HB 400-VIOLENT CRIMES EMERGENCY COMPENSATION  [Contains brief mention of SB 266.] 9:17:44 AM CHAIR LYNN announced that the next order of business was HOUSE BILL NO. 400, "An Act relating to emergency compensation from the Violent Crimes Compensation Board." 9:18:00 AM NANCY MANLY, Staff, Representative Bob Lynn, Alaska State Legislature, introduced HB 400 on behalf of the sponsor, the House State Affairs Standing Committee, which is chaired by Representative Lynn. She said the HB 400 proposes to increase the limit that victims of violent crimes can receive in emergency compensation from $1,500 to $3,500. This limit has not been increased since 1975 and is limited to relocation costs, verifiable lost wages, and counseling for families and victims whose safety and well-being are at risk. Ms. Manly explained that the cost for these emergency expenses has increased substantially over the years, and $1,500 is insufficient to cover deposit and first and last month rents, especially when a family or dependents are involved. She said emergency awards are necessary because the Violent Crimes Compensation Board (VCCB) meets only five times per year, and it can be 10-11 weeks before a claim is considered. Ms. Manly reported that the compensation fund receives approximately 70 percent of its appropriations from the state in the form of felons' garnished permanent fund dividends and 30 percent from federal grants. She said the money does not "lapse" once placed in the fund. The compensation is deducted from the final amount given to the victim, and any excess award must be repaid to VCCB. The bill would not increase the overall cap of $40,000 that can be awarded to a victim, and there is zero fiscal impact on the state, she concluded. 9:19:37 AM GRIER HOPKINS, Staff, Senator Joe Thomas, Alaska State Legislature, provided information related to HB 400 on behalf of Senator Thomas, sponsor of SB 266, a companion bill to HB 400. He relayed that the VCCB fund was established in 1972, with an emergency compensation limit of $500. Three years later, in 1975, that limit was increased to $1,500. Mr. Hopkins said calculated for inflation today, that same $1,500 would have the purchasing power of approximately $6,000. He said VCCB came to the $3,500 proposed in HB 400 based on the average rental cost of $1,200-$1,500 per month, doubled to cover first and last month's rent, with a deposit. He listed the allowable reasons for giving out emergency compensation, as previously stated by Ms. Manly. He added that victims must show a plan for relocation and give a reason for it. Money for counseling is paid directly to the provider or for out-of-pocket expenses. Lost wages must be verified by either producing three years of tax returns for those who are self-employed or pay stubs from the employer, and, at that point, money is awarded at 80 percent of the full value "to account for taxes that would be removed." MR. HOPKINS said claims submitted to the board have increased steadily since 1972. In fiscal year 2009 (FY 09), the board paid out $25,547 for 22 emergency claims, twelve of those to the $1,500 limit. In FY 10, to date, 24 emergency cases have been awarded for a total of $29,699. Mr. Hopkins urged the committee to support the passage of HB 400, thus helping VCCB aide the victims of crime across the state. 9:21:49 AM KATE HUDSON, Administrator, Violent Crimes Compensation Board (VCCB), reported that in FY 09, the board awarded a total of 478 claims, 22 of which were by emergency award. She said that illustrates that the board does not pay out emergency awards to everyone who asks; the cases must be deserving ones. She said she makes the initial review to determine eligibility, then she submits those cases that she thinks need emergency rewards to the board, and the board then determines whether or not those cases merit emergency awards. Ms. Hudson emphasized that the current $1,500 limit is negatively affecting people who need to be relocated, because that amount of money does not go far for a family with two or three dependents trying to move to a safe place, pay a deposit, pay the rent, and get settled. She offered to answer questions from the committee. MS. HUDSON, in response to Representative Johnson, explained that her initial review is to determine whether basic eligibility requirements have been met, which means there is information from police showing "sufficient evidence for compensable crime." She confirmed that the board meets five times a year, and she said two out of the three board members have to respond to her via telephone or e-mail to let her know a case can be approved for emergency award, at which point she can process the check for the victim. That claim would be taken to the board at its next meeting for "gratification" and, if applicable, further award, she concluded. In response to Chair Lynn, she said the response of the board usually comes within 24 hours, at which point the timing is a question of how quickly the check can process through internal accounting procedures in the Department of Administration. Generally, she said, that takes 5-7 working days. 9:25:21 AM MS. HUDSON responded to a series of questions from Representative Gatto. First, she said although not impossible, because of inbuilt mechanisms it is highly unlikely that an undeserving individual would get an award. Next, she said guidelines have been set out in statute for making an award. Furthermore, federal statute states that VCCB is a payer of last resort. Therefore, if the victim has other sources that can pay for medical expenses, they would have to be used before the board could give out money to that victim. Ms. Hudson added that the board is not allowed to make an award for "pain and suffering." Finally, she offered her understanding that the board has not run out of money, but has come close some years. She reminded the committee, "As state funding or state expenditure on awards to victims increases, so, too, does the federal grant, because the way the federal grant is calculated is that we receive 60 cents for every dollar we spend in state money. So, as state expenditure increases, so do our federal receipts." 9:28:35 AM MS. HUDSON, in response to Representative Petersen, said victims of domestic violence and sexual assault make up a large portion of those who submit claims for violent crimes compensation, but total less that 50 percent of the total claims. In response to a follow-up question, she agreed that a week can seem like a long time to wait for compensation for a person who is a victim, but unfortunately the turnaround time is limited by some extent by how quickly the accounting staff can process checks. She said in extreme situations, there are domestic violence shelters available to women. 9:30:45 AM GERAD G. GODFREY, Chair, Violent Crimes Compensation Board, echoed Mr. Hopkins' statements that the cap for allowable emergency compensation has not been raised since 1975, and, adjusted for inflation, that has resulted in a differential of over $6,000. He said the board typically receives between 5 and 10 applications between its board meetings. Typically those applications come from domestic violence situations that have been ongoing. Mr. Godfrey explained, "One of the requirements of a person when they apply for compensation is that they cooperate with law enforcement." He said the board needs to be ready to take advantage of "the moment of opportunity" for the victim. He relayed that some victims have had their husbands or live-in boyfriends threaten to kill them when they make bail. The mental health and physical safety of a woman in this situation is affected. MR. GODFREY indicated that a woman with minor children can combine the amount of money she gets from the board for each child and for herself to get herself and her children out of danger; however, a woman who is on her own will have difficulty covering first and last months' rent and a security deposit with only $1,500, let alone get a plane ticket out of town to be with close friends or family. Mr. Godfrey said time is of the essence; the board does not want a woman harmed because it was not able to give her money fast enough or because the money given was insufficient. MR. GODFREY acknowledged the past work of Representatives Gatto and Gruenberg related to having arson included in the considerations for emergency compensation. Regarding the previous question from Representative Gatto, Mr. Godfrey recalled two instances when the board was used fraudulently, but said the board has created policies to keep that from happening again. He then related that VCCB does not have the means to explore anyone's solvency or insolvency, but he reiterated that the board is a "payer of last resort." He reemphasized the importance of expediency in getting women and children out of dangerous situations. 9:37:06 AM MR. GODFREY, in response to a question from Chair Lynn regarding confidentiality, said the board treats any information regarding a victim's whereabouts as confidential. Whether or not the victim keeps her location a secret depends on certain factors. He explained that domestic violence is cyclical, and sometimes women contact their abuser; however, when a victim is at the point where she is ready to work with police and the board, she is usually in a position of resolve and will attempt to keep her location a mystery. 9:39:38 AM REPRESENTATIVE P. WILSON directed attention to a handout in the committee packet, entitled, "Violent Crimes Compensation Board New Claims Received By Location Of Crime." She noted that in 2009, most of the violent crimes claims were received from Anchorage, Fairbanks, Juneau, Palmer, and Wasilla. However, she also noted that there are locations on the list that submitted a lot of claims in relation to their populations. She asked Mr. Godfrey if the board has observed certain patterns in crimes by location, and has been able to figure out the reasons behind the crimes in those areas. 9:41:03 AM MR. GODFREY responded that the board could only do so empirically. He said the board has not tasked its staff to do an analysis on the data available, but he said the board would be amenable in doing so at the request of the legislature. Mr. Godfrey noted the number of crimes by area and then noted the type of crime for which someone asks compensation. He said he thinks there are places that are underrepresented based on their population and the type of predominate work in the area. He compared Kodiak and Ketchikan, and opined that Kodiak is "under represented for its population." He indicated one factor to consider is that victims in an area are just learning about the existence of the board. He said it is difficult to determine whether people in one area just don't know about the board or are not applying. He concluded that the board would love to have no need to exist. REPRESENTATIVE P. WILSON suggested that VCCB could gather information regarding extenuating circumstances of violent crimes that then could be shared with legislators to help them when addressing the issue of prevention. 9:44:37 AM MR. GODFREY responded that that is something that a previous administrator was tasked with finding out. He said the board's office receives a wealth of information related to crime and victimization. This information comes through claims, police records, and court records. He named some of the factors that were selected to be highlighted: alcohol use, drug use, and sex crimes. He said the board's administrator compiled this information mainly for its own purposes, although the results were shared with the legislature. He said perhaps the board could compile similar information for the next fiscal year and present that information to the legislature. He stated his belief that that is valuable data "if somebody knows where to go with it and what to do with it." 9:46:18 AM CHAIR LYNN closed public testimony. 9:46:25 AM MR. GODFREY, in response to Representative Johnson, said the board does not compensate shelters, but exists and is willing to assist a person who has come from a shelter. Likewise, he said the board does not compensate the Alaska Native Medical Center for fulfilling its mission of providing health care to Alaska Natives, including those without health care. He noted, "That has been a point of contention with the Alaska Native Medical Center over the years." 9:47:59 AM REPRESENTATIVE GRUENBERG moved to report HB 400 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 400 was reported out of the House State Affairs Standing Committee.