Legislature(2015 - 2016)BELTZ 105 (TSBldg)

02/19/2015 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 5 RESTITUTION: PROPERTY AND INCOME LOSS TELECONFERENCED
Moved SB 5 Out of Committee
*+ SB 39 REPEAL FILM PRODUCTION TAX CREDIT TELECONFERENCED
Heard & Held
-- Public Testimony --
          SB   5-RESTITUTION: PROPERTY AND INCOME LOSS                                                                      
                                                                                                                                
1:32:56 PM                                                                                                                    
CHAIR  COSTELLO announced  the  consideration  of SB  5. "An  Act                                                             
relating to  loss of  income and valuing  property for  orders of                                                               
restitution."                                                                                                                   
                                                                                                                                
1:33:31 PM                                                                                                                    
SENATOR  PETER   MICCICHE,  sponsor   of  SB  5,   described  the                                                               
legislation as putting  the rights of a victim  of property theft                                                               
just ahead of the rights of  the perpetrator. He related that the                                                               
Alaska Department of  Public Safety (DPS) 2013  report shows that                                                               
Alaskans lost over $23 million due  to property crime. This is an                                                               
increase  of more  than  12  percent from  2011.  SB  5 seeks  to                                                               
address  this scourge  by 1)  strengthening  restitution laws  to                                                               
restore crime victims to a  pre-crime condition; 2) clarifying in                                                               
statute  that public  policy favors  having criminals  compensate                                                               
victims for  their loss,  including loss  of income;  3) defining                                                               
loss of income  as the total loss of income  a business or person                                                               
suffers as a  result of not having the  stolen property available                                                               
during the time  it takes to obtain a replacement;  and 4) giving                                                               
direction  to the  court  in making  determinations  of loss  for                                                               
restitution  to  value  property  as  the  market  value  of  the                                                               
property. He provided an analogy of  a roll of copper wire stolen                                                               
from the job site. The copper  itself may cost $2,500, but it may                                                               
take  another  $10,000  to  $20,000 in  other  costs  before  the                                                               
contractor is restored to a pre-offense condition.                                                                              
                                                                                                                                
SB  5 also  addresses  the decision  in Lori  Welsh  v. State  of                                                             
Alaska.  The appellate  court ruled  that the  victim of  a theft                                                             
crime was  not entitled to  restitution that covered the  loss of                                                               
income, because  it would  be an unjust  enrichment of  the crime                                                               
victim.  SB 5  asks courts  that are  considering restitution  to                                                               
restore businesses and crime victims to a pre-offense condition.                                                                
                                                                                                                                
1:34:31 PM                                                                                                                    
SENATOR STEVENS joined the meeting.                                                                                             
                                                                                                                                
                                                                                                                                
1:36:55 PM                                                                                                                    
CHUCK  KOPP, Staff,  Senator Peter  Micciche,  elaborated on  the                                                               
facts of  the Welsh case.  The crux  of the argument  was whether                                                               
restitution should  be retail  or wholesale  value of  the stolen                                                               
property. The  appellate court reversed the  district court order                                                               
stating  that two  restitution statutes  AS  12.55.045(a) and  AS                                                               
12.55.100(a)(2) seemingly  were competing. The court  deferred to                                                               
the more restrictive  statute and commented that  it had inferred                                                               
earlier that the  legislature should work out the  conflict. SB 5                                                               
reconciles the statutes and clarifies  that loss of income should                                                               
be considered when the court considers restitution.                                                                             
                                                                                                                                
MR. KOPP provided a sectional analysis of SB 5 as follows:                                                                      
                                                                                                                                
     Section  1 amends  AS  12.55.045(a)(1) Restitution  and                                                                  
     compensation, clarifying that  our public policy favors                                                                    
     requiring  criminals to  compensate  their victims  not                                                                    
     only  for damages  and injury,  but loss  of income  as                                                                    
     well.                                                                                                                      
                                                                                                                                
     Section  2  amends  12.55.045(n)  to  define  "loss  of                                                                  
     income"  as the  total  loss of  income  a business  or                                                                    
     person  suffers  as  a  result  of  not  having  stolen                                                                    
     property available  during the time it  takes to obtain                                                                    
     a replacement.                                                                                                             
                                                                                                                                
     Section  3 amends  AS 12.55.045  adding new  subsection                                                                  
     (o) which directs the  courts, in making determinations                                                                    
     of loss  or damage  for restitution, to  value property                                                                    
     as the  market value  of the property  at the  time and                                                                    
     place of  the crime  or, if  this cannot  reasonably be                                                                    
     established,   the  cost   of   replacement  within   a                                                                    
     reasonable time after the crime.                                                                                           
                                                                                                                                
     This  section adopts  language  currently  used by  the                                                                    
     courts  in  AS  11.46.980  to  make  determinations  of                                                                    
     property  value in  criminal offenses  against property                                                                    
     (i.e.  theft,  burglary,   criminal  trespass,  vehicle                                                                    
     theft, arson, criminal  mischief, forgery, business and                                                                    
     commercial offenses).                                                                                                      
                                                                                                                                
     Section   4  amends   AS  12.55.100(a)   Conditions  of                                                                  
     probation,  clarifying   how  the  court   shall  value                                                                    
     property when determining the  amount of actual damages                                                                    
     or  loss under  this paragraph,  establishing the  same                                                                    
     standard as in Section 3.                                                                                                  
                                                                                                                                
     Section 5  establishes that amendments in  Sections 1-4                                                                  
     of  the Act  apply to  an order  of restitution  for an                                                                    
     offense  committed on  or after  the effective  date of                                                                    
     the Act.                                                                                                                   
                                                                                                                                
MR. KOPP  stated that the  bill has received strong  support from                                                               
Alaska businesses and their representatives.                                                                                    
                                                                                                                                
CHAIR COSTELLO  asked Ms. Schroeder  to review the  fiscal impact                                                               
of the bill.                                                                                                                    
                                                                                                                                
1:42:18 PM                                                                                                                    
KACI  SCHROEDER, Assistant  Attorney General,  Criminal Division,                                                               
Department of  Law (DOL),  stated that  SB 5  is not  expected to                                                               
have any fiscal impact on DOL.                                                                                                  
                                                                                                                                
CHAIR  COSTELLO noted  that copies  of the  zero fiscal  note are                                                               
included in the packets.                                                                                                        
                                                                                                                                
1:42:57 PM                                                                                                                    
CHRIS NETTELS, small business  owner and representative, National                                                               
Federation of  Independent Businesses, stated strong  support for                                                               
SB  5. He  related  a personal  story  as the  owner  of a  small                                                               
service business  to illustrate the  need for the  legislation. A                                                               
snow  machine was  stolen  from  a job  site  after  the job  was                                                               
finished. Had  it been  stolen earlier,  his business  would have                                                               
lost the job.                                                                                                                   
                                                                                                                                
CHAIR COSTELLO asked  who will determine the market  value of the                                                               
stolen property.                                                                                                                
                                                                                                                                
MR. KOPP replied it will be  determined by the market at the time                                                               
and place where the crime  occurs. He read the relevant provision                                                               
[in Section 4 on page 2, lines 27-31].                                                                                          
                                                                                                                                
CHAIR COSTELLO  asked if  increasing the value  of the  item will                                                               
affect the level of the crime.                                                                                                  
                                                                                                                                
MR. KOPP  replied theft of  property valued from $750  to $25,000                                                               
will be a class C felony.                                                                                                       
                                                                                                                                
CHAIR  COSTELLO  asked  if  the  difference  in  value  could  be                                                               
considered as a mitigating factor when sentencing juveniles.                                                                    
                                                                                                                                
1:47:26 PM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
MR. KOPP responded  that the bill clarifies the  public policy of                                                               
restoring  crime   victims  to   a  pre-offense   condition  when                                                               
considering sentencing and probation.                                                                                           
                                                                                                                                
SENATOR STEVENS  observed that  the bill would  take care  of the                                                               
type of  situation Mr. DeWitt cited  when he wrote that  far more                                                               
than  the  boat is  harmed  when  a  commercial fishing  boat  is                                                               
disabled during the fishing season.                                                                                             
                                                                                                                                
MR. KOPP agreed.                                                                                                                
                                                                                                                                
1:50:05 PM                                                                                                                    
CHAIR COSTELLO closed public testimony.                                                                                         
                                                                                                                                
1:50:10 PM                                                                                                                    
SENATOR  GIESSEL  moved  to  report  SB  5  from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR  COSTELLO found  no objection  and announced  that SB  5 is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 

Document Name Date/Time Subjects
SB5 Hearing Request.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 5 Sponsor Statement.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 5 Sectional Analysis.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 5.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 5 NFIB Letter of Support.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 5 AGC Letter of Support.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 39 Hearing Request.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Sectional Analysis ver H.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Sponsor Statement.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Support Document - Email Nick Danger 2-9-2015.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 ver H.PDF SL&C 2/19/2015 1:30:00 PM
SB 39
SB 5 ASCC Leter of Support.pdf SL&C 2/19/2015 1:30:00 PM
SB 5
SB 39 Alaska Film Office Annual Report Worksheet 2.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Alaska Film Office Annual Report 2014 with Signed Letter.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Status of Alaska Film Production Incentive Fy 2009-FY 2013.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Opposition Bender.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Opposition Downing.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Opposition Robinson.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Opposition Tallent.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Opposition Weaver.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Opposition Whisenhant.pdf SL&C 2/19/2015 1:30:00 PM
SB 39
SB 39 Letter of Support Korbe.pdf SL&C 2/19/2015 1:30:00 PM
SB 39