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Sponsor Statement for CS for SB 338
Ineligibility For PFD/ Crime Victims Comp

An Act making certain individuals convicted of crimes ineligible for permanent fund dividends and relating to certain payments of compensation from the crime victim compensation fund; and providing for an effective date.

Under current law, as soon as two years after violent criminals are released, they may again start collecting Permanent Fund Dividends.

Existing law says individuals do not qualify for a Permanent Fund Dividend if during the qualifying year they are convicted of a felony, or if during all or part of the qualifying year, they are incarcerated as a result of a felony or misdemeanor, and they had a prior felony or two or more misdemeanors.

Senate Bill 338 would change this so individuals convicted of a felony or misdemeanor will lose their Permanent Fund Dividend for at least two years, regardless of whether they have a prior conviction or not.

Senate Bill 338 also creates variable additional amounts of time violent criminals lose their dividend eligibility, depending on the seriousness of the crime:

• Individuals incarcerated for an unclassified felony, including murder, attempted murder, solicitation to commit murder, conspiracy to commit murder, kidnapping, rape, sexual abuse of a minor or misconduct involving a controlled substance, would lose their dividend forever;
• Individuals incarcerated for a violent classified felony (Class A, B or C) would lose their dividend for 20 years;
• Individuals convicted of criminal mischief in the first degree under AS 11.46.480(a)(3), which is intentionally damaging an oil or gas facility, would lose their dividend for 20 years;
• Individuals incarcerated for a nonviolent felony (Class A, B or C) would lose their dividend for 10 years;
• Individuals incarcerated for a violent misdemeanor (Class A or B) would lose their dividend for five (5) years; and
• Individuals convicted of a violent or nonviolent crime but not incarcerated would lose their dividend for two (2) years;

Senate Bill 338 adds to the categories of criminals who are ineligible for a dividend: Individuals would lose their dividend for 20 years if convicted of criminal mischief where the damage is to an oil or gas facility. This addition is intended to discourage such acts as the recent vandalism to the Alyeska Pipeline. The Permanent Fund Dividend originates from oil production revenues. A criminal who commits vandalism should not be allowed to benefit from proceeds from the property they criminally damaged.

Under present law, money collected from the criminals' Permanent Fund Dividends may be appropriated for four purposes:

• Violent Crime Victim Compensation Fund
• Grants to Nonprofit Victims Groups
• Council on Domestic Violence and Sexual Assault
• Department of Corrections

Senate Bill 338 directs the Violent Crimes Compensation Board to first use money from these confiscated Permanent Fund Dividends for payments of compensation to the victims of the criminal who committed the violent crime. If a victim has a judgment or order of restitution for payment, the board is to pay that first, up to the amount of the criminal's confiscated Permanent Fund Dividend, and in addition to other compensations.

Since the budget currently uses both general funds and prisoners' Permanent Fund Dividends to fund these programs, an increase of prisoners' Permanent Fund Dividend funds will help reduce the fiscal gap.

To avoid violating the constitutional prohibition against ex post facto laws, this legislation applies only to individuals convicted of crimes committed after December 31, 2002.

DD/mjw

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