CHAIRMAN LEMAN brings up SB 378 (NO PFD:PERSONS JAILED FOR FELONY OR MISD.) as the first order of business before the Senate State Affairs Committee and calls Mr. Skidmore to testify. Number 013 DAVID SKIDMORE, Aide to the sponsor of SB 378, states SB 378 was drafted to create some compensatory provisions for the State of Alaska's criminal justice system for costs caused by misdemeanants. Mr. Skidmore describes the bill as outlined in the sponsor statement. Number 049 MR. SKIDMORE announces that Senator Frank proposes an amendment to SB 378, which would insert a new section on page 1, line 5. The amendment reads as follows, "*Section 1. PURPOSES. The purposes of the amendments to AS 43.23.005(d) and AS 43.23.028(b) in this Act are to obtain (1) additional funding for the State agencies specified; and (2) full or partial reimbursement from individuals convicted of a felony or misdemeanor for the costs imposed on the State criminal justice system that are related to conviction and incarceration." Renumber following bill sections accordingly. Number 060 SENATOR TAYLOR moves the adoption of amendment #1 (Senator Frank's amendment) CHAIRMAN LEMAN asks if there are any objections to amendment #1. SENATOR TAYLOR says it is important to establish that SB 378 is a cost-recovery factor, and that the state incurs significant costs in incarcerating people. Senator Taylor stresses that SB 378 is in no way intended as a punitive, or additional punitive matter. Number 079 CHAIRMAN LEMAN asks if there are any further comments on amendment The chairman asks if there is any objection to the adoption of amendment #1. Hearing none, the chairman states amendment #1 has been adopted. Number 083 MR. SKIDMORE states he has discussed a conceptual amendment with the staff of the Senate State Affairs Committee, which would exempt from this legislation, individuals convicted of misdemeanors for which statute provides a mail-in bail schedule, and misdemeanors which do not require a mandatory court appearance. CHAIRMAN LEMAN moves the adoption of amendment #2 (the conceptual amendment just described). Number 099 SENATOR TAYLOR objects for purposes of discussion. Senator Taylor states he had assumed SB 378 would apply mainly to the costs of incarceration. CHAIRMAN LEMAN states amendment #1 refers to those persons who have been incarcerated. SENATOR DUNCAN observes that lines 9 and 10 probably override that. MR. SKIDMORE informs the committee that section 1 of SB 378 is not restricted to individuals who are incarcerated. It also applies to individuals who were solely convicted of a misdemeanor or felony. Number 119 SENATOR TAYLOR comments he thinks that in the conceptual amendment, the list of exceptions will be rather long. Number 124 CHAIRMAN LEMAN states there is a motion before the committee. SENATOR TAYLOR says unless a person has been incarcerated or has cost the system a significant amount of money, SB 378 probably should not be applicable. Number 129 MR. SKIDMORE states that during the drafting of SB 378, agencies of the criminal justice system were contacted for average costs misdemeanants impose on the system. Estimates from those agencies are included in members' bill files. Mr. Skidmore repeats the estimates that were made by agencies of the criminal justice system, and states that persons who are convicted, but do not serve time, still have a fiscal impact on the criminal justice system. Number 153 CHAIRMAN LEMAN asks if there is any further discussion involving amendment #2. Number 156 SENATOR TAYLOR asks if the language in 43.23.055 is the language which enables the state to file for and collect the dividend of a criminal. MR. SKIDMORE responds in section 2, the statutory site is 43.23.028(b). That statute currently provides that the money that would have been paid to these individuals in a given fiscal year, will be available to the state in the next fiscal year for appropriation. Number 175 CHAIRMAN LEMAN states the conceptual amendment, when drafted, will exclude those misdemeanors that do not require a mandatory court appearance. The chairman states the committee does not want to inadvertently increase the number of court appearances. If a person is charged with an offense with a fine of $75, and the person will lose their permanent fund dividend by not contesting the charges, that person is going to request a court appearance. SENATOR DUNCAN asks if it might include misdemeanors where the person is not incarcerated. CHAIRMAN LEMAN requires that it could. Number 191 SENATOR TAYLOR is concerned that a department, as it attempts to recover costs, would recover more money from a persons PFD than it would from a fine. Number 200 CHAIRMAN LEMAN says he presumes that will be the case in many instances. The chairman asks if there is any objection to amendment #2. Hearing none, the chairman states amendment #2 has been adopted. The chairman calls Mr. Williams to testify. Number 205 TOM WILLIAMS, Director, Permanent Fund Dividend Division, Department of Revenue, states the fiscal note from the department shows zero impact, which assumes the Department of Corrections or the Court System would continue to notify the Department of Revenue of the individuals who meet the criteria outlined in SB 378. Mr. Williams adds that the only other impact SB 378 would have, would be to reduce other attachments on these individuals dividends, such as attachments from the Child Support Enforcement Division and the Public Defender Agency. Mr. Williams continues to discuss the fiscal note from the Department of Revenue. Number 232 SENATOR DUNCAN asks for a clarification on whether a person would lose their whole dividend, and not simply an amount that would cover the cost involved. Number 240 MR. WILLIAMS responds a person would simply lose their whole dividend. Under current law, the state can only withhold dividends from persons incarcerated as a result of a felony conviction. SB 378 would cover persons convicted of a felony, convicted of a misdemeanor, or incarcerated for conviction of a felony or misdemeanor. SENATOR DUNCAN states a person could still lose their dividend in a case where they are not incarcerated, but have a mandatory court appearance for a minor traffic infraction. Senator Duncan comments he has some concerns about the bill; paying costs out of one's dividend is one thing, but losing the whole dividend... CHAIRMAN LEMAN asks Mr. Williams if the bill can be crafted to take a portion, instead of the whole dividend. The chairman is also concerned about taking monies away from child support. Number 263 MR. WILLIAMS responds he would defer to the sponsor on those questions. Number 264 CHAIRMAN LEMAN asks if there is any more discussion on SB 378. Number 268 SENATOR TAYLOR states he thinks the idea of recovering costs is a good one, but the questions that have been raised today give him concern about the legislation. Number 294 CHAIRMAN LEMAN states he shares some of those concerns also. The chairman announces the committee will hold SB 378 to continue to work on it.