Hoffman understood  the people  lost the  PFD after                                                                    
commission  of   certain  crimes.   He  wanted  a   list  of                                                                    
provisions   that  would   result   in  the   loss  of   PFD                                                                    
Mr. Skidmore  stated that individuals sentenced  to felonies                                                                    
lost eligibility for  the PFD. He believed that  it would be                                                                    
for every year that they were incarcerated.                                                                                     
Senator  Hoffman understood  that once  an individual  was a                                                                    
felon, they lost their dividend for life.                                                                                       
Mr. Skidmore agreed to provide the information.                                                                                 
10:35:41 AM                                                                                                                   
Senator  Micciche  thought  that  changes  to  discretionary                                                                    
parole  would  affect  individuals  that  had  already  been                                                                    
Mr. Skidmore stated that in  the applicability section there                                                                    
were  five different  subsections  that  indicated that  the                                                                    
subsections  would apply  to sentences  imposed on  or after                                                                    
the effective date of the  sections. The crime itself had to                                                                    
be committed after the effective date of the bill.                                                                              
10:37:58 AM                                                                                                                   
Co-Chair   Stedman    thought   the   bill   was    like   a                                                                    
constitutionally protected benefit  plan. He understood that                                                                    
sentences  would not  be changed  but  felt the  legislature                                                                    
would have no control  over adjusting parole classifications                                                                    
once an individual was sentenced.                                                                                               
Mr.   Skidmore   affirmed  that   ex   post   facto  was   a                                                                    
Constitutional provision; punishment  on an individual could                                                                    
not  be  increased. He  reiterated  that  the law  could  be                                                                    
guidance as to how discretion should be exercised.                                                                              
10:39:28 AM                                                                                                                   
Mr.  Skidmore addressed  FN 1  from Department  of Law,  OMB                                                                    
Component 2202. The note was a zero-fiscal note.                                                                                
10:40:59 AM                                                                                                                   
Co-Chair von Imhof noted that time was of the essence.                                                                          
10:42:15 AM                                                                                                                   
Senator  Wielechowski asked  about the  age distribution  of                                                                    
incarcerated  individuals  and  asked  about  recidivism  of                                                                    
those on parole.                                                                                                                
Mr.   Edwards  thought   that   the   recidivism  rate   was                                                                    
approximately  20 percent.  He said  in 2018  there were  27                                                                    
inmates, between  61 and 80,  who were  discretionary parole                                                                    
candidates; 328 inmates were between 18 and 30.                                                                                 
10:44:23 AM                                                                                                                   
Senator  Wielechowski asked  about  the  80 percent  success                                                                    
rate with recidivism.  He asked about the details  of the 20                                                                    
percent who recidivated.                                                                                                        
Mr.  Edwards  noted  that  most  violations  were  technical                                                                    
violations: alcohol use,  drug use, or failure  to report to                                                                    
a parole officer.                                                                                                               
10:45:11 AM                                                                                                                   
Senator  Bishop  asked  what  could   be  done  to  get  the                                                                    
recidivism rate to 10 percent.                                                                                                  
10:45:55 AM                                                                                                                   
Senator  Shower  expressed  confusion with  the  80  percent                                                                    
success  rate.  He asserted  that  the  recidivism rate  was                                                                    
higher. He was concerned that  he was not receiving accurate                                                                    
information concerning recidivism.                                                                                              
10:47:50 AM                                                                                                                   
Mr.  Edwards affirmed  that Senator  Shower  was correct  in                                                                    
that  recidivism rates  were currently  higher. He  revealed                                                                    
that he  had been  quoting for discretionary  parolees only.                                                                    
The  80 percent  was  not reflective  of  the global  inmate                                                                    
Senator Shower appreciated the clarity.                                                                                         
10:48:58 AM                                                                                                                   
Senator   Wielechowski  thought   this   was  an   important                                                                    
distinction, since  the bill contemplated changing  the time                                                                    
of  which a  prisoner  might be  eligible for  discretionary                                                                    
parole. He thought  that if there was an  80 percent success                                                                    
rate  under current  statute, with  20 percent  recidivating                                                                    
under  benign technical  violations, the  result was  fairly                                                                    
successful.  He  was  curious  to see  a  breakdown  of  the                                                                    
technical  violations  of  the  20  percent  recidivism  for                                                                    
discretionary  parole,  as  well   as  a  breakdown  in  the                                                                    
violations for recidivism for those under mandatory parole.                                                                     
Mr. Edwards offered to find  Senator Wielechowski more data.                                                                    
He shared that the mandatory  release individuals had a much                                                                    
higher  recidivism rate.  He  reiterated  that those  people                                                                    
were  released under  mandate and  were  not interviewed  or                                                                    
vetted before being released.                                                                                                   
10:50:40 AM                                                                                                                   
Senator Micciche thought that  information on recidivism for                                                                    
those on discretionary parole should  be broken down by type                                                                    
of crime.                                                                                                                       
SB  34  was   HEARD  and  HELD  in   committee  for  further                                                                    
Co-Chair  von  Imhof  thought   there  was  more  discussion                                                                    
needed. She reminded the committee  that amendments could be                                                                    
delivered  to   her  office.  She  reiterated   that  public                                                                    
testimony would be taken at the 1:30 pm meeting.                                                                                
10:52:41 AM                                                                                                                   
The meeting was adjourned at 10:52 a.m.                                                                                         

Document Name Date/Time Subjects
SB 19 Work Draft Version K.pdf SFIN 5/3/2019 9:00:00 AM
SB 19
SB 19 SCS Bill Total Multi-Year Agency Summary - Copy.pdf SFIN 5/3/2019 9:00:00 AM
SB 19
SB 19 Senate CS Sectional Analysis - K Version.docx SFIN 5/3/2019 9:00:00 AM
SB 19