Legislature(2009 - 2010)BUTROVICH 205

03/10/2010 01:30 PM Senate JUDICIARY


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01:31:57 PM Start
01:32:42 PM Confirmation Hearing: Attorney General
03:20:47 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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+ Confirmation Hearing: Attorney General TELECONFERENCED
Daniel S. Sullivan
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         March 10, 2010                                                                                         
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Hollis French, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Dennis Egan                                                                                                             
Senator Lesil McGuire                                                                                                           
Senator John Coghill                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Attorney General: Daniel B. Sullivan                                                                                          
                                                                                                                                
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Daniel B. Sullivan, Appointee                                                                                                   
Attorney General of the State of Alaska                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Testified as appointee to the position of                                                                
Attorney General                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:57 PM                                                                                                                    
CHAIR  HOLLIS   FRENCH  called  the  Senate   Judiciary  Standing                                                             
Committee meeting to  order at 1:31 p.m.  Senators Egan, Coghill,                                                               
Wielechowski  and  French were  present  at  the call  to  order.                                                               
Senator McGuire arrived soon thereafter.                                                                                        
                                                                                                                                
                                                                                                                                
            ^CONFIRMATION HEARING:  Attorney General                                                                        
                                                                                                                                
CHAIR FRENCH  announced the only  order of business would  be the                                                               
consideration of  the appointment  of Daniel  B. Sullivan  to the                                                               
position  of  Attorney  General  of   the  State  of  Alaska.  He                                                               
commented that several  years ago he was impressed  when he heard                                                               
Mr.  Sullivan speak  on  matters of  international  trade at  the                                                               
University  of  Alaska and  so  it  was  a  pleasure to  see  him                                                               
reemerge as the attorney general years later.                                                                                   
                                                                                                                                
1:32:42 PM                                                                                                                    
SENATOR MCGUIRE joined the committee.                                                                                           
                                                                                                                                
DANIEL S.  SULLIVAN, Appointee, Attorney  General, said  he would                                                               
focus on  three areas: his  background and experience;  his areas                                                               
of emphasis at the Department of  Law since he was appointed last                                                               
June; and his management philosophy and goals.                                                                                  
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN provided a brief  personal history and                                                               
recounted  his professional  experience including  time as  a law                                                               
clerk; a staff  attorney on the Alaska Court  of Appeals; private                                                               
practice  with Perkins  Coie in  Anchorage focusing  on corporate                                                               
law; a White House fellowship where  he served as director on the                                                               
National Security Council staff;  and U.S. Assistant Secretary of                                                               
State in  charge of global  energy and economic issues.  His full                                                               
resume was provided  in members' packets and may be  found in the                                                               
committee file.  He committed to  continue to use  his experience                                                               
to advance Alaska's interests.                                                                                                  
                                                                                                                                
1:41:28 PM                                                                                                                    
ATTORNEY  GENERAL SULLIVAN  said  he has  focused  on four  areas                                                               
since becoming  attorney general  in June.  The first  relates to                                                               
protecting  Alaskans. This  ranges from  the focused  strategy to                                                               
reduce the  epidemic of sexual  assault and domestic  violence to                                                               
consumer  protection.  The  second  area  is  promoting  economic                                                               
opportunity  including intervening  in lawsuits  that affect  the                                                               
potential  economic interests  of the  state. The  third area  is                                                               
protecting  the state's  fiscal integrity,  both offensively  and                                                               
defensively.  He   highlighted  that   the  DOL   civil  division                                                               
collected about $560 million, a return  of $10 for every $1 spent                                                               
on  the  department.  The  fourth   priority  is  promoting  good                                                               
governance   and  that's   done   by  defending   the  laws   and                                                               
constitution,  working with  the Legislature  on regulations  and                                                               
legislation, and  working to ensure that  the government operates                                                               
within  the  parameters   of  the  law  and   state  and  federal                                                               
constitutions.                                                                                                                  
                                                                                                                                
1:44:50 PM                                                                                                                    
                                                                                                                                
Another priority  is to address  the challenges of life  in rural                                                               
Alaska.  As chair  of the  governor's rural  sub-cabinet and  co-                                                               
chair  of the  federal  Rural Justice  Commission  with the  U.S.                                                               
attorney,  he  said  he's  traveled to  rural  Alaska,  met  with                                                               
leadership, and  held public hearings  to better  understand some                                                               
of  the problems  and  how to  address them  both  from a  public                                                               
safety/law enforcement standpoint and an economic standpoint.                                                                   
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  said  his  management philosophy  and                                                               
objectives focus  on four areas:  1) integrity as  the touchstone                                                               
of all DOL decisions and  a high level of professional standards;                                                               
2)  respect  and  collaboration with  colleagues;  3)  increasing                                                               
moral and recruiting top notch  attorneys; and 4) working closely                                                               
with the  Legislature and being  responsive to requests.  When he                                                               
was appointed  he sent  a letter to  each legislator  saying that                                                               
this is  an important  part of  the job. At  this point  he's met                                                               
privately with all  but two legislators and he  plans to continue                                                               
to focus on this.                                                                                                               
                                                                                                                                
He said he  believes he has a clear understanding  of his role in                                                               
state government, but his highest  responsibility and duty are to                                                               
the laws and Constitution of the State of Alaska.                                                                               
                                                                                                                                
1:48:01 PM                                                                                                                    
CHAIR   FRENCH  thanked   him  for   reaching  out   and  keeping                                                               
legislators abreast of the important  advances that take place in                                                               
DOL. He  then asked  which Supreme Court  Justice and  which U.S.                                                               
President he admires most and why.                                                                                              
                                                                                                                                
ATTORNEY GENERAL SULLIVAN said he  will mention two Supreme Court                                                               
justices.  The first  is Chief  Justice John  Marshall. He  was a                                                               
visionary jurist  without peer who  served as Chief  Justice from                                                               
1801  to  1835.  He  brought clarity  and  understanding  to  the                                                               
constitutional structure  and in  many ways  was critical  to the                                                               
successful  founding of  the country.  On the  personal side,  he                                                               
served in the Continental Army,  the U.S. House, and as Secretary                                                               
of State  for two  years. Certainly,  he said, he  was a  man who                                                               
served his country well.                                                                                                        
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  said he  also admires  Oliver Wendell                                                               
Holmes. He  enlisted in the  Massachusetts Militia when he  was a                                                               
senior at  Harvard and fought in  a number of Civil  War battles.                                                               
After  that  he   became  a  noted  jurist  and   served  on  the                                                               
Massachusetts Supreme  Court. At age  70 he was appointed  to the                                                               
U.S. Supreme  Court by Teddy  Roosevelt and served until  age 90.                                                               
His judicial philosophy  was focused on separation  of powers and                                                               
a  respectful role  of the  Legislature. He  was an  enthusiastic                                                               
First Amendment proponent even during  World War I when there was                                                               
great interest in suppressing dissent.                                                                                          
                                                                                                                                
1:51:51 PM                                                                                                                    
ATTORNEY GENERAL  SULLIVAN said President Reagan  is his favorite                                                               
president. He  embodied true  principled leadership  believing in                                                               
the  country from  both economic  and foreign  policy standpoints                                                               
when a lot  of Americans lacked that  belief. He had a  lot to do                                                               
with  moving   the  country  from   a  doubting   perspective  to                                                               
confidence.                                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI noted  that he wasn't living  in Alaska when                                                               
he was appointed  as attorney general and asked  how he initially                                                               
approached the governor or if she approached him.                                                                               
                                                                                                                                
ATTORNEY GENERAL SULLIVAN  explained that when he  left Alaska in                                                               
2002 he intended  to return after one year, but  those plans were                                                               
put  on hold  because of  job  extensions and  being recalled  to                                                               
active  duty  by the  Marine  Corps.  When  his active  duty  was                                                               
complete  he  was  offered  and accepted  the  job  of  Assistant                                                               
Secretary of  State. In  the fall of  2008 he  began interviewing                                                               
for  positions  in  Alaska  and when  the  position  of  attorney                                                               
general  became   open  he  indicated  his   interest.  A  friend                                                               
contacted the  governor. He interviewed  with her staff  and then                                                               
with  then  Governor  Palin  directly.   He  described  it  as  a                                                               
fortunate confluence of interests and events.                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI asked when he  became a member of the Alaska                                                               
Bar.                                                                                                                            
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied  he clerked  in 1997  and 1998                                                               
and became a member of the bar in 2000.                                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI asked if he had practiced law in Alaska.                                                                   
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied he  clerked for 2.5  years and                                                               
worked at Perkins Coie in Anchorage for 2 years.                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI asked who his  major clients were at Perkins                                                               
Coie.                                                                                                                           
                                                                                                                                
ATTORNEY   GENERAL  SULLIVAN   answered  his   work  was   mostly                                                               
commercial  transactions,  but it  included  a  cross section  of                                                               
small to large Alaska business interests.                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI asked if he  worked in a particular division                                                               
at Perkins Coie.                                                                                                                
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied  most of  his work  focused on                                                               
corporate transactions  with some  work on  commercial litigation                                                               
issues.                                                                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked if he  represented any  oil companies                                                               
that do business in Alaska.                                                                                                     
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied he  did some work  with regard                                                               
to  BP,   but  principally  he   focused  on   smaller  business,                                                               
investors, and Native corporations.                                                                                             
                                                                                                                                
1:58:24 PM                                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE  said  she  feels  a  sense  of  hope  with  his                                                               
appointment. He responded immediately  when she shared her number                                                               
one concern, which is that  the epidemic of domestic violence and                                                               
assault on women and children  is eclipsing the economics and all                                                               
other things  in the state.  She then articulated concern  in two                                                               
areas related  to children's services  - a lack of  resources and                                                               
infringement of parental  rights. She cited a case  in Bethel and                                                               
asked what  DOL might be  able to do  to partner with  the Alaska                                                               
Supreme Court and  the Legislature to look  at putting additional                                                               
resources into the  Office of Child's Services. She  also cited a                                                               
case from  the other  end of the  spectrum where  parental rights                                                               
were all  but ignored  and asked what  he thinks  about potential                                                               
liability.                                                                                                                      
                                                                                                                                
2:05:12 PM                                                                                                                    
                                                                                                                                
ATTORNEY  GENERAL  SULLIVAN  thanked   Senator  McGuire  for  her                                                               
leadership in the area of  children's services and noted that OCS                                                               
issues  oftentimes  involve  domestic violence  and  sex  assault                                                               
problems. He  credited her with  being first to suggest  that the                                                               
state  pattern  its  response  to these  issues  on  the  Mothers                                                               
Against Drunk  Driving (MADD) model  and said that on  this issue                                                               
DOL is very closely aligned  with the Legislature. He assured her                                                               
that DOL has a large section that  works with OCS and that he has                                                               
spent a lot of time with the excellent attorneys there.                                                                         
                                                                                                                                
He  acknowledged  that  DOL  has heard  clearly  that  there  are                                                               
resource issues with regard to OCS  and that it has also heard of                                                               
cases  on the  other extreme  where people  believe that  OCS has                                                               
acted inappropriately with regard  to parental rights. That being                                                               
said, his  perspective is that  DOL has  a very strong  team that                                                               
does great  work in difficult  circumstances. DOL works  with the                                                               
Department of  Health and Social  Services (DHSS) with  regard to                                                               
training and how  to have the OCS workers make  sure that they're                                                               
complying with  the law. He highlighted  that of the 19  cases of                                                               
OCS  interventions that  went to  the Alaska  Supreme Court  last                                                               
year, the  court affirmed in  all 19  cases that the  agency took                                                               
the  proper,  within-the-law  action.  DOL will  work  with  this                                                               
committee  and others  on improvements  with regard  to OCS,  but                                                               
this is something that DOL is focused on already, he said.                                                                      
                                                                                                                                
2:09:54 PM                                                                                                                    
SENATOR MCGUIRE said she appreciates  that the work is difficult;                                                               
she's  just inviting  more participants  into the  dialog and  is                                                               
encouraging outreach  to Morgan  Christen and the  Alaska Supreme                                                               
Court task force that's been assembled. It's a very broad issue.                                                                
                                                                                                                                
CHAIR  FRENCH questioned  why  the state  is,  at great  expense,                                                               
pursuing the Kaltag case, seeking  to overturn the decision about                                                               
placement of a tribal child by  a tribal court. Everyone seems to                                                               
agree with the decision whereas the  state appears to be taking a                                                               
position that  is contrary  to John  v. Baker.  In that  case the                                                               
state  argued in  support  of the  jurisdiction  of Alaska  state                                                               
courts  concurrent  with  Alaska  tribal  courts  to  hear  child                                                               
custody disputes involving  tribal children. He said  his view is                                                               
that the tribes are helping  the state by performing an essential                                                               
service that the  state is unwilling to provide  because it isn't                                                               
going to put OCS agents in  every village in the state to oversee                                                               
these issues.                                                                                                                   
                                                                                                                                
ATTORNEY  GENERAL  SULLIVAN  said  a touchstone  of  the  Parnell                                                               
Administration   is   respect   and   partnership   with   Native                                                               
organizations  and tribes.  He agrees  completely that  the state                                                               
should be  partnering and cooperating  on a number of  issues and                                                               
from the  perspective of DOL that  is happening. It has  been and                                                               
will continue to  be a big focus. However, the  state is pursuing                                                               
the Kaltag case  because it believes that it is  an instance of a                                                               
tribal court  exerting membership over  one parent who is  a non-                                                               
member.  In a  state that  has 229  federally recognized  tribes,                                                               
it's a  fundamental and critical  issue on which the  state needs                                                               
clarity.                                                                                                                        
                                                                                                                                
2:18:31 PM                                                                                                                    
SENATOR  WIELECHOWSKI  pointed out  that  three  courts and  five                                                               
judges looked  at and  rejected his position.  He asked  what the                                                               
state is paying outside counsel to  draft the brief in the Kaltag                                                               
case.                                                                                                                           
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  said the  9th U.S.  Circuit Court  of                                                               
Appeals  relied  on  a  case  from 1991  and  DOL  believes  that                                                               
decision is  unclear because the law  has developed significantly                                                               
since then. He  said he didn't know what the  state is paying the                                                               
outside counsel, but he would provide the information.                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI  said he understands that  the legal charges                                                               
range  from $700  to  $1,200  per hour.  He  asked  who made  the                                                               
decision to go forward on the case.                                                                                             
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN reiterated  that DOL  has respectfully                                                               
sought clarity  on this important  issue because it's  not clear.                                                               
With  regard to  who made  the decision,  he said  he raised  the                                                               
question with  the governor. He  agrees with Senator  French that                                                               
the tribal court was trying to  do the right thing and that's why                                                               
he believes that working on  a broader approach between the state                                                               
and tribal  courts is the way  to resolve the issue,  not through                                                               
continued litigation.                                                                                                           
                                                                                                                                
2:24:57 PM                                                                                                                    
CHAIR FRENCH  said you  may have trouble  with the  memorandum of                                                               
understanding (MOU) and  may not be aware of the  degree to which                                                               
this has  ruffled feathers  in the  Native legal  community. They                                                               
see it  as an  attack on John  v. Baker and  the right  of tribal                                                               
courts  to exercise  concurrent jurisdiction  in the  state. This                                                               
case has not only provoked  intense resistance it also appears to                                                               
have bad facts to take to the U.S. Supreme Court.                                                                               
                                                                                                                                
ATTORNEY GENERAL SULLIVAN  reiterated that he is  very focused on                                                               
engaging  and   working  with  the   Alaska  Native   and  tribal                                                               
communities  and his  record reflects  that it's  more than  just                                                               
talk.  He  has  great  respect  for  these  communities,  but  he                                                               
continues to believe  that there is no clarity in  the law on the                                                               
extent to  which a  tribal court can  have jurisdiction  and take                                                               
action on the right  to be a parent to a  child. Given the number                                                               
of  tribes in  this state  and  the frequency  with which  family                                                               
relations  cross tribal  boundaries, the  state made  the careful                                                               
and considered decision to ask for a U.S. Supreme Court review.                                                                 
                                                                                                                                
2:28:23 PM                                                                                                                    
SENATOR  MCGUIRE said  she understands  that it's  more than  the                                                               
issue  of Native  and  non-Native parents,  it's  the ability  to                                                               
assert authority  and jurisdiction over a  child's placement when                                                               
the parents  are from different  tribes. She agrees  with Senator                                                               
French that this has ruffled  feathers in the Native community at                                                               
a time  when there are so  many looming issues related  to tribal                                                               
lands, Indian country, and sovereignty.                                                                                         
                                                                                                                                
2:30:43 PM                                                                                                                    
SENATOR  WIELECHOWSKI cited  the  facts in  the  Kaltag case  and                                                               
expressed astonishment  that the  state had  taken the  action it                                                               
did. Financially this is a bad  policy decision and a slap in the                                                               
face to the Native community, he said.                                                                                          
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN reiterated his respect  for the entire                                                               
Alaska Native  community and said he  respectfully disagrees with                                                               
his  assessment.  Coordinating  and  cooperating  to  enable  all                                                               
parties to work  together to the benefit and  welfare of Alaska's                                                               
children is something  he's personally worked on  through the MOU                                                               
and some progress  has been made. "Nothing I'm trying  to do with                                                               
this department should be viewed as  a slap in the face of Alaska                                                               
Natives," he concluded.                                                                                                         
                                                                                                                                
2:33:43 PM                                                                                                                    
CHAIR  FRENCH said  to  illustrate the  complexity  of your  job,                                                               
we'll move from the difficult  issue of tribal sovereignty to the                                                               
issue  of  Price Waterhouse  Coopers  losing  current and  former                                                               
state employees'  personal information. He asked  for an overview                                                               
of what  happened, his involvement  in the case,  the settlement,                                                               
and when the state learned about the data loss.                                                                                 
                                                                                                                                
ATTORNEY  GENERAL   SULLIVAN  explained   that  this   was  broad                                                               
information  that  the  state provided  to  Mercer,  the  state's                                                               
actuary  that   was  doing   modeling  of   retirement  benefits.                                                               
Subsequently,  the state  became dissatisfied  with the  work and                                                               
cut off  the relationship  and sued. In  the course  of discovery                                                               
the actuarial  model was  given to  Price Waterhouse  Coopers for                                                               
analysis.  In   early  December  that  premier   accounting  firm                                                               
realized that it had misplaced this data.                                                                                       
                                                                                                                                
While  the Department  of  Administration  analyzed exactly  what                                                               
information was lost, the Department  of Law focused on its legal                                                               
options,  which  were  to  sue  or agree  on  a  settlement.  The                                                               
overriding  concern  was  to  protect  and  notify  the  affected                                                               
Alaskans.  The state  wasn't sure  that suing  would provide  any                                                               
protection  to the  Alaskans involved  and  instead negotiated  a                                                               
settlement and announced  on January 27 that  "There's a problem,                                                               
but you're covered." The current  focus is to implement the terms                                                               
of the  settlement. To  date 16,500 Alaskans  have signed  up for                                                               
the protection.                                                                                                                 
                                                                                                                                
2:42:27 PM                                                                                                                    
SENATOR COGHILL asked  if he means that the  Alaskans have signed                                                               
up is for personal credit protection.                                                                                           
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN answered yes  and added that  he would                                                               
encourage anyone who  received a letter to take  advantage of the                                                               
protection. The  sign-up provides  the option of  a minimum  of 2                                                               
years of personal credit protection  or a freeze. Under the terms                                                               
of the  agreement, there might  be a  third year or  an extension                                                               
beyond that  time. Price Waterhouse  Coopers will  also indemnify                                                               
any Alaska  citizen who says  their identity has been  stolen and                                                               
they've been damaged. The state has  gone to great lengths to get                                                               
citizens  protection and  indemnification at  no cost.  He opined                                                               
that  this  path was  preferable  to  litigation with  regard  to                                                               
immediately protecting  citizens. Also, there's a  presumption in                                                               
the agreement that  anything that happens to a  citizen who signs                                                               
up was caused by  the loss. It will be very  easy to collect from                                                               
Price Waterhouse Coopers  in the event that  something happens to                                                               
someone who has signed up, he said.                                                                                             
                                                                                                                                
2:44:49 PM                                                                                                                    
SENATOR WIELECHOWSKI asked how many people are affected.                                                                        
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN said  77,000 were affected  and 16,500                                                               
have signed up as of today.                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI asked how long the protection lasts.                                                                       
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied it's  a minimum of  two years,                                                               
but there  are two extension  provisions that are  somewhat vague                                                               
so a "bad  guy" won't simply wait  out the term and  then use the                                                               
personal information.                                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI asked  if the affected Alaskans  have to pay                                                               
for the additional years of  protection and questioned what would                                                               
happen five years from now if their identities were misused.                                                                    
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied  they'll be protected  as long                                                               
as they're covered, but there's no time limit on the indemnity.                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI asked if a  person whose identity is used 10                                                               
to  15  years from  now  would  be  made  whole; that's  what  he                                                               
believes should happen.                                                                                                         
                                                                                                                                
ATTORNEY  GENERAL  SULLIVAN  said  he believes  that's  what  the                                                               
indemnity agreement  does, but he'll  check and get back  to him.                                                               
He  added that  he's looked  at other  AG agreements  and doesn't                                                               
believe that any are this comprehensive.                                                                                        
                                                                                                                                
SENATOR    WIELECHOWSKI    questioned   why    everyone    wasn't                                                               
automatically signed up.                                                                                                        
                                                                                                                                
ATTORNEY  GENERAL  SULLIVAN said  that  was  considered, but  DOL                                                               
didn't believe  it had the  legal authority to  unilaterally give                                                               
personal information to Equifax.                                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI asked what specific data was stolen.                                                                       
                                                                                                                                
ATTORNEY GENERAL SULLIVAN  clarified that the data  may have been                                                               
misplaced and not  stolen, but the relevant  data included names,                                                               
dates of birth, and social security numbers.                                                                                    
                                                                                                                                
2:50:05 PM                                                                                                                    
SENATOR MCGUIRE  asked what his  office is doing with  respect to                                                               
the Endangered Species Act (ESA) and  if he has a team that deals                                                               
with sovereignty  and development of  Alaska land as  it pertains                                                               
to the  federal government.  She understands  there is  a renewed                                                               
effort  to  look  at  the  Outer  Continental  Shelf  (OCS),  the                                                               
National  Petroleum  Reserve-Alaska  (NPRA) and  the  Antiquities                                                               
Act.                                                                                                                            
                                                                                                                                
ATTORNEY  GENERAL  SULLIVAN replied  they've  been  focused on  a                                                               
broader strategy  with respect  to the ESA  issue to  address the                                                               
potential future  problem for  the state.  He explained  that the                                                               
climate-based listings are  based on models of  climate change in                                                               
the  future, but  they don't  account for  where the  species are                                                               
now.  He cited  the  polar  bear as  an  example  of a  currently                                                               
healthy population that  is modeled to decline. DOL  sees this in                                                               
combination with  the huge critical  habitat determinations  as a                                                               
troubling trend, particularly  since the state has  no input. DOL                                                               
has  responded  by  fighting  the   listings.  When  the  federal                                                               
government has rejected  these theories, like in the  case of the                                                               
ribbon seal,  the state is  intervening on behalf of  the federal                                                               
government.  He noted  that  in  that case  the  state sought  to                                                               
intervene and  the environmental  group that brought  the lawsuit                                                               
is  opposing the  state's intervention  in a  case that  involves                                                               
only Alaska animals. This is a huge outrage, he said.                                                                           
                                                                                                                                
2:53:55 PM                                                                                                                    
CHAIR  FRENCH asked,  in  general,  how often  a  challenge to  a                                                               
listing prevails.                                                                                                               
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  replied  it's very  fluid with  these                                                               
climate-based  listings and  that's why  the state  believes that                                                               
getting  involved  and  getting  courts  to  reject  it  is  very                                                               
important. The state  has also looked at potential  ways to limit                                                               
the critical  habitat determination, but it's  difficult when the                                                               
federal government  doesn't even  confer with  the state  when it                                                               
makes a  decision. He  cited the 200,000  square mile  polar bear                                                               
determination and the Cook Inlet beluga whale determination.                                                                    
                                                                                                                                
The state is also seeking allies  in the other 49 states. To that                                                               
end, he  sent letters  to the  other attorneys  general outlining                                                               
what has happened in this state  and warning that it could happen                                                               
anywhere. The  letter struck a  chord and he has  since suggested                                                               
that  the  National  Association   of  Attorneys  General  (NAAG)                                                               
establish a  task force/working group  on ESA issues.  Recently a                                                               
group  of AGs  met  with  the Secretary  of  Interior to  discuss                                                               
concerns with  the federal  approach to  critical habitat  and to                                                               
respectfully point out that their  legal comments should be taken                                                               
seriously.  The critical  habitat  determination  is supposed  to                                                               
balance risk  to the species, economic  opportunity, and national                                                               
security  and the  states  are best  able to  weigh  in on  those                                                               
factors.                                                                                                                        
                                                                                                                                
2:57:57 PM                                                                                                                    
Responding  to  the  Senator  McGuire's  question,  he  said  DOL                                                               
doesn't   have  a   sovereignty  lands   team  but   it  has   an                                                               
environmental group  and an  ESA attorney  and has  been actively                                                               
involved in federal water rights  issues, OCS issues, ESA issues,                                                               
and Tongass timber harvest issues. These  all go to the matter of                                                               
state and federal jurisdictional and sovereignty issues.                                                                        
                                                                                                                                
SENATOR MCGUIRE asked for assurance  that in the event that there                                                               
are legal  challenges to AGIA  that DOL has been  researching the                                                               
provisions in the  law and is prepared to  respond and vigorously                                                               
defend the state.                                                                                                               
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  replied DOL  has thoroughly  examined                                                               
the  treble  damages provision  in  AGIA  and, depending  on  the                                                               
circumstances, would  be prepared to  respond. He added  that DOL                                                               
is  also looking  at several  tax-related  provisions under  AGIA                                                               
that several legislators have asked about.                                                                                      
                                                                                                                                
SENATOR COGHILL said both the  Indian Children Welfare Act (ICWA)                                                               
and  the Child  In  Need  of Aid  (CINA)  laws  landed on  Alaska                                                               
simultaneously  in the  late '90s  and have  undergone change  as                                                               
they were being  implemented. It's a question as  to whether it's                                                               
been done well,  but the question is how to  protect the citizens                                                               
of Alaska through  the state law and work with  the Native groups                                                               
who  also  had  a  template  sent down  to  them  that  was  more                                                               
geographically  tribal oriented  and didn't  really fit  Alaska's                                                               
unique  circumstances.  He  said  he  was  pleased  to  hear  the                                                               
commitment to work  those things out because  it's necessary. The                                                               
next generation deserves clarity of the law.                                                                                    
                                                                                                                                
He noted  that the CINA law  is a civil-based law,  but it almost                                                               
always  deals with  a criminal  element.  He said  they cross  so                                                               
often that it  gets confusing to judges. He asked  if there is an                                                               
awareness of  that dynamic  within DOL and  if there  is anything                                                               
that the  Legislature can do to  help brighten the line.  I don't                                                               
need the  answer today, but we  need to look for  that answer, he                                                               
said.                                                                                                                           
                                                                                                                                
3:03:20 PM                                                                                                                    
ATTORNEY  GENERAL SULLIVAN  replied  these  are very  challenging                                                               
issues that  involve children, which  is why  DOL is giving  it a                                                               
lot of attention.                                                                                                               
                                                                                                                                
SENATOR COGHILL  observed that as  more work is done  on domestic                                                               
violence and  sexual assault it's  recognized that the  issues go                                                               
hand-in-hand.  He  said he  wanted  to  mention another  concern,                                                               
which  is that  as  crimes have  been ratcheted  up  in the  last                                                               
several  years, they've  been bargained  down in  application. He                                                               
questioned whether  the changes  in law  have really  caught more                                                               
bad   guys  or   just  given   prosecutors  and   defenders  more                                                               
discretion.                                                                                                                     
                                                                                                                                
CHAIR FRENCH  noted that he too  asked that question in  the memo                                                               
he sent  to the  attorney general  to help  him prepare  for this                                                               
hearing. He  asked Attorney General Sullivan  to answer questions                                                               
8, 9,  and 10  in writing and  send them to  his office  and he'd                                                               
distribute the answers to the committee members.                                                                                
                                                                                                                                
ATTORNEY GENERAL SULLIVAN agreed to do so.                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI  asked  Chair  French if  he  could  submit                                                               
additional questions to the attorney general through his office.                                                                
                                                                                                                                
CHAIR  FRENCH agreed  to forward  the questions  to the  attorney                                                               
general.                                                                                                                        
                                                                                                                                
3:06:09 PM                                                                                                                    
SENATOR MCGUIRE moved and asked  unanimous consent to forward the                                                               
name Daniel Sullivan for the  position of Attorney General of the                                                               
State of Alaska  to the full body  for consideration, recognizing                                                               
that   members   are   free    to   indicate   their   individual                                                               
recommendations.                                                                                                                
                                                                                                                                
CHAIR FRENCH asked if there was objection to the motion.                                                                        
                                                                                                                                
SENATOR  WILECHOWSKI questioned  whether  it  was appropriate  to                                                               
forward the name when his questions hadn't been answered.                                                                       
                                                                                                                                
3:06:45 PM                                                                                                                    
CHAIR FRENCH called an at ease.                                                                                                 
                                                                                                                                
3:07:52 PM                                                                                                                    
CHAIR FRENCH  reconvened the hearing  and stated that  the motion                                                               
would be held in abeyance  so that Senator Wielechowski could ask                                                               
additional questions.                                                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI asked  the attorney  general if  he decides                                                               
which  cases go  forward or  if he  takes those  orders from  the                                                               
governor.                                                                                                                       
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  replied  it depends  on the  specific                                                               
case. He  has moved forward on  certain cases that relate  to his                                                               
responsibilities pursuant to statute  as attorney general without                                                               
consultation  or discussion  with the  governor. When  cases have                                                               
particular  significance to  the state  he mentions  them to  the                                                               
governor,  but those  aren't that  common. For  example, when  he                                                               
came on  board he suggested the  state become a party  to the OCS                                                               
litigation because  it directly  affects the future  of Alaskans.                                                               
If there's some sort of  settlement, it would be advantageous for                                                               
the state to be at the table.                                                                                                   
                                                                                                                                
3:11:38 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  if he feels obliged  to institute any                                                               
legal action that the governor requests.                                                                                        
                                                                                                                                
ATTORNEY  GENERAL   SULLIVANI  replied  he  is   by  statute  the                                                               
governor's  legal advisor  and so  far there's  been no  conflict                                                               
between his advice and the governor's policy direction.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  he believes he  has the  right to                                                               
say no  if he disagrees with  a request from the  governor and if                                                               
he  has  the  authority  to move  ahead  against  the  governor's                                                               
wishes.                                                                                                                         
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN said  his guiding  principle is  to do                                                               
nothing that would contravene the  law or the constitution of the                                                               
state.                                                                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI  asked if he's  willing to commit  to review                                                               
the oil and gas leases to  ensure that the companies are drilling                                                               
and exploring to the maximum capacity.                                                                                          
                                                                                                                                
ATTORNEY GENERAL  SULLIVAN replied he  has been focused  on that.                                                               
He believes  that DOL has played  a proactive role and  he's been                                                               
encouraged  to continue  that on  the Point  Thomson development.                                                               
When  DOL  didn't agree  with  a  superior  court ruling  in  the                                                               
litigation they asked  for an interlocutory appeal  to the Alaska                                                               
Supreme Court so  they've been very forward leaning  on the legal                                                               
issues.                                                                                                                         
                                                                                                                                
3:16:34 PM                                                                                                                    
SENATOR  WIELECHOWSKI said  he  understands that  DOL  has or  is                                                               
close to  issuing an opinion on  whether or not the  state has to                                                               
decouple, if it's deemed necessary, by May 1.                                                                                   
                                                                                                                                
ATTORNEY  GENERAL SULLIVAN  replied DOL  is working  on that  and                                                               
members  should have  a copy  of the  letter he  sent to  Senator                                                               
Paskvan about the  appropriate way to proceed.  He suggested that                                                               
it  might be  better to  brief  the interested  legislators in  a                                                               
closed   session  because   it   involves  potential   litigation                                                               
strategy.                                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI said he really  wants to know more before he                                                               
has to vote on a bill.                                                                                                          
                                                                                                                                
3:17:54 PM                                                                                                                    
ATTORNEY  GENERAL  SULLIVAN assured  him  that  "all systems  are                                                               
churning." He  added that although  there is a sense  of urgency,                                                               
his first priority is to  do very comprehensive research and gain                                                               
a thorough understanding of this very complicated issue.                                                                        
                                                                                                                                
SENATOR  WIELECHOWSKI   asked  if  he  has   any  concerns  about                                                               
redistricting and  if he's analyzed  the way it may  impact rural                                                               
Alaska.                                                                                                                         
                                                                                                                                
ATTORNEY GENERAL SULLIVAN replied  the department has been boning                                                               
up  on   expertise  in  anticipation   of  potential   legal  and                                                               
constitutional issues.  He doesn't  know specifically  what those                                                               
will be, just that they're likely.                                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI thanked the committee for its indulgence.                                                                  
                                                                                                                                
CHAIR FRENCH asked Senator McGuire to renew her motion.                                                                         
                                                                                                                                
SENATOR MCGUIRE  moved to  forward the  name Daniel  Sullivan for                                                               
the position  of Attorney General of  the State of Alaska  to the                                                               
full body  for consideration, recognizing  that members  are free                                                               
to indicate their individual recommendations. There being no                                                                    
objection, it was so ordered.                                                                                                   
                                                                                                                                
3:20:47 PM                                                                                                                    
                                                                                                                                
There being no further business to come before the committee,                                                                   
Chair French adjourned the meeting at 3:20 p.m.                                                                                 

Document Name Date/Time Subjects