Legislature(2023 - 2024)GRUENBERG 120

02/08/2023 01:15 PM House JUDICIARY

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01:17:02 PM Start
01:17:34 PM Presentation(s): Civil Division Overview: Department of Law
02:18:21 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Presentation: Civil Division Overview, TELECONFERENCED
Dept. of Law by Deputy Attorney General Cori
Mills
+ Bills Previously Heard/Scheduled TELECONFERENCED
                     ALASKA STATE LEGISLATURE                                                                                 
                HOUSE JUDICIARY STANDING COMMITTEE                                                                            
                         February 8, 2023                                                                                       
                            1:17 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sarah Vance, Chair                                                                                               
Representative Jamie Allard, Vice Chair                                                                                         
Representative Ben Carpenter                                                                                                    
Representative Craig Johnson                                                                                                    
Representative David Eastman                                                                                                    
Representative Andrew Gray                                                                                                      
Representative Cliff Groh                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Jesse Sumner                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S): CIVIL DIVISION OVERVIEW, DEPARTMENT OF LAW                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CORI MILLS, Deputy Attorney General                                                                                             
Office of the Attorney General                                                                                                  
Civil Division                                                                                                                  
Department of Law                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Gave a presentation, an overview of the                                                                  
Civil Division, Department of Law.                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:17:02 PM                                                                                                                    
                                                                                                                                
CHAIR SARAH  VANCE called the House  Judiciary Standing Committee                                                             
meeting  to  order  at  1:17  p.m.    Representatives  Carpenter,                                                               
Eastman,  Gray, and  Vance were  present  at the  call to  order.                                                               
Representatives  C.  Johnson, Groh,  and  Allard  arrived as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
^PRESENTATION(S): CIVIL DIVISION OVERVIEW: DEPARTMENT OF LAW                                                                    
  PRESENTATION(S): CIVIL DIVISION OVERVIEW: DEPARTMENT OF LAW                                                               
                                                                                                                              
1:17:34 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE announced that the only  order of business would be a                                                               
presentation, an  overview of the  Civil Division,  Department of                                                               
Law.                                                                                                                            
                                                                                                                                
1:18:03 PM                                                                                                                    
                                                                                                                                
CORI  MILLS,  Deputy Attorney  General,  Office  of the  Attorney                                                               
General, Civil Division, Department  of Law, gave a presentation,                                                               
an  overview of  the Civil  Division,  Department of  Law, via  a                                                               
PowerPoint  presentation [hard  copy  included  in the  committee                                                               
packet].   She turned to slides  2-4, which show that  within the                                                               
Department  of   Law  (DOL)  is  the   Criminal  Division,  which                                                               
prosecutes crime,  and the Civil  Division, which  provides legal                                                               
services to state government.   She discussed what makes up state                                                               
government,  by  showing slide  5,  which  lists the  departments                                                               
within  the  State  of  Alaska.    She  explained  that  DOL  has                                                               
attorneys   that  represent   every   state  department,   board,                                                               
commission, and  public corporation, as  well as the  Division of                                                               
Elections, the Office  of the Lieutenant Governor,  and Office of                                                               
the  Governor.   She  said  DOL  does  not represent  the  Alaska                                                               
Railroad Corporation or the University  of Alaska.  She indicated                                                               
these areas  of coverage by  DOL are contained in  Alaska Statute                                                               
under  Title 11.   She  added that  although DOL  does not  cover                                                               
domestic  relationship-type issues,  such  as  child custody,  it                                                               
does cover child protection and  child support.  She listed other                                                               
examples relating  to law  suits to the  State of  Alaska wherein                                                               
DOL is involved.   She said DOL keeps track  of billable hours to                                                               
manage  caseloads.   She  reported  that  there were  over  8,000                                                               
active matters worked on by DOL over the last year.                                                                             
                                                                                                                                
1:22:30 PM                                                                                                                    
                                                                                                                                
MS.  MILLS,  in  response  to   a  question  from  Representative                                                               
Carpenter, said some of the work  is billed, while other work may                                                               
be covered  by federal funds.   She noted she would  be talking a                                                               
lot about DOL's budget on Friday, during a Finance meeting.                                                                     
                                                                                                                                
MS. MILLS continued her PowerPoint  presentation, noting that the                                                               
length of  each matter  worked on varies  greatly.   She reported                                                               
that  last year,  DOL's attorneys  put in  over 255,000  billable                                                               
hours.   She  said the  department  has 264  employees, but  with                                                               
vacancies, the actual number working  ranges from 135-140, and 80                                                               
percent are attorneys, currently  135-140.  Each attorney handles                                                               
about  55 matters  and bills  approximately 1,800  hours a  year.                                                               
This  is on  par  with  private firms,  which  usually require  a                                                               
minimum billable hour amount of 1,900 hours.                                                                                    
                                                                                                                                
1:25:34 PM                                                                                                                    
                                                                                                                                
MS. MILLS  moved on  to slide  6, "Protecting  Alaskans' Safety,"                                                               
which  lists  the  core  services   of  the  Civil  Division  as:                                                               
protecting Alaskans'  safety and financial  well-being; fostering                                                               
conditions  for responsible  development of  the state's  natural                                                               
resources;  protecting the  fiscal  integrity of  the state;  and                                                               
promoting good governance.   Turning to slide  7, "Civil Division                                                               
Structure,"  she listed  the following:    statehood defense  and                                                               
resource  development;  protective   legal  services;  government                                                               
services;  torts and  other civil  defense litigation,  and legal                                                               
support services.                                                                                                               
                                                                                                                                
MS. MILLS  covered the next  several slides, which  offer details                                                               
about the topics listed on slide  7.  Slide 8, "Statehood Defense                                                               
& Resource  Development," read  as follows  [original punctuation                                                               
provided, with some formatting changes]:                                                                                        
                                                                                                                                
     Natural Resources                                                                                                          
     Anne Nelson                                                                                                                
     Dept. of Fish & Game Represents state interests in                                                                         
     statehood defense, natural resource management &                                                                           
     development, fish & game management                                                                                        
                                                                                                                                
     Oil & Gas                                                                                                                  
     Mary Gramling                                                                                                              
     Dept. of Natural Resources Dept. of Revenue Ensures                                                                        
     the state receives its appropriate share of O&G tax                                                                        
     royalties                                                                                                                  
                                                                                                                                
     Transportation                                                                                                             
     Max Garner                                                                                                                 
     Dept. of Transportation & Public Facilities Represents                                                                     
     DOT&PF on construction & operation of public                                                                               
     facilities & development projects                                                                                          
                                                                                                                                
     Environmental                                                                                                              
     Jenn Currie                                                                                                                
     Represents the  state's interest  in clean water  & air                                                                    
     matters, hazardous  waste discharge cases,  and cleanup                                                                    
     costs & recovery                                                                                                           
                                                                                                                                
1:29:57 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:30 p.m. to 1:32 p.m.                                                                       
                                                                                                                                
1:32:09 PM                                                                                                                    
                                                                                                                                
MS. MILLS,  in response to  a question from  Representative Gray,                                                               
confirmed the topic of restructuring  the Civil Division would be                                                               
addressed during  the aforementioned  Friday Finance  meeting and                                                               
would  cover how  the sections  of the  division, listed  in this                                                               
presentation, would be grouped.                                                                                                 
                                                                                                                                
MS. MILLS returned  to the presentation, to  slide 9, "Protective                                                               
Legal  Services," which  read  as  follows [original  punctuation                                                               
provided, with some formatting changes]:                                                                                        
                                                                                                                                
     Human Services                                                                                                             
     Alex Hildebrand                                                                                                            
     Dept. of  Health Dept. of  Family &  Community Services                                                                    
     Protection of vulnerable adults                                                                                            
                                                                                                                                
     Child Protection                                                                                                           
     Carla Erickson                                                                                                             
     Office of  Children's Services (OCS)  Child in  Need of                                                                    
     Aid (CINA)                                                                                                                 
                                                                                                                                
     Commercial & Fair Business                                                                                                 
     Rebecca Hattan                                                                                                             
     Professional  licensing  Public utilities  Alcohol  and                                                                    
     marijuana sales Child support recovery                                                                                     
                                                                                                                                
     Regulatory Affairs & Public Advocacy                                                                                       
     Jeff Waller                                                                                                                
     Protects the Alaskan public  interest in public utility                                                                    
     and   pipeline   proceedings  before   the   Regulatory                                                                    
     Commission of Alaska                                                                                                       
                                                                                                                                
MS. MILLS  noted that  of the  aforementioned 8,000  cases, 3,000                                                               
are housed in the Child Protection Section.                                                                                     
                                                                                                                                
1:33:34 PM                                                                                                                    
                                                                                                                                
MS. MILLS,  in response to  Co-Chair Allard, returned to  slide 8                                                               
to  offer further  details regarding  the Environmental  Section.                                                               
She then  returned to  slide 9,  "Protective Legal  Services," to                                                               
finish reviewing the focus of each section.                                                                                     
                                                                                                                                
1:40:08 PM                                                                                                                    
                                                                                                                                
MS. MILLS turned to slides 10-11, "Government Services," which                                                                  
read as follows [original punctuation provided, with some                                                                       
formatting changes]:                                                                                                            
                                                                                                                                
     Opinions, Appeals, & Ethics                                                                                                
     Jessie Alloway                                                                                                             
     Defends  the  state  in  federal  and  state  appellate                                                                    
     courts, including Child in Need of Aid (CINA) appeals                                                                      
                                                                                                                                
     Public Corps. & Government Services                                                                                        
     Bill Milks                                                                                                                 
     Represents   unique   state    entities   like   public                                                                    
     corporations, retirement  systems, state  health plans,                                                                    
     and the Dept. of Education & Early Development                                                                             
                                                                                                                                
     Special Litigation                                                                                                         
     Margaret Paton-Walsh                                                                                                       
     Handles  high-profile, expedited  & complex  litigation                                                                    
     Constitutional challenges &  elections matters Enforces                                                                    
     Alaska antitrust laws                                                                                                      
                                                                                                                                
     Labor & State Affairs                                                                                                      
     Rachel Witty                                                                                                               
     Governor   &  Lt.   Governor's   offices  Division   of                                                                    
     Elections  Departments  of:   Administration,  Labor  &                                                                    
     Workforce Dev.; Military & Vet. Affairs                                                                                    
                                                                                                                                
     Legislation & Regulations                                                                                                  
     Rebecca Polizzotto                                                                                                         
     Oversees all  legislative drafting,  coordinates review                                                                    
     of   proposed    &   enacted    legislation,   oversees                                                                    
     regulations projects for all state agencies                                                                                
                                                                                                                                
     Professional Development & Public Service                                                                                  
     Jessica Leeah                                                                                                              
     Oversees  all  internship,  externship  and  fellowship                                                                    
     programs.  Works on  recruitment  efforts and  training                                                                    
     opportunities.                                                                                                             
                                                                                                                                
1:43:25 PM                                                                                                                    
                                                                                                                                
MS. MILLS,  in response to  a question from  Representative Gray,                                                               
said  the  Civil  Division  handles any  lawsuits  filed  by  the                                                               
governor, who consults with the  attorney general before bringing                                                               
that  lawsuit.     Then  DOL   determines  what  legal   team  is                                                               
appropriate to  handle the matter.   She then said that  under AS                                                               
44.23.020,  the attorney  general is  charged with  defending the                                                               
state  in  all actions,  which  includes  state officials  acting                                                               
within the  scope of their  employment.  She noted  that although                                                               
the governor is high profile,  the commissioner of the Department                                                               
of  Corrections gets  sued "more  than anyone  else."   There are                                                               
times when DOL determines that  outside counsel is necessary, but                                                               
DOL will still  manage the contract.  In response  to a follow-up                                                               
question, she spoke about 1986 Civil Rights Act violations.                                                                     
                                                                                                                                
1:46:31 PM                                                                                                                    
                                                                                                                                
MS.  MILLS, in  response to  Representative Carpenter,  confirmed                                                               
that  the  Public  Corporations  &  Government  Services  Section                                                               
represents "a  piece of" [the  Permanent Fund Corporation].   She                                                               
said  there  is  a  memorandum of  agreement  (MOA)  between  the                                                               
attorney general  and the corporation that  was established about                                                               
20 years  ago that  allows the  corporation to  have its  own in-                                                               
house  transaction  attorney that  is  overseen  by the  attorney                                                               
general.  She said DOL helps  the corporation with issues such as                                                               
the  Open Meetings  Act  that are  outside  of the  transactional                                                               
arena.                                                                                                                          
                                                                                                                                
MS. MILLS  finished covering slides  10 and  11.  In  response to                                                               
Chair Vance, she offered her  understanding that the Professional                                                               
Development & Public Service Section was initiated January 2022.                                                                
                                                                                                                                
CHAIR VANCE indicated interest in  hearing more about this in the                                                               
future.                                                                                                                         
                                                                                                                                
REPRESENTATIVE CARPENTER  suggested more  detail be brought  to a                                                               
budget subcommittee meeting to learn  what has been successful in                                                               
order to duplicate that success elsewhere.                                                                                      
                                                                                                                                
MS. MILLS expressed her willingness  to share more information in                                                               
the future.   She talked about  a "great trajectory" in  terms of                                                               
filling vacant positions.                                                                                                       
                                                                                                                                
CHAIR VANCE said  she would extend an invitation to  Ms. Mills to                                                               
come back before the House  Judiciary Standing Committee to speak                                                               
more on this issue.                                                                                                             
                                                                                                                                
1:53:46 PM                                                                                                                    
                                                                                                                                
MS. MILLS  returned to  the presentation, to  slide 12,  "Torts &                                                               
Other Civil Defense Litigation,"  which read as follows [original                                                               
punctuation provided, with some formatting changes]:                                                                            
                                                                                                                                
     Torts                                                                                                                      
     Mark Cucci                                                                                                                 
     Provides advice & defense to state agencies in tort                                                                        
     suits                                                                                                                      
                                                                                                                                
     Workers' Compensation & Corrections                                                                                        
     Mark Cucci                                                                                                                 
     Defends the state as an employer in workers'                                                                               
     compensation claims Provides advice & defense to the                                                                       
     Dept. of Corrections in civil suits                                                                                        
                                                                                                                                
MS. MILLS  said [the State of  Alaska] gets sued "a  lot" because                                                               
it has  "deep pockets."   She said  the department would  like to                                                               
divide the two  sections into their own.  She  said torts include                                                               
"slip  and  fall"  cases.   She  said  the  state  has a  lot  of                                                               
employees  who   file  worker's   compensation  claims,   so  DOL                                                               
represents  the Division  of Risk  Management  in handling  those                                                               
claims.   Regarding Corrections, she  noted that "inmates  have a                                                               
lot of time and file a lot of complaints."                                                                                      
                                                                                                                                
1:55:55 PM                                                                                                                    
                                                                                                                                
MS. MILLS, in  response to a question  from Representative Allard                                                               
regarding COVID-19  mandates, said  that is a  policy set  by the                                                               
court  system; various  judges in  state  courthouses can  decide                                                               
"whether to impose that mandate."                                                                                               
                                                                                                                                
CHAIR VANCE mentioned  the court system being  separate from DOL,                                                               
and she stated  her intent to bring in other  entities to discuss                                                               
all factors of the justice system.                                                                                              
                                                                                                                                
1:57:14 PM                                                                                                                    
                                                                                                                                
MS.  MILLS returned  to  the presentation,  to  slide 13,  "Legal                                                               
Support Services,"  which read  as follows  [original punctuation                                                               
provided, with some formatting changes]:                                                                                        
                                                                                                                                
     Information & Project Support                                                                                              
     Alan Birnbaum                                                                                                              
    Advises   agencies   on    the   management,   sharing,                                                                     
     retention, and disclosure of information                                                                                   
                                                                                                                                
     ProLaw & Admin                                                                                                             
     Alan Birnbaum                                                                                                              
       Management, training, and maintenance of statewide                                                                       
     data management and processing systems                                                                                     
                                                                                                                                
2:00:04 PM                                                                                                                    
                                                                                                                                
MS. MILLS, in  response to a question  from Representative Allard                                                               
about  document  requests  in   city  councils  compared  to  the                                                               
legislature,  clarified that  the  legislature is  under its  own                                                               
discloser rules.                                                                                                                
                                                                                                                                
                                                                                                                                
2:00:42 PM                                                                                                                    
                                                                                                                                
MS.  MILLS moved  on to  slide 14,  "State Fiscal  Preservation,"                                                               
showing examples of  fiscal year 2023 (FY  23) revenue generation                                                               
and  protection,  which  read as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Human Services                                                                                                             
          -$2M in awards for reimbursements for Medicaid                                                                        
     Third-Party Liability                                                                                                      
          -$6,708 in annuity collections for TPL                                                                                
          -$518,629 in Medicaid Estate/Trust recovery                                                                           
          -$594,289 in Medicaid audit settlements and                                                                           
     judgements                                                                                                                 
          -$333,547 in recovery of Medicaid expenditures                                                                        
     from post-conviction litigation                                                                                            
                                                                                                                                
     Natural Resources                                                                                                          
          -Collected $1.4M in damages associated with                                                                           
     sinking of Faulkner Walsh's barge The Delta Chief                                                                          
                                                                                                                                
     Public Corporations & Governmental Services                                                                                
          -Obtained $25M (less attorneys' fees) in                                                                              
     Allianz/APFC securities fraud settlement-Saved ~$80-                                                                       
     86M annually in dismissal of U.S. Dept. of Education                                                                       
     Impact Aid action Regulatory Affairs and Public                                                                            
     Advocacy                                                                                                                   
                                                                                                                                
          -$6.2M in quantifiable consumer benefits in                                                                           
     FY2022 for reduction in utilities costs-An additional                                                                      
     $1.07M is anticipated in a pending case Environmental-                                                                     
     $1.8M in settlements and fines                                                                                             
                                                                                                                                
MS. MILLS said  DOL does a lot  of work to bring  money back into                                                               
the state.                                                                                                                      
                                                                                                                                
2:02:20 PM                                                                                                                    
                                                                                                                                
MS. MILLS, in response to  Representative Gray, elaborated on the                                                               
topic of  the $80 to  $86 million saved  annually.  She  said two                                                               
years ago  the federal  government changed the  way it  looked at                                                               
impact aid  for education and started  taking transportation into                                                               
account, which would potentially  decrease the amount that Alaska                                                               
got.   Alaska  engaged with  outside counsel  and entered  into a                                                               
negotiation with the U.S. Department  of Education, wherein "they                                                               
basically backed off."                                                                                                          
                                                                                                                                
2:03:48 PM                                                                                                                    
                                                                                                                                
MS. MILLS, after finishing her  presentation, answered a question                                                               
from  Representative Gray  as to  who decides  whether "to  fight                                                               
something"  [in  court].    She   said  it  matters  who  DOL  is                                                               
representing in  any given  case.  If  it is  a quasi-independent                                                               
agency,  for  example,  DOL  will   consult  with  them.    Cases                                                               
involving  departments  go  to  the  governor,  she  said.    The                                                               
attorney  general  has  the ultimate  authority  over  litigation                                                               
decisions.  She offered details about a particular case.                                                                        
                                                                                                                                
2:09:38 PM                                                                                                                    
                                                                                                                                
MS. MILLS,  in response  to a  request from  Chair Vance  to talk                                                               
about attorneys and contracting for  services, said there are two                                                               
factors DOL considers:  "Do  we have the expertise in-house?" and                                                               
"Do we have the money and human resources to take on the case?"                                                                 
                                                                                                                                
2:12:27 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE requested Ms. Mills  provide a list of billable hours                                                               
and attorneys to  help the committee understand  the big picture,                                                               
as  well as  know  where resources  are  going within  individual                                                               
sections of DOL.                                                                                                                
                                                                                                                                
MS.  MILLS  said   she  could  do  that,  as  well   as,  at  the                                                               
aforementioned upcoming  Finance meeting,  talk about  the effect                                                               
of  billing to  individual  budgets.   She  said  she could  also                                                               
supply a list of paralegal support.                                                                                             
                                                                                                                                
2:15:11 PM                                                                                                                    
                                                                                                                                
MS.  MILLS, in  response to  a query  from Representative  Allard                                                               
regarding an organizational chart, said  the Civil Division has a                                                               
total  of  274  employees,  148  of which  are  attorneys.    She                                                               
suggested she could bring further information on Friday.                                                                        
                                                                                                                                
2:15:47 PM                                                                                                                    
                                                                                                                                
MS. MILLS,  in response  to a  question from  Representative Gray                                                               
about filling vacancies, mentioned a  bill that had given "the 20                                                               
percent rate,"  which stopped people leaving  the Civil Division.                                                               
She offered  her understanding that  the Criminal  Division would                                                               
relate a similar story.                                                                                                         
                                                                                                                                
2:16:45 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE thanked Ms. Mills for the presentation.                                                                             
                                                                                                                                
2:18:21 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Judiciary Standing Committee meeting was adjourned at 2:18 p.m.                                                                 

Document Name Date/Time Subjects
Overview of DOL Civil Division.pdf HJUD 2/8/2023 1:15:00 PM
Overview of DOL Civil Division