SB 56-RECLASSIFYING CERTAIN DRUG OFFENSES  1:30:28 PM CHAIR COGHILL announced the consideration of SB 56, and noted that this was the second hearing. 1:30:56 PM CHUCK KOPP, staff to Senator Fred Dyson, sponsor of SB 56, stated that the current drug policy imposes a fiscal burden that is not sustainable. He explained that SB 56 refocuses prison bed space on violent and career criminals while protecting law enforcement's ability to aggressively pursue drug distributors and repeat offenders. This will benefit society by improving prospects for drug offenders to get jobs, be professionally licensed, and get housing, all of which are variables strongly correlated with decreased alcoholism, domestic violence, and recidivism. He provided a sectional analysis. Section 1 amends AS 11.71.040 by raising the quantity of a Schedule IA or Schedule IIA controlled substance in possession that precipitates a felony charge from "any amount" to a quantity that would imply distribution. The quantity that implies distribution and opens the offender to a felony charge is 15 or more tablets, ampules, or syrettes when the drug is found in such a form. (Schedule IA drugs are commonly known as codeine, hydrocodone, and heroin. Schedule IIA drugs are commonly known as meth and cocaine.) However, the bill lowers the felony presumptive limit to 500 milligrams for heroin and 300 milligrams for Lysergic acid diethylamide (LSD). Any person found in possession of any amount of a Schedule IA or Schedule IIA controlled substance may still be charged with a class C felony if the person has been previously convicted of any drug offense defined in AS 11.71.010 - AS 11.71.050 in the five years preceding the current offense. The bill does not affect any provisions of this statute or any other controlled substance statute that empowers law enforcement and prosecutors to charge and convict distributors of controlled substances. 1:34:11 PM Section 2 provides that offenders in possession of small quantities of Schedule IA and Schedule IIA controlled substances may be prosecuted under AS 11.71.050, a class A misdemeanor. Offenders in possession of quantities above the felony level are subject to prosecution under AS 11.71.040. The felony limit is established as 15 tablets, ampules, or syrettes or 3 grams if found in a preparation, compound, or mixture. The felony limits are reduced to 500 milligrams for heroin and 300 milligrams for LSD. Section 3 establishes that this Act applies to offenses committed on or after the effective date of the Act, except that references to previous convictions in the three-strike provisions in Section 1 include convictions occurring before, on, or after the effective date. Section 4 removes conflicting language related to bath salts from AS 11.71.040 and AS 11.71.050 and provides that hereafter bath salts will be treated the same as other Schedule IIA controlled substances. Section 5 provides for an effective date. MR. KOPP noted that the bill contained a drafting error. 1:36:52 PM FORREST DUNBAR, public advocacy attorney, clarified that his comments relate to research that he did last year while at the Office of Public Advocacy (OPA), but he was not representing OPA or the Department of Administration. He explained that the three-strike rule in Section 1 helps to differentiate between first time abusers and repeat offenders. Furthermore, if there is any evidence that a person is a drug distributor the person can be prosecuted with a felony. SB 56 should lead to reductions in prison admissions, legal costs, judicial costs, barrier crime issues for low-level offenders, and welfare costs. Fewer low risk offenders will be placed on felony probation which should lead to a reduction in the caseload for probation officers. He displayed a graph of Alaska's prison population growth from 2003 to 2012 and projected growth to 2020. It shows that the average inmate population has been growing slightly less than three percent per year. Based on that rate, the state by 2016 will either have to build another Goose Creek prison or start exporting Alaskan prisoners to other jurisdictions. MR. DUNBAR described the three primary drivers of prison growth that the Alaska Department of Corrections identified in August 2012. 1. Increased admissions for second degree felony theft (theft of property valued over $500) and increased sentence lengths associated with these offenses. 2. A 63 percent rise in prison admissions for drug offences, particularly felony offenders convicted of possession offenses. 3. Increases in petitions to revoke probation (PTRP) and probation violations. 1:39:23 PM MR. DUNBAR displayed a chart showing the number of cases that were filed in the Alaska Court System from 2008 to 2012 with fourth degree misconduct involving a controlled substance (MICS- 4) charges. [In 2008, 622 cases were filed with MICS-4 charges and in 2012, 977 cases were filed with MICS-4 charges.] He highlighted that this reform will result in fewer people being charged with low-level felonies. The collateral consequences of these small quantity drug felonies include barriers to all employment, difficulty finding housing, inability to qualify for benefits like Food Stamps, and ineligibility to become a Village Public Safety Officer (VPSO). These barriers make it extremely difficult for successful reentry into the community, and possibly drive recidivism. He reviewed the ways that SB 56 will reduce legal and adjudication costs. Anchorage court statistics show that felony cases take about twice as long to reach disposition as misdemeanor cases, which leads to higher cost. Felony cases also require empaneling a grand jury and the need for more experienced attorneys, both of which lead to higher costs. MR. DUNBAR estimated that passing SB 56 will result in annual savings of between $400,000 and $800,000 to defense agencies and the court. Legislative Research Services found that about $14 million in annual costs are associated with low-level drug crimes, primarily from the Department of Corrections. He acknowledged that his estimates were more conservative, but the important point is that the bill could save tens of millions of dollars over the next decade. The bill also affects public safety. Fourteen states have already classified low-level drug possession as a misdemeanor and those states have lower rates of violent crime, property crime, and incarceration and significantly higher rates of drug treatment. He highlighted that DOC is starting to focus on this. 1:44:06 PM MR. DUNBAR refuted the argument that people won't be incentivized to stay in treatment if the threat of a felony isn't hanging over their heads. He pointed out that states where possession of these drugs is a misdemeanor have demonstrably higher rates of drug treatment and lower rates of rape and domestic violence. Also, prosecutors and judges have said that imposing sufficient suspended time is an incentive to stay in treatment. MR. DUNBAR said the bill won't have a large impact on the Department of Public Safety, but will have a large impact on possession offenders because it reduces collateral consequences. It might also have a positive effect on recidivism. He described an example from the state of Florida and opined that people with a felony label are more likely to become trapped in the criminal milieu than those who do not have that label. Convicted felons find it more difficult to find gainful employment and are more likely to reoffend. In conclusion he posited that SB 56 will result in a reduction in probation officer caseloads, which will lead to direct cost savings to the state. Over the long term the savings could be in the tens of millions of dollars. If the bill avoids the building of another prison, the savings could amount to hundreds of millions of dollars. 1:46:25 PM WALT MONIGAN, Native Justice Center, stated that he likes SB 56 because it is based on a logical and intuitive approach to addiction. It is treatment versus incarceration, which gives the offender a second chance. Finally, it can forestall the branding of a felony on a person. Being branded a felon closes many doors and almost guarantees continued drug use or abuse, because it limits other opportunities such as jobs. He said this bill is long overdue and if passed it will help reduce current offenders' bitterness, anti-social behavior, and continued drug use. It will have a positive effect on subsequent crimes, domestic violence, child abuse, and neglect. 1:49:05 PM} RICK ALLEN, Director, Office of Public Advocacy, stressed the importance of getting Alaska's prison population growth under control. Alaska has one of the fastest growing prison populations in the U.S. and is one of the few states where the population is still growing. Conversely, states like Texas are closing prisons. He said the cost of building Goose Creek prison is equivalent to the cost of building ten new high schools and another Goose Creek will be needed very soon if things don't change. He discussed the devastating impacts of a felony conviction on individuals and families. Studies show that having a parent in prison can be just as harmful to a child as witnessing or experiencing domestic violence. He emphasized that it makes no sense for the state to spend $50,000 a year to incarcerate somebody for being in possession of $100 worth of drugs. He suggested considering the analysis of fiscal conservatives like Jeb Bush, Newt Gingrich, and Bill Bennett and reclassifying the state's drug laws as proposed by SB 56. Furthermore, evidence from other states indicates that reclassification is unlikely to have negative impact on public safety. 1:51:20 PM KARL BURGGRAF, representing himself, stated support for the intent of SB 56. He offered his belief that drug crimes need to be treated differently and that the three strikes law is ridiculous. He shared a personal story. SENATOR DYSON said he'd like the committee to consider the housekeeping amendment that Mr. Kopp referenced. 1:56:17 PM At ease. 1:58:24 PM CHAIR COGHILL reconvened the meeting and asked for a motion to adopt the amendment. SENATOR DYSON moved Amendment 1, labeled 28-LS0355\N.1. AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR DYSON Page 3, line 11: Delete "AS 11.71.150(b)(9)"  Insert "AS 11.71.150(b)(12)" CHAIR COGHILL objected for discussion purposes. MR. KOPP explained that the intention was to reference LSD, [which paragraph (12) does]. 1:59:42 PM CHAIR COGHILL removed his objection and announced that Amendment 1 was adopted. 1:59:56 PM SENATOR DYSON moved to report SB 56, version N [as amended], from committee with individual recommendations and attached fiscal note(s). CHAIR COGHILL announced that without objection, CSSB 56(JUD) moved from the Senate Judiciary Standing Committee.