Legislature(2023 - 2024)ADAMS 519

02/24/2023 01:30 PM House FINANCE

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Audio Topic
01:32:29 PM Start
01:33:04 PM HB39 || HB41
01:33:39 PM Fy 24 Budget Overview: Department of Law
03:35:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUND; SUPP TELECONFERENCED
Heard & Held
+= HB 41 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Overview: FY 2024 Budget by Department of Law - TELECONFERENCED
Cori Mills, Deputy Attorney General, Civil
Division and John Skidmore, Deputy Attorney
General, Criminal Division
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 24, 2023                                                                                          
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:29 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Johnson called the House Finance Committee meeting                                                                     
to order at 1:32 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
Representative DeLena Johnson, Co-Chair                                                                                         
Representative Julie Coulombe                                                                                                   
Representative Mike Cronk                                                                                                       
Representative Alyse Galvin                                                                                                     
Representative Sara Hannan                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Will Stapp                                                                                                       
Representative Frank Tomaszewski                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Dan Ortiz                                                                                                        
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Treg  Taylor,  Attorney  General, Department  of  Law;  Cori                                                                    
Mills,  Deputy  Attorney  General, Office  of  the  Attorney                                                                    
General, Department  of Law; John Skidmore,  Deputy Attorney                                                                    
General, Criminal Division, Department of Law.                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 39     APPROP: OPERATING BUDGET/LOANS/FUND; SUPP                                                                             
                                                                                                                                
          HB 39 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 41     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 41 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
FY 24 BUDGET OVERVIEW: DEPARTMENT OF LAW                                                                                        
                                                                                                                                
1:33:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnson reviewed the meeting agenda.                                                                                   
                                                                                                                                
HOUSE BILL NO. 39                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;    making   reappropriations;    making                                                                    
     supplemental   appropriations;  making   appropriations                                                                    
     under art.  IX, sec.  17(c), Constitution of  the State                                                                    
     of  Alaska,  from  the  constitutional  budget  reserve                                                                    
     fund; and providing for an effective date."                                                                                
                                                                                                                                
HOUSE BILL NO. 41                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
1:33:35 PM                                                                                                                    
                                                                                                                                
^FY 24 BUDGET OVERVIEW: DEPARTMENT OF LAW                                                                                     
                                                                                                                                
1:33:39 PM                                                                                                                    
                                                                                                                                
TREG   TAYLOR,   ATTORNEY   GENERAL,  DEPARTMENT   OF   LAW,                                                                    
introduced  himself. He  provided a  PowerPoint presentation                                                                    
titled  "Department  of  Law:  Department  Overview,"  dated                                                                    
February 24, 2023  (copy on file). He began on  slide 2 with                                                                    
an  overview   of  the  department's  management   team.  He                                                                    
reviewed  the  mission  of  the department  on  slide  3  to                                                                    
provide  legal services  to state  government and  prosecute                                                                    
crime for  the protection and benefit  of Alaska's citizens.                                                                    
He advanced to slide  4 titled "Operating Budget Comparison:                                                                    
Department  of  Law:  FY2022     FY2024."  The  department's                                                                    
operating budget was flat. He  noted the small decrease from                                                                    
FY 23  management plan to  the FY 24 governor's  request was                                                                    
the  difference in  the multiyear  statehood defense  funds.                                                                    
The department was not asking for the funds in FY 24.                                                                           
                                                                                                                                
1:35:48 PM                                                                                                                    
                                                                                                                                
Representative   Josephson   referenced   Attorney   General                                                                    
Taylor's statement  that the department  was not  asking for                                                                    
anything in FY  24. He thought there had been  a request for                                                                    
FY 24. He  considered that perhaps the funding  was going to                                                                    
the  governor's  office instead  of  the  Department of  Law                                                                    
(DOL).                                                                                                                          
                                                                                                                                
Attorney  General   Taylor  agreed.  The  funding   was  not                                                                    
reflected  in  the  DOL  budget.   He  explained  it  was  a                                                                    
reflection of  the realization that statehood  defense began                                                                    
much earlier  than litigation. He  elaborated it  would give                                                                    
the  Department  of  Fish  and  Game  (DFG),  Department  of                                                                    
Environmental Conservation (DEC),  and Department of Natural                                                                    
Resources (DNR)  the ability to  prepare for  the litigation                                                                    
coming down  the road by  conducting the correct  science or                                                                    
whatever  else  needed to  be  done.  The governor's  office                                                                    
would distribute the funds to the departments as necessary.                                                                     
                                                                                                                                
Representative  Hannan referenced  a couple  of the  current                                                                    
statehood  defense  cases that  had  been  discussed in  the                                                                    
press. She asked  where the funds had been  included for the                                                                    
abortion  pill  litigation and  the  tribal  land and  trust                                                                    
litigation. She asked if the  funds were housed in an agency                                                                    
in order for research to be done or within DOL.                                                                                 
                                                                                                                                
Attorney  General  Taylor  replied  that  unfortunately  the                                                                    
abortion pill issue  had been misreported and  the state was                                                                    
not involved  in litigation.  He informed  committee members                                                                    
that  DOL  had  joined  an amicus  brief  that  pointed  out                                                                    
statehood rights in relation to  the issues prevalent in the                                                                    
specific  litigation and  supported that  each state  should                                                                    
have the ability  to decide on the rules.  He clarified that                                                                    
it  did not  seek  to change  the rules  in  Alaska and  the                                                                    
state's involvement defended the rules  set up in Alaska. He                                                                    
relayed that [the abortion pill  litigation] was not part of                                                                    
the statehood defense budget.                                                                                                   
                                                                                                                                
Representative Hannan requested a  copy of the amicus brief.                                                                    
She remarked that  the issue had been reported  in the press                                                                    
very differently.                                                                                                               
                                                                                                                                
Attorney General  Taylor agreed  to provide the  document to                                                                    
the committee.                                                                                                                  
                                                                                                                                
Co-Chair Johnson asked for clarification on the request.                                                                        
                                                                                                                                
Attorney  General Taylor  clarified Representative  Hannan's                                                                    
request for a  copy of the amicus the state  had signed onto                                                                    
in support of Texas' litigation.                                                                                                
                                                                                                                                
Co-Chair Johnson  asked for  the information  to be  sent to                                                                    
her office for distribution to the committee.                                                                                   
                                                                                                                                
Representative Hannan  asked if  the funding for  the tribal                                                                    
land  and  trust  litigation was  funded  through  statehood                                                                    
defense via DNR, the governor's office, or DOL.                                                                                 
                                                                                                                                
1:39:32 PM                                                                                                                    
                                                                                                                                
Attorney  General Taylor  responded  that the  item was  not                                                                    
part  of the  statehood  defense funds.  He  asked Ms.  Cori                                                                    
Mills for verification that his answer was accurate.                                                                            
                                                                                                                                
CORI MILLS, DEPUTY ATTORNEY GENERAL,  OFFICE OF THE ATTORNEY                                                                    
GENERAL, DEPARTMENT OF LAW, agreed.                                                                                             
                                                                                                                                
Representative Hannan asked where  the tribal land and trust                                                                    
litigation was funded.                                                                                                          
                                                                                                                                
Ms. Mills  confirmed that the  litigation was  being handled                                                                    
through funds  appropriated to DOL's  general fund.  She was                                                                    
not  sure   which  component  it  fell   under  because  the                                                                    
Appellate Section was doing much of the work.                                                                                   
                                                                                                                                
Co-Chair   Johnson  asked   if  Representative   Hannan  was                                                                    
referring   to   the   amicus   brief   related   to   Texas                                                                    
[litigation]. Alternatively, she  wondered if Representative                                                                    
Hannan was referring to something else.                                                                                         
                                                                                                                                
Representative Hannan clarified it  was a separate case. She                                                                    
had asked about a filing on  a piece of property in downtown                                                                    
Juneau transferred  to the Tlingit  and Haida  Tribe Central                                                                    
Council.  She elaborated  that DOL  had filed  litigation to                                                                    
the   [U.S.]  Department   of   Interior  about   clarifying                                                                    
transfers of land into trust.                                                                                                   
                                                                                                                                
Attorney General Taylor clarified  that neither of the cases                                                                    
were funded through the statehood defense funds.                                                                                
                                                                                                                                
1:41:14 PM                                                                                                                    
Attorney General Taylor discussed  the FY 23 management plan                                                                    
budgeted  versus  filled  permanent full-time  positions  by                                                                    
division on slide  5. The chart showed  positions broken out                                                                    
by  the  department's  various   divisions.  He  noted  that                                                                    
recruitment  and  retention  was  one  of  the  department's                                                                    
highest priorities  since he had  taken the helm.  He stated                                                                    
that  the department  had a  great plan  and was  seeing the                                                                    
fruits  of  the  plan.  He  believed DOL  was  in  the  best                                                                    
position in  recruitment and retention since  his arrival at                                                                    
the department  four years prior. The  presentation included                                                                    
additional details on the topic later on.                                                                                       
                                                                                                                                
1:42:17 PM                                                                                                                    
                                                                                                                                
Ms. Mills discussed the core  services of the Civil Division                                                                    
on  slide 6.  She  addressed recruitment  and retention  and                                                                    
reported  that one  year ago  there had  been about  24 open                                                                    
attorney  positions within  the division.  The gap  had been                                                                    
greatly reduced and the number  of vacant attorney positions                                                                    
was down to four. The  division was currently recruiting for                                                                    
eight vacant  paralegal and law office  assistant positions.                                                                    
She  noted  the number  was  better  than  it had  been  the                                                                    
previous  year. She  elaborated that  the division  had been                                                                    
having chronic  problems with its law  office assistants the                                                                    
previous year. She detailed that  the division had undergone                                                                    
a class  study for  the law  office assistant  position that                                                                    
enabled the department  to have a promotional  track for the                                                                    
position  and  to make  the  salary  more commensurate  with                                                                    
other  similar  positions.  Consequently, the  division  was                                                                    
seeing a reduction in agencies across the board.                                                                                
                                                                                                                                
Ms.  Mills reported  that the  increase in  pay from  HB 226                                                                    
[legislation passed in 2022] had  helped. The department had                                                                    
also  been working  on a  promotional  track for  attorneys.                                                                    
Additionally,  the  division   had  increased  its  training                                                                    
opportunities  and had  created  a Professional  Development                                                                    
and   Public  Services   Section  to   oversee  professional                                                                    
development   and  conduct   monthly   training  to   enable                                                                    
attorneys  to   fulfill  their  legal   continued  education                                                                    
credits and to teach agency  attorney skills. She noted that                                                                    
the division had  seen a turnover of close to  90 percent in                                                                    
the past  decade. She believed  the skills and  training had                                                                    
boosted recruitment  and retention and had  created a deeper                                                                    
bench of experience within the department.                                                                                      
                                                                                                                                
Ms. Mills discussed the core  services provided by the Civil                                                                    
Division on slide  6. She explained that  the Civil Division                                                                    
provided legal  services to state  government. She  read the                                                                    
division's core services listed on the slide:                                                                                   
                                                                                                                                
     To protect  Alaskans' safety and  financial well-being,                                                                    
     foster  conditions for  responsible development  of our                                                                    
     natural resources, protect the  fiscal integrity of the                                                                    
     State, and promote good governance.                                                                                        
                                                                                                                                
1:45:50 PM                                                                                                                    
                                                                                                                                
Ms. Mills turned to the  proposed restructuring of the Civil                                                                    
Division on slide 7. The  division's budget had been reduced                                                                    
from   15  components   to  five   in   order  to   increase                                                                    
transparency  and help  with  the division's  administrative                                                                    
burden  that  had lacked  flexibility  in  terms of  how  to                                                                    
structure  its   sections  over  time.  The   five  sections                                                                    
included:  legal  support  services, statehood  defense  and                                                                    
resource development, protective  legal services, government                                                                    
services, and torts and other civil defense litigation.                                                                         
                                                                                                                                
Ms.  Mills  skipped  slide  8  and  briefly  highlighted  an                                                                    
organizational chart  on slide 9.  She reviewed each  of the                                                                    
division's  sections beginning  with  statehood defense  and                                                                    
resource development  on slide  10. The section  covered the                                                                    
department's  advice  to the  Department  of  Fish and  Game                                                                    
(DFG),   DNR,  Department   of  Transportation   and  Public                                                                    
Facilities (DOT), and DEC.                                                                                                      
                                                                                                                                
Representative Galvin  asked why  oil and  gas would  not be                                                                    
under DNR.                                                                                                                      
                                                                                                                                
Ms.  Mills replied  that  it  had gone  back  in forth.  She                                                                    
explained that  there had  been a  separate section  or team                                                                    
[for oil and  gas] and it had also been  outside of DOL. The                                                                    
work performed by  the oil and gas team was  for DNR and the                                                                    
Department of Revenue (DOR). The  section did all of the tax                                                                    
and  royalty work  for the  state,  which required  specific                                                                    
expertise and was different than  project permitting and the                                                                    
mining arena  that was done  by the natural  resources group                                                                    
and  represented the  other half  of the  work for  DNR. She                                                                    
explained that  the sections did  not all fit  neatly within                                                                    
one  department  because of  the  broad  range of  the  work                                                                    
conducted by departments and DOL  tried to group by the type                                                                    
of  work.  She  elaborated   that  DOL's  natural  resources                                                                    
section  covered  DFG  and DNR,  including  mining,  project                                                                    
permitting,  state historic  preservation, and  the Forestry                                                                    
Division.  The  Transportation  Section  covered  everything                                                                    
done by DOT.  The Environmental Section did all  of the work                                                                    
for DEC  including dealing  with hazardous  waste discharge,                                                                    
contaminated   sites,   clean   up   and   recovery   costs,                                                                    
enforcement  actions  (e.g.,  for violations  of  clean  air                                                                    
regulations), and Clean Water Act issues.                                                                                       
                                                                                                                                
1:49:47 PM                                                                                                                    
                                                                                                                                
Representative Hannan looked at  the organizational chart on                                                                    
slide 9. She  referenced a governor's budget  request for an                                                                    
attorney  for parental  rights  litigation.  She stated  her                                                                    
understanding that the position  would be housed in consumer                                                                    
protection.  She   asked  where  it  would   appear  in  the                                                                    
organizational chart.                                                                                                           
                                                                                                                                
Ms. Mills believed the [proposed]  position was currently in                                                                    
the budget  under the legal support  services component, but                                                                    
she did not believe the  location was accurate. The Consumer                                                                    
Protection  Section  fell   under  the  government  services                                                                    
component,  which  also  included education  attorneys.  She                                                                    
stated the department was still  trying to determine whether                                                                    
the position  should be housed with  the education attorneys                                                                    
or consumer protection.  The purpose of the  position was to                                                                    
allow  a specific  position to  receive complaints  from the                                                                    
public,  a parent,  or through  the Department  of Education                                                                    
and  Early Development  (DEED).  She reported  that DOL  was                                                                    
currently receiving  requests from  DEED about twice  a week                                                                    
for  information relating  to parental  rights and  what the                                                                    
law said  and whether a  school district was  in compliance.                                                                    
The idea  was to have a  specific position to deal  with the                                                                    
school districts and parents who  may be upset and need help                                                                    
navigating  the  system.  Additionally, the  position  would                                                                    
work with  DEED to  ensure everyone  was in  compliance with                                                                    
policies.                                                                                                                       
                                                                                                                                
1:51:56 PM                                                                                                                    
                                                                                                                                
Representative  Hannan thought  it seemed  there may  be two                                                                    
state attorneys litigating against  each other. She provided                                                                    
a  scenario  where  a  parental  rights  complaint  came  in                                                                    
against DEED.  She considered  that there  would also  be an                                                                    
assistant attorney  general defending DEED. She  wondered if                                                                    
she was envisioning the potential situation incorrectly.                                                                        
                                                                                                                                
Ms. Mills did  not want to conflate  consumer protection and                                                                    
education,  which were  two  different  things. She  relayed                                                                    
that the complaints the division  envisioned or had received                                                                    
were  not  in  relation  to   things  DEED  was  doing.  She                                                                    
explained that  DEED was  generally just  providing funding.                                                                    
She clarified  that the complaints were  related to policies                                                                    
school  districts had  to enact.  She detailed  that parents                                                                    
did not  always know where to  go or what their  rights were                                                                    
under the  law. The  position would  provide parents  with a                                                                    
resource  where   they  could  learn  about   those  things.                                                                    
Additionally,  the  position  could  help  school  districts                                                                    
understand  compliance  requirements.   The  position  would                                                                    
potentially receive  complaints and  grievances, but  it was                                                                    
not like  the consumer protection section  that had subpoena                                                                    
and investigative authority. She  likened the position to an                                                                    
ombudsman  working   through  process  and   helping  people                                                                    
understand  the  laws. The  position  would  also work  with                                                                    
school districts and advise DEED  as it received issues. The                                                                    
division  currently had  two  full-time education  attorneys                                                                    
and their workloads were extremely  high. The work would not                                                                    
fit into their existing cases.                                                                                                  
                                                                                                                                
1:54:10 PM                                                                                                                    
                                                                                                                                
Representative Josephson  thought it  sounded like  he would                                                                    
be wise to  encourage his school district to  be prepared to                                                                    
have more billables  from its general counsel  to respond to                                                                    
the enquiries.  He thought it  would be a logical  result of                                                                    
implementing the position.                                                                                                      
                                                                                                                                
Ms. Mills replied that it  could be, depending on the number                                                                    
of complaints.  She noted the  division was seeing a  lot of                                                                    
questions. She  elaborated that it  was the  division's hope                                                                    
that  issues could  be resolved  by  communicating with  the                                                                    
school district.  She highlighted an example  where an issue                                                                    
had been resolved when the  department had communicated with                                                                    
a school district  and that district was now  in the process                                                                    
of  adopting a  policy to  comply with  the law.  She stated                                                                    
that if compared  to consumer protection, most  of the cases                                                                    
were resolved  amicably through a process  of education. She                                                                    
stated it was how she saw most of the situations going.                                                                         
                                                                                                                                
Representative Josephson  asked if  the department  would be                                                                    
prepared to tell parents the  law was complied with and they                                                                    
had no grievance the law recognized.                                                                                            
                                                                                                                                
Ms.  Mills answered  it got  a little  sticky because  DOL's                                                                    
client who it provided  attorney-client privileged advice to                                                                    
would be  DEED. The position  would provide parents  with an                                                                    
avenue  to  come  to  DOL  to learn  about  the  law  and  a                                                                    
potential  resolution. She  did  not  foresee DOL  providing                                                                    
parents with private legal advice.                                                                                              
                                                                                                                                
Representative  Galvin asked  what  the considerations  were                                                                    
about whether it made more  sense to use an ombudsman versus                                                                    
attorneys in terms of helping parents navigate problems.                                                                        
                                                                                                                                
1:56:47 PM                                                                                                                    
                                                                                                                                
Ms. Mills responded  that the department was  trying to work                                                                    
within its  current parameters.  She explained  that setting                                                                    
up  an ombudsman  office would  be a  statutory change.  The                                                                    
department  was trying  to fill  a resource  gap based  on a                                                                    
number  of complaints  and issues  that continued  to arise.                                                                    
The goal was  to provide an avenue for people  to know where                                                                    
they could  go to get  information to understand  the system                                                                    
and  hopefully DOL  could  also connect  with  DEED and  the                                                                    
school district.                                                                                                                
                                                                                                                                
Representative Galvin  asked if another avenue  would be for                                                                    
the  ombudsman  to choose  to  take  up a  specialty  around                                                                    
helping families  navigate issues  related to the  Office of                                                                    
Children's Services (OCS) or education.                                                                                         
                                                                                                                                
Ms.  Mills  responded that  she  did  not know  whether  the                                                                    
ombudsman had  the authority to look  into school districts.                                                                    
The  ombudsman   had  the  authority  to   look  into  state                                                                    
agencies, which  would cover OCS.  She did not  know whether                                                                    
the  office   had  the  same  statutory   authority  at  the                                                                    
municipal level.                                                                                                                
                                                                                                                                
Ms. Mills  turned to slide  11 and discussed  the individual                                                                    
sections under the Protective Legal  Services Section of the                                                                    
Civil Division.  The Human Services Section  was responsible                                                                    
for all  of the work  for the  Department of Health  and the                                                                    
Department  of  Family  and   Community  Services  with  the                                                                    
exception of OCS, which was  covered by the Child Protection                                                                    
Section.  Human  Services  did  all  of  the  work  for  the                                                                    
protection of  vulnerable adults and civil  commitments. The                                                                    
Child Protection Section conducted all  of the Child in Need                                                                    
of  Aid (CINA)  proceedings  around the  state  and was  the                                                                    
largest section  within the  Civil Division.  The Commercial                                                                    
and Fair  Business Section was responsible  for occupational                                                                    
licensing  and  child  support recovery.  The  state  had  a                                                                    
statutory duty  to represent the public  interest before the                                                                    
Regulatory  Commission  of  Alaska  (RCA)  ensuring  utility                                                                    
rates  were proper  and within  the allowable  calculations.                                                                    
She  explained  that  the   Regulatory  Affairs  and  Public                                                                    
Advocacy Section  went before  the RCA  to ensure  the rates                                                                    
were in the right ranges.                                                                                                       
                                                                                                                                
2:00:02 PM                                                                                                                    
                                                                                                                                
Ms. Mills  reviewed the six  sections within  the Government                                                                    
Services Section on slides 12  and 13. She noted the section                                                                    
contained  the broadest  array of  the division's  work. The                                                                    
Opinions,  Appeals, and  Ethics  Section housed  all of  the                                                                    
division's appellate attorneys that  went before federal and                                                                    
state   appellate  courts.   The  Public   Corporations  and                                                                    
Government Services  Section represented  all of  the public                                                                    
corporations  in the  state, the  retirement systems,  state                                                                    
health plans,  and DEED (the division's  education attorneys                                                                    
were  currently  housed  under  the  section).  The  Special                                                                    
Litigation  Section included  high  profile, expedited,  and                                                                    
complex litigation  including constitutional  challenges and                                                                    
elections matters.  The section  also housed  the division's                                                                    
consumer protection unit because  it addressed a substantial                                                                    
amount of large multistate  antitrust complex litigation and                                                                    
it made sense  to house them with  the litigation expertise.                                                                    
The  Labor   and  State  Affairs  Section   represented  the                                                                    
governor and lieutenant governor's  offices, the Division of                                                                    
Elections,   the   Department   of   Administration   (DOA),                                                                    
Department of  Labor and  Workforce Development  (DLWD), and                                                                    
the Department of Military and Veterans Affairs (DMVA).                                                                         
                                                                                                                                
Ms.  Mills turned  to slide  13  and reviewed  the last  two                                                                    
sections under the Government Services  Section of the Civil                                                                    
Division. The  Legislation and Regulations  Section included                                                                    
a chief  regulations attorney  who reviewed  all regulations                                                                    
to ensure  they did  not conflict  with the  constitution of                                                                    
statute. The  section was also responsible  for drafting all                                                                    
of  the governor's  legislation.  Additionally, the  section                                                                    
oversaw the  department's interactions with  the legislature                                                                    
throughout   the  legislative   session   and  ensured   the                                                                    
legislature  received the  testimony and  attorney expertise                                                                    
needed   when   reviewing  legislation.   The   Professional                                                                    
Development  and  Public  Service  Section  was  the  newest                                                                    
section,  which  had  been  created  as  a  recruitment  and                                                                    
retention tool.  The section oversaw all  of the internship,                                                                    
externship, and  fellowship programs. She reported  that the                                                                    
division had received  145 applications for 18  spots in its                                                                    
internship program  in the  current year.  She noted  it was                                                                    
the highest number she had  seen. She stated it was exciting                                                                    
to  see law  students applying  to  come to  Alaska for  the                                                                    
summer  internship; the  hope was  get people  interested in                                                                    
coming back. She believed the efforts were working.                                                                             
                                                                                                                                
2:02:35 PM                                                                                                                    
                                                                                                                                
Ms.  Mills  discussed  the Torts  and  other  Civil  Defense                                                                    
Litigation on slide  14. She explained that the  state had a                                                                    
lot of employees and  it was a big player in  a lot of ways;                                                                    
therefore, it  was sued often.  She detailed  the department                                                                    
had a lot  of torts inmate litigation for  the Department of                                                                    
Corrections  (DOC). She  provided  a couple  of examples  of                                                                    
cases  that   would  fall  under  the   Torts  Section.  She                                                                    
explained that if a car ran  into a guardrail and the driver                                                                    
claimed it was  negligent to have the guardrail  it would be                                                                    
a lawsuit that came against  the state. She detailed that if                                                                    
someone slipped  and fell on  state property it was  a tort.                                                                    
The   section  also   included  Workers'   Compensation  and                                                                    
Corrections. She explained there  were many employees within                                                                    
the  state system  and employees  were entitled  to workers'                                                                    
compensation  if they  were injured.  The Department  of Law                                                                    
represented  the  Division  of Risk  Management  to  oversee                                                                    
workers' compensation  claims and defend the  state in cases                                                                    
when DOL did not believe the claim was correct.                                                                                 
                                                                                                                                
Ms.  Mills reviewed  the Legal  Support Services  Section on                                                                    
slide 16.  The section was  responsible for all of  the work                                                                    
on public records  for the state and  advised state agencies                                                                    
on  how  to comply  with  the  Public Records  Act,  records                                                                    
retention laws,  and disclosure of information.  The section                                                                    
provided  management,  training,   and  maintenance  of  the                                                                    
statewide data management and processing systems.                                                                               
                                                                                                                                
Ms.   Mills  moved   to  slide   16  titled   "State  Fiscal                                                                    
Preservation:  Examples  of  FY2022 Revenue  Generation  and                                                                    
Protection."  She remarked  that the  state was  sued often,                                                                    
which resulted in numerous settlements,  but there were also                                                                    
areas  where  the  department pursued  collections  for  the                                                                    
state  as well.  She highlighted  areas of  revenue recovery                                                                    
beginning  with funds  recovered  from  Medicaid fraud.  The                                                                    
division's Natural Resources  Section collected $1.4 million                                                                    
in damages  associated with the  sinking of the  Delta Chief                                                                    
barge.  The  department  had  obtained   $25  million  in  a                                                                    
securities  fraud settlement  under the  Public Corporations                                                                    
and  Government Services  Section.  She  explained that  the                                                                    
division entered into securities  fraud litigation on behalf                                                                    
of  the  Permanent  Fund  and  occasionally  the  retirement                                                                    
system.                                                                                                                         
                                                                                                                                
Representative  Stapp  looked  at slide  16.  He  identified                                                                    
subrogation  as an  area where  the state  could potentially                                                                    
get a  substantial amount of  revenue back. He asked  if DOL                                                                    
was  requesting  any  additional positions  to  ensure  they                                                                    
could claw much of the funding back.                                                                                            
                                                                                                                                
Ms. Mills  responded there was one  attorney responsible for                                                                    
doing the work. She agreed  there was always more that could                                                                    
be  done, but  it was  a matter  of balancing  the resources                                                                    
versus what the department believed it could bring back in.                                                                     
                                                                                                                                
Representative  Stapp was  looking at  $13 million  in third                                                                    
party  liability   (TPL)  and  understood  the   state  only                                                                    
received a  portion of  the cost  depending on  Medicaid. He                                                                    
asked  how much  more potential  revenue was  out there.  He                                                                    
wondered how much  more could be brought in if  there was an                                                                    
additional attorney doing the work.                                                                                             
                                                                                                                                
Ms. Mills replied that she would follow up.                                                                                     
                                                                                                                                
2:07:01 PM                                                                                                                    
                                                                                                                                
Representative  Stapp   asked  if  the  same   attorney  was                                                                    
responsible for  audit settlements and judgements  and trust                                                                    
recovery.                                                                                                                       
                                                                                                                                
Ms.  Mills answered  it  was a  separate  person within  the                                                                    
division's Human  Services Section. There were  two or three                                                                    
attorneys that covered the Medicaid issues.                                                                                     
                                                                                                                                
Representative  Stapp remarked  that  much  of the  Medicaid                                                                    
liabilities could  be offset by  ensuring the state  had the                                                                    
right people  targeting the  right thing.  He would  find it                                                                    
very interesting to  know if the department  could claw back                                                                    
another  $10  million to  $20  million  in TPLs  that  would                                                                    
offset the state general funds.                                                                                                 
                                                                                                                                
Representative Coulombe  asked about the  consolidation. She                                                                    
observed  the  presentation  showed movement  of  money  and                                                                    
people.  She  asked if  there  was  a cost  associated  with                                                                    
consolidation and if the work was complete.                                                                                     
                                                                                                                                
Ms. Mills clarified there was  no physical consolidation, it                                                                    
was an  on paper  budget issue. She  explained it  was about                                                                    
how to best represent the  department's budget in a way that                                                                    
allowed  the department  to historically  look back  and did                                                                    
not require constant change.                                                                                                    
                                                                                                                                
Representative Coulombe asked for  verification the work had                                                                    
all been completed.                                                                                                             
                                                                                                                                
Ms.  Mills agreed.  She stated  it was  now just  up to  the                                                                    
legislature to reflect it in the budget.                                                                                        
                                                                                                                                
Representative  Josephson asked  how  the  dismissal of  the                                                                    
U.S.  Department of  Education  Impact  Aid case  benefitted                                                                    
Alaska [slide 17].                                                                                                              
                                                                                                                                
Ms. Mills  answered that the  state received a  large amount                                                                    
of impact aid  from the federal government that  went out to                                                                    
Alaska's schools.  She explained that  a few years  back the                                                                    
U.S.  Department   of  Education  changed  its   impact  aid                                                                    
calculation to include  pupil transportation. She elaborated                                                                    
that  it  would  have  greatly   decreased  the  impact  aid                                                                    
received  by Alaska.  The  department's education  attorneys                                                                    
had worked with  outside counsel with expertise  in the area                                                                    
and to  get the U.S. Department  of Education to agree  to a                                                                    
different calculation  technique to  ensure the  state would                                                                    
continue  to  receive the  $80  million  to $86  million  in                                                                    
impact aid.                                                                                                                     
                                                                                                                                
2:10:23 PM                                                                                                                    
                                                                                                                                
Representative  Cronk  asked  if  the  change  had  occurred                                                                    
fairly recently.                                                                                                                
                                                                                                                                
Ms. Mills agreed.  She relayed that the  department had been                                                                    
working on  the issue for about  two years and the  news had                                                                    
come in the past summer or fall.                                                                                                
                                                                                                                                
Ms.  Mills  turned to  slide  17  and continued  to  discuss                                                                    
examples  of  FY  22   revenue  generation  and  protection.                                                                    
Regulatory Affairs  and Public Advocacy was  responsible for                                                                    
making  sure utility  rates and  costs were  reasonable. She                                                                    
detailed that in 2022 the  section saw about $6.2 million in                                                                    
quantifiable consumer  benefits, which reflected  the amount                                                                    
saved  by consumers  for rates  that were  not imposed.  The                                                                    
Environmental   Section  had   collected  $1.8   million  in                                                                    
settlements and fines in 2022.                                                                                                  
                                                                                                                                
Ms. Mills moved to slide  18 titled "Civil Division's UGF vs                                                                    
Other Fund Sources: FY2024  Governor's Proposed Budget." She                                                                    
explained  that about  half of  the Civil  Division's budget                                                                    
was in  the budgets of  other departments. For  example, DNR                                                                    
paid  for  all of  the  legal  services for  the  division's                                                                    
Environmental  Section.  She  pointed  to a  bar  chart  and                                                                    
explained  that the  gray portion  of  the bars  represented                                                                    
money the division  received from other agencies  to pay for                                                                    
legal work  for those departments.  The blue portion  of the                                                                    
bars represented  money directly  appropriated to  the Civil                                                                    
Division. She highlighted the bar  reflecting the budget for                                                                    
Torts and Other Civil  Defense Litigation and explained that                                                                    
the section was primarily  paid for through Risk Management;                                                                    
therefore, the work did not account  for a large part of the                                                                    
division's  UGF budget.  She directed  attention to  the bar                                                                    
representing Protective  and Legal Services and  Support and                                                                    
explained that  all of  the CINA  and child  protection work                                                                    
came to the division's budget.                                                                                                  
                                                                                                                                
2:12:57 PM                                                                                                                    
                                                                                                                                
Ms. Mills moved  to primary general fund uses  for the Civil                                                                    
Division  beginning with  the  Child  Protection Section  on                                                                    
slide 20. She emphasized that  the section was fully staffed                                                                    
for  the  first time  in  about  five  years, which  was  an                                                                    
amazing  accomplishment.  She   reported  the  division  was                                                                    
incredibly  happy  that  the  supervisor  was  now  able  to                                                                    
supervise the 24  attorneys in her section  without having a                                                                    
larger caseload  than normal. The caseload  per attorney had                                                                    
also  decreased. She  detailed  that  the national  caseload                                                                    
average  was  around 60  and  the  Child Protection  Section                                                                    
caseloads  had been  between  90 to  100  per attorney.  The                                                                    
division hoped the caseloads  would stabilize. She explained                                                                    
that the  after effects  of the  pandemic would  become more                                                                    
clear  now that  mandatory reporters  were seeing  children;                                                                    
therefore,  the  division   anticipated  the  reports  would                                                                    
increase.  The division  was still  conducting  most of  its                                                                    
hearings remotely via Zoom or  phone, which was working well                                                                    
and enabled attorneys  to be more efficient  and get through                                                                    
more  hearings in  a day.  There had  been an  initiative to                                                                    
move back  to in-person hearings,  but the division  was not                                                                    
supportive of the idea in  relation to CINA proceedings. She                                                                    
believed  in-person hearings  were  more  effective for  the                                                                    
Criminal Division. The Child  Protection Section was getting                                                                    
through its  COVID-19 pandemic created  backlog, but  it was                                                                    
not completely finished.                                                                                                        
                                                                                                                                
2:14:56 PM                                                                                                                    
                                                                                                                                
Ms. Mills  discussed promoting good governance  on slide 21,                                                                    
which covered other areas where  the Civil Division received                                                                    
general  funds directly  and was  not  funded through  other                                                                    
departments   including   appeals    and   ethics,   special                                                                    
litigation,  legislation,  employment  cases,  advising  the                                                                    
governor,  and  elections.  She noted  the  division  had  a                                                                    
designated  ethics  attorney  who helped  advise  all  state                                                                    
agencies in complying with the Ethics Act.                                                                                      
                                                                                                                                
Ms. Mills  discussed the Civil  Division's charge  to defend                                                                    
the  state's management  and ownership  rights over  natural                                                                    
resources on  slide 22. The  division received  some funding                                                                    
from DNR,  DFG, and DEC,  but the primary  statehood defense                                                                    
litigation  was  mainly  paid  for  through  the  division's                                                                    
budget. She  relayed that the  main area where  the division                                                                    
had received budget increases in  recent years was statehood                                                                    
defense. She highlighted that the  legislature had given the                                                                    
division $6.5  million in multiyear appropriations  over the                                                                    
past  two years.  The funding  did  not lapse  on an  annual                                                                    
basis, the  department could  hold onto  the funds  for four                                                                    
years  for use  in statehood  defense cases.  Cases included                                                                    
defending  Alaska's right  to statehood,  the management  of                                                                    
its resources, or the protection of its natural resources.                                                                      
                                                                                                                                
Representative   Josephson   asked  for   verification   the                                                                    
division was not asking for anything in "this category."                                                                        
                                                                                                                                
Ms. Mills shook her head in agreement.                                                                                          
                                                                                                                                
Representative  Josephson  referenced  monies  the  governor                                                                    
wanted  to prep  cases. He  asked how  the cases  would have                                                                    
been funded previously.                                                                                                         
                                                                                                                                
Ms. Mills  replied that the  funds probably would  have been                                                                    
in each  department's budget and the  departments would have                                                                    
had  to resource  depending on  the amount  available to  do                                                                    
field studies.  The work included surveying,  field studies,                                                                    
navigability (i.e.,  floating a  river to  make sure  it was                                                                    
navigable).  She  explained  it  was prepping  in  terms  of                                                                    
determining  the  science,  what  was  on  the  ground,  and                                                                    
whether the  state agreed with  what the  federal government                                                                    
was representing  as the science. Historically  the work had                                                                    
been handled by each individual department.                                                                                     
                                                                                                                                
2:17:39 PM                                                                                                                    
                                                                                                                                
Representative Hannan  stated that  the department  had been                                                                    
given  $6.5 million  and  the  Legislative Finance  Division                                                                    
reported there  was $3 million  remaining. She  requested to                                                                    
see the  list of litigation  funded by the  expenditure. She                                                                    
referenced  the governor's  request  for  an additional  $10                                                                    
million. She asked if the  other allocation would be used if                                                                    
the  $6.5 million  was expended.  He referred  to the  Kenai                                                                    
Refuge Rule and  asked who made the decision  on whether the                                                                    
case was appealed. She remarked  that some of the litigation                                                                    
described  by Ms.  Mills was  initiated  by the  department,                                                                    
whereas it was unclear where  some litigation had come from.                                                                    
She highlighted litigation pertaining  to submerged lands at                                                                    
Mendenhall Lake  as an  example and  explained she  had been                                                                    
unable to get an answer on where the lawsuit had come from.                                                                     
                                                                                                                                
Ms.  Mills  turned  to  a  table on  slide  26  showing  the                                                                    
multiyear statehood  defense funding. The  slide represented                                                                    
all of  the cases currently  being funded with  the existing                                                                    
$6.5  million.  She  specified that  $500,000  of  the  $6.5                                                                    
million had to  be reserved for Tongass  related issues. The                                                                    
list  represented cases  the  Civil  Division was  currently                                                                    
litigating,  what   the  money  was  being   used  for,  and                                                                    
anticipated  cost.  She noted  that  the  division tried  to                                                                    
estimate anticipated  costs on  the high end.  She explained                                                                    
that litigation  could often cost more  than anticipated and                                                                    
the estimate included a buffer  to account for the potential                                                                    
of  going  through  trial.  The  slide  showed  the  current                                                                    
anticipated costs were around $9 million.                                                                                       
                                                                                                                                
Ms.  Mills  turned to  anticipated  litigation  on slide  27                                                                    
including  RS  2477 cases,  a  PM  2.5 plan  for  Fairbanks,                                                                    
federal management  plans, Endangered  Species Act,  and the                                                                    
Tongass  Roadless Rule.  She noted  the  items would  likely                                                                    
fall under the funding as  well. She stated that costs would                                                                    
be  well over  the $6.5  million previously  appropriated to                                                                    
the division.  She remarked that  some of the cases  may end                                                                    
early,  which would  keep  costs down.  She  added that  the                                                                    
division  may be  able  to do  motions  for rejudgment  that                                                                    
would  kick  the  cases  out  faster.  The  division's  cost                                                                    
estimates  were cautious.  She  addressed  how the  division                                                                    
decided  to  initiate  litigation.   She  explained  it  was                                                                    
generally done in consultation  with whatever department was                                                                    
involved.                                                                                                                       
                                                                                                                                
Ms. Mills  referenced the Mendenhall Lake  case mentioned by                                                                    
Representative  Hannan. She  explained that  DNR had  a unit                                                                    
that looked  at navigability type issues.  She detailed that                                                                    
the state wanted to set  precedent in the navigability realm                                                                    
that would give  the state and the  federal government rules                                                                    
so the state did not have to go  one by one on each river to                                                                    
determine whether it  was under the purview of  the state or                                                                    
federal  purview. The  state's  strategy was  to pick  large                                                                    
families  of  rivers  that  were  easy.  She  explained  the                                                                    
division's  effort to  get  the caselaw  and  go forward  to                                                                    
determine the boat  and draft needed. The  division had been                                                                    
trying  to   work  with  the   federal  government   on  the                                                                    
recordable disclaimer  of interest process, but  the federal                                                                    
government  had  not  been  moving  to  resolve  the  cases.                                                                    
Therefore, the state  was litigating the issues  in the hope                                                                    
of setting  forth the  foundational law  to bring  the state                                                                    
and federal government to the  table to resolve the cases in                                                                    
a cheaper and easier way.                                                                                                       
                                                                                                                                
Ms.  Mills referred  back to  the Mendenhall  Lake case  and                                                                    
explained that  the federal government was  asserting it was                                                                    
a   pre-statehood  withdrawal.   The  state   disagreed  and                                                                    
believed there  was an example  of a case where  the federal                                                                    
government was conflicting with  itself. The Mendenhall Lake                                                                    
case  was  less  about  navigability   and  more  about  the                                                                    
question of  pre-statehood withdrawal. She relayed  it was a                                                                    
good case to use to  determine the caselaw. The division was                                                                    
anticipating  a motion  to  dismiss the  case  filed by  the                                                                    
federal government,  which should allow the  division to get                                                                    
to the heart of the legal question.                                                                                             
                                                                                                                                
2:23:27 PM                                                                                                                    
                                                                                                                                
Representative  Hannan  referenced  the  Kenai  Refuge  Rule                                                                    
shown on slide  26. She believed the state  had appealed the                                                                    
case and  had in  essence lost  its argument  of controlling                                                                    
the means  and methods of  hunting in the refuge.  She asked                                                                    
what the current status was.  She thought it was a situation                                                                    
where  the  state had  likely  been  better off  before  the                                                                    
appeal. She stated her understanding  that the game managers                                                                    
did not  want the state to  appeal, but it had  done so, and                                                                    
consequently the  game managers  had less control  over game                                                                    
management.                                                                                                                     
                                                                                                                                
Ms. Mills answered that the  problem had been that the state                                                                    
had lost at  the district court as well.  She clarified that                                                                    
the state "had a court  order regardless." She was not quite                                                                    
certain how the  situation would have been  much better. She                                                                    
considered that perhaps it would  have been a little better.                                                                    
She pointed out there was  also a National Park Service rule                                                                    
that was being instated on  much broader refuges. She stated                                                                    
it was not ending and the  situation would not be done until                                                                    
the  U.S.  Supreme Court  decided  on  whether to  take  the                                                                    
state's cert case. She elaborated  that ten states had filed                                                                    
an amicus  brief in Alaska's  support because the  court had                                                                    
completely  ignored congressional  authority and  had stated                                                                    
that because  the U.S. Constitution  had a  property clause,                                                                    
the federal government  "can do this." She  relayed that the                                                                    
court  had  ignored  the   Alaska  National  Interest  Lands                                                                    
Conservation  Act (ANILCA)  altogether.  She explained  that                                                                    
other  states  were  also  seeing that  the  court  gave  no                                                                    
recognition to  the rights  of states  given by  Congress to                                                                    
manage fish  and game hunting  means and methods.  She noted                                                                    
that Chief Justice John Roberts  had worked on Alaska issues                                                                    
in the 1990s  and had an understanding of the  rules and why                                                                    
Alaska  was  unique. The  department  was  hopeful the  U.S.                                                                    
Supreme  Court would  take the  case up  on its  merits. She                                                                    
stated the decision was detrimental.                                                                                            
                                                                                                                                
2:26:24 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  noted  that   there  had  been  a                                                                    
conversation on the topic in  a finance subcommittee meeting                                                                    
the previous  week. He thought  if Alaska people  saw "this"                                                                    
many would be  elated. He remarked that  some Alaskans would                                                                    
think that in every instance  where there was an opportunity                                                                    
to support a reduction in  emissions or support the right of                                                                    
trails to  have some setbacks or  to say there would  not be                                                                    
black bear  baiting near a  highway, or that dogs  would not                                                                    
be  used to  hunt black  bears. He  stated that  the federal                                                                    
government did not want dogs to  be used to hunt black bears                                                                    
on federal land  and the state was saying that  it wanted to                                                                    
use dogs to hunt black  bears. He considered that perhaps he                                                                    
could  take  solace  from  the  fact  that  in  every  other                                                                    
instance not  listed [on slide  26] there  was theoretically                                                                    
no  challenge; therefore,  the  federal government's  vision                                                                    
for an  intact ecosystem  for the  environment or  clean air                                                                    
was fine  for the state.  He remarked that the  only example                                                                    
on the slide to indicate whether  an item was an interest in                                                                    
environmental preservation  or more  liberality in  terms of                                                                    
industrial  development, air  quality,  and  other, was  the                                                                    
increment   labeled  "former   federal  site   cleanup."  He                                                                    
highlighted it was  the only instance on the  list where the                                                                    
state was  saying it  was upset that  Alaska's land  was not                                                                    
clean enough.  He remarked that it  worked out strategically                                                                    
to  the state's  benefit  because it  was  "the bad  federal                                                                    
government."  He recognized  that  he would  likely see  the                                                                    
situation  differently   if  he  was  in   Attorney  General                                                                    
Taylor's  seat.  He stated  that  he  had talked  about  the                                                                    
issues with Ms. Mills the  previous week and he recalled she                                                                    
had  noted that  the  state aggressively  went after  fellow                                                                    
Alaskans if  they were  polluters. He  was left  not knowing                                                                    
who was looking after the  natural environment of Alaska. He                                                                    
shared that he  was born in Alaska, and it  was all he knew.                                                                    
His  concern  was  that  Alaska  had  an  incredible  intact                                                                    
wilderness and he wanted to know who was defending it.                                                                          
                                                                                                                                
2:29:20 PM                                                                                                                    
                                                                                                                                
Attorney  General Taylor  replied  that  the department  was                                                                    
trying  to preserve  the  legislature's  ability to  control                                                                    
those policy decisions  in Alaska. When DOL  saw the federal                                                                    
government encroaching  on the  legislature's ability  to do                                                                    
so, it  was a red  flag and  the department stepped  in. The                                                                    
department believed  Alaskans should be the  ones making the                                                                    
policy decisions  on whether or  not it  was good to  have a                                                                    
black bear baiting  station next to the highway.  It was one                                                                    
of the main components DOL  identified when it chose whether                                                                    
to get involved  in a case. He stated that  when things were                                                                    
not challenged  they expanded significantly;  therefore, the                                                                    
department  had learned  to address  issues  the first  time                                                                    
they arose  and as if they  would be applied to  the rest of                                                                    
Alaska. He  referenced a  question by  Representative Hannan                                                                    
about who made  the decision to litigate.  He responded that                                                                    
DOL deferred  to departments on  some of the  decisions, but                                                                    
ultimately,  he  made  the decision  on  whether  to  pursue                                                                    
litigation and whether to settle a case or not.                                                                                 
                                                                                                                                
Co-Chair  Johnson  thought  statehood  defense  was  keeping                                                                    
things contained  and preventing  things from  creeping over                                                                    
into national park lands.                                                                                                       
                                                                                                                                
Ms.  Mills  agreed.  She elaborated  that  if  the  [federal                                                                    
government] could  set the means  and methods of  hunting on                                                                    
the Kenai Refuge,  whether or not a person  agreed with bear                                                                    
baiting or  not it  was a regulation  that came  through the                                                                    
Board of  Game via a public  Alaskan process. Traditionally,                                                                    
DOL  believed that  ANILCA and  the Statehood  Act gave  the                                                                    
fish and  game means  and methods of  hunting to  the state.                                                                    
She stated  that often it  involved sovereigns  not agreeing                                                                    
on where  the lines were.  She stressed that  the department                                                                    
represented the  state's interests. She clarified  that from                                                                    
a  policy perspective  it meant  DOL  thought the  decisions                                                                    
should  happen with  the  state, not  that  they should  not                                                                    
happen at all.                                                                                                                  
                                                                                                                                
2:32:43 PM                                                                                                                    
                                                                                                                                
Representative  Cronk  lived  in  an area  where  there  was                                                                    
federal  encroachment in  refuges and  parks. He  stated the                                                                    
federal government was telling  Alaskans what they could and                                                                    
could not do. He elaborated  that the federal government was                                                                    
telling Alaska  Natives they could  no longer  harvest bears                                                                    
out of  dens when it  had been  a practice for  thousands of                                                                    
years.  He appreciated  the [state's]  fight [for  statehood                                                                    
defense].  He asked  what  was next.  He  stated there  were                                                                    
groups  that believed  a fishhook  hurt fish;  therefore, he                                                                    
questioned whether sportfishing would  be banned. He thanked                                                                    
the  department   for  the  work   and  was   uncertain  the                                                                    
governor's $10  million was sufficient. He  wanted to ensure                                                                    
the fights over  the issues remained in Alaska  and not with                                                                    
someone in Washington D.C. telling Alaskans how to live.                                                                        
                                                                                                                                
Ms.  Mills turned  to slide  28  and reported  there were  a                                                                    
couple of FY 24 governor  amended proposed budget changes in                                                                    
the  Civil Division.  The first  was the  addition of  a new                                                                    
attorney  for parental  rights  in  education advocate.  The                                                                    
second was  the addition  of an attorney  to lead  on tribal                                                                    
law issues.  She detailed that  the state had  been involved                                                                    
in  child  welfare compacting  for  the  past four  to  five                                                                    
years. The  state was also  looking at  education compacting                                                                    
with  tribes. The  division saw  numerous civil  issues that                                                                    
continued  to   arise  on   Indian  gaming   law,  sovereign                                                                    
immunity,   government  to   government  consultation,   and                                                                    
regulatory actions  by the federal government  defining what                                                                    
a tribe  was. She  elaborated that Native  corporations were                                                                    
considered tribes for purposes  of federal funding and other                                                                    
things  and the  federal government  was starting  to change                                                                    
some  of  those  things.  The division  was  having  trouble                                                                    
keeping on  top of the  issues and  it was unable  to devote                                                                    
the resources  to create the  relationships and  outreach it                                                                    
should be creating  because it was so  focused on individual                                                                    
cases that  arose. The position would  coordinate the issues                                                                    
and  provide outreach,  interaction,  and partnerships.  She                                                                    
remarked  that  sovereigns  would   have  clashes,  but  the                                                                    
position would work  to partner and work together  on top of                                                                    
all of that.                                                                                                                    
                                                                                                                                
2:35:47 PM                                                                                                                    
                                                                                                                                
Representative  Hannan referenced  the proposed  attorney to                                                                    
lead  on  tribal  law  issues. She  referred  to  a  lawsuit                                                                    
against  the U.S.  Department of  Interior and  tribal lands                                                                    
and  whether the  attorney would  be assigned  to the  case.                                                                    
Alternatively, she  wondered whether the  current litigation                                                                    
was covered  by a contract  attorney outside the  state. She                                                                    
noted she  had some  tribes who had  requested an  answer to                                                                    
the question. She remarked that it was unclear to her.                                                                          
                                                                                                                                
Ms. Mills replied that the  specific proposed position would                                                                    
not   be   envisioned  to   do   the   work  referenced   by                                                                    
Representative Hannan.  The position would be  a coordinator                                                                    
to ensure  the division  understood all  of the  issues that                                                                    
touched  Native  law,  but  the   individual  would  not  be                                                                    
directly  involved in  the litigation  previously mentioned.                                                                    
She  clarified  that  the litigation  already  had  specific                                                                    
attorneys  assigned.  The  position  would  be  an  outreach                                                                    
component helping with compacting.                                                                                              
                                                                                                                                
Attorney General Taylor added  that the position was largely                                                                    
a  cost savings  position. He  explained that  currently the                                                                    
department   was   reactive,   typically  in   response   to                                                                    
litigation. He  elaborated that by  then it was  usually too                                                                    
late to  work with the  other side  to come to  an agreement                                                                    
that  both  sovereigns could  agree  on.  The idea  for  the                                                                    
position  was  to  prevent  some   of  that  litigation.  He                                                                    
believed  it was  a cost  savings  measure and  it was  good                                                                    
business  when the  state had  better  relations with  other                                                                    
sovereigns in the state.                                                                                                        
                                                                                                                                
2:38:06 PM                                                                                                                    
                                                                                                                                
Representative   Tomaszewski  returned   to  the   multiyear                                                                    
statehood  defense funding  on slide  26. He  looked at  the                                                                    
increment labeled  "former federal  site cleanup"  and asked                                                                    
how many  decades the state  had been going over  the issue.                                                                    
He wondered how  many millions of dollars had  been spent on                                                                    
the issue  and whether anything would  ever be accomplished.                                                                    
He understood there had been  some progress, but he wondered                                                                    
if there  was any way to  get the money back  that the state                                                                    
was spending and litigating.                                                                                                    
                                                                                                                                
Ms. Mills stated that unfortunately  in federal court it was                                                                    
not as  easy to get  attorney's fees  even if the  state was                                                                    
successful.  The  Civil  Division  was hoping  to  move  the                                                                    
needle on getting  a plan for what cleanup  looked like. She                                                                    
agreed that  the situation had  been going on  "forever" and                                                                    
the  division  decided it  needed  to  resort to  litigation                                                                    
because  the state  kept getting  promises  [by the  federal                                                                    
government] with no action. She  remarked that the increment                                                                    
was  a large  expenditure  and one  of  the division's  most                                                                    
expensive  cases  because  of  the   need  to  go  into  the                                                                    
contamination  on  each  of  the   sites.  She  stated  that                                                                    
hopefully the  issue could be  resolved before  spending the                                                                    
full  $2  million,  but  it  would  be  up  to  the  federal                                                                    
government asserting it needed to  do something and thus far                                                                    
it had not demonstrated a willingness to do so.                                                                                 
                                                                                                                                
2:39:31 PM                                                                                                                    
                                                                                                                                
Ms. Mills  reviewed the  governor's proposed  budget changes                                                                    
on slide  29 for  the Administrative Services  Division. The                                                                    
additional  $250,000  request   addressed  increasing  lease                                                                    
costs in facilities occupied by  DOL. She expounded that the                                                                    
department had been absorbing the  costs over the years, but                                                                    
it  finally needed  a  funding increase  in  order to  avoid                                                                    
impacts to day to day operations.                                                                                               
                                                                                                                                
2:40:06 PM                                                                                                                    
                                                                                                                                
JOHN SKIDMORE,  DEPUTY ATTORNEY GENERAL,  CRIMINAL DIVISION,                                                                    
DEPARTMENT  OF  LAW, addressed  slide  30  and reviewed  the                                                                    
division's mission:                                                                                                             
                                                                                                                                
     The  mission  of  the  Criminal  Division  is  to  seek                                                                    
     justice,  promote  public  safety, and  further  public                                                                    
     respect for  government through prompt,  effective, and                                                                    
     compassionate prosecution of cases.                                                                                        
                                                                                                                                
Mr.  Skidmore  elaborated  that   the  department  had  been                                                                    
successful in  promoting public safety  and crime  rates had                                                                    
dropped  dramatically   in  the  past  several   years.  The                                                                    
Criminal Division's  challenges resided with the  ability to                                                                    
promptly   and  effectively   prosecute  cases.   There  was                                                                    
currently a  delay in  cases within  the justice  system and                                                                    
the division was focused on  working through the backlog and                                                                    
getting things moving more effectively.                                                                                         
                                                                                                                                
Mr.  Skidmore turned  to  slide 31  and  explained that  the                                                                    
division was not responsible for  the prosecution of federal                                                                    
or  municipal  crimes  or   the  investigation  of  criminal                                                                    
conduct. He  explained that predominately  DOL did  not have                                                                    
investigators, while most prosecutor's  offices in the Lower                                                                    
48 had investigators to help  them follow up on cases. There                                                                    
was one exception in the  Medicaid Fraud Control Unit, which                                                                    
was funded  with 75 percent  federal dollars and  25 percent                                                                    
state  dollars.  The  unit had  six  investigators  and  was                                                                    
responsible for  investigating any Medicaid  fraud occurring                                                                    
within  the  state.  The  unit   was  also  responsible  for                                                                    
addressing  any  criminal  prosecution for  Medicaid  fraud.                                                                    
There was one additional  exception [related to investigator                                                                    
positions] that he would address on a later slide.                                                                              
                                                                                                                                
2:42:26 PM                                                                                                                    
                                                                                                                                
Mr. Skidmore  discussed the  duty of  a prosecutor  on slide                                                                    
32.  For   example,  the  Cannons  of   professional  ethics                                                                    
indicated  that the  primary  duty of  a  lawyer engaged  in                                                                    
public  prosecution  is not  to  convict,  but to  see  that                                                                    
justice  is done.  He explained  that the  Criminal Division                                                                    
received  25,000  to  30,000  referrals  annually,  but  the                                                                    
referrals did  not all result  in charges filed  because the                                                                    
division  determined   some  referrals  did  not   meet  the                                                                    
elements needed  for prosecution. The division  filed around                                                                    
20,000  cases  annually.  He elaborated  that  the  division                                                                    
filed  dismissals  annually  for  some cases  it  had  filed                                                                    
because its responsibility was to  see that justice was done                                                                    
and  not  simply  to obtain  convictions.  He  referenced  a                                                                    
second quote on  the slide from a former  U.S. Supreme Court                                                                    
justice indicating  that while  the prosecutor  was supposed                                                                    
to prosecute with earnestness and  vigor, the prosecutor was                                                                    
not  at  liberty  to  strike foul  blows  that  resulted  in                                                                    
improper convictions.                                                                                                           
                                                                                                                                
Mr. Skidmore  advanced to slide  33 listed core  services on                                                                    
slide   33.   The    division   provided   assistance   with                                                                    
investigations. He  detailed that  he had  previously worked                                                                    
as a  prosecutor for the  Anchorage and  Dillingham district                                                                    
attorney offices and had gone  to homicide scenes every time                                                                    
there was a homicide.  The division also provided assistance                                                                    
on  search warrants,  wire taps,  and evaluating  cases with                                                                    
tricky  elements. He  stated they  were  all activities  the                                                                    
division performed that  did not get captured  in the 25,000                                                                    
to 30,000  annual referrals. Formal  referrals were  sent to                                                                    
the  division  by law  enforcement.  He  remarked that  some                                                                    
people   mistakenly    believed   that   a    referral   was                                                                    
automatically  sent to  the  division  just because  someone                                                                    
called law enforcement and reported a crime.                                                                                    
                                                                                                                                
Mr.  Skidmore relayed  that law  enforcement  did not  refer                                                                    
everything  it   received  to  the  Criminal   Division  for                                                                    
multiple  reasons.   For  example,   the  report   could  be                                                                    
unfounded,  law enforcement  could not  solve the  crime, or                                                                    
the incident  was not  actually a  crime. He  referenced the                                                                    
Uniform Crime  Report (UCR) numbers  and explained  that the                                                                    
number of  prosecutions did not  equal the number  of crimes                                                                    
reported. The third core service  was screening and involved                                                                    
the division's  review of cases  and decision on  whether to                                                                    
file  charges.   The  fourth   core  service   was  pretrial                                                                    
litigation and involved motion work.  The fifth core service                                                                    
was  pretrial resolution  related to  plea negotiations.  He                                                                    
noted that the vast majority  of cases were resolved through                                                                    
plea negotiations.  He noted  the same  was true  in federal                                                                    
cases and  in all other  states. The last two  core services                                                                    
included trial and post-trial  litigation. He explained that                                                                    
the division's  job did  not stop  just because  someone was                                                                    
convicted in  a jury trial  or they  had entered a  plea. He                                                                    
elaborated that  appeals, post-conviction  relief, violation                                                                    
of probation, and other items  could occur afterwards. There                                                                    
were many types of litigation  that occurred even beyond the                                                                    
25,000 to 30,000 annual referrals.                                                                                              
                                                                                                                                
2:47:08 PM                                                                                                                    
                                                                                                                                
Mr. Skidmore  turned to  slide 34  showing the  structure of                                                                    
the Criminal  Division. The slide  included a map  of Alaska                                                                    
indicating the  division's office locations. The  offices on                                                                    
the slide were color coded  to match the individual district                                                                    
attorneys listed on  the right of the slide.  He pointed out                                                                    
that  Utqiagvik was  supervised  by  the Fairbanks  district                                                                    
attorney,  the  Dillingham  office  was  supervised  by  the                                                                    
Anchorage   district   attorney,   the  Sitka   office   was                                                                    
supervised by the Juneau district  attorney, the Nome office                                                                    
was supervised by the Kotzebue  district attorney. The slide                                                                    
also included Tamara De Lucia,  who headed Appeals and Jenna                                                                    
Gruenstein who headed Special  Prosecutions. He relayed that                                                                    
both offices had a statewide  presence. He personally worked                                                                    
in the Central Office along  with Angie Kemp and legislative                                                                    
assistant  Kaci  Schroeder.   The  Central  Office  provided                                                                    
management and  supervision over  the division  and provided                                                                    
testimony to the legislature.                                                                                                   
                                                                                                                                
2:49:01 PM                                                                                                                    
                                                                                                                                
Representative  Stapp referenced  Mr. Skidmore's  mention of                                                                    
six attorneys  in the  Medicaid Fraud  Unit. He  asked about                                                                    
the  caseload  compared to  other  areas.  He asked  if  the                                                                    
number of attorneys was adequate for the unit.                                                                                  
                                                                                                                                
Mr.   Skidmore   clarified   that  the   six   people   were                                                                    
investigators,  not  attorneys.   Additionally,  there  were                                                                    
three  attorneys and  several  other staff  assigned to  the                                                                    
unit. He would follow up with the caseload numbers.                                                                             
                                                                                                                                
Representative Stapp  remarked that  the state had  not been                                                                    
able to redetermine Medicaid enrollees  for the past several                                                                    
years [during  the pandemic].  He asked  how fraud  had been                                                                    
during that time.                                                                                                               
                                                                                                                                
Mr.  Skidmore  did  not  know  whether  there  had  been  an                                                                    
increase  in Medicaid  fraud during  that  time. He  relayed                                                                    
that not every  case resulted in criminal  charges or fraud.                                                                    
There were instances where mistakes  or errors occurred that                                                                    
did not  amount to  criminal prosecution. Those  things were                                                                    
managed  through the  Medicaid Office  and not  the Medicaid                                                                    
Fraud  Control  Unit. He  clarified  that  just because  the                                                                    
fraud unit  did not have  statistics did not mean  there was                                                                    
no  action  being  taken.  He  offered  to  follow  up  with                                                                    
statistics from the fraud unit.                                                                                                 
                                                                                                                                
Representative  Hannan asked  how often  a case  of Medicaid                                                                    
fraud involved  a recipient  versus a  provider. It  was her                                                                    
perception  that   the  fraud  was  not   typically  someone                                                                    
receiving services; it was  usually about whether treatments                                                                    
should have been covered or provided.                                                                                           
                                                                                                                                
Mr. Skidmore  replied that the  Medicaid Fraud  Control Unit                                                                    
was focused on  providers and the billing  they submitted to                                                                    
Medicaid, not necessarily the  recipients. He explained that                                                                    
if  the recipients  were  engaged in  fraud  it was  welfare                                                                    
fraud,  which  was handled  by  a  prosecutor under  Special                                                                    
Prosecutions.  The Medicaid  Fraud Control  Unit focused  on                                                                    
the provider, which was done by regulation or statute.                                                                          
                                                                                                                                
2:52:35 PM                                                                                                                    
                                                                                                                                
Mr. Skidmore  turned to slide  35 and  discussed recruitment                                                                    
and retention.  He stressed that the  most valuable resource                                                                    
of  the  department  was  its  personnel.  He  relayed  that                                                                    
recruitment and retention was an  issue for the division and                                                                    
had been  a challenge  over the past  five years.  There had                                                                    
been  an  applicant  shortage   nationwide  in  addition  to                                                                    
challenges  specific to  Alaska.  The division  had seen  an                                                                    
attrition rate  of approximately 22  to 37 percent  over the                                                                    
past  five  years.  Slide  36 provided  a  snapshot  of  the                                                                    
applicant shortage.  He noted the  specific slide  had first                                                                    
been presented to a budget  committee in 2020. The slide had                                                                    
been produced by the organization  NEOGOV that helped public                                                                    
sector agencies  nationwide to evaluate applicants  and what                                                                    
was taking place in the  industry. The organization had told                                                                    
the  department in  2020 that  there  was a  37 percent  gap                                                                    
between  the  number  of  open   positions  and  the  people                                                                    
applying. There  had been an  8 percent  decrease nationally                                                                    
in the  number of public  sector job applicants at  the same                                                                    
time that  more and  more public  sector jobs  were becoming                                                                    
open. He reviewed statistics on the slide:                                                                                      
                                                                                                                                
    10,000  Baby Boomers  retiring  per day  =  11% of  the                                                                  
     workforce per year. (Washington Post)                                                                                      
    20% of Alaska state workers  projected to retire in 1-5                                                                  
     years (Alaska Department of Administration)                                                                                
    11% of Alaska state workers  eligible to retire in less                                                                  
     than 1 year (Alaska Department of Administration)                                                                          
                                                                                                                                
Mr. Skidmore  relayed that the Civil  and Criminal Divisions                                                                    
had both seen  retirements. He did not believe  the rate had                                                                    
been  as high  as 11  percent in  the Criminal  Division. He                                                                    
continued to  speak to the  applicant shortage on  slide 37.                                                                    
He reviewed the slide:                                                                                                          
                                                                                                                                
    8% decrease in number  of applicants looking for public                                                                  
     sector jobs                                                                                                                
    Average of 22% fewer applicants per job 2013-2018                                                                        
    "Legal has  suffered the  biggest impact  in applicants                                                                  
     per  job, with  a  64% decline  in applications.  Legal                                                                    
     jobs  saw,   on  average,   33  fewer   applicants  per                                                                    
     available  job  in  2018  compared  to  2013."  (NEOGOV                                                                    
     Hiring Trends Report 2019)                                                                                                 
    19% decrease in Alaska  applicants over last five years                                                                  
     (Alaska Department of Administration)                                                                                      
    49 prosecutor  positions recruited during 2019  with an                                                                  
     average of less than 5 applicants per position.                                                                            
                                                                                                                                
Mr. Skidmore  relayed that  he had  been in  Washington D.C.                                                                    
about three weeks  ago for a national  job fair specifically                                                                    
for prosecutors.  There had been  an opportunity to  talk to                                                                    
members of  the federal  government who had  indicated there                                                                    
had been  a decrease  in applications nationwide.  He shared                                                                    
that a participant from Ohio  had explained that in the past                                                                    
he had a  thick stack of applications, but he  was now lucky                                                                    
if he  had a  handful. He finished  addressing slide  37 and                                                                    
explained there had been  fewer applicants, less experienced                                                                    
applicants,  longer recruiting  periods, and  greater stress                                                                    
on current employees.                                                                                                           
                                                                                                                                
2:58:20 PM                                                                                                                    
                                                                                                                                
Mr.  Skidmore  turned to  slide  38  titled "Improvement  in                                                                    
Applicant  Numbers."   He  highlighted  that   the  division                                                                    
currently  had guarded  optimism  related to  the number  of                                                                    
applicants. He  thanked the legislature  for the  efforts it                                                                    
took the  previous year that  had made a difference  for the                                                                    
division.  He  explained  that  attorneys  had  received  an                                                                    
increase in salary beginning in  November [2022]. He pointed                                                                    
to  a  bar  graph  showing  the  number  of  applicants  for                                                                    
prosecutor jobs from  2022 to 2023. He  highlighted that the                                                                    
number had  jumped from 11  applicants in November to  18 in                                                                    
December and  38 by  January. He could  not say  whether the                                                                    
increase in  applicants would last, but  the salary increase                                                                    
had made a difference thus far.                                                                                                 
                                                                                                                                
Mr.  Skidmore turned  to slide  39  and discussed  retention                                                                    
efforts taken  by the  division including  salary increases,                                                                    
training,  a   revamped  website,  social   media  presence,                                                                    
expansion of posting locations,  and attending job fairs. He                                                                    
reviewed attrition rates for the division:                                                                                      
                                                                                                                                
    Prosecutors in 2018: 36.5% turned over (42 of 115)                                                                       
    Prosecutors in 2019: 22.3% turned over (27 of 121)                                                                       
    Prosecutors in 2020: 15.8% turned over (20 of 126)                                                                       
    Prosecutors in 2021: 20.6% turned over (27 of 131)                                                                       
    Prosecutors in 2022: 19.0% turned over (25 of 131)                                                                       
                                                                                                                                
Mr. Skidmore  elaborated on the  turnover rates  and pointed                                                                    
out it was  necessary to keep in mind that  the division had                                                                    
increased its number of positions  during the timeframe. The                                                                    
total number of prosecutor  positions had increased from 115                                                                    
to 131 over the five-year  period. He reported that in 2022,                                                                    
25 attorneys  had left  the Criminal Division  (6 of  the 25                                                                    
had  transferred to  the Civil  Division). He  remarked that                                                                    
when treating  the Criminal and Civil  Divisions exactly the                                                                    
same, it  created challenges for  the Criminal  Division. He                                                                    
explained  that  prosecution   created  a  harder  work-life                                                                    
balance.  He elaborated  that Criminal  Division prosecutors                                                                    
were on-call  and had to  be present for homicide  calls. He                                                                    
pointed out  that it  was not  something the  division could                                                                    
easily  compensate for;  it was  necessary to  find ways  to                                                                    
address the issues. He cited  the number of cases as another                                                                    
challenge. He remarked  that two of the  25 prosecutors that                                                                    
left  the  division in  2022  went  to the  Public  Defender                                                                    
Agency and Office  of Public Advocacy. Another  three of the                                                                    
25 had a  licensing issue, but the Alaska  Supreme Court had                                                                    
reversed the  determination earlier in the  current week. He                                                                    
explained that a  certain score was required  to be eligible                                                                    
to  take the  bar exam  in  Alaska, but  the Alaska  Supreme                                                                    
Court had  voted to reduce  the needed score because  it had                                                                    
the highest  required score  nationwide. The  department had                                                                    
effectively persuaded  the court  to reduce the  number from                                                                    
280  to 270  to put  the state  with the  majority of  other                                                                    
states. The  change would enable  the department  to reverse                                                                    
the three people it lost for licensing reasons.                                                                                 
                                                                                                                                
3:03:32 PM                                                                                                                    
                                                                                                                                
Mr. Skidmore  continued to discuss slide  39. He highlighted                                                                    
that in 2022  the division had lost 25  attorneys and gained                                                                    
31. He  relayed that 13  of the 31 attorneys  had experience                                                                    
(including  six former  employees), which  was a  change for                                                                    
the  division;  it  had  previously   been  unable  to  hire                                                                    
attorneys with experience.  He shared that every  one of the                                                                    
six attorneys  cited the salary  increase as the  reason for                                                                    
their return. He noted that he  did not mean to indicate all                                                                    
of  the division's  problems had  been  solved. He  reported                                                                    
there were  currently 24 open attorney  positions within the                                                                    
division.  He  indicated that  14  of  those positions  were                                                                    
slotted  to be  filled by  applicants who  had accepted  the                                                                    
division's offer and  would begin later in the  year. Of the                                                                    
remaining  positions,  the   division  had  been  conducting                                                                    
interviews  for six  during the  current week.  The division                                                                    
was making positive progress to close the gap.                                                                                  
                                                                                                                                
Co-Chair  Johnson   gave  a  shout  out   to  Representative                                                                    
Josephson  because he  had made  an amendment  [the previous                                                                    
session] to  increase pay  for attorneys,  which had  made a                                                                    
difference  in recruitment  and  retention. She  appreciated                                                                    
the work the division was doing.                                                                                                
                                                                                                                                
3:05:56 PM                                                                                                                    
                                                                                                                                
Mr. Skidmore discussed two changes  proposed by the governor                                                                    
to the  Criminal Division's  FY 24 budget  on slide  40. The                                                                    
first  change   pertained  to   software  and   storage  for                                                                    
audio/visual  evidence in  criminal cases  for approximately                                                                    
$400,000.  He explained  that when  the  division wanted  to                                                                    
prosecute  a  case  there  was   an  investigation  and  the                                                                    
information was brought to the  prosecution. A large portion                                                                    
of  the   information  was  digital  including   cell  phone                                                                    
information  and audio.  He stated  that  every contact  law                                                                    
enforcement  had  with a  witness  in  a case  was  recorded                                                                    
audially.  Digital   evidence  included  video   footage  of                                                                    
interviews at  the police station, security  camera footage,                                                                    
social media accounts, and photos.  The division managed the                                                                    
information  on  an internal  drive,  but  it had  presented                                                                    
problems for  the division.  He elaborated  that use  of the                                                                    
drive  had grown  exponentially  and it  did  not allow  the                                                                    
division  to  edit the  audio  and  video;  it was  not  the                                                                    
cleanest  way for  the division  to manage  the information.                                                                    
The request  would pay for software  to increase efficiency.                                                                    
He  stressed that  the division  was about  to be  inundated                                                                    
with additional  video from body  cameras. He  detailed that                                                                    
the  Alaska   State  Troopers   and  the   Anchorage  Police                                                                    
Department  were  both  in the  process  of  implementing  a                                                                    
policy for body cameras. He  informed members that more than                                                                    
75 percent of  the division's cases came from  those two law                                                                    
enforcement agencies.                                                                                                           
                                                                                                                                
3:08:09 PM                                                                                                                    
                                                                                                                                
Mr.  Skidmore continued  to review  slide 40.  He emphasized                                                                    
that the $400,000 was not  for the purchasing of the system.                                                                    
The Criminal Division  was prepared to pay  for the purchase                                                                    
cost  in  the  current  year with  funds  from  its  vacancy                                                                    
factor.  The   funding  request   would  cover   the  annual                                                                    
subscription  and  the  storage of  digital  evidence  going                                                                    
forward. The  division had not  yet made a  purchase because                                                                    
it did  not have the  future funding amount  authorized. The                                                                    
software   would  increase   efficiency.  He   reviewed  the                                                                    
benefits of the  software. The software would  provide for a                                                                    
certain  number  of  hours of  transcription  and  would  be                                                                    
accessible by prosecutors on computers  outside of the state                                                                    
system. He recalled countless times  in his past position as                                                                    
a prosecutor  where he wanted to  be at home and  not having                                                                    
to drive 30 minutes back to the office was a huge benefit.                                                                      
                                                                                                                                
3:10:34 PM                                                                                                                    
                                                                                                                                
Representative  Galvin asked  about  the  $400,000 UGF.  She                                                                    
appreciated the division  was being careful and  that it had                                                                    
the   funding   because   of   vacancies.   She   referenced                                                                    
recruitment and  retention and  the different  efforts being                                                                    
made  by  the  division.  She  asked  if  the  division  had                                                                    
considered using money from vacancies  on signing bonuses of                                                                    
a large amount to bring attorneys  in from out of state. She                                                                    
noted that other departments had used signing bonuses.                                                                          
                                                                                                                                
Mr.  Skidmore answered  that DOL  had  looked at  a host  of                                                                    
issues. The  department had  considered signing  bonuses but                                                                    
the increase in salaries  had made a substantial difference.                                                                    
He thanked  the legislature  for the increase.  The division                                                                    
did not currently  feel the need for  signing bonuses. There                                                                    
were other  steps the division was  evaluating internally to                                                                    
help with recruitment and retention.                                                                                            
                                                                                                                                
Representative Cronk  looked at  the $400,000  increment and                                                                    
asked if the  division planned to pay for a  new system with                                                                    
funding from its vacancies.                                                                                                     
                                                                                                                                
Mr. Skidmore  answered that with vacancies  the division was                                                                    
able to  purchase the  software. He noted  that the  cost to                                                                    
purchase  the software  was closer  to $500,000  or $600,000                                                                    
currently. The division could pay  for the purchase with the                                                                    
excess funding due to vacancies.  The funding from vacancies                                                                    
meant  the division  would not  have  to ask  for a  capital                                                                    
request. The  $400,000 was  for future  expenses to  pay for                                                                    
the storage and operation of the system moving forward.                                                                         
                                                                                                                                
Representative  Hannan  remarked   that  the  Department  of                                                                    
Public  Safety (DPS)  needed software,  hardware, and  staff                                                                    
related  to body  cameras. She  considered the  software and                                                                    
storage increment  and wondered  whether it  would be  up to                                                                    
individual  attorneys to  manage the  substantial amount  of                                                                    
new evidence the  Criminal Division would have  to store and                                                                    
manage.                                                                                                                         
                                                                                                                                
Mr. Skidmore responded that he  appreciated the question and                                                                    
explained that  he did  not yet  know what  would ultimately                                                                    
happen.  He  did  not  like  to  request  funding  from  the                                                                    
legislature until he was certain  the money would be needed.                                                                    
He confirmed  there would be  an increase.  The department's                                                                    
first step  was to  get a  system to allow  it to  store and                                                                    
review  the   data.  He  was   not  prepared  to   tell  the                                                                    
legislature  that management  of  the  system would  require                                                                    
additional  employees.  The  division would  have  to  start                                                                    
onboarding  the  new software  before  he  could provide  an                                                                    
effective answer to Representative Hannan's question.                                                                           
                                                                                                                                
3:15:05 PM                                                                                                                    
                                                                                                                                
Mr.  Skidmore discussed  the increment  related to  internet                                                                    
connectivity on  slide 40.  He shared that  in the  past the                                                                    
division had  thick, voluminous files that  contained all of                                                                    
the information  it had  to manage.  The division  had moved                                                                    
from paper  to digital files  in 2014 with a  program called                                                                    
Prosecutor  by  Karpel  (PBK)  and   had  put  most  of  its                                                                    
information  in the  cloud to  connect  its various  offices                                                                    
including  Anchorage,  Palmer,  Kenai,  Juneau,  Sitka,  and                                                                    
Ketchikan. The  division had not been  able to do so  in its                                                                    
locations   with  internet   connectivity  issues   such  as                                                                    
Dillingham, Nome, Kotzebue, and  Bethel. He stated that each                                                                    
of  the offices  had  a version  of PBK  loaded  on a  local                                                                    
server used  to manage their  files. The challenge  was that                                                                    
PBK was an internet browser-based system.                                                                                       
                                                                                                                                
Mr. Skidmore  explained that the  program had been  based on                                                                    
Internet  Explorer   (IE);  however,  Microsoft   no  longer                                                                    
supported IE and  now used a browser called  Edge. He shared                                                                    
that  about 33  percent of  all prosecutors  nationwide used                                                                    
PBK; all  of those  prosecutors now had  their files  in the                                                                    
cloud with  the exception of  Alaska. The division  had four                                                                    
offices  that were  not in  the cloud  because they  did not                                                                    
have adequate internet connectivity.  The division needed to                                                                    
move the offices  into the cloud. He  discussed the problems                                                                    
with the current system. He  explained that in order to find                                                                    
out what was going on at  the Bethel office it was necessary                                                                    
to log onto the Bethel server  from a state computer; it was                                                                    
not possible  to do  the work  remotely. The  budget request                                                                    
would increase  the internet connectivity in  rural offices.                                                                    
Nome  and Kotzebue  were not  included because  the division                                                                    
believed  their offices  could  be  upgraded. He  understood                                                                    
there was talk  about trying to bring fiber  into Bethel. He                                                                    
hoped it happened,  but it was not his approach  to hope and                                                                    
wish it  would work  out. The additional  $350,000 increment                                                                    
would  enable  the  division to  acquire  the  hardware  and                                                                    
subscription  services to  provide internet  connectivity to                                                                    
division offices that needed it.                                                                                                
                                                                                                                                
3:19:51 PM                                                                                                                    
                                                                                                                                
Representative    Josephson   referenced    Mr.   Skidmore's                                                                    
statement that  he did  not like  to make  [budget] requests                                                                    
unless he was certain the  funds were needed. He referred to                                                                    
supplemental funding  for the Office of  Public Advocacy and                                                                    
the Public Defender  Agency because of the lack  of staff to                                                                    
handle  the serious  felonies, particularly  on the  state's                                                                    
west  coast.  He  had  seen  a  change  record  detail  that                                                                    
indicated   in   response  to   HB   325   ("no  means   no"                                                                    
legislation),  the two  agencies  were seeking  close to  $1                                                                    
million to vet  those cases. The change  record detail noted                                                                    
the agencies  would require  additional positions  linked to                                                                    
HB  325 (that  had a  recent effective  date). He  asked how                                                                    
those agencies  foresaw the need, but  the Criminal Division                                                                    
did not have a like request.                                                                                                    
                                                                                                                                
Mr. Skidmore replied that when  the bill had been introduced                                                                    
the previous session the division  had indicated there would                                                                    
be  an  additional  need for  positions.  The  division  had                                                                    
requested five  attorneys and five support  staff. He stated                                                                    
the need continued to exist.  He explained that when the law                                                                    
had passed  and the fiscal  note had not been  attached, the                                                                    
division  had  chosen  not  to  request  the  positions.  He                                                                    
elaborated that the  decision had been made  because the law                                                                    
had just  gone into  effect and fiscal  notes were  always a                                                                    
best guess  at what  a cost may  be. He did  not know  if it                                                                    
would be the best way to do it  or not. He noted that if the                                                                    
workload  increased for  the Office  of Public  Advocacy and                                                                    
the Public Defender  Agency, it would also  increase for the                                                                    
Criminal  Division. He  remarked that  the two  agencies did                                                                    
not get  assigned cases unless  the Criminal  Division filed                                                                    
charges.  He confirmed  the division  would have  additional                                                                    
need, but  he did  not yet  know exactly  how much  the need                                                                    
would  be. The  best  guess  was the  fiscal  note from  the                                                                    
previous year  [associated with  HB 325].  He added  that at                                                                    
the time  the division  had been evaluating  budget requests                                                                    
in October  2022, it  had a  significant vacancy  factor and                                                                    
had  not been  able  to fill  all of  the  positions it  had                                                                    
subsequently  filled. He  was  loathe  to request  positions                                                                    
from  the   legislature  when  it  could   not  fill  vacant                                                                    
positions.  He  stated  the  division  was  in  a  different                                                                    
position now than it had been.                                                                                                  
                                                                                                                                
3:23:20 PM                                                                                                                    
                                                                                                                                
Representative  Josephson   thought  it  sounded   like  the                                                                    
division had  a good  problem as it  was filling  the vacant                                                                    
positions.  He  considered  that the  agencies  [the  Public                                                                    
Defender Agency  and the  Office of  Public Advocacy)  had a                                                                    
need and it  would a waterfall effect that  would impact the                                                                    
Criminal Division first. He surmised  they would have to see                                                                    
how the situation played out.                                                                                                   
                                                                                                                                
Mr.  Skidmore   reviewed  an   additional  request   in  the                                                                    
governor's  amended  budget  for  a  full-time  investigator                                                                    
position.  The  position  would serve  a  dual  purpose  for                                                                    
election fraud  and rural  homicide/felony sex  offences and                                                                    
other  violent  crimes.  He  reported  that  there  were  no                                                                    
dedicated investigators  for elections  fraud in  Alaska. He                                                                    
believed there should be investigators  for that purpose. He                                                                    
detailed  that 25  percent  of the  position  would look  at                                                                    
elections  cases to  decide whether  something  rose to  the                                                                    
level  of  criminal  conduct  or   not.  He  stated  it  was                                                                    
difficult   to   make    the   determinations   without   an                                                                    
investigation. There  had been some  investigations referred                                                                    
to the division  and there were a few charges  that would be                                                                    
filed,  but   to  date,  the   division  had  not   found  a                                                                    
significant  amount  of  fraud   indicating  any  reason  to                                                                    
believe  that   any  elections  results  were   invalid.  He                                                                    
believed the  public deserved a  right to have  someone look                                                                    
and  provide  definitive  answers  about  whether  [election                                                                    
fraud]  existed.  He  explained   that  25  percent  of  the                                                                    
position's work  would be related to  election fraud because                                                                    
there were state elections every two years.                                                                                     
                                                                                                                                
Mr. Skidmore continued to review  slide 41. He detailed that                                                                    
the position would be based  in Special Prosecutions and the                                                                    
remainder of the position would  focus on domestic violence,                                                                    
sexual assault,  and homicide cases  in rural  Alaska. There                                                                    
were a  couple of existing  positions that focused  on those                                                                    
type of crimes in rural  Alaska. He stated that Alaska faced                                                                    
challenges  in having  enough law  enforcement in  its rural                                                                    
areas. He indicated that having  an investigator to help the                                                                    
division  follow up  to ensure  its cases  were in  the best                                                                    
possible  position for  prosecution would  be a  significant                                                                    
benefit.                                                                                                                        
                                                                                                                                
3:27:15 PM                                                                                                                    
                                                                                                                                
Representative  Josephson asked  about  the  portion of  the                                                                    
position for  election fraud.  He referenced  Mr. Skidmore's                                                                    
indication  that the  public was  entitled to  know [whether                                                                    
fraud existed]. He stated there  were 60 cases following the                                                                    
presidential  election  in  2020  and  the  public  was  not                                                                    
satisfied.  He  relayed  that  [a  portion  of]  the  public                                                                    
continued to not believe the  election results. He found the                                                                    
position to be analogous to  the parental rights position in                                                                    
that he did  not know whether it would calm  and deflect the                                                                    
sometimes wild claims  or fuel the fire that  was not there.                                                                    
He  remarked   that  the   last  two   lieutenant  governors                                                                    
(including  the current  one) had  said  the elections  were                                                                    
free and  fair. He asked if  the state really wanted  to get                                                                    
into it.                                                                                                                        
                                                                                                                                
Mr. Skidmore posed a question  in response to Representative                                                                    
Josephson's   question.  He   provided   a  scenario   where                                                                    
individuals voted more than once  in Alaska or in Alaska and                                                                    
another  state.  He  asked  if  the  individuals  should  be                                                                    
prosecuted  for committing  those  crimes.  He believed  the                                                                    
answer was  yes. He stated in  order to do so,  the division                                                                    
needed  an  investigator to  bring  the  information to  the                                                                    
division. Conversely, if someone  did not believe the people                                                                    
should be held responsible for  the conduct, there would not                                                                    
be  a need  for the  investigator. He  thought it  created a                                                                    
worse problem  when allegations were  made and there  was no                                                                    
follow up.  He reasoned  that the decision  [to fund  or not                                                                    
fund the position] would be made by the legislature.                                                                            
                                                                                                                                
3:29:43 PM                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon saw  four bullets  on slide  41 related  to                                                                    
elections.  He found  it hard  to substantiate  the need  to                                                                    
hire  an election  investigator. He  looked at  the skillset                                                                    
that may be  needed for election fraud,  conflict cases, and                                                                    
rural  homicide/felony   sex  offences  and   other  violent                                                                    
crimes. He wondered  how to find one individual  to fill the                                                                    
role for  all of the  categories mentioned. He  thought each                                                                    
topic  required a  unique skill  set. He  was having  a hard                                                                    
time  wrapping his  head  around the  need  for an  election                                                                    
fraud investigator in Alaska.                                                                                                   
                                                                                                                                
Mr. Skidmore  answered that the  skill set the  division was                                                                    
looking  for was  a former  police officer  who was  able to                                                                    
investigate and  provide information. He clarified  that the                                                                    
individual would  not be  responsible for  handling homicide                                                                    
and  sexual   assault  investigations  on  their   own.  The                                                                    
position would  be responsible for follow  up investigation.                                                                    
He agreed the elections fraud  was a different skillset, but                                                                    
the  work all  pertained to  interviewing people,  gathering                                                                    
records,  and  following  up  on   things  provided  at  the                                                                    
direction of  the prosecutor's office. He  asserted that the                                                                    
skillset would  be much more  similar than what  someone may                                                                    
originally envision.                                                                                                            
                                                                                                                                
Co-Chair   Edgmon   referenced    Mr.   Skidmore's   earlier                                                                    
statements that the division saw  25,000 to 30,000 cases per                                                                    
year  and that  most resulted  in  plea deals.  He asked  if                                                                    
there were issues  of election fraud in Alaska  that rose to                                                                    
the  level  of  needing   investigating.  He  could  imagine                                                                    
perhaps a small number. He  asked if there was a significant                                                                    
number.                                                                                                                         
                                                                                                                                
Mr. Skidmore replied  there were a small number of  60 to 70                                                                    
cases out  of the  25,000 to 30,000  referred. He  stated it                                                                    
came  down   to  whether  the  state   thought  that  people                                                                    
violating the laws should be  held responsible. He submitted                                                                    
that they should  be. He stated it was a  policy decision to                                                                    
be  decided   by  the   legislature  in   its  appropriation                                                                    
authority.                                                                                                                      
                                                                                                                                
Co-Chair Edgmon reasoned that  the investigator would likely                                                                    
end up spending  a small amount of its time  on the election                                                                    
fraud component.                                                                                                                
                                                                                                                                
Mr. Skidmore agreed.                                                                                                            
                                                                                                                                
3:33:44 PM                                                                                                                    
                                                                                                                                
Representative  Stapp stated  he  was  interested in  saving                                                                    
money  and costing  the  state less  money.  He wondered  if                                                                    
there  could  be  a  follow   up  in  writing  about  vendor                                                                    
management  contract  negotiations  with companies  such  as                                                                    
Xerox in order to save money in the long term.                                                                                  
                                                                                                                                
Co-Chair Johnson thanked the presenters.                                                                                        
                                                                                                                                
HB  39  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  41  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Johnson reviewed  the schedule  for the  following                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:35:22 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:35 p.m.                                                                                          

Document Name Date/Time Subjects
Department of Law HFIN Budget Presentation 2-24-23.pdf HFIN 2/24/2023 1:30:00 PM
HB 39
LAW Response HFIN Overview Amicus Brief 02242023.pdf HFIN 2/24/2023 1:30:00 PM
HFIN LAW FY24 Budget Overview 2-24-23 Follow Up 3-7-23 .pdf HFIN 2/24/2023 1:30:00 PM
HB 39