03/24/2011 09:00 AM Senate STATE AFFAIRS
| Audio | Topic | 
|---|---|
| Start | |
| SB53 | |
| HCR6 | |
| Confirmation Hearing: Commissioner of Revenue | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 53 | TELECONFERENCED | |
| *+ | HCR 6 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 24, 2011                                                                                         
                           9:03 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bill Wielechowski, Chair                                                                                                
Senator Joe Paskvan, Vice Chair                                                                                                 
Senator Albert Kookesh                                                                                                          
Senator Kevin Meyer                                                                                                             
Senator Cathy Giessel                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
     Commissioner - Department of Revenue                                                                                     
          Bryan Butcher                                                                                                         
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
SENATE BILL NO. 53                                                                                                              
"An Act reestablishing the Alaska Commission on the Status of                                                                   
Women; and relating to the purpose and powers of the Alaska                                                                     
Human Relations Commission."                                                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 6                                                                                               
Proclaiming the month of April 2011 to be Sexual Assault                                                                        
Awareness Month.                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
REVIOUS COMMITTEE ACTION                                                                                                      
                                                                                                                                
BILL: SB  53                                                                                                                  
SHORT TITLE: COMMISSION ON THE STATUS OF WOMEN                                                                                  
SPONSOR(s): SENATOR(s) DAVIS                                                                                                    
                                                                                                                                
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       STA, FIN                                                                                               
03/24/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HCR  6                                                                                                                  
SHORT TITLE: SEXUAL ASSAULT AWARENESS MONTH                                                                                     
SPONSOR(s): REPRESENTATIVE(s) COSTELLO                                                                                          
                                                                                                                                
02/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/11       (H)       RLS                                                                                                    
02/28/11       (H)       TRANSMITTED TO (S)                                                                                     
02/28/11       (H)       VERSION: HCR 6                                                                                         
03/01/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/11       (S)       STA                                                                                                    
03/24/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CELESTE HODGE, Staff to Senator Bettye Davis                                                                                    
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented SB 53 for sponsor, Senator Bettye                                                               
Davis.                                                                                                                          
                                                                                                                                
KATIE HURLEY, representing herself                                                                                              
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
ANNABELLE STEVENS, representing herself                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
CAREN ROBINSON                                                                                                                  
Alaska Women's Lobby                                                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
MARIE DARLIN                                                                                                                    
American Association of Retired Persons                                                                                         
Juneau, AK                                                                                                                      
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
ARLENE SUZANNE SMALLEY, representing herself                                                                                    
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
REGINA MANTEUFEL                                                                                                                
Back to Work Network                                                                                                            
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
YVONNE GUTIERREZ, representing herself                                                                                          
Anchorage, AK                                                                                                                   
                                                                                                                                
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
JOY GREEN-ARMSTRONG, representing herself                                                                                       
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
HATTIE GARDNER, Past President                                                                                                  
Alaska Business and Professional Women                                                                                          
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
KATHY DIETRICH                                                                                                                  
Alaska Works Partnership                                                                                                        
Fairbanks, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
PORTIA WU, Vice President                                                                                                       
National Partnership for Women and Families                                                                                     
Washington, DC                                                                                                                  
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
KAREN TARR, Chair                                                                                                               
Anchorage Women's Commission                                                                                                    
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
CLOVER SIMON                                                                                                                    
Planned Parenthood of the Great Northwest                                                                                       
Juneau, AK                                                                                                                      
POSITION STATEMENT: Testified in support of SB 53.                                                                            
                                                                                                                                
REPRESENTATIVE MIA COSTELLO                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of HCR 6.                                                                                         
                                                                                                                                
RICK SVOBODNY, Deputy Attorney General                                                                                          
Criminal Division                                                                                                               
Department of Law                                                                                                               
Juneau, AK                                                                                                                      
POSITION STATEMENT: Testified in support of HCR 6.                                                                            
                                                                                                                                
PEGGY BROWN, Executive Director                                                                                                 
Alaska Network on Domestic Violence                                                                                             
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of HCR 6.                                                                            
                                                                                                                                
BRYAN BUTCHER, Commissioner Designee                                                                                            
Department of Revenue                                                                                                           
Juneau, AK                                                                                                                      
POSITION  STATEMENT:   Explained  his  background   and  answered                                                             
questions from committee members.                                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:03:34 AM                                                                                                                  
CHAIR BILL WIELECHOWSKI called the  Senate State Affairs Standing                                                             
Committee meeting  to order at 9:03  a.m. Present at the  call to                                                               
order were  Senators Paskvan, Giessel, Meyer,  Kookesh, and Chair                                                               
Wielechowski.                                                                                                                   
                                                                                                                                
            SB  53-COMMISSION ON THE STATUS OF WOMEN                                                                        
                                                                                                                              
9:03:53 AM                                                                                                                    
CHAIR WIELECHOWSKI  announced the  first order of  business would                                                               
be SB 53,  an act reestablishing the Commission on  the Status of                                                               
Women.                                                                                                                          
                                                                                                                                
CELESTE  HODGE,  staff  to  Senator  Bettye  Davis,  provided  an                                                               
overview of SB  53. She said the Alaska Commission  on the Status                                                               
of Women was  originally created in 1978, renewed  and renamed to                                                               
the Alaska  Women's Commission  in 1983,  then combined  with the                                                               
Alaska  Human  Relations Commission  in  1993.  The Alaska  Human                                                               
Relations  Commission  has never  been  funded  and was  declared                                                               
inactive in 1996.                                                                                                               
                                                                                                                                
Staggering  statistics  for women  in  Alaska  show the  need  to                                                               
reestablish the commission, to exclusively  focus on major issues                                                               
facing women. Alaska has the  highest rates of sexual assault and                                                               
domestic  violence in  the nation.  Poverty  rates for  unmarried                                                               
female  householders with  children  are  particularly high,  and                                                               
have  consistently been  two or  three times  as high  as overall                                                               
male and female  poverty rates. Survey data shows  that of 26,518                                                               
families in Alaska with a  female head of household, 22.6 percent                                                               
live below the poverty level.                                                                                                   
                                                                                                                                
The gender wage gap persists in  Alaska; in 2009 Alaskan women on                                                               
average earned  only 66.6  percent of  what men  earned. Although                                                               
more  women  than men  in  Alaska  hold  a bachelor's  degree  or                                                               
higher, data shows  that men's median annual  earnings are higher                                                               
in every  education level. Alaskan  women also  experience health                                                               
care disparities.                                                                                                               
                                                                                                                                
Reestablishing the Alaska Commission on  the Status of Women will                                                               
help  Alaskans focus  on these  critical areas.  If we  sincerely                                                               
care about the women and children  in this state, we must do more                                                               
to  deal   with  these  staggering  statistics.   Throughout  the                                                               
commission's  existence, it  conducted many  public hearings  and                                                               
trainings,  developed manuals,  conducted research,  and provided                                                               
opportunities in  the areas of  education, homemaking,  civil and                                                               
legal rights, and labor and employment.                                                                                         
                                                                                                                                
The commission developed a comprehensive  statewide plan and made                                                               
recommendations  to enhance  the quality  of life  for women  and                                                               
children.  Alaska  has  an  opportunity to  once  again  show  we                                                               
sincerely  care   about  the  women   in  this  state.   We  need                                                               
innovative,  forward thinking  in a  commission that  exclusively                                                               
concentrates on improving the status of women in Alaska.                                                                        
                                                                                                                                
9:07:56 AM                                                                                                                    
CHAIR WIELECHOWSKI  asked if Ms.  Hodge could walk  the committee                                                               
through the bill.                                                                                                               
                                                                                                                                
MS. HODGE  responded the  bill creates  the Alaska  Commission on                                                               
the Status of  Women, consisting of two members  of the executive                                                               
branch and seven  public members, all appointed  by the governor.                                                               
The  appointments are  to be  nondiscriminatory and  nonpartisan.                                                               
The bill further  sets out terms of office, powers  and duties of                                                               
the commission,  and provides for  staggered terms of  office for                                                               
the members.                                                                                                                    
                                                                                                                                
CHAIR WIELECHOWSKI asked if the commission would have staff.                                                                    
                                                                                                                                
MS.  HODGE  replied  they  hope that  staff  would  be  provided,                                                               
because there  is a lot of  work involved. For the  commission to                                                               
be successful requires a staff.                                                                                                 
                                                                                                                                
SENATOR MEYER asked if this would  return to the commission as it                                                               
existed when it was terminated.                                                                                                 
                                                                                                                                
MS. HODGE affirmed that it would.                                                                                               
                                                                                                                                
SENATOR MEYER asked if there was fiscal note.                                                                                   
                                                                                                                                
MS. HODGE  answered she had a  fiscal note from 2009  with travel                                                               
costs, per diem, and a three person staff.                                                                                      
                                                                                                                                
CHAIR WIELECHOWSKI  said the committee  had not yet  received the                                                               
fiscal note for this bill, but  noted that the bill has a Finance                                                               
referral.                                                                                                                       
                                                                                                                                
9:11:26 AM                                                                                                                    
SENATOR MEYER asked why the six year limit.                                                                                     
                                                                                                                                
MS.  HODGE answered  she was  not  sure, but  the membership  has                                                               
staggered terms.                                                                                                                
                                                                                                                                
9:12:14 AM                                                                                                                    
CHAIR  WIELECHOWSKI   opened  public   testimony.  Due   to  time                                                               
constraints,  he  asked witnesses  to  limit  their testimony  to                                                               
three minutes each.                                                                                                             
                                                                                                                                
KATIE  HURLEY, former  Executive Director  of the  Alaska Women's                                                               
Commission, said  she served  in that  position for  three years.                                                               
The  seven public  members  appointed by  the  governor were  all                                                               
outstanding  women. She  hired new  staff  and they  worked as  a                                                               
team;  their biggest  achievement was  a statewide  conference in                                                               
Anchorage attended by 1,000 women.                                                                                              
                                                                                                                                
ANNABELLE   STEVENS,   Anchorage,   said   the   commission   was                                                               
established in  1978 to address  the status and to  achieve equal                                                               
legal,  economic, social,  and political  status  for women.  The                                                               
Human  Relations  Commission never  got  funded,  so the  Women's                                                               
Commission faded away. More women  are in the workplace today but                                                               
the wage  gap has not  changed. Women  in Alaska still  earn 66.6                                                               
cents  on the  dollar compared  to men,  on average.  Significant                                                               
differences exist between  rural and urban Alaska. It  is time to                                                               
step up and reinstate the women's commission.                                                                                   
                                                                                                                                
9:15:54 AM                                                                                                                    
CAREN  ROBINSON, Alaska  Women's Lobby,  said the  lobby strongly                                                               
supports reestablishment  of the  commission. A recent  report by                                                               
President Obama says  that while the population of  men and women                                                               
is aging, women  outnumber men at older ages and  are more likely                                                               
to be in  poverty. Gains in education for women  outpace men. The                                                               
labor  force participation  rate  for women  has  held steady  in                                                               
recent years.  Those are national statistics;  reestablishing the                                                               
commission would enable us to research those issues in Alaska.                                                                  
                                                                                                                                
9:19:18 AM                                                                                                                    
MARIE DARLIN,  representing the  American Association  of Retired                                                               
Persons (AARP)  said they had  provided a letter of  support. The                                                               
women's  initiative of  AARP was  active  in the  late 1980s  and                                                               
early  1990s, but  has  since moved  on to  other  issues. It  is                                                               
interesting to  note that 25 years  ago women made 59  percent of                                                               
what men did.  So 66 percent shows some improvement  but we still                                                               
have  a  long  way  to  go. AARP  has  always  supported  women's                                                               
commissions in the different states and will continue to do so.                                                                 
                                                                                                                                
9:21:13 AM                                                                                                                    
ARLENE SUZANNE  SMALLEY, Kenai,  said she  served on  the Women's                                                               
Commission  until 1990;  during  that time  she  was primarily  a                                                               
homemaker, mother of two boys,  wife, and volunteer. Twenty years                                                               
later she is  a grandmother and a volunteer  at Highland Mountain                                                               
Women's  Prison and  other agencies.  Now  that she  is a  senior                                                               
citizen,   she  looks   at  the   commission  from   a  different                                                               
perspective. This goes along with  the domestic violence focus of                                                               
Governor  Parnell. The  commission is  really critical  for young                                                               
women  today,  because  the culture  of  violence  is  negatively                                                               
affecting young women.                                                                                                          
                                                                                                                                
9:24:00 AM                                                                                                                    
REGINA  MANTEUFEL,  Back  to  Work   Network,  said  her  parolee                                                               
conferences provide women with  interview outfits, makeup, proper                                                               
shoes, plus psychological and career  guidance. Dress for Success                                                               
has been successful, but lacks  funding. Because of Department of                                                               
Labor (DOL) definitions the money  does not trickle down. Teenage                                                               
girls need to  be adequately dressed for school.  For example, if                                                               
a girl does not have proper tennis  shoes she may not show up for                                                               
PE. Then  her GPA  goes down,  which makes it  harder for  her to                                                               
advance out of  poverty. She has run a rooming  house in Fairview                                                               
for 26  years. When pregnant girls  drop out of school,  there is                                                               
not enough of a safety net for them.                                                                                            
                                                                                                                                
9:28:04 AM                                                                                                                    
YVONNE GUTIERREZ,  representing herself, said she  is a community                                                               
volunteer in Anchorage, and testified in  support of SB 5. She is                                                               
also a  civil rights investigator.  The commission  could monitor                                                               
the status  of sexual assaults against  women, domestic violence,                                                               
employment status,  affirmative action, sexual harassment  in the                                                               
workplace, and access to health care for women.                                                                                 
                                                                                                                                
9:30:16 AM                                                                                                                    
JOY  GREEN-ARMSTRONG  said   she  is  a  former   member  of  the                                                               
commission and a former chair.  The state benefitted greatly from                                                               
the  commission in  the past.  At that  time they  looked at  the                                                               
family  law  system  and  inequities  within  the  court  system,                                                               
violence against women,  education, and day care.  She would like                                                               
to see the commission  take up where it left off.  She was on the                                                               
commission when it sunset. As  an assistant District Attorney she                                                               
saw much  domestic violence. If the  commission was reestablished                                                               
it could help to get more women judges on the bench.                                                                            
                                                                                                                                
9:32:42 AM                                                                                                                    
HATTIE GARDNER, past state president  of the Alaska Federation of                                                               
Business and  Professional Women  (BPW), testified in  support of                                                               
SB 5.  She is the  mother of four daughters  and has been  in the                                                               
workplace  for  over   50  years.  Women  are   still  the  major                                                               
caregivers in  the family;  many of them  are also  wage earners.                                                               
Women  on  average  earn  substantially  less  than  men  in  the                                                               
workplace. She said Alaska need an  agency to track and report on                                                               
these injustices. It  is a shame that Alaska leads  the nation in                                                               
the area of violence against  women. The Alaska BPW has sponsored                                                               
a fly-in to the legislature for  many years. They have always had                                                               
a  legislative  arm, and  are  still  in  support of  the  Alaska                                                               
Commission on the Status of Women.                                                                                              
                                                                                                                                
9:36:57 AM                                                                                                                    
KATHY  DIETRICH, Fairbanks,  Alaska Works  Partnership, said  she                                                               
runs  a  program designed  to  help  prepare  women for  work  in                                                               
nontraditional employment.  Women are  extremely underrepresented                                                               
in the  trades. The commission  would benefit women in  Alaska by                                                               
focusing  attention on  the need  for training  and opportunities                                                               
for women.                                                                                                                      
                                                                                                                                
9:39:08 AM                                                                                                                    
PORTIA  WU, Vice  President, National  Partnership for  Women and                                                               
Families, a  nonpartisan advocacy institute based  in Washington,                                                               
D.C.,  said  the  status  of  women  in  employment  has  changed                                                               
dramatically in  recent years. Women's earnings  are now critical                                                               
to working families;  40 percent of working  mothers are bringing                                                               
home over  50 percent  of the income  in their  households. Women                                                               
are  the  majority of  college  degree  holders in  the  country,                                                               
including  advanced  degrees.  Despite these  trends,  women  are                                                               
still paid far less on average than men.                                                                                        
                                                                                                                                
9:41:32 AM                                                                                                                    
KAREN TARR,  Chair, Anchorage Women's  Commission, said  they are                                                               
busy in Anchorage trying to deal  with these issues and could use                                                               
support from around the state.                                                                                                  
                                                                                                                                
9:41:58 AM                                                                                                                    
CLOVER SIMON,  Planned Parenthood of the  Greater Northwest, said                                                               
Planned Parenthood  is the main  advocate for family  planning in                                                               
the  state.  Family  planning makes  life  better  for  families,                                                               
women, and children.  The voice for family planning  in Alaska is                                                               
often  lost; the  commission could  be  a noncontroversial  voice                                                               
supporting health care access and family planning access.                                                                       
                                                                                                                                
CHAIR WIELECHOWSKI closed public testimony and set SB 53 aside.                                                                 
                                                                                                                                
                                                                                                                                
             HCR  6-SEXUAL ASSAULT AWARENESS MONTH                                                                          
                                                                                                                                
9:43:14 AM                                                                                                                    
CHAIR WIELECHOWSKI announced the next  order of business would be                                                               
HCR  6,  proclaiming  the  month   of  April  as  Sexual  Assault                                                               
Awareness Month.                                                                                                                
                                                                                                                                
REPRESENTATIVE  MIA  COSTELLO,  sponsor   of  HCR  6,  said  this                                                               
resolution  declares the  month of  April  2011 in  Alaska to  be                                                               
Sexual  Assault  Awareness  Month.  Every year  since  2007,  the                                                               
legislature has declared  a month to be  Sexual Assault Awareness                                                               
Month.                                                                                                                          
                                                                                                                                
There  are  alarming  statistics surrounding  sexual  assault  in                                                               
Alaska; one in three women, one  in four girls, one in four boys,                                                               
and one man  out of every 11  will be a victim  of sexual assault                                                               
in   their  lifetimes.   This  resolution   intends  to   provide                                                               
heightened  awareness  around  this   issue;  it  allows  service                                                               
providers to focus on the issue for one month.                                                                                  
                                                                                                                                
9:45:30 AM                                                                                                                    
CHAIR  WIELECHOWSKI  opened  public  testimony,  and  asked  that                                                               
witnesses limit their testimony to two minutes.                                                                                 
                                                                                                                                
9:45:49 AM                                                                                                                    
RICK  SVOBODNY,  Deputy   Attorney  General,  Criminal  Division,                                                               
Department of  Law (DOL), said  he speaks for  the administration                                                               
throughout all  departments in  strong support of  HCR 6.  He had                                                               
prepared remarks but  said the chair and the  sponsor had already                                                               
referred to them. The more  awareness we have about this problem,                                                               
the more likely we  will be able to solve it.  DOL plays just one                                                               
small part  of the puzzle in  fixing this problem; their  part is                                                               
holding   offenders  accountable.   Resolution  of   the  problem                                                               
requires a  holistic approach  to changing  the culture.  This is                                                               
similar to drunk driving or  smoking. We made cultural changes in                                                               
these areas, and we can do the same with sexual assault.                                                                        
                                                                                                                                
9:47:33 AM]                                                                                                                   
CHAIR  WIELECHOWSKI  asked  if the  administration  supports  the                                                               
reestablishment of the Alaska Women's Commission.                                                                               
                                                                                                                                
MR. SVOBODNY said he did not know.                                                                                              
                                                                                                                                
CHAIR  WIELECHOWSKI  asked  if he  could  have  that  information                                                               
available for the next meeting.                                                                                                 
                                                                                                                                
9:47:58 AM                                                                                                                    
PEGGY  BROWN,  Executive  Director, Alaska  Network  on  Domestic                                                               
Violence and  Sexual Assault, said  we stand on the  shoulders of                                                               
the women who testified previously.  Domestic violence and sexual                                                               
assault are  difficult issues  to talk about.  There is  a common                                                               
public misperception  about how sexual  assault plays out  in our                                                               
state.  This  contributes to  the  shame  and stigma  and  victim                                                               
blaming that  happens. People don't want  to believe perpetrators                                                               
could be someone  within their own circle of  family and friends;                                                               
this is something people don't want to deal with.                                                                               
                                                                                                                                
Ten percent  of high school  students in Alaska  have experienced                                                               
some  type  of sexual  violence  in  their  lives. Last  year  in                                                               
Alaska,  10,600  adult women  were  victims  of sexual  violence.                                                               
Alaska needs to  make sure that we are  publicly educating people                                                               
and allowing space to talk about this issue.                                                                                    
                                                                                                                                
9:50:26 AM                                                                                                                    
CHAIR WIELECHOWSKI  closed public testimony  and set HCR  6 aside                                                               
for future hearing.                                                                                                             
                                                                                                                                
9:51:46 AM                                                                                                                    
At-ease from 9:51 to 9:52 a.m.                                                                                                  
                                                                                                                                
^Confirmation Hearing: Commissioner of Revenue                                                                                  
                    CONFIRMATION HEARING(S)                                                                                   
                    Commissioner of Revenue                                                                                 
                                                                                                                              
9:52:24 AM                                                                                                                    
CHAIR WIELECHOWSKI announced the next  order of business would be                                                               
the confirmation  hearing for Department of  Revenue Commissioner                                                               
Designee Bryan Butcher.                                                                                                         
                                                                                                                                
BRYAN  BUTCHER,  Commissioner  Designee,  Department  of  Revenue                                                               
(DOR), said he  would begin by talking about  his background. His                                                               
grandfather worked  on the  Alaska Highway; as  a new  law school                                                               
graduate, he  made his home  in Anchorage.  In the late  1960s he                                                               
was  appointed as  a  superior  court judge,  and  was the  first                                                               
family court judge  in the state. His grandfather  told him, "You                                                               
want  to do  something  for the  public good."  He  took that  to                                                               
heart.                                                                                                                          
                                                                                                                                
COMMISSIONER  DESIGNEE  BUTCHER  said  he  was  the  Director  of                                                               
Governmental Relations and Public  Affairs for the Alaska Housing                                                               
Finance  Corporation (AHFC)  for the  last eight  years and  in a                                                               
dual role  he was also the  Vice President of the  Alaska Gasline                                                               
Development Corporation (AGDC)  since 2010. In 2009  he served as                                                               
a special  assistant on economic development  issues for Governor                                                               
Parnell. He  also served as  a member of former  Governor Palin's                                                               
gasline  team. Before  joining  AHFC, he  worked  for the  Alaska                                                               
State Legislature  as a  Finance Committee Aide  for 12  years. A                                                               
lifelong Alaskan born  and raised in Anchorage, he  said he holds                                                               
a Bachelor of Science degree from the University of Oregon.                                                                     
                                                                                                                                
10:01:42 AM                                                                                                                   
CHAIR WIELECHOWSKI asked  about how much total  savings the state                                                               
has in its various accounts.                                                                                                    
                                                                                                                                
COMMISSIONER  DESIGNEE BUTCHER  replied  the state  has a  little                                                               
over  ten billion  dollars in  the Constitutional  Budget Reserve                                                               
(CBR); adding all  other funds the savings  totals between twelve                                                               
and fourteen billion.                                                                                                           
                                                                                                                                
CHAIR  WIELECHOWSKI said  there has  been talk  about how  Alaska                                                               
should manage its savings and asked what his philosophy was.                                                                    
                                                                                                                                
COMMISSIONER DESIGNEE  BUTCHER responded his  personal philosophy                                                               
is that  this is very much  the people's money. For  that reason,                                                               
he  takes a  more conservative  view towards  investment. At  one                                                               
time the CBR balance was very  low, and things had to be invested                                                               
very  conservatively. Now  we have  more  reserves available  and                                                               
some can be invested on a longer-term basis.                                                                                    
                                                                                                                                
SENATOR  MEYER said  his  concern  is that  85  percent of  state                                                               
revenue  comes from  one source,  which is  declining, and  asked                                                               
what Commissioner Designee Butcher sees as the solution.                                                                        
                                                                                                                                
COMMISSIONER DESIGNEE BUTCHER answered  the solution is trying to                                                               
generate  more  production  through the  Trans  Alaska  Pipeline.                                                               
Diversification  of our  economy  is also  important; tourism  is                                                               
doing better.  But generating  more revenue  will take  more than                                                               
just a tax  bill. The Department of Transportation  is working on                                                               
roads  to  resources, areas  of  potential  exploration that  are                                                               
lacking infrastructure; the state can  help open up those fields.                                                               
The  Department  of Natural  Resources  (DNR)  is revisiting  the                                                               
permitting  process.  The  Department  of  Law  is  dealing  with                                                               
federal issues.                                                                                                                 
                                                                                                                                
CHAIR WIELECHOWSKI  asked him to  speak about the  Permanent Fund                                                               
in terms of his personal philosophy.                                                                                            
                                                                                                                                
10:07:32 AM                                                                                                                   
COMMISSIONER  DESIGNEE  BUTCHER said  he  is  looking forward  to                                                               
getting more  involved with Permanent  Fund management.  They are                                                               
looking more at emerging markets,  and active management compared                                                               
to  passive. He  generally  agrees with  the  direction they  are                                                               
going. Ideally  it would remain  something that continues  to pay                                                               
dividends and grow over time.                                                                                                   
                                                                                                                                
10:08:53 AM                                                                                                                   
CHAIR  WIELECHOWSKI asked  him to  talk about  the status  of the                                                               
state's  retirement system.  He  noted Alaska  is  ranked in  the                                                               
bottom one third of all states  for funding pensions. By 2008 the                                                               
system was only  3/4 funded. He asked what the  current status of                                                               
the pension fund is.                                                                                                            
                                                                                                                                
COMMISSIONER  DESIGNEE BUTCHER  said that  right now  we have  10                                                               
billion  dollars in  unfunded liability.  However, in  looking at                                                               
the numbers it is important to  realize that Alaska is one of the                                                               
few states  that include potential  health care costs as  part of                                                               
evaluating liability. This is a  positive. The unfunded liability                                                               
is a concern  and he is interested in seeing  what the actuaries'                                                               
assumptions  are. He  said until  we understand  those, we  don't                                                               
have a good picture.                                                                                                            
                                                                                                                                
10:11:06 AM                                                                                                                   
CHAIR WIELECHOWSKI  said a constituent  had complained  about the                                                               
six month review process on a  petition to modify a child support                                                               
order.  He asked  if  the  Office of  Child  Support Services  is                                                               
adequately staffed and functioning.                                                                                             
                                                                                                                                
COMMISSIONER  DESIGNEE  BUTCHER said  it  appears  that they  are                                                               
doing better  than they were a  few years ago. It  is a difficult                                                               
issue and he will be looking  at it. Child Support Services needs                                                               
to have the highest staffing level possible.                                                                                    
                                                                                                                                
SENATOR PASKVAN  said one of  first reports the  members received                                                               
at the start of session was  the January 18, 2011 report from DOR                                                               
which dealt  with information processing  in the state.  He asked                                                               
if  Commissioner Designee  Butcher could  comment on  information                                                               
processing  and   knowledge  gaps,  especially  with   regard  to                                                               
information  necessary   to  understand  the  oil   and  gas  tax                                                               
structure.                                                                                                                      
                                                                                                                                
10:14:10 AM                                                                                                                   
COMMISSIONER DESIGNEE BUTCHER  said he first thought  the lack of                                                               
information was  a result of  statutory limitations, but  he soon                                                               
realized it  is a  regulatory issue. The  department had  not put                                                               
into regulation that industry must  break the numbers down. There                                                               
is  a workshop  type process  of working  with the  oil industry,                                                               
working  through   regulations  to  make  sure   the  state  gets                                                               
everything  it needs.  He will  include the  legislature in  that                                                               
process.  This is  not just  a DOR  issue; policymakers  need the                                                               
information also. The tax division will focus on that issue.                                                                    
                                                                                                                                
Regarding the  need for a  new database,  this issue needs  to be                                                               
dealt with.  It is in  this year's budget to  do a study  of what                                                               
the state needs  and an estimate on what it  will cost. There are                                                               
situations in  state government  where agencies  say they  need a                                                               
database; then  the next year they  need more money. DOR  will be                                                               
pushing the  issue forward, and the  Department of Administration                                                               
is putting  together a broader view  of what needs to  be done in                                                               
all of state government. A  database that provides information on                                                               
oil and gas revenue would pay for itself.                                                                                       
                                                                                                                                
10:16:59 AM                                                                                                                   
SENATOR  PASKVAN said  that same  report  also addresses  capital                                                               
expenditures. Alaska  has a credit  structure connected  with oil                                                               
industry  capital  expenditures.  Without  understanding  if  the                                                               
current ones are working, it is difficult to direct policy.                                                                     
                                                                                                                                
COMMISSIONER DESIGNEE BUTCHER agreed.                                                                                           
                                                                                                                                
10:18:17 AM                                                                                                                   
CHAIR  WIELECHOWSKI noted  this is  not a  new issue.  In 2007  a                                                               
presentation  by  Gaffney and  Klein  talked  about oil  and  gas                                                               
reporting  and  disclosure  in   selected  countries.  Alaska  is                                                               
missing  the data  it  needs to  properly  manage its  resources.                                                               
Other  countries are  vastly ahead  of Alaska  on this  issue. On                                                               
February  11,  2011,  a   presentation  by  the  administration's                                                               
consultant again stated  that Alaska is handicapped  by the small                                                               
amount of reliable data on energy operations.                                                                                   
                                                                                                                                
As we move forward  on the issue of oil taxes,  the issue of data                                                               
transparency  keeps   coming  back.  His  office   has  requested                                                               
information  on data  gaps.  They still  have  not received  this                                                               
after five  weeks. It is  very difficult  to go into  this debate                                                               
without knowing where  the gaps are. It is critical  to have that                                                               
information.                                                                                                                    
                                                                                                                                
10:20:58 AM                                                                                                                   
COMMISSIONER  DESIGNEE BUTCHER  responded that  DOR had  provided                                                               
some information,  but if it is  not what was wanted  he will sit                                                               
down with  DNR and obtain  more information. His intention  is to                                                               
also sit  down with  the industry and  get more  information from                                                               
them.                                                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI said  the gap information is  what they need--                                                               
analysis  of where  the  gaps lie.  They need  to  know what  the                                                               
internal  rates of  return are  on  various fields  that are  not                                                               
currently  producing.  That  would be  helpful  information.  Net                                                               
present value  would also  be helpful. This  was done  during the                                                               
ACES   debate.  Alaska   is  handicapped   by   not  having   the                                                               
information.  The more  data they  have, the  better policymakers                                                               
the legislature can be.                                                                                                         
                                                                                                                                
COMMISSIONER DESIGNEE BUTCHER said he agreed.                                                                                   
                                                                                                                                
10:23:34 AM                                                                                                                   
CHAIR WIELECHOWSKI asked about AGIA.                                                                                            
                                                                                                                                
COMMISSIONER DESIGNEE BUTCHER  said he was aware  that AGIA looks                                                               
different in 2011 than it did  in 2007. The issues with shale gas                                                               
are  being  looked at,  and  a  shift  to  natural gas  is  under                                                               
discussion.  The state  still has  not received  information from                                                               
the Trans Canada and Denali  projects. We know they received bids                                                               
but we  don't have  all information.  The sooner  we have  it the                                                               
better.  There  is  still  a  possibility  that  AGIA  can  be  a                                                               
reasonable project.                                                                                                             
                                                                                                                                
CHAIR WIELECHOWSKI  said that Japan was  previously planning nine                                                               
new nuclear  plants, and asked  if Commissioner  Designee Butcher                                                               
had any opinion  about whether the recent  nuclear crisis changed                                                               
the natural gas future.                                                                                                         
                                                                                                                                
10:25:30 AM                                                                                                                   
COMMISSIONER  DESIGNEE  BUTCHER  said   he  thought  natural  gas                                                               
probably would  be used more,  since use of nuclear  energy seems                                                               
more  problematic. We  still don't  know how  the issue  in Japan                                                               
will resolve.                                                                                                                   
                                                                                                                                
In  working on  the  Alaska Gasline  Development Corporation  and                                                               
discussing Alaska with companies not  familiar with the state, he                                                               
learned that many  of them have different  perspectives about our                                                               
state. There is not a consensus  from the companies; they are all                                                               
over the  board. Some think  there will  be a huge  conversion to                                                               
natural gas. Some say what is  coming up with shale will work for                                                               
the next  10 years, but looking  to 2020 and beyond  we need more                                                               
natural  gas  capacity.  Others  say no;  shale  oil  is  another                                                               
factor.                                                                                                                         
                                                                                                                                
10:27:54 AM                                                                                                                   
CHAIR WIELECHOWSKI  asked about levers other  than lowering taxes                                                               
that can help Alaska increase production on the North Slope.                                                                    
                                                                                                                                
COMMISSIONER  DESIGNEE  BUTCHER  responded  that  DOR  and  other                                                               
departments had  recently started  meeting to  have conversations                                                               
on this issue.  All departments are going in  the same direction.                                                               
Nothing  has  come  out  so  far but  they  are  optimistic.  The                                                               
administration  feels  we need  to  be  much more  aggressive  in                                                               
promoting  Alaska. DNR  and DOR  shared  a booth  at an  industry                                                               
conference in  February to promote  Alaska. Everyone  agrees that                                                               
more needs to be done.                                                                                                          
                                                                                                                                
SENATOR  PASKVAN  asked   about  the  issue  of   the  shale  gas                                                               
revolution and its  effect on the price of  natural gas. Alaska's                                                               
tax  structure is  based on  pricing  that no  longer exists.  He                                                               
asked about  Commissioner Designee Butcher's thoughts  on the tax                                                               
structure given that those previous beliefs are no longer valid.                                                                
                                                                                                                                
10:30:46 AM                                                                                                                   
COMMISSIONER DESIGNEE  BUTCHER said  he is interested  in looking                                                               
at the issue. It is  amazing how quickly the environment changes.                                                               
On the  negative side, we  see the closing of  the Gas-To-Liquids                                                               
(GTL) plant in  Nikiski. When there was a  connection between oil                                                               
and gas,  the plant  was very profitable.  On the  positive side,                                                               
GTL is now being looked at for potential development.                                                                           
                                                                                                                                
10:32:15 AM                                                                                                                   
CHAIR WIELECHOWSKI  asked if Commissioner Designee  Butcher could                                                               
get  the  data  gap  information  to his  office  as  quickly  as                                                               
possible. He  stated that once  he received that  information, he                                                               
would  entertain  a  motion   to  forward  Commissioner  Designee                                                               
Butcher's confirmation.                                                                                                         
                                                                                                                                
There being no further business  to come before the committee, he                                                               
adjourned the meeting at 10:33 a.m.                                                                                             
| Document Name | Date/Time | Subjects | 
|---|