Legislature(2005 - 2006)BELTZ 211

02/07/2006 03:30 PM Senate STATE AFFAIRS


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Audio Topic
03:34:31 PM Start
03:34:40 PM SB189
03:37:25 PM Confirmation – Scott Nordstrand, Commissioner, Department of Administration
04:35:31 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Rescheduled from 02/02/06 --
Confirmation Hearing:
Scott Nordstrand,
Commissioner Department of Administration
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 189 REQUIREMENTS FOR DRIVER'S LICENSE/I.D.
Moved CSSB 189(STA) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        February 7, 2006                                                                                        
                           3:34 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gene Therriault, Chair                                                                                                  
Senator Thomas Wagoner, Vice Chair                                                                                              
Senator Charlie Huggins                                                                                                         
Senator Bettye Davis                                                                                                            
Senator Kim Elton                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 189                                                                                                             
"An Act relating to issuance of identification cards and to                                                                     
issuance of driver's licenses."                                                                                                 
     MOVED CSSB 189(STA) OUT OF COMMITTEE                                                                                       
                                                                                                                                
Confirmation: Scott Nordstrand - Department of Administration                                                                   
Commissioner Designee - Rescheduled from 2/02/06                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 189                                                                                                                  
SHORT TITLE: REQUIREMENTS FOR DRIVER'S LICENSE/I.D.                                                                             
SPONSOR(s): SENATOR(s) HUGGINS                                                                                                  
                                                                                                                                
04/27/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/27/05       (S)       STA, JUD                                                                                               
05/03/05       (S)       STA AT 3:30 PM BELTZ 211                                                                               
05/03/05       (S)       <Above Bill Hearing Canceled>                                                                          
02/02/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
02/02/06       (S)       Heard & Held                                                                                           
02/02/06       (S)       MINUTE(STA)                                                                                            
02/07/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Scott Nordstrand, Acting Commissioner                                                                                           
Department of Administration                                                                                                    
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION  STATEMENT:     Commissioner  Designee,   Department  of                                                             
Administration                                                                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR GENE  THERRIAULT called the  Senate State  Affairs Standing                                                             
Committee meeting to  order at 3:34:31 PM.  Present were Senators                                                             
Kim  Elton, Thomas  Wagoner, Charlie  Huggins, Bettye  Davis, and                                                               
Chair Gene Therriault.                                                                                                          
                                                                                                                                
         SB 189-REQUIREMENTS FOR DRIVER'S LICENSE/I.D.                                                                      
                                                                                                                              
3:34:40 PM                                                                                                                    
CHAIR   GENE  THERRIAULT   announced  SB   189  to   be  up   for                                                               
consideration.  He  reminded  members  that the  \L  version  was                                                               
before the  committee and  said if members  had no  concerns he'd                                                               
like to take final action that day. He noted the fiscal note.                                                                   
                                                                                                                                
Finding no questions, he asked for the will of the committee.                                                                   
                                                                                                                                
SENATOR  THOMAS  WAGONER motioned  to  report  CSSB 189(STA)  and                                                               
attached   fiscal   note(s)   from  committee   with   individual                                                               
recommendations.                                                                                                                
                                                                                                                                
SENATOR KIM ELTON  objected for the purpose of  making a comment.                                                               
He stated  that he  takes philosophical  issue with  the umbrella                                                               
policy in the  federal Real ID Act because it's  unclear what the                                                               
state's  responsibility might  be as  it accedes  to the  federal                                                               
government.  He  encouraged the  sponsors  and  someone from  the                                                               
Division  of  Motor  Vehicles  to  contact  him  to  assuage  his                                                               
concerns.                                                                                                                       
                                                                                                                                
SENATOR ELTON withdrew his objection.                                                                                           
                                                                                                                                
CHAIR THERRIAULT announced CSSB 189(STA) moved from committee.                                                                  
                                                                                                                                
 ^Confirmation - Scott Nordstrand, Commissioner, Department of                                                              
                         Administration                                                                                     
                                                                                                                              
3:37:25 PM                                                                                                                    
CHAIR THERRIAULT announced  the next order of business  to be the                                                               
confirmation hearing for Scott Nordstrand  as Commissioner of the                                                               
Department of Administration. He  asked Mr. Nordstrand to outline                                                               
his interest in the position as well as his qualifications.                                                                     
                                                                                                                                
SCOTT    NORDSTRAND,   Acting    Commissioner,   Department    of                                                               
Administration,  introduced  himself  and  briefly  reviewed  his                                                               
qualifications  stating  that   his  attorney  background  offers                                                               
special  perspective  and  help  to the  many  attorneys  in  the                                                               
department. (Background and  resume material may be  found in the                                                               
confirmation file.)                                                                                                             
                                                                                                                                
He  declared that  his time  as deputy  attorney general  for the                                                               
State of Alaska prepared him  for this position. In that capacity                                                               
he learned about  state budgeting, the state process,  and how to                                                               
manage people.                                                                                                                  
                                                                                                                                
3:45:22 PM                                                                                                                    
Referencing a  December 2005 meeting  with division  directors he                                                               
outlined the  department "to do"  list of items outside  the norm                                                               
of typical operation. He included:                                                                                              
                                                                                                                                
Invest in technology                                                                                                          
   ƒIt's  time for  the  state  to go  forward  with voice  over                                                               
     Internet protocol (VOIP) phones.                                                                                           
   ƒFor an annual  fee there will be  current Microsoft software                                                               
     from the network operating system out to all desktops in                                                                   
     the Executive Branch.                                                                                                      
   ƒAlaska land mobile radio system is  in use and it's time for                                                               
     DOA to begin billing for its use.                                                                                          
   ƒThe Alaska  Public Office Commission (APOC)  computer system                                                               
     needs stabilizing.                                                                                                         
                                                                                                                                
Supporting state employees                                                                                                    
   ƒThere   will  be   a  new   contract  for   a  third   party                                                               
     administrator for the health care plan.                                                                                    
   ƒEfforts are being made to  procure a record keeper, educator                                                               
     and financial advisor to help people understand the new                                                                    
     TIER IV retirement plan.                                                                                                   
   ƒThe state travel office negotiated  with Alaska Airlines for                                                               
     cheaper airfare on Y class  seats, which comprise 44 percent                                                               
     of  the Executive  Branch airfare  purchases.  In the  first                                                               
     year  Medicaid   saved  $766,000  in  airfare   with  Alaska                                                               
     Airlines. Negotiations  are underway  for cheaper  hotel and                                                               
     car rentals as well.                                                                                                       
   ƒFor  each   state  office  building  a   punch  list  exists                                                               
     outlining what's wrong and when it will be fixed.                                                                          
                                                                                                                                
SENATOR CHARLIE HUGGINS complemented his enthusiasm.                                                                            
                                                                                                                                
3:58:26 PM                                                                                                                    
SENATOR THOMAS WAGONER commented on the airfare savings.                                                                        
                                                                                                                                
ACTING  COMMISSIONER  NORDSTRAND  advised  that  Medicaid  travel                                                               
amounts to  $25 million and   an additional $25 million  is spent                                                               
each year on Executive Branch travel.                                                                                           
                                                                                                                                
CHAIR  THERRIAULT  questioned  whether  legislators  could  avail                                                               
themselves of the negotiated ticket price.                                                                                      
                                                                                                                                
ACTING  COMMISSIONER  NORDSTRAND  replied any  element  of  state                                                               
government is eligible  as long as it's state  business. He added                                                               
he would  welcome the addition  because transaction fees  go down                                                               
when the number of participants increases.                                                                                      
                                                                                                                                
4:03:10 PM                                                                                                                    
SENATOR KIM ELTON  thanked the commissioner for  the attention he                                                               
has  given the  Public  Defenders Agency,  the  Office of  Public                                                               
Advocacy and the Alaska Public Offices Commission.                                                                              
                                                                                                                                
He then  referenced recent news  articles related  to allegations                                                               
that  certain  data  was  erased  from  DNR  computers  and  that                                                               
personnel  who  left  the  agency had  done  something  that  was                                                               
potentially illegal. He  noted that a 2/7/06 letter  from the DNR                                                               
commissioner states  that the agency  "has no complete  backup of                                                               
the information that may have been  stored on either of the state                                                               
laptop computers."                                                                                                              
                                                                                                                                
SENATOR  ELTON said  he's bothered  that the  state employee  has                                                               
been  publicly characterized  as having  done something  illegal.                                                               
Acting Director of  Oil & Gas Van Dyke was  asked about the issue                                                               
and  his comments  are diametrically  opposed. His  contention is                                                               
that  all  emails were  preserved  and  all electronic  gas  line                                                               
documents were  written to disc.  Mr. Meyers preserved  all paper                                                               
copies of gas  line and other director related  documents for the                                                               
division.                                                                                                                       
                                                                                                                                
Mr. Van Dyke  further stated that, "It would  be inappropriate to                                                               
assign  Director Meyer's  computers to  other staff  members with                                                               
the above mentioned  data and information still on  them. That is                                                               
our plan  for the computers when  we get the computers  back from                                                               
DOA."                                                                                                                           
                                                                                                                                
He asked  Acting Commissioner Nordstrand  to comment on  the fact                                                               
that  the   statement  that   the  appropriate   information  was                                                               
preserved   is  in   stark  contrast   to   assertions  you   and                                                               
Commissioner Menge made.                                                                                                        
                                                                                                                                
4:07:08 PM                                                                                                                    
ACTING  COMMISSIONER   NORDSTRAND  denied  knowledge   of  having                                                               
alleged that  something illegal happened. He  remembered speaking                                                               
about  the   obligation  that  state  employees   have  regarding                                                               
maintaining public  records and he talked  about the circumstance                                                               
of learning  that public records  were potentially  destroyed. In                                                               
reality,  he  said, proving  that  records  were destroyed  isn't                                                               
really possible. He further said:                                                                                               
                                                                                                                                
     In the newspaper a couple of  days ago it says that the                                                                    
     fellow  at  DNR  said  he   told  Meyers  that  it  was                                                                    
     department policy not to erase  the hard drives. But if                                                                    
     all the  information on the  computers had  been copied                                                                    
     it would be  all right to go ahead. I  guess that's the                                                                    
     premise  upon which  that story  was based  and now  we                                                                    
     know,  and  in  fact  I  knew  because  we  checked  in                                                                    
     December,  that   there  were  no  backups   for  those                                                                    
     laptops. So if  that's the case then what  we also know                                                                    
     is whatever was on those  computers has been lost. Now,                                                                    
     how you  prove what  was on those  computers -  I don't                                                                    
     know how  you do  that. All  we know  for sure  is that                                                                    
     some  select documents  were  copied,  provided to  the                                                                    
     Division  of Oil  & Gas  folks and  then the  computers                                                                    
     were  erased. But  that's not  their normal  policy and                                                                    
     certainly if, in fact, backup  had been made so that we                                                                    
     could  be certain  that  important  documents were  not                                                                    
     lost - think about what  we're talking about. We're not                                                                    
     talking  about just  ordinary state  public records  of                                                                    
     some  bureaucrat  writing  to  another.  We're  talking                                                                    
     about   documents  concerning   potentially  the   most                                                                    
     important transaction  in Alaska's history.  We're also                                                                    
     talking about  a circumstance  where the  Department of                                                                    
     Law was essentially  on the hunt to  find the documents                                                                    
     necessary to  create the administrative record  for the                                                                    
     gas  line contract  and to  respond to  court authority                                                                    
     Public Records Act requests.                                                                                               
                                                                                                                                
     That being said,  we took it very  seriously that there                                                                    
     were  allegations that  these documents  were lost.  We                                                                    
     still take  it seriously.  I wish those  computers were                                                                    
     available  to be  restored. I  wish the  data had  been                                                                    
     backed up. That's the best  of all possible worlds, but                                                                    
     we learned some  time ago, in my case,  that that's not                                                                    
     the case. And those are the facts.                                                                                         
                                                                                                                                
SENATOR  ELTON  referenced the  news  article  and read,  "Acting                                                               
Commissioner  of Administration  Scott Nordstrand  on January  30                                                               
accused  Meyers of  ordering the  erasing of  data on  two laptop                                                               
computers  issued to  him by  the division,  possibly wiping  out                                                               
public records in the process."  That statement contrasts starkly                                                               
with the  statement from the  person in charge of  preserving the                                                               
data, he  said. Mr. Van  Dyke said  all emails were  preserved on                                                               
the server.  All electronic  gas line  documents were  written to                                                               
disc and the Division of Oil & Gas has a copy of the disc.                                                                      
                                                                                                                                
SENATOR ELTON added  that Mr. Meyers had  also expressed surprise                                                               
at the characterization.                                                                                                        
                                                                                                                                
ACTING COMMISSIONER NORDSTRAND responded  Mr. Meyers' comments to                                                               
DOA focused on  a CD ROM he  prepared, but not to  a tape backup,                                                               
which  provides a  means for  restoring data  to a  computer when                                                               
information  has been  lost.  Tape backups  were  made weekly  on                                                               
computers that were turned on  and connected to the network. "The                                                               
problem is that Director Meyer's  computers were seldom connected                                                               
to  the  network and  on  at  the time  that  the  back ups  were                                                               
happening and so no back up  happened," he said. The problem with                                                               
tape backups is that the data  is overwritten every two months so                                                               
the data  would be gone in  any event. He emphasized  that a tape                                                               
back  up isn't  a  reasonable means  to preserve  extraordinarily                                                               
important public records.                                                                                                       
                                                                                                                                
4:14:44 PM                                                                                                                    
CHAIR  THERRIAULT interjected  the tape  backup was  augmented by                                                               
the CD that he provided.                                                                                                        
                                                                                                                                
SENATOR ELTON  asked Acting Commissioner  Nordstrand to  focus on                                                               
Mr. Van Dyke's statement that nothing  was lost and that the data                                                               
had been preserved.                                                                                                             
                                                                                                                                
ACTING COMMISSIONER NORDSTRAND responded  he doesn't know how Mr.                                                               
Van Dyke would know whether or  not Mr. Meyers deleted any of his                                                               
email. But, he said, as a  result of the DOA investigation he was                                                               
able to  "verify that two  laptop computers were  erased multiple                                                               
times with a  specialized software designed to  prevent data from                                                               
being recovered." He  reiterated that only Mr.  Meyers could know                                                               
what he did.                                                                                                                    
                                                                                                                                
SENATOR  ELTON reiterated  it's important  to realize  that there                                                               
are  stark contrasts  between the  two  interpretations. Mr.  Van                                                               
Dyke  is the  acting director  of the  division and  he said  the                                                               
emails  were preserved.  I'll  assume that  that  is correct,  he                                                               
said.  When the  individual most  at risk  was told  and believed                                                               
that proper  procedure was followed  it's unfortunate  for others                                                               
to  assert that  something illegal  may have  happened. The  true                                                               
course  of events  may  never be  known, but  the  way it's  been                                                               
discussed is unfortunate.                                                                                                       
                                                                                                                                
4:18:47 PM                                                                                                                    
CHAIR  THERRIAULT questioned  whether  any  assumptions could  be                                                               
made with  regard to who  was available  for comment and  who was                                                               
not.                                                                                                                            
                                                                                                                                
ACTING  COMMISSIONER  NORDSTRAND  replied he  couldn't  make  any                                                               
assumption.                                                                                                                     
                                                                                                                                
CHAIR THERRIAULT admitted he ground his  teeth a bit when he read                                                               
an allegation that a Legislative  Budget and Audit consultant was                                                               
providing  potentially  confidential   information  to  executive                                                               
level employees.  He said he  really didn't understand  the basis                                                               
for   the  statement   that  would   suggest  that   confidential                                                               
information   was  given   to  anyone   outside  the   circle  of                                                               
confidentiality.                                                                                                                
                                                                                                                                
ACTING  COMMISSIONER  NORDSTRAND  explained  that  when  he  said                                                               
"confidential" he  was referring to confidential  attorney client                                                               
privilege where legal advice is  procured. Certainly everyone who                                                               
has  signed  the  confidentiality  agreement  has  the  right  to                                                               
exchange  information  related  to   negotiations,  he  said.  He                                                               
apologized for being unclear.                                                                                                   
                                                                                                                                
CHAIR  THERRIAULT  stated   appreciation  for  the  clarification                                                               
because he  interpreted his  statement to mean  that LB&A  or its                                                               
consultants had been the source of information that was leaked.                                                                 
                                                                                                                                
Referencing the news  article from the previous  day that alleged                                                               
a 40-minute  interview with Mr.  Meyers, he asked if  it actually                                                               
took   place,  who   participated,  and   whether  it   could  be                                                               
characterized as a normal departure interview.                                                                                  
                                                                                                                                
ACTING COMMISSIONER NORDSTRAND explained that  as a result of the                                                               
allegations  that   documents  were   erased,  the   Division  of                                                               
Personnel began  an investigation and Mr.  Meyers was interviewed                                                               
as a part  of that process. It was not  an exit interview because                                                               
the investigation began well after Mr. Meyers separated.                                                                        
                                                                                                                                
CHAIR  THERRIAULT asked  if Mr.  Meyers  discussed his  decision-                                                               
making process regarding what he decided to copy to disc.                                                                       
                                                                                                                                
ACTING  COMMISSIONER  NORDSTRAND  said  he didn't  know,  but  he                                                               
believes that  Mr. Meyers'  intent was to  put relevant  gas line                                                               
documents on a disc to hand on to his successors.                                                                               
                                                                                                                                
4:24:16 PM                                                                                                                    
CHAIR  THERRIAULT   asked  if  just  one   person  conducted  the                                                               
investigation.                                                                                                                  
                                                                                                                              
ACTING  COMMISSIONER NORDSTRAND  clarified that  one person  from                                                               
the  Division of  Personnel spoke  with employees  and the  state                                                               
security officer from Enterprise  Technology Services handled the                                                               
computer portion of the investigation.                                                                                          
                                                                                                                                
He   explained  that   the  following   process   led  to   DOA's                                                               
involvement.  DOL hired  a  law  firm that  is  capable of  doing                                                               
electronic  discovery  of  email  and documents  that  relate  to                                                               
stranded gas or that contain  the names of particular people. The                                                               
software  evaluates, assembles  and separately  lists information                                                               
related   to  the   Stranded  Gas   Act  for   purposes  of   the                                                               
administrative record and for Public  Records Act requests. That,                                                               
he said, was the process that led to DOA's involvement.                                                                         
                                                                                                                                
SENATOR  ELTON  questioned  why DOA  is  the  lead  investigatory                                                               
agency.                                                                                                                         
                                                                                                                                
ACTING   COMMISSIONER  NORDSTRAND   responded  DOA   investigates                                                               
employee misconduct through the Division of Personnel.                                                                          
                                                                                                                                
SENATOR ELTON  asked if there  is a  process that prompts  such a                                                               
review  or  if allegations  and  or  rumor could  jump-start  the                                                               
review.                                                                                                                         
                                                                                                                                
ACTING   COMMISSIONER  NORDSTRAND   replied   there  are   formal                                                               
complaint forms,  but the  prompt could  also be  as simple  as a                                                               
supervisor hearing about  inappropriate activity. That supervisor                                                               
would report the  activity up the chain and  the department would                                                               
ask  the  Division of  Personnel  for  advice. He  asserted  that                                                               
divisions and departments are  responsible for remaining vigilant                                                               
to concerns that may not rise to a formal level.                                                                                
                                                                                                                                
SENATOR   ELTON  summarized   that  a   formal  complaint   isn't                                                               
necessary.  An investigation  could be  prompted by  something as                                                               
informal  as a  suspicion  or  a rumor,  which  could  lead to  a                                                               
circumstance that's similar to the one previously discussed.                                                                    
                                                                                                                                
ACTING COMMISSIONER  NORDSTRAND responded he would  prefer to say                                                               
the individual  is on inquiry  notice. He further  explained that                                                               
DOA has  the responsibility of  conducting an investigation  to a                                                               
level  that  is commensurate  to  the  alleged infraction.  There                                                               
isn't  a one  size  fits all  solution  for personnel  management                                                               
matters, he said.                                                                                                               
                                                                                                                                
4:31:47 PM                                                                                                                    
SENATOR WAGONER  asked what capability  DOA has to  review emails                                                               
written  by  legislators and  legislative  staff  in the  capitol                                                               
building.                                                                                                                       
                                                                                                                                
ACTING COMMISSIONER NORDSTRAND replied  his understanding is that                                                               
DOA  has   no  such  authority,  but   that  legislative  traffic                                                               
ultimately travels across the state network.                                                                                    
                                                                                                                                
CHAIR THERRIAULT suggested that  the committee could have someone                                                               
from  the legislative  data processing  office  address the  same                                                               
question.                                                                                                                       
                                                                                                                                
He related  an alleged  issue from the  previous year  and stated                                                               
that there is  some ability to see what's occurring  on the other                                                               
side  of the  firewall, but  he wasn't  sure that  the capability                                                               
extended  to reviewing  individual  documents.  However, if  it's                                                               
possible to  send out electronic  bugs to review  electronic file                                                               
cabinets,  legislators  would certainly  want  to  know if  their                                                               
files could be accessed.                                                                                                        
                                                                                                                                
CHAIR  THERRIAULT remarked  that  although the  latest issue  has                                                               
been  somewhat troubling,  it shouldn't  overshadow the  work the                                                               
commissioner has done to energize  people in the department to do                                                               
a good job  on behalf of the state. He  then asked for additional                                                               
information on the  interview that was mentioned  to help clarify                                                               
whether  assurances were  given on  the types  of documents  that                                                               
were saved.                                                                                                                     
                                                                                                                                
Noting that there  were no further questions at  that time, Chair                                                               
Therriault  closed  the  hearing  and adjourned  the  meeting  at                                                               
4:35:31 PM.                                                                                                                   
                                                                                                                                

Document Name Date/Time Subjects