SENATE BILL NO. 97 "An Act relating to fees for probation and parole." This was the first hearing for this bill in the Senate Finance Committee. Senator Ward testified this bill stipulates that probationers and parolees under the jurisdiction of the Department of Corrections must participate in their rehabilitation by paying a portion of their parole or probation expenses. He spoke to the high cost of probation and parole to the government and stressed the primary purpose of placing offenders on probation or parole is to secure employment. Senator Ward indicated other states have implemented similar programs. He stated it has been shown that those affected offenders make the effort to stay employed so they are able to pay the necessary fees, and therefore avoiding returning to prison. Senator Ward expressed the intention is not to create a debtor jail and assured this legislation would not cause this. He noted exceptions would be made for those who are unable to pay. Senator Ward predicted that despite victim's compensation and child support payments, a significant number of parolees and probationers would be eligible to receive a permanent fund dividend, which could be garnished under this legislation for parole and probation expenses. Senator Ward pointed out that various broad based taxes were under consideration in part to pay for the expenses related to probation and parole. Senator Ward remarked this legislation would benefit those on probation and parole. He stated that lack of a job is one "underlying ill" causing people to commit crimes because of the need to fill emptiness. He commented this legislation offers a method for offenders to "earn their way back into society". Senator Ward mentioned the proposed interstate compact relating to monitoring and administering probationers and parolees. He predicted other states would be reviewing cost options as well. Senator Ward commented this program could be cost-effective provided the collection process is not made burdensome requiring the addition of significant staff. Senator Ward noted that in states with similar programs, probationers and parolees who fail to make the necessary payments are usually in violation of other conditions of their release as well. Senator Ward also pointed out he proposed this system during the Thirteenth Legislative Session, but was unsuccessful. AT EASE 11:25 AM / 11:31 AM BRUCE RICHARDS, Special Assistant, Office of the Commissioner, Department of Corrections testified via teleconference from Anchorage about previous attempts to require payments from parolees and probationers and statutes to this effect that were in place from 1986 to 1991. He stated the collection rate during that period was approximately eight percent. He qualified the proposed legislation stipulates collections would be performed by a private entity. However, he informed that past efforts to locate a collection agency willing to assume these duties were unsuccessful because collection agencies are "in the business of taking on bad debt." Instead, he continued, a local financial institution was employed to establish an escrow account and to mail monthly statements to parolees and probationers, but did not pursue collection of late balances. Therefore, he stated, the fiscal note reflects a ten-percent collection rate for the proposed legislation. ROBERT BUTTCANE, Legislative and Administrative Liaison, Division of Juvenile Justice, Department of Health and Social Services, testified via teleconference from Anchorage to explain the projected 80 percent collection rate reflected in this Department's fiscal note. He shared that in-house discussions were held to arrive at this estimate, that there is no quantitative basis for this "subjective" assumption and that it is based on an "absolute best case scenario". He noted the Division has been successful in obtaining 87.7 percent payment rate in court-ordered restitution. Because if this, he said, most juvenile offenders could be motivated to comply with expectations imposed on them. Co-Chair Donley asked Mr. Richards the current repayment percentage of restitution payments ordered for adult offenders. Mr. Richards indicated he would provide the information. Co-Chair Donley had suggested the Department of Corrections fiscal note should indicate that the number of new parolees and probationers affected by this legislation would be phased in over several years. Co-Chair Kelly ordered the bill HELD in Committee. ADJOURNMENT  Co-Chair Pete Kelly adjourned the meeting at 11:40 AM.