Legislature(2011 - 2012)CAPITOL 120

04/04/2011 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 161 CERTAIN CANDIDATE INFO IS PUBLIC RECORD TELECONFERENCED
<Bill Hearing Canceled>
+= HB 168 INJUNCTION SECURITY: INDUSTRIAL OPERATION TELECONFERENCED
Moved CSHB 168(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 1 POLICY FOR SECURING HEALTH CARE SERVICES TELECONFERENCED
Heard & Held
+= HB 6 REMOVING A REGENT TELECONFERENCED
Moved CSHB 6(JUD) Out of Committee
                    HB 6 - REMOVING A REGENT                                                                                
                                                                                                                                
2:19:56 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  THOMPSON announced that  the final order  of business                                                               
would be  HOUSE BILL NO. 6,  "An Act authorizing the  governor to                                                               
remove  or suspend  a  member  of the  Board  of  Regents of  the                                                               
University  of   Alaska  for  good  cause;   and  establishing  a                                                               
procedure for  the removal or  suspension of a regent."   [Before                                                               
the committee was  CSHB 6(EDC); left pending from  the hearing on                                                               
March 21,  2011, was the  motion to adopt the  proposed committee                                                               
substitute (CS) for HB 6,  Version 27-LS0027\T, Mischel, 2/25/11,                                                               
as the  working document; included  in members packets was  a new                                                               
proposed  committee  substitute  (CS)   for  HB  6,  Version  27-                                                               
LS0027\R, 3/25/11.]                                                                                                             
                                                                                                                                
2:20:11 PM]                                                                                                                   
                                                                                                                                
REPRESENTATIVE PRUITT  moved to adopt  the proposed CS for  HB 6,                                                               
Version 27-LS0027\R, 3/25/11 as the working document.                                                                           
                                                                                                                                
REPRESENTATIVE HOLMES objected for the purpose of discussion.                                                                   
                                                                                                                                
2:20:46 PM                                                                                                                    
                                                                                                                                
TED  MADSEN, Staff,  Representative Max  Gruenberg, Alaska  State                                                               
Legislature, on behalf of  the sponsor, Representative Gruenberg,                                                               
explained that  Version R incorporates  three changes.   Proposed                                                               
AS 14.40.155(a)(3)  now uses the  phrase, "an  accusation" rather                                                               
than  the phrase  "a complaint";  this new  language conforms  to                                                               
that  used by  the Department  of Law  (DOL) with  regard to  the                                                               
state's  personnel  board.     Proposed  AS  14.40.155(g)(1)  now                                                               
includes  the   additional  wording   of,  "that  results   in  a                                                               
recommendation  of   removal  under  AS   39.52.410(b)(3)";  this                                                               
additional language should  ensure that only the  most serious of                                                               
such  violations may  constitute  good cause  for  removal.   And                                                               
proposed  AS  14.40.155(g)(4)(B)   now  includes  the  additional                                                               
wording of,  "for an  extended period  of time";  this additional                                                               
wording should  ensure that  an inability to  serve for  just one                                                               
meeting, for example, wouldn't constitute grounds for removal.                                                                  
                                                                                                                                
REPRESENTATIVE HOLMES removed her objection.                                                                                    
                                                                                                                                
VICE  CHAIR   THOMPSON,  noting   that  there  were   no  further                                                               
objections, announced that Version R was before the committee.                                                                  
                                                                                                                                
MR.  MADSEN, to  briefly  recap,  explained that  HB  6 has  been                                                               
introduced  in response  to  an incident  that  occurred back  in                                                               
2007, when a member of the  Board of Regents of the University of                                                               
Alaska was indicted  on many counts of fraud  and embezzlement of                                                               
federal funds  [but refused  to resign  his position  as regent].                                                               
Inquiries by various legislative  committees at the time revealed                                                               
that the  Board of Regents  didn't have  a procedure in  place by                                                               
which to remove a regent.  To  date, the Board of Regents has yet                                                               
to  adopt such  a procedure.   House  Bill 6  would insulate  the                                                               
university  from any  cloud  of suspicion,  and  ensure that  the                                                               
university remains free  from political pressure.  Under  HB 6, a                                                               
regent could only be removed or suspended for good cause.                                                                       
                                                                                                                                
2:24:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  referred to a proposed  amendment included                                                               
in members' packets that read [original punctuation provided]:                                                                  
                                                                                                                                
     Page 2 line 5                                                                                                              
                                                                                                                                
     Delete all language and insert                                                                                             
                                                                                                                                
     05  (1)  clarify that the governor may remove a regent                                                                     
      for good cause, or a determination that the good of                                                                       
     the university requires it;                                                                                                
                                                                                                                                
REPRESENTATIVE KELLER  noted that  currently the  bill authorizes                                                               
the governor to remove a regent  only for "good cause", with that                                                               
concept then being defined in  terms of actions undertaken by the                                                               
regent,  and asked  why the  bill  wasn't written  such that  the                                                               
governor could simply  remove a regent if he/she  thinks doing so                                                               
would be  good for the university.   With some other  boards, for                                                               
example, members serve at the pleasure of the governor.                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  speaking  as the  sponsor,  explained                                                               
that  the  University  of  Alaska   was  set  up  as  a  separate                                                               
constitutional entity, with its  Board of Regents being different                                                               
than other  boards or commissions,  which fall under  the purview                                                               
of the executive  branch.  Under Article III, Section  26, of the                                                               
Alaska State Constitution, the members  of those other boards and                                                               
commissions may  be removed as  provided by law.   [Under Article                                                               
VII, Section  3, of  the Alaska  State Constitution,  regents are                                                               
also  appointed  by  the  governor  and  subject  to  legislative                                                               
confirmation,  but  in  contrast, that  constitutional  provision                                                               
doesn't  directly address  the removal  of a  regent and  instead                                                               
mandates  that   the  Board  of   Regents  formulate   policy  in                                                               
accordance with  law.   Again, the  Board of  Regents has  yet to                                                               
exercise] this  inherent constitutional authority to  establish a                                                               
policy for  removing a  regent for  good cause,  and so  the only                                                               
option  currently is  for  the legislature  to  conduct a  formal                                                               
impeachment  proceeding, but  such  proceedings,  in addition  to                                                               
being cumbersome,  are not practical  given that  the legislature                                                               
meets for  only part of the  year.  He offered  his understanding                                                               
that members' packets include a legal opinion to this effect.                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  referring,   then,  to  the  proposed                                                               
amendment, said he  is concerned that it would  subject the Board                                                               
of  Regents   to  potential  political  pressure   and  political                                                               
interpretation regarding  what would constitute "the  good of the                                                               
university" in the eyes of  the governor, particularly given that                                                               
in the  Alaska State  Constitution, the  university has  been set                                                               
apart  from the  executive branch  of government.   The  proposed                                                               
amendment would therefore be  subject to constitutional challenge                                                               
and likely be found unconstitutional, he predicted.                                                                             
                                                                                                                                
REPRESENTATIVE  KELLER asked  of Legislative  Legal and  Research                                                               
Services whether, if the committee were  to choose to allow, as a                                                               
matter of  policy, for the  removal of  a regent by  the governor                                                               
for the  good of the  university, that would  pass constitutional                                                               
muster, and whether  there is currently a way to  remove a regent                                                               
because of some wrong that the regent is accused of committing.                                                                 
                                                                                                                                
2:31:01 PM                                                                                                                    
                                                                                                                                
JEAN  MISCHEL, Attorney,  Legislative Legal  Counsel, Legislative                                                               
Legal and  Research Services,  Legislative Affairs  Agency (LAA),                                                               
ventured that impeachment would be  one way of removing a regent,                                                               
and  offered  her belief  that  currently  the governor  has  the                                                               
implied  authority to  remove  any regent,  and  that nothing  in                                                               
current case law  or the Alaska State  Constitution prohibits the                                                               
governor  from removing  a regent  under the  governor's inherent                                                               
appointment authority.   The legislature's options  are to either                                                               
clarify  that   point  in  statute  and   risk  a  constitutional                                                               
challenge  over  separation  of power,  or  change  Article  VII,                                                               
Section  3, of  the Alaska  State Constitution  to allow  for the                                                               
removal of a regent as provided by law.                                                                                         
                                                                                                                                
VICE CHAIR THOMPSON asked whether the governor supports HB 6.                                                                   
                                                                                                                                
MS. MISCHEL relayed that she wasn't able to say.                                                                                
                                                                                                                                
2:33:28 PM                                                                                                                    
                                                                                                                                
JUDY BOCKMAN, Assistant Attorney  General, State Ethics Attorney,                                                               
Opinions,   Appeals,  &   Ethics,  Civil   Division  (Anchorage),                                                               
Department of  Law (DOL),  relayed that she  wasn't able  to say,                                                               
either.                                                                                                                         
                                                                                                                                
VICE CHAIR THOMPSON  asked whether passage of HB  6 would provide                                                               
the governor  with the  immediate authority  to suspend  a regent                                                               
and have  that suspension  remain in effect  until the  regent is                                                               
cleared in a hearing.                                                                                                           
                                                                                                                                
MS. BOCKMAN said she was unable to say.                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG offered his belief  that passage of HB 6                                                               
would provide that authority.   [Under proposed AS 14.40.155(b),]                                                               
the  governor  could  remove  a  regent  for  good  cause,  [with                                                               
proposed  AS 14.40.155(g)  defining  what  would constitute  good                                                               
cause]; some  examples are felony convictions,  or malfeasance or                                                               
nonfeasance in  office, including an  inability to serve  [for an                                                               
extended period  of time.   Under proposed AS  14.40.155(a)], the                                                               
governor,  after  providing  notice  and  an  opportunity  for  a                                                               
hearing,  could  suspend  a regent  while  final  disposition  on                                                               
certain  issues  is  pending;  one  example  would  be  a  felony                                                               
indictment.  With  regard to suspensions, either  the governor or                                                               
the regent could  request a hearing, which would  be conducted by                                                               
the Office of Administrative Hearings.                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG,  regarding the question of  whether the                                                               
governor   supports   HB   6,   mentioned   that   the   previous                                                               
administration had  assisted in drafting a  previous iteration of                                                               
the bill,  and that  no one from  the current  administration has                                                               
expressed concern about HB 6.                                                                                                   
                                                                                                                                
2:37:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  asked Representative Gruenberg  whether he                                                               
would  be  amenable to  altering  the  bill  such that  it  would                                                               
provide the  governor with a means  of removing a regent  for the                                                               
good of  the university, or whether  he would prefer to  keep the                                                               
bill's  current limitation  of removing  a regent  only for  good                                                               
cause.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  GRUENBERG offered  his  belief that  from both  a                                                               
policy  perspective and  a constitutional-law  perspective, there                                                               
should be  specific guidelines  set out in  the bill  rather than                                                               
just  a vague  and standard-less  delegation of  authority.   The                                                               
language  in   the  proposed  amendment   -  "the  good   of  the                                                               
university" - goes  beyond what he would be  comfortable with, he                                                               
relayed,  because  adoption  of  such language  would  allow  the                                                               
governor to  impose his/her political will  simply because he/she                                                               
disapproves of certain  decisions made by the Board  of Regents -                                                               
for example, how  many football scholarships to provide  for.  It                                                               
would  therefore  be unwise  to  adopt  such vague  language,  he                                                               
opined,   surmising    that   it    would   probably    also   be                                                               
unconstitutional.                                                                                                               
                                                                                                                                
REPRESENTATIVE  GRUENBERG  pointed  out  that  even  proposed  AS                                                               
14.40.155(g)(4)   -   which   currently  lists   malfeasance   or                                                               
nonfeasance in office as one meaning  of the term, "good cause" -                                                               
further  outlines   in  its  subparagraphs  (A)-(E)   what  would                                                               
constitute malfeasance  or nonfeasance in office,  and regardless                                                               
that some  of those  items are subjective,  a nexus  is required.                                                               
In  other words,  there must  be a  finding that  the regent  had                                                               
either done  something or  failed to do  something and  that that                                                               
action  or failure  to act  was connected  with the  duty of  the                                                               
regent.                                                                                                                         
                                                                                                                                
REPRESENTATIVE KELLER  indicated a  preference for  ensuring that                                                               
the  legislature, along  with the  executive branch,  be able  to                                                               
provide input regarding the university and its Board of Regents.                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG  expressed a  preference for  setting up                                                               
some sort  of procedure now,  regardless that  it may not  yet be                                                               
perfect,  that would  allow for  the  removal a  regent for  good                                                               
cause.   Doing something  now would  ensure that  the legislature                                                               
isn't put  in the same  position it found  itself in a  few years                                                               
ago, when a  regent was indicted on criminal  charges but refused                                                               
to resign his position.                                                                                                         
                                                                                                                                
REPRESENTATIVE  KELLER -  mentioning that  he wouldn't  be moving                                                               
the proposed  amendment because he  agrees that it's too  broad -                                                               
requested that  the bill not  be reported from committee  at this                                                               
time.   He  indicated,  however,  that he  would  be amenable  to                                                               
reporting the  bill from committee  if that was the  vice chair's                                                               
preference.                                                                                                                     
                                                                                                                                
2:44:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER then  made a  motion to  adopt [Conceptual                                                               
Amendment 1], which read [original punctuation provided]:                                                                       
                                                                                                                                
     Page 2, line 14                                                                                                            
     after the word "suspend"                                                                                                   
     Add                                                                                                                        
     14        ...with or without pay....                                                                                       
                                                                                                                                
REPRESENTATIVE PRUITT objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE  KELLER explained  that  [Conceptual Amendment  1]                                                               
would address situations in which  the governor wishes to suspend                                                               
a regent without pay.                                                                                                           
                                                                                                                                
MR.  MADSEN  relayed that  information  he's  been provided  with                                                               
indicates  that regents  do not  receive pay  for serving  on the                                                               
Board of Regents  but instead receive per diem  when traveling to                                                               
meetings, and since a suspended  regent wouldn't be attending any                                                               
meetings  during the  period of  suspension,  he/she wouldn't  be                                                               
entitled to per diem.                                                                                                           
                                                                                                                                
REPRESENTATIVE KELLER withdrew [Conceptual Amendment 1].                                                                        
                                                                                                                                
REPRESENTATIVE  KELLER  then  mentioned  that  he  would  not  be                                                               
offering another proposed amendment  he'd had drafted [that would                                                               
also have  provided for the removal  of a regent for  the good of                                                               
the university].                                                                                                                
                                                                                                                                
VICE CHAIR THOMPSON,  after ascertaining that no  one else wished                                                               
to testify, closed public testimony on HB 6.                                                                                    
                                                                                                                                
2:46:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG moved  to  report the  proposed CS  for                                                               
HB 6,  Version 27-LS0027\R,  Mischel, 3/25/11,  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  KELLER  objected,  expressing a  preference  that                                                               
more research be conducted on  the bill before it's reported from                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG, in  response,  relayed  that he  would                                                               
continue working on the bill  to try to address members' concerns                                                               
about it.                                                                                                                       
                                                                                                                                
2:49:01 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Pruitt, Thompson,                                                               
Gruenberg, and Holmes  voted in favor of reporting  the bill from                                                               
committee.   Representative Keller voted against  it.  Therefore,                                                               
CSHB  6(JUD) was  reported out  of the  House Judiciary  Standing                                                               
Committee by a vote of 4-1.                                                                                                     

Document Name Date/Time Subjects
HB168 Proposed Amendment B.2 03-29-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 168
HB1 CS Version B 04-01-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 1
HB6 CS Version R WORK DRAFT 03-25-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 6
HB6 Draft Amendment Keller 1 03-21-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 6
HB6 Draft Amendment Keller 2 04-04-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 6
HB6 Draft Amendment Keller 3 04-04-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 6
HB6 Explanation of Changes Version T to R 04-04-11.pdf HJUD 4/4/2011 1:00:00 PM
HB 6