CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 216(FIN) am "An Act relating to restitution; relating to the office of victims' rights; relating to transfers from the dividend fund; creating the restorative justice account; relating to appropriations from the restorative justice account for services for and payments to crime victims, operating costs of the Violent Crimes Compensation Board, operation of domestic violence and sexual assault programs, mental health services and substance abuse treatment for offenders, and incarceration costs; relating to contributions from dividends; relating to delinquent minors; and providing for an effective date." 9:27:06 AM Co-Chair MacKinnon gave a brief history of the bill. She noted public testimony had been opened and closed. 9:28:01 AM AT EASE 9:30:59 AM RECONVENED KELLY CUNNINGHAM, ANALYST, LEGISLATIVE FINANCE DIVISION, discussed the fiscal notes. She discussed FN2, OMB Component Number 3099, DHSS, Behavioral Health, Behavioral Health Treatment and Recovery; the note had zero fiscal impact. She continued to FN13, OMB Component Number 769, ACS, Alaska Court System, Administration and Support; the note was indeterminate and little fiscal impact was expected. 9:33:21 AM DOUG WOOLIVER, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, stated that FN13 was indeterminate, as the department did not know whether the legislature would appropriate money to pay restitution. He said that should the legislature appropriate a substantial amount of money to the Office of Victims Rights for purposes of paying restitution, it would have a fiscal impact on the system. He said that if a person would be hired to do the work there would currently be no work to do. Co-Chair MacKinnon asked for the cost of the position. Mr. Wooliver stated that originally a half-time position was considered at $35 thousand annually. A full-time position would be closer to $75 or $80 thousand annually. 9:35:04 AM Ms. Cunningham addressed FN11, OMB Component Number 2952, Department of Corrections (DOC), Health and Rehabilitation Services. The note contained that largest fund change of the set of notes. The bill would change the PFD Criminal fund to the Restorative Justice fund, the bulk of the PFD criminal funds were in DOC, which meant that the $11 million fund change and the $430 thousand UGF would keep DOC whole. Another fiscal note in the packet would reflect the reflect a decrease in UGF for DOC. She said that the net UGF total of all the fiscal notes was $262.5 thousand. Co-Chair MacKinnon asked whether the bill would result in a change in regulation. Ms. Cunningham responded that she could not speak to the question. Senator Micciche observed that the bill would change the order of distribution. He wondered whether DOC programs would suffer decreased funding because of the fund change. Ms. Cunningham replied that the bill listed the percentages of distribution by priority, DOC was the fifth on the list. She stated that the allocation would appropriate much of the fund to DOC healthcare. She said that the bill set up guidance for future appropriations and DOC would not experience a significant fund change. Co-Chair MacKinnon stated that the answer to Senator Micciche's questions was yes. She said that DOC would become less of a priority for payment out of the fund, that the bill prioritized victims over felons. She explained the priority list on the fiscal note: This bill establishes a new priority order for allocation of these funds as follows: 1. Crime Victim Compensation Fund (AS 18.67.162) 2. Office of Victim's Rights for payments to victims 3. Nonprofit organizations to provide grants for mental health and substance abuse services 4. Nonprofit organizations to provide grants for services for crime victims and domestic violence and sexual assault programs 5. Programs in the Department of Corrections 9:39:18 AM Senator Micciche stated he prioritized victim's over the corresponding perpetrators. He thought it was difficult to understand the full impact of the fiscal notes. Ms. Cunningham addressed FN 10, OMB Component Number 2936, Fund Capitalization, Crime Victim Compensation Fund. She stated that FN9, OMB Component 2694, Department of Administration (DOA), Violent Crimes Compensation Board, was to be considered in conjunction with FN10. She pointed out that FN 10 showed $1.2 million from the new fund replacing $1 million of the PFD criminal fund, leaving a net of $178.7 thousand. Those net funds would be appropriated to the Violent Crimes Compensation Board who would then distribute those funds to victims of violent crimes. Senator Micciche understood the total fund shift was $178.7 thousand. Ms. Cunningham answered in the affirmative. 9:41:52 AM AT EASE 9:48:40 AM RECONVENED Co-Chair MacKinnon solicited further questions on FN9 and FN10. Ms. Cunningham addressed FN12, OMB Component 2769, Legislature, Office of Victims Rights. She detailed that the note reflected a $251.4 thousand of the new fund, with an offsetting $167.6 in UGF, that would give the office $83.8 thousand to fund a one-time position. The position was needed to transfer the data base from the judiciary and to update all restitution records so that restitution payments could be coordinated. Co-Chair MacKinnon observed that there was no note pertaining to associated regulation change. She thought that the changes were in funding source alone and would not require regulation changes. He hoped someone could speak to the question of regualtion changes. Ms. Cunningham understood that the temporary position would be entering records from the judiciary so that they could coordinate payments. Co-Chair MacKinnon read from the fiscal note: FY19 One-Time Increment: A full-time, nonpermanent employee at a Range 13 would be needed for one year (12 months) to perform data entry and establish electronic files for all restitution judgements with unpaid balances; the Court System statistics indicate that there are 20,000 restitution judgments with unpaid balances. 9:51:11 AM Ms. Cunningham addressed FN7, OMB Component 981, Department of Revenue (DOR), Permanent Fund Dividend Division. She relayed that the note reflected $20 thousand in UGF for FY19 for the division to take care of programming needs. The costs went down $5 thousand in the out years and maintained a $15 thousand base. Co-Chair MacKinnon noted that PFD had testified that their costs were unknown until they knew the volume of the payments. Vice-Chair Bishop interjected that the bill would require a change in regualtion. 9:52:15 AM Ms. Cunningham addressed FN8, OMB Component Number 2717, Department of Law (LAW), Commercial and Fair Business. The note had zero fiscal impact. Ms. Cunningham addressed FN3, OMB Component Number 2134, Department of Health and Social Services, Juvenile Justice, Probation Services. The note had zero fiscal impact. Co-Chair MacKinnon commented that there were remaining administrative questions that pertained to the fiscal notes. 9:53:03 AM Co-Chair MacKinnon stated that the committee had further questions concerning the fiscal notes. REPRESENTATIVE CHUCK KOPP, SPONSOR, hoped to answer the questions. Co-Chair MacKinnon noted that the questions needed to be answered by the administration. HB 216 was HEARD and HELD in committee for further consideration. CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 216(FIN) am "An Act relating to restitution; relating to the office of victims' rights; relating to transfers from the dividend fund; creating the restorative justice account; relating to appropriations from the restorative justice account for services for and payments to crime victims, operating costs of the Violent Crimes Compensation Board, operation of domestic violence and sexual assault programs, mental health services and substance abuse treatment for offenders, and incarceration costs; relating to contributions from dividends; relating to delinquent minors; and providing for an effective date." 11:06:24 AM Co-Chair MacKinnon brought the bill before the committee. She stated that the committee had two questions pertaining to the fiscal notes. Co-Chair MacKinnon drew attention to FN12. TAYLOR WINSTON, OFFICE OF VICTIMS' RIGHTS (OVR), ALASKA LEGISLATURE (via teleconference), discussed FN12. She explained that in order to provide restitution assistance through the Restorative Justice account to victims the administrative code and statute would need to be updated. She said that the fiscal note focused primarily on a one- time cost for a one-year, non-permanent position to complete the work on the restitution case management system. She added that additional costs for electronic case management. Co-Chair MacKinnon asked whether the fiscal note needed amending to reflect additional capital cost to support the software system. Ms. Winston understood that the fiscal note reflected the cost of $83,000 for staffing, approximately $5,000 for computer related costs, and $1000 for the printing of information to be distributed to various entities for informational purposes. 11:09:54 AM Co-Chair MacKinnon summarized the fiscal note and asked whether the note would need to be updated to reflect the statute change. Ms. Winston affirmed that statutory change would be needed to reflect language that authorized the office to help victims with the restorative justice account. Representative Kopp had not heard of a need for additional statutory change. He disagreed with Ms. Winston and announced that OVR had broad authority in statute to assist victims with representation in court and in the return of property hearings. He stated that the Department of Administration, and not OVR, would not be writing the checks. He asserted that OVR would set priority order of victims presenting who were due restitution. He did not believe that it was necessary to amend the bill. 11:12:24 AM Ms. Winston agreed that OVR had broad jurisdiction with assisting victims with regard to restitution, generally. She believed that the office could accomplish the work without changing statute but adding the jurisdictional duties of the office to statute would be cleaner. 11:13:33 AM AT EASE 11:14:24 AM RECONVENED Co-Chair MacKinnon explained that the committee had Representative Kopp referenced page 3, Section 4 of the bill: (c) The office of victims' rights shall adopt regulations under AS 44.62 (Administrative Procedure Act) to establish a process for payments of restitution balances from the restorative justice account established in AS 43.23.048. Representative Kopp understood that the language in the section was enough to enable the office to carry out the duties prescribed in the bill. Co-Chair MacKinnon requested clarification that the office would not be issuing payments. Representative Kopp stated that the language on Line 14 dealt with OVR making eligibility decision on a priority order. Co-Chair MacKinnon referenced FN11. 11:17:09 AM APRIL WILKERSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS (via teleconference), stated that there would be no regualtion changes needed for the department. She said that the fiscal note adequately represented the anticipated fiscal impact of the legislation. She thought the fiscal note was adequately representative. Co-Chair MacKinnon MOVED to AMEND FN 11. There being NO OBJECTION, it was so ordered. Co-Chair MacKinnon MOVED TO AMEND FN 12. There being NO OBJECTION, it was so ordered. Representative Kopp said that the bill would reprioritize the vehicle established by the legislature in 1988 as the Crime Victims Compensation Fund. He lamented that it had become largely the Inmate Healthcare Fund, and that a large portion would still be given to inmate healthcare, but by setting a priority order, victims were sent the message that they are considered first and foremost. He relayed that reestablishing priority order gave clear direction to the administration what the legislature considered to be the highest purpose of the fund. 11:19:43 AM Senator Micciche understood that the maximum amount a crime victim could receive for restorative justice was $10,000. Representative Kopp agreed. 11:19:58 AM Senator Olson asked how to ensure that the fund would not be spent on something other than victim's rights in the future. Representative Kopp responded that the legislature should be vigilant and monitor the fund to be sure it was working as intended. Vice-Chair Bishop MOVED to report CSSSHB 216(FIN) out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSSHB 216(FIN) was REPORTED out of committee with a "do pass" recommendation and with a new fiscal impact note from the Department of Corrections; and a new fiscal impact note from the Legislature; and with seven previously published fiscal notes, three zero notes: FN2(DHS), FN3(DHS), FN8(LAW); three with fiscal impact: FN7(REV), FN9(ADM), FN10(ADM/FUND CAP); and one indeterminate note: FN 13(AJS). 11:21:15 AM AT EASE 11:23:09 AM RECONVENED Co-Chair MacKinnon discussed the agenda for the following day. She informed that the committee would consider HB 267 in addition to the published agenda.