SENATE BILL 67 "An Act relating to the imposition of criminal sentences; and amending Rule 32.2, Alaska Rules of Criminal Procedure." BRETT HUBER, STAFF, SENATOR RICK HALFORD, noted that when a felon is sentenced to a term of imprisonment, the public often receives a false sense of security by believing the criminal will actually be incarcerated for the stated sentence. As a result of "good time", as well as mandatory and discretional parole provisions, the actual sentence served is virtually guaranteed to be less than that which is imposed by the judge. If enacted, SB 67 would require that a victim of a crime, their family, as well as the public, be provided with an accurate statement of the minimum period of time which must be served before the criminal is released. At the very least, the victim and their families, as well the public, deserve an honest and accurate assessment of the amount of time a criminal will actually be incarcerated. SB 67 requires that the judge provide this information. Mr. Huber continued, the enactment of SB 67 would also allow the Department of Corrections to receive up to $650 thousand dollars in federal funds which are available to states which meet federal "truth in sentencing" guidelines. Representative Mulder asked how the legislation would help the State qualify for receiving truth in sentencing grants. Mr. Huber noted that Section #2 of the bill added language by the Department of Law. The federal truth in sentencing grant had initially required states to have a minimum of 85% of the sentence actually served by those convicted. Since that time, the federal government revamped the program. Section #2 does not change any of the sentencing or mandatory parole procedures that the State is in, although, it does provide language which the Department of Law is comfortable will allow Alaska to qualify for the federal aid dollars. Mr. Huber noted that the fiscal note accompanying the bill was prepared by the Senate Finance Committee and indicates estimated federal receipts including the estimated 10% general fund match. Representative Foster MOVED to report CS SB 67 (JUD) out of 5 Committee with individual recommendations and with the accompanying fiscal notes. Representative Mulder OBJECTED. He noted that he was considering an amendment which would address the surcharges on criminal offense fines. The convicts who are able to pay for criminal offenses should be assessed those fees. He believed the State lagged behind the federal assessment allowance. An amendment would allow the State to recoup funds and money to go back for the victims. Representative Mulder WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. CS SB 67 (FIN) was reported out of Committee with a "do pass" recommendation and with fiscal notes by the Alaska Court System, two by the Department of Public Safety dated 3/5/97, the Department of Law dated 3/5/97 and the Senate Finance Committee dated 3/13/97. #SB161 SENATE BILL 161 "An Act relating to management of certain municipal assets by the Alaska Permanent Fund Corporation." SENATOR BERT SHARP stated that the legislation would authorize the Permanent Fund Corporation to manage the assets of a municipal savings or investment account. The parameter of a management agreement starts on Page 1, Line 9, through the remainder of the bill. These were established by the corporation as conditions to accommodate without compromising their mission. The legislation would offer municipalities the option of investing management services within Alaska. The management costs would be totally reimbursable to the Permanent Fund Corporation by the municipalities. Representative Martin asked the advantage to the local municipalities. Senator Sharp pointed out that local governments had sold the utilities. Co-Chair Therriault commented that the University's trust and assets were managed by the Department of Revenue. Representative J. Davies asked if the appropriation account would be a general fund expenditure. Senator Sharp explained that the Permanent Fund Corporation had voiced concern that the money not be deposited into the general fund, instead, it be returned to the Permanent Fund Corporation through the Earnings Reserve Account, confirmed by the Legislature. Representative Davies agreed, although, noted that the Earnings Reserve Account is an appropriation account and appropriations from that account do not appear as general funds. 6 Senator Sharp stated that the fiscal note indicates that the funds appear as corporate receipts to the Permanent Fund. The fiscal note indicates that there was a reimbursement of the Permanent Fund earnings account for those expenses. Co- Chair Therriault stated that budgeting for the corporation come from corporate receipts from the earnings reserve. The money which comes for the management of the fund would be tracked in a similar fashion. Representative J. Davies asked if the reserve earnings would remain in the municipal account. Senator Sharp responded that any earnings not drawn by the municipality on an annual basis would stay and increase the assets on the municipalities account. (Tape Change HFC 97-114, Side 2). Representative G. Davis pointed out that the Alaska Municipal League has initiated and is operating a Municipal Investment Pool. He suggested that if members were curious as to how much money each municipality has to invest, they could track those area pools. Representative Foster MOVED to report CS SB 161 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS SB 161 (FIN) was reported out of Committee with a "do pass" recommendation and with the a fiscal note by the Department of Revenue dated 4/15/97.