Legislature(2001 - 2002)
12/05/2001 01:20 PM Senate BUD
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE
LEGISLATIVE BUDGET AND AUDIT
December 5, 2001
1:20 P.M.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Randy Phillips
Senator Gary Wilken (teleconferenced) (alternate)
Representative Hugh Fate, Vice Chair
Representative John Harris
Representative Reggie Joule (teleconferenced)
Representative Ken Lancaster (teleconferenced)
MEMBERS ABSENT
Senator Dave Donley
Senator Lyman Hoffman
Senator Jerry Ward
Representative John Davies
Representative Eldon Mulder
Representative Bill Williams (alternate)
COMMITTEE CALENDAR
APPROVAL OF COMMITTEE MINUTES
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October 23, 2001
REVISED PROGRAMS (RPLs)
03-02-0613
EXECUTIVE SESSION
AUDIT REPORTS
Release of Preliminary Audits for Agency Response
Release of Final Audits to Public
OTHER COMMITTEE BUSINESS
Discussion with Commissioner Flanagan
Department of Labor & Workforce Development
School Cost Study
Presentation by Adjutant General Phillip Oates
Executive Summary on Anti-Terrorism
WITNESS REGISTER
HEATHER BRAKES, Legislative Assistant to
Senator Gene Therriault
Alaska State Legislature
Capitol Building, Room 121
Juneau, Alaska 99801-1182
Telephone: (907) 465-6590
DAVID TEAL, Director
Legislative Finance Division
Alaska State Legislature
P.O. Box 113200
Juneau, Alaska 99811-3200
Telephone: (907) 465-3795
POSITION STATEMENT: Addressed the RPL
PAT DAVIDSON, Director
Legislative Audit Division
Alaska State Legislature
P.O. Box 113300
Juneau, Alaska 99811-3830
Telephone: (907) 465-3830
POSITION STATEMENT: Introduced the audit reports
ED SNIFFEN, Assistant Attorney General
Department of Law
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1031 West 4 Avenue #200
Anchorage, Alaska 99501
Telephone: (907) 269-5100
POSITION STATEMENT: Spoke to RPL #03-02-0163
KATHRYN DAUGHETEE, Director
(Testified via Teleconference)
Department of Law
Division of Administrative Services
P.O. Box 110300
Juneau, Alaska 99811-0300
Telephone: (907) 465-3673
POSITION STATEMENT: Spoke to RPL #03-02-0163
MAJOR PHIL OATES, Adjutant General/Commissioner
Department of Military & Veterans Affairs
P.O. Box 5800
Fort Richardson, Alaska 99505-0800
Telephone: (907) 428-6003
POSITION STATEMENT: Report on Terrorism
ACTION NARRATIVE
TAPE LBA 01-12, SIDE A
CHAIR GENE THERRIAULT called the Joint Committee on
Legislative Budget and Audit meeting to order at 1:20 P.M.
on December 5, 2001. Members present at the call to order
were Senator Therriault and Representatives Fate and Harris.
Members present on teleconferenced line were Senator Wilken
and Representatives Joule and Lancaster.
APPROVAL OF THE MINUTES
CHAIR THERRIAULT announced that the first order of business
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would be the approval of the minutes from the October 23,
2001 Legislative Budget and Audit Committee meeting.
VICE CHAIR FATE MOVED approval of the minutes and asked for
unanimous consent. There being NO OBJECTION, the minutes
were approved and adopted.
REVISED PROGRAM RECEIPT
RPL Number: 03-02-0163
Department of Law
Consumer Protection
$20,000 SDPR/Operating Budget
VICE CHAIR FATE MOVED that the Committee approve RPL No. 03-
02-0163.
ED SNIFFEN, Assistant Attorney General, Department of Law,
explained that the Legislature appropriated $180,000 dollars
in statutory designated program receipts (SDPR) in FY00 to
enhance consumer protection efforts within the Department of
Law using monies the State receives from the settlement of
consumer protection and antitrust cases. Those funds cover
the budgeted costs for an attorney and half-time paralegal
position. Typically, the Department does not have enough
funds in their budget to pay for significant direct case
costs for pursuing specific cases. In such instances, the
Department often seeks supplemental funding. In this
situation, the amount of funds available to the State as a
result of settlements and awards is in excess of the
budgeted authority and should be used to fund the request.
Mr. Sniffen continued, the request would be used to pay for
costs associated with an investigation regarding a car
rental company in Anchorage. The project is document
intensive. The requested funds would be used to pay for
photocopying costs associated with the case. He offered to
answer questions of the Committee.
CHAIR THERRIAULT asked the amount of money currently resting
in that account and the expected additional monies that will
be moving into that account.
KATHRYN DAUGHETEE, Director, Division of Administrative
Services, Department of Law, [Testified via Teleconference],
explained that currently, the collections in the statutory
designated program receipts (SDPR) category for the Fair
Business Practices Section is $343,000 dollars. The
Department of Law has a number of anticipated items between
now and the end of the fiscal year totaling approximately
$650,000 dollars. That number would bring the total FY02
collections to about $1 million dollars. She added that the
Department's spending authority is $182,800 dollars.
DAVID TEAL, Director, Legislative Finance Division,
commented that the Division's cash receipts from prior cases
exceed authority to spend those receipts. The Department
would like to spend some of the "surplus" receipts on
preparation for another case. The issue is the authority,
which is $182,800 dollars, and the amount of available
funds. The Committee will need to determine if they want to
grant that authority for spending the extra cash.
CHAIR THERRIAULT understood that the money coming into that
account is not the same each year. He acknowledged that the
Legislature is required to budget for basic functions each
year. He reiterated that there are funds moving into that
account. He asked the level of discussion which took place
during the "building" of the current year's budget.
KATHRYN DAUGHETEE responded that when the amount was
originally appropriated, the Department had been looking at
past years of collection. They agreed that it needed to be
phased in. She noted that the $180,000 dollars figure had
been chosen because it would fund one attorney and a half
time paralegal. Ms. Daughetee suggested that was the best
option for getting the program off to an initial start.
Over time, it became more clear to the Department that there
are many more consumer protection issues, many of which
focus on older Alaskans, than could be covered with current
staff.
Ms. Daughetee clarified that the Department started with the
$180,000 dollar figure. The program is now in its' third
year of appropriation. She added that the largest increase
for FY02 results largely from the Bridgefelt fire
settlement.
CHAIR THERRIAULT asked what number had been submitted by the
Governor last year.
KATHRYN DAUGHETEE responded that last year, the Governor's
budget was for $180,000 dollars. The Department typically
does not request for unanticipated costs within the cases.
Most often funding is sought through the supplemental budget
process. She stressed that the reason that the Department
of Law was before the Committee at this time was because
there is an imminent need within the agency and that the
Legislative Budget and Audit Committee has the authority
outside the supplemental process to appropriate SDPR.
CHAIR THERRIAULT voiced caution when using the LBA process
to "go around" a decision specifically made by the Finance
Committees. He inquired the timing issue associated with
the request.
ED SNIFFEN explained that the investigation requiring these
funds was started in March 2001. The case is now at a point
where the document photocopying is very apparent. A
subpoena was issued for that information. The subpoena was
disclosed by the entity that is being investigated. There
were hearings at the end of November involving the Superior
Court. The Court has ordered that the requested documents
be turned over to the Department of Law. The Department
will have fourteen days to copy those documents and return
them back to that company. He added that the fourteen days
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will expire December 12, 2001. The funds are needed
immediately if the case is to move forward.
CHAIR THERRIAULT asked if there was a reason why some of the
budgeted $180,000 dollars was not being used to cover the
copying costs. He thought that the funds could be restored
through the regular supplemental process.
KATHRYN DAUGHETEE agreed that was an option. The
difficultly for the agency is that those funds are earmarked
to pay for staff salaries. She pointed out that the
supplemental process often gets "down to the wire" with
funding, which could prove to be too risky for the
Department.
REPRESENTATIVE JOULE asked how important it was for the
Committee to come through and provide the requested funding.
CHAIR THERRIAULT commented that he expected if the LBA
Committee did not take action on the request, that the
Department would come through and expend the funds from the
current budget. Then they would take it into the
supplemental request process. He understood that was not
the Department's preferred way to handle the situation.
REPRESENTATIVE HARRIS discussed that current funding is
designated for salaries.
KATHRYN DAUGHETEE acknowledged that was correct.
REPRESENTATIVE HARRIS asked if the budget contained any
funds for other expenses associated with the program.
KATHRYN DAUGHETEE explained that the Department does not
have any contingency funds for direct cases within the
Department of Law. Most often, the Department will go to
the client agencies to see if they have the funds to cover
the costs or the agency will attempt to seek supplemental
funding.
REPRESENTATIVE HARRIS questioned how the Department would
come up with the funds if the LBA Committee did not
authorize the $20,000 dollars.
KATHRYN DAUGHETEE advised that the funds would have to be
taken from another funding source. At that point, the
Department would have to "hope" that the funds were
refurbished through the supplemental appropriation process.
She reiterated that there are no other places to charge the
costs to.
REPRESENTATIVE HARRIS stated that "one way or another", the
Department would do the photocopying.
KATHRYN DAUGHETEE commented that she could ask the Attorney
General to "drop" the request. She did not have a sense of
what his response to that would be. She agreed that if the
LBA Committee did not provide the funding, action would
still continue to move forward.
CHAIR THERRIAULT asked again if there was no other avenue
available, outside of using the existing authorization
through the Department, to cover the need. He inquired if
there were any administrative accounts which had been
established that could be drawn against.
KATHRYN DAUGHETEE clarified that the Department of Law does
not have such funds or accounts.
SENATOR WILKEN noted that he was the Chair of that
Subcommittee. He claimed that this year, the supplemental
would be heavily scrutinized. He advised that this case is
being pursued and that the copies need to be made. He
supported the Department's request in order that the
Legislature would not have to deal with the supplemental
request.
CHAIR THERRIAULT inquired what had been requested in the
Governor's FY03 budget.
KATHRYN DAUGHETEE responded that the FY03 budget was a
"status quo" budget.
CHAIR THERRIAULT asked if that meant that the only request
for that component was $180,000 dollars.
KATHRYN DAUGHETEE stated that was correct.
ED SNIFFEN added that the designated program receipts are
funds that the Department has collected from pursuant
collection efforts and he understood that those funds were
set aside just for this kind of need. He did not understand
the present predicament or discussion. He pointed out that
account was expected to have close to $1 million dollars
before the end of the fiscal year. The purpose of the funds
are for direct consumer related expenses.
CHAIR THERRIAULT claimed that the Legislature had set that
aside as a type of accounting mechanism. He inquired if it
could be established as a general fund function.
DAVID TEAL advised that this year, the SDPR would be
considered as receipts to the Department and would be
limited. If they were not spent, then those receipts would
lapse into the general fund. They are essentially general
fund program receipts. If the Department does not spend
them, they become available for any purpose in FY03.
CHAIR THERRIAULT reminded members that there was a motion
before the Committee to approve RPL #03-02-0163. There
being NO OBJECTION, the RPL was approved.
EXECUTIVE SESSION
VICE CHAIR FATE made a motion, in accordance with Title 24
and 44, to MOVE into Executive Session for the purpose of
discussing confidential items and personnel matters under
Uniform Rule No. 22 and for the purposes of discussing
confidential audit reports under Alaska Statutes 24.20.301.
There being NO OBJECTION, the Committee went into Executive
Session at 1:42 P.M.
CHAIR THERRIAULT requested that Commissioner Ed Flanagan,
Department of Labor and Workforce Development, Dave
Quisenbury, Department of Natural Resources, Pat Davidson,
Legislative Auditor, her staff, the Legislative Finance
Staff and Committee Staff, Heather Brakes be present for the
Executive Session.
The Committee resumed Open Session at 3:15 P.M.
AUDIT REPORTS
VICE CHAIR FATE MOVED to release the following preliminary
audits to the agencies for response:
· DPS/King Air Aircraft
· DCED/Regulatory Commission of Alaska
· DPS/Council on Domestic Violence & Sexual Assault
· DCED/Board of Dispensing Opticians
· ACS/Alaska Bar Association
There being NO OBJECTION, the preliminary audit reports were
released for agency response.
VICE CHAIR FATE MOVED to release the final audit reports as
public:
· DCED/Board of Chiropractic Examiners
· DCED/Board of Examiners in Optometry
· DCED/Board of Professional Counselors
· DOA/Division of Senior Services-Assisted Living
· DFG/Hunter Information and Training
There being NO OBJECTION, the audits were released for
public response.
VICE CHAIR FATE MOVED that the Committee approve the
following audit requests:
· DHSS/Division of Medical Assistance & Medicaid
· DNR/Division of Agriculture Revolving Loan Fund
CHAIR THERRIAULT noted that Legislative Auditor, Pat
Davidson, had worked with the requestors. He pointed out
that Senator Lyda Green had submitted the first request with
regard to the Department of Health & Social Services,
Division of Medicaid Assistance.
There being NO questions or OBJECTIONS, the audit request
was approved.
CHAIR THERRIAULT advised that the second request had been
submitted by Senator Lyda Green and Representative Jeannette
James in regard to the Department of Natural Resources,
Division of Agriculture, the agriculture revolving loan
fund.
PAT DAVIDSON noted that she had worked with Senator Green on
that request.
There being NO OBJECTION, the audit request was approved.
VICE CHAIR FATE MOVED to WITHDRAW the following audit
request:
· DHSS/Mat-Su Youth Facility
PAT DAVIDSON noted that in January 2000, information was
presented to the Committee following discussions with
employees at the Department of Health & Social Services
about the lack of a good working relationship between
Department of Transportation & Public Facilities and
Department of Health & Social Services with regard to one
construction project. It appeared that there were issues
for audit, however, it has been noted that the Department of
Law has engaged a consultant to come in to address some of
those allegations.
Legislative Audit informed the LBA Committee that they would
"stay on top" of that and if the Committee wished, they
could approve an audit. The Committee did so.
Ms. Davidson advised that Legislative Audit has followed
what the Department of Law consultant did and that the final
report has been reviewed. Legislative Audit did conduct a
preliminary review into facility construction management in
general and specifically the Mat-Su facility. No
significant construction management problems were found.
There being NO OBJECTION, the audit request was withdrawn.
OTHER COMMITTEE BUSINESS
CHAIR THERRIAULT advised members that the end of the
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calendar year was approaching. December 15 is the date
that the legislative agencies start to close out their books
for the calendar year. For any members who have travel
reimbursement requests to be carried forward must submit
them for processing.
School Cost Study
CHAIR THERRIAULT explained that the school cost study that
is currently under the purview of the LBA Committee has met
with the Association of Business Officers from school
districts. From that association, based on a recommendation
from the Department of Education & Early Development, Eddy
Jeans, and approval by the LBA Chair, a working group of
district business officers has been established to advise
the consultants as they proceed with the study. In
addition, there is an oversight committee, which consists of
members Vice Chair Fate, Pat Davidson, Eddy Jeans, David
Teal and Chair Therriault.
He advised that the oversight committee had met with the
consultants in order to address expressed concerns regarding
the manner in which the study was conducted. He expected
that would be continued with the work done by the
consultants, leading up to the report.
Anti-Terrorism Presentation
by Adjutant General Phil Oates
SENATOR PHILLIPS commented that during the up-coming
legislative year, it would be his personal commitment to
address anti-terrorism for the health and safety of all the
people of Alaska.
ADJUTANT GENERAL BG PHIL OATES, Commissioner, Department of
Military and Veterans Affairs, voiced his appreciation for
Senator Phillip's long-standing support for the military.
He referenced the handout in Committee member's packets:
[Copy on File].
"Executive Overview & Summary -
Alaska's Terrorism Disaster Policy Cabinet"
Major General Oates noted that he would "set the stage".
He acknowledged that it was was an unusual situation for the
Governor to propose a bill requesting eighteen months of
spending and that the eighteen months were connected. He
emphasized that the terrorists are not on a fiscal year
planning basis, thus meriting the urgency of the request.
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Major General Oates stated that on September 11, there were
more American deaths than on D-Day and/or Pearl Harbor
combined. He pointed out that there is a tendency to devote
government money and resources on all levels, to situations
that occur frequently. He acknowledged that the chance of
weapons of mass destruction and attack on Alaska are slim.
However, if it does happen, the effects from that incidence
within Alaska could be bigger than the cumulative affects of
every disaster in Alaska including the 1964 earthquake.
There are targets in Alaska of symbolic and international
significance with the oil infrastructure and pipeline. A
disaster could cause environmental damage or economic loss
for the nation. There are scenarios in which Alaska could
lose the oil infrastructure for long periods of time.
He continued, there are large groupings of international
people in the State with the number of tourists and cruise
ships that pass through each summer. Alaska is also
strategically located in the Pacific Rim and is out on the
"front-lines" as far as the United States is concerned.
Additionally, Alaska has a large transit of foreign
carriers.
He emphasized that there is a threat to the State of Alaska.
He requested that the Legislature sit with the Department of
Military & Veterans Affairs and the Governor to help
determine what risk the State is willing to assume. There
would never be enough wealth in Alaska or any state, to
provide 100% protection at every location. However, it is
the responsibility of each member of the Legislative Body to
access what risk should be taken and where and how our
precious resources are spread.
Major General Oates pointed out that the report generated by
the Disaster Policy Cabinet covered five major areas:
· Overall security, including transportation
security
· Energy security
· Information security
· Consequence management
Major General Oates acknowledged that a biological agent
like small pox attack could come from outside the Alaskan
border or there could be an Anthrax contamination attack
through the mail. He admitted that the possibility was slim
at this point. Terrorism, at one time was a means to an
end. At this time in history, terrorism is an end in and of
itself.
Major General Oates continued that a reasonable approach has
been taken by the Administration to strengthen programs that
already exist.
· Emergency management
· Public safety
· Public health capability
· Medical capability
· Ability to communicate
The legislative intent would be to establish an office for
eighteen-months to intensely work on the effort. He noted
the sunset clause. The results could be interlaced with the
current emergency management process.
Major General Oates explained that the intent would be to
"hit this hard" during the first two weeks of the Session.
Hopefully, to speed the process, the initial briefings could
be devoted to a combined House and Senate session
presentation for establishing the report and issues
associated with it.
He added that Representative Mulder had indicated that the
House Finance Committee would begin budget overviews with
the Department of Military & Veterans Affairs.
Major General Oates stated that the Department expected to
be challenged on what was essential. He advised, currently,
the State of Alaska does not have suitable protection for
the first responders. The State does not have the ability
to go in and be protected. There is no basic
decontamination table. There is a Level A hazardous
material (HAZMAT) capability, which exists only in
Anchorage, Fairbanks and in the National Guard. He stressed
that the State needs more than the ability to deploy. Given
the size of Alaska much more is needed.
Major General Oates pointed out that it is not only money,
which is being requested, but also additionally changes to
guarantee that the legislation fits the aspect of terrorism.
There will be a legislative change package provided for
consideration. It is intended that the Alaska State
Legislature maintain a "strong" voice and go to the national
level for changes which would affect the nation as a whole.
One important aspect of that would be to have more access
for use of the National Guard, similar to airport security
now in tact.
He pointed out that the airport security package had been a
change of events. He recommended that same model be
followed, having a budget and legislation in place that
would allow for quick access. In a free and open society,
the way to deal with terrorism is to have an efficient,
effective, and timely intelligence so that you can increase
the level of protection where it is needed.
Major General Oates commented that many of the financial
requests are driven by federal requirements such as
increased airport and railroad security. Some of that would
be achieved with federal monies. The airports could be
closed if the State does not fund that. He stated that
everyone must work diligently on these considerations.
Major General Oates noted that he has established principles
to guide these efforts:
· To strengthen existing programs, especially those
that protect and save lives;
· Prove capabilities for responding to all
emergencies;
· Identify and protect assets of national and
statewide importance;
· Maintain the continuity of government operations
at all levels;
· Reinforce first responder capabilities;
· Use and pool resources to augment areas with
inadequate capabilities;
· Maintain an appropriate balance between security
and individual freedom;
· Maintain the ability to communicate at all times
because the ability to manage a crisis depends on
that ability;
· Maximize the use of existing or anticipated
federal funding programs or grants; and
· Share costs at levels with the public and private.
Major General Oates added that there is also a larger
report, which is not available for public distribution at
this time. He stated he would provide that report to the
Legislature. He offered to answer questions of the
Committee.
CHAIR THERRIAULT noted that he had requested Major General
Oates to check on previous LBA action with regards to
requests that came through for $1.8 million dollars. He
added that $642 thousand dollars had been approved for
equipment which federal funds are expected to come for.
There was an additional request for $1.2 million dollars,
which the Committee tentatively approved, in case the
federal funds did not come through. No money has yet
materialized.
MAJOR GENERAL OATES pointed out that it was "hoped" that
some of the $40 billion federal dollars would come to
Alaska. At this time, some funds have flowed to the State,
primarily paid allowances for the National Guard, which
comes into the military pay system. He added that there is
a U.S. Department of Justice grant for a total of $1.09
million dollars. The assessment for that grant has just
been completed. The limits indicate that the money must be
used for equipment to protect first responders. Therefore,
the recommendation in the report is to use that equipment to
establish another level A HAZMAT capability in Southeast
Alaska. The Southeast region does not have one at this
time. Additionally, those funds would provide basic
protection capability for public safety officials if they
need to go into a hazardous environment. At this time, the
only requirement which the Department of Military & Veterans
Affairs has identified is the federal money in the amount of
$1.09 million dollars. He emphasized that would be a one-
time grant. There should be more funds in the future.
CHAIR THERRIAULT believed that would fall under the $642
thousand dollars authorized. He added that no money has
come forward for the $1.2 million dollars at this time.
VICE CHAIR FATE asked if the $1.2 million dollars did come
through, would it be used for the Southeast HAZMAT.
MAJOR GENERAL OATES noted that the State would receive the
$1.09 million dollars. He reiterated that the
recommendation would be to use it for the Southeast HAZMAT
capability. Southeast is not covered at this time. After
both Southeast and Valdez are covered, then the remaining
funds would be used for police to buy proper protective
equipment when moving into hazardous situations. He pointed
out that there have been in excess of one hundred Anthrax
situations within the State of Alaska. He did not believe
that it would be okay if a first responder were put at risk
during an assessment.
VICE CHAIR FATE asked if the capability in the pipeline
areas was being worked.
MAJOR GENERAL OATES stated it was and that the Department is
working diligently with the Alyeska Pipeline and their
security.
CHAIR THERRIAULT referenced the $1.09 million dollars
equipment grant.
MAJOR GENERAL OATES acknowledged that was the correct
amount.
CHAIR THERRIAULT noted that the LBA Committee had provided
authorization for $642 thousand dollars. He asked if the
additional money would be rolled into next years budget
request.
MAJOR GENERAL OATES understood that the funding would all be
made available as soon as the report was submitted.
TAPE LBA 01-12, SIDE B
MAJOR GENERAL OATES commented that a contractor had assisted
the Department, providing a comprehensive statewide
assessment. The $1.09 million dollars will come to the
State as soon as the assessment is submitted. That money
will come out of the requirements identified in the
terrorism report. The money is identified as a State
general fund requirement. Since it is listed in the
priority recommendations, it would reduce the burden. He
suggested that it could lower some of the State requirement.
More details would be provided during the Legislative
Session. The Department needs the authority to spend the
federal dollars this budget year.
CHAIR THERRIAULT asked if the $1.09 million dollars would
include previous authorization.
MAJOR GENERAL OATES explained that the Department must move
from the $642 thousand dollars to the $1.09 million dollar
allocation in order to receive authority to spend federal
monies.
CHAIR THERRIAULT asked if the Department anticipated
utilizing part of the tentative authorization.
MAJOR GENERAL OATES replied only if it was authorized. As
soon as the federal funds become available, the Department
will let the Committee know.
SENATOR PHILLIPS inquired if the process being referenced
was the one which had been identified a couple months ago.
CHAIR THERRIAULT noted that there were some questions if
that action would be overstepping the administrative
function of the Committee. He thought that it could be
workable and that the Committee's action could be a
tentative hold.
MAJOR GENERAL OATES commented that at the last presentation,
the Department did not have enough information for the
Committee to determine the way in which the money would be
used.
CHAIR THERRIAULT spoke to the contractual versus the
tentative approval role of the Legislative Budget and Audit
Committee.
SENATOR PHILLIPS recommended that the language of the report
should be more straightforward. He stressed that the
language should indicate that what happened was a terrorist
attack. He feared that as time passes, people would
minimize the actuality of the attack if that language is not
clearly defined.
MAJOR GENERAL OATES added that he has been participating in
a national level seminar at Harvard. He claimed that the
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September 11 situation would define the military forever
more. Winning the ground battle in Afghanistan will not end
terrorism, and in fact could make it worse. Weapons of mass
destruction are available to terrorist. Major General Oates
commented that he did not want to over-state the situation,
however, there has been a terrorist attack against our
country, which killed, many.
SENATOR PHILLIPS reminded members that a terrorist attack
has not occurred in the United States since 1812 during the
British invasion.
MAJOR GENERAL OATES read from a handout:
"The domestic preparedness equipment grant is designed
specifically and exclusively for first responder
equipment. Therefore, funding from this grant can only
be allocated within the State's list of equipment
priorities. Given that as the case, to stage
priorities for this grant, would be to equip Juneau and
Valdez with level A hazmat team and individual
protective equipment for law enforcement officers
statewide. If grants become available in FY02, the
State would use them for decontamination."
Major General Oates reiterated that was the intent of the
Department, and that it was consistent with the highest
recommendations.
SENATOR PHILLIPS asked if Major General Oates was confident
that there could be an effective coordination regardless of
the weapons used.
MAJOR GENERAL OATES replied that the State does have a "good
start" on the process. The requested funds will provide the
office with an eighteen-month period to lock in some of
those procedures. That office will sunset and be
assimilated into the emergency management process. The idea
is to have the experts from the other supporting groups to
work full time on the concern of dealing with weapons of
mass destruction. The biggest shortfall rests in the
medical and public health capability, which is true across
the nation.
Major General Oates voiced appreciation to the Committee
members for their consideration of the request. He added
that the Department and the Governor would like to fast
track the request. The Legislature needs to help determine
how much risk they are willing to assume and how the
resources are to be distributed.
VICE CHAIR FATE asked if it was anticipated that the
Department would submit a supplemental request.
MAJOR GENERAL OATES acknowledged that the Department has
already spent Department funds to provide the checkpoint on
the pipeline road. State funds have also been used to
assist in some of the actions taken as a result of the
th
terrorist attack on September 11.
Major General Oates pointed out that the State receives
nearly $3 million dollars a day from activity associated
with the pipeline. He asked if members could imagine the
effect on the State's economy if that was interrupted. It
is prudent to spend State dollars to protect that resource.
There is 800-miles of pipeline. Risks are taken for the
protection of the line. Those risks are taken in the areas
that can be repaired. The defense also rests in the
intelligence that is required, and at this point, there is
not enough intelligence integration within the State.
Alaska needs to be able to use more National Guard members.
VICE CHAIR FATE inquired if the Department of Military &
Veterans Affairs had been in discussion with Department of
Transportation & Public Facilities.
MAJOR GENERAL OATES replied that they absolutely had.
VICE CHAIR FATE voiced concern about certain key points on
the pipeline road.
MAJOR GENERAL OATES stated that there are some key points
where the repair equipment is no longer being manufactured.
He added that there are some points where, that if a person
knew the location, could put the pipeline out of business
for a long period of time. If the pipeline were to be put
into a non working order during the wintertime over a 60-day
period, the State would be in danger of loosing it
permanently. He pointed out that someone could make an
attack in Valdez, as it is an easy site to attack.
Major General Oates reiterated that the entire Legislative
body needs to help the Administration address where the risk
points should be. He voiced his appreciation for the
opportunity to hold the briefing before the LBA Committee.
ADJOURNMENT
CHAIR THERRIAULT adjourned the Legislative Budget and Audit
Committee at 3:50 P.M.
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