Legislature(2011 - 2012)BUTROVICH 205

03/14/2012 01:30 PM Senate JUDICIARY


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01:31:59 PM Start
01:32:13 PM Confirmation: Michael C. Geraghty, Attorney General of the State of Alaska
02:31:09 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Michael Geraghty - Anchorage
State of Alaska Attorney General
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         March 14, 2012                                                                                         
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Hollis French, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Joe Paskvan                                                                                                             
Senator Lesil McGuire                                                                                                           
Senator John Coghill                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                              
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION: MICHAEL C. GERAGHTY~ ATTORNEY GENERAL OF THE STATE                                                                
OF ALASKA                                                                                                                       
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MICHAEL GERAGHTY, Attorney General Designee                                                                                     
Department of Law (DOL)                                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Designee for the position of Attorney                                                                     
General of the State of Alaska.                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:59 PM                                                                                                                    
CHAIR  HOLLIS   FRENCH  called  the  Senate   Judiciary  Standing                                                             
Committee meeting  to order at 1:31  p.m. Present at the  call to                                                               
order were Senators Coghill,  McGuire, Paskvan, Wielechowski, and                                                               
Chair French.                                                                                                                   
                                                                                                                                
  ^CONFIRMATION: Michael C. Geraghty, Attorney General of the                                                               
                        State of Alaska                                                                                     
                                                                                                                                
1:32:13 PM                                                                                                                    
CHAIR FRENCH  announced the business  before the  committee would                                                               
be  a  confirmation hearing  for  the  Attorney General,  Michael                                                               
Geraghty.  This  is  one  of  the more  serious  tasks  that  the                                                               
committee  undertakes and  one of  the more  powerful individuals                                                               
the  governor  will appoint.  Alaska  has  an appointed  attorney                                                               
general not an elected one and  every few years there is interest                                                               
in changing  the system. He  said he entertained that  idea until                                                               
he discussed the  idea with the late Tom Stewart  "who affixed my                                                               
mind on that subject and I haven't changed it since then."                                                                      
                                                                                                                                
He expressed hope  that Mr. Geraghty would serve  longer than the                                                               
recent  average  of less  than  two  years.  He relayed  that  he                                                               
provided  a list  of questions  to the  attorney general  for the                                                               
purpose  eliciting interesting  policy  discussions. He  welcomed                                                               
Attorney General Geraghty.                                                                                                      
                                                                                                                                
1:34:23 PM                                                                                                                    
MICHAEL  GERAGHTY,  Attorney  General Designee,  noted  that  his                                                               
professional credentials  were provided  earlier. He said  he was                                                               
born  and   raised  in  Fairbanks   and  learned  the   value  of                                                               
friendship,  loyalty,  and  collaboration  from  his  father.  He                                                               
carried that  into his professional  life and has  practiced with                                                               
the same  law firm for 33  years. He expressed gratitude  for the                                                               
opportunity to represent the state.                                                                                             
                                                                                                                                
1:36:01 PM                                                                                                                    
CHAIR FRENCH asked who he represents as attorney general.                                                                       
                                                                                                                                
ATTORNEY GENERAL  GERAGHTY replied,  "Technically, my role  is to                                                               
give the governor  the best possible legal advice I  can, and the                                                               
best possible legal advice to the other executive agencies."                                                                    
                                                                                                                                
CHAIR FRENCH  asked him to  discuss the biggest  challenge facing                                                               
the  Criminal   Division,  of  the   Department  of   Law  (DOL),                                                               
specifically   addressing  sex   assault,   sex  abuse,   whether                                                               
prosecutions  are  increasing,  and  new  ideas  to  combat  this                                                               
scourge of the state.                                                                                                           
                                                                                                                                
ATTORNEY GENERAL GERAGHTY  said the biggest challenge  is to keep                                                               
good people in  the job beyond five years and  the Chair had good                                                               
suggestions   for  reaching   out  to   prosecutors  to   express                                                               
appreciation for their work.                                                                                                    
                                                                                                                                
He described  domestic violence and  sexual assault as  a scourge                                                               
and embarrassment to society, and  said he's truly impressed with                                                               
the  Choose  Respect  Initiative  and the  laser-like  focus  the                                                               
governor has  brought to bear  on the  issue. He pledged  to take                                                               
this  very seriously  and noted  referrals and  prosecutions have                                                               
increased in  the last several  years. He  specifically mentioned                                                               
Dillingham, Anchorage,  and Bethel  and suggested there  was room                                                               
for improvement in  tracking domestic violence since  it is often                                                               
a component of a more serious crime.                                                                                            
                                                                                                                                
1:41:14 PM                                                                                                                    
CHAIR FRENCH  said this is an  area on which he  and the governor                                                               
are in  complete agreement. The entire  committee appreciates the                                                               
efforts the administration is putting into this area.                                                                           
                                                                                                                                
He asked him  to discuss the single biggest  challenge facing the                                                               
Civil Division.                                                                                                                 
                                                                                                                                
ATTORNEY GENERAL  GERAGHTY said  he wouldn't prioritize  one area                                                               
over  another because  they're all  important.  He mentioned  the                                                               
endangered species  cases, the state federal  relationship cases,                                                               
and  the  Outer Continental  Shelf  oil  and gas  litigation  and                                                               
expressed appreciation that the  division had excellent attorneys                                                               
with expertise  in these  areas. He spoke  of looking  with fresh                                                               
eyes to  independently evaluate  what and  how things  were being                                                               
done, but that he didn't have any silver bullets.                                                                               
                                                                                                                                
He committed to  reexamine what the department was  doing in both                                                               
the  criminal  and civil  division  to  see  if there  were  more                                                               
effective ways to do business.                                                                                                  
                                                                                                                                
CHAIR  FRENCH  noted  the  recent   state  challenges  under  the                                                               
Endangered Species Act  that failed, and asked  if he anticipated                                                               
that more would be brought given that track record.                                                                             
                                                                                                                                
ATTORNEY  GENERAL GERAGHTY  said  the short  answer  is yes.  The                                                               
Endangered Species Act relies on  modeling that deprives Alaskans                                                               
of their livelihoods. The Stellar sea  lion is a good example and                                                               
it definitely  has to be  appealed. He intended to  keep fighting                                                               
the fight and  wouldn't be dissuaded from going  ahead with cases                                                               
that have merit.                                                                                                                
                                                                                                                                
1:46:36 PM                                                                                                                    
CHAIR  FRENCH  said  recent news  articles  discussed  an  Alaska                                                               
Department of Fish and Game  (ADF&G) initiative that gave special                                                               
hunting  privileges  to  some   private  landowners.  The  Alaska                                                               
Constitution  provides   that  all  state   resources,  including                                                               
wildlife, are "reserved  to the people for common  use." He asked                                                               
his  thoughts  on  the constitution's  provision  of  common  use                                                               
versus the provision of special hunting permits for landowners.                                                                 
                                                                                                                                
ATTORNEY GENERAL GERAGHTY cited the  lottery permit to hunt bison                                                               
in the  Delta area and opined  that it advances the  state's goal                                                               
under  Article  8 when  a  private  landowner opens  his  private                                                               
property to  hunting for a period  of time. He described  it as a                                                               
win-win situation  if the landowner  can get a special  permit in                                                               
exchange for that.                                                                                                              
                                                                                                                                
1:49:36 PM                                                                                                                    
CHAIR  FRENCH   turned  his  attention   to  tribes   and  Native                                                               
sovereignty.  He  relayed that  at  the  2012 Crime  Summit  Walt                                                               
Monegan, the CEO of the  Alaska Native Justice Center, brought up                                                               
the  difficult   issue  of  providing  justice   to  small  rural                                                               
communities and  villages that aren't served  by VPSOs, Troopers,                                                               
or  the court  system. He  suggested  a pilot  project to  create                                                               
tribal or community  courts in these villages.  He questioned his                                                               
view of that  idea and asked him to include  in his answer recent                                                               
cases involving Native sovereignty with  respect to the state and                                                               
civil court orders such as child support.                                                                                       
                                                                                                                                
ATTORNEY GENERAL GERAGHTY said he  intended to keep an open mind,                                                               
but  he would  be conservative.  The  state has  to respect  that                                                               
people  are trying  to do  the right  thing in  their communities                                                               
when there  isn't a  state presence, but  it's also  important to                                                               
respect the  due process  rights  afforded  to citizens.  He said                                                               
the state  typically has not given  tribes criminal jurisdiction,                                                               
but it  certainly gives full faith  and credit to a  tribal court                                                               
order in Indian Child Welfare  Act (ICWA) proceedings. The Alaska                                                               
Supreme Court  affirmed that  in the Tanana  case. John  v. Baker                                                             
will continue to  be the law of the land  in limited narrow areas                                                               
unless  Congress changes  that  jurisdiction.  He reiterated  his                                                               
intention to keep an open mind.                                                                                                 
                                                                                                                                
1:53:58 PM                                                                                                                    
SENATOR  MCGUIRE asked  how he  used AG  opinions in  his private                                                               
practice,  and  how he  intended  to  use  them as  the  Attorney                                                               
General.                                                                                                                        
                                                                                                                                
ATTORNEY  GENERAL GERAGHTY  replied his  experience with  them in                                                               
private  practice was  limited,  and he  hadn't  had occasion  to                                                               
issue  one thus  far. He  said his  general philosophy  is to  be                                                               
conservative,  and not-reactive,  and he  intends to  be measured                                                               
and deliberate in deciding whether  to issue an opinion. He would                                                               
be averse  to using them  unnecessarily as a vehicle  for policy,                                                               
but they  are appropriate for  providing guidance to  citizens or                                                               
companies seeking to do commerce in the state.                                                                                  
                                                                                                                                
SENATOR  MCGUIRE   asked  if  he   heard  Chief   Justice  Walter                                                               
Carpeneti's recent State  of the Judiciary speech, and  if he had                                                               
any thoughts on presumptive sentencing.                                                                                         
                                                                                                                                
ATTORNEY GENERAL GERAGHTY replied it  was an excellent speech and                                                               
he raised  very legitimate  issues about  the lack  of discretion                                                               
judges  are afforded  under  presumptive  sentencing. He  relayed                                                               
that both  the state and  federal government  enacted presumptive                                                               
sentencing some 30-40 years ago  as a backlash to lenient judges,                                                               
but it puts a lot of people  in prison that may not belong there.                                                               
He said the speech resonated and  he believes it's time to review                                                               
presumptive sentencing.                                                                                                         
                                                                                                                                
2:00:03 PM                                                                                                                    
SENATOR MCGUIRE asked if he  had considered getting involved with                                                               
the national  organizations for state attorneys  general, and how                                                               
he  wanted  to be  remembered  in  for  his  time in  service  as                                                               
Attorney General for the State of Alaska.                                                                                       
                                                                                                                                
ATTORNEY  GENERAL   GERAGHTY  said   he  attended   the  National                                                               
Association  of Attorneys  General (NAG)  meeting last  week, and                                                               
will  host  the summer  meeting.  He  relayed  that he  met  with                                                               
Secretary Salazar (a former AG) and  he hopes to continue to meet                                                               
people at  that level to  find out how  things are done  in other                                                               
jurisdictions   and  potentially   do   things   better  in   the                                                               
department. He  wants to  be remembered  as a  good father  and a                                                               
good husband  and for  having the best  job possible  as Attorney                                                               
General.                                                                                                                        
                                                                                                                                
2:03:04 PM                                                                                                                    
SENATOR PASKVAN  conveyed his high  regard and good wishes  for a                                                               
successful  term in  office. He  asked him  to discuss  the Point                                                               
Thomson  legal issues,  and more  generally the  duty that  North                                                               
Slope  leaseholders  have  to   actually  explore,  develop,  and                                                               
produce.                                                                                                                        
                                                                                                                                
ATTORNEY GENERAL GERAGHTY said the  Point Thomson case was argued                                                               
shortly after  he took the position  and the die was  fairly well                                                               
cast.  He said  he  agrees  that the  leases  are contracts  that                                                               
should be enforced  but the litigation has been  ongoing for five                                                               
years and  isn't a  slam dunk.  He reviewed  the older  and newer                                                               
leases and found  they contain some loaded  terms like reasonable                                                               
and  prudent  operator  and reasonable  profit.  He  offered  his                                                               
belief that  the Department of  Natural Resources (DNR)  has some                                                               
leeway to  influence development through the  plan of development                                                               
process, but  otherwise Point Thomson  could be an  exception. He                                                               
said he  was cautious but was  willing to look at  specific facts                                                               
or circumstances that might be brought to his attention.                                                                        
                                                                                                                                
2:08:12 PM                                                                                                                    
SENATOR WIELECHOWSKI  noted that the  new leases have  a specific                                                               
provision  that  says  there  is  a  duty  to  produce  when  the                                                               
companies can  make a  reasonable profit. He  asked how  he would                                                               
define a "reasonable profit."                                                                                                   
                                                                                                                                
ATTORNEY  GENERAL GERAGHTY  replied he  didn't know  that he  was                                                               
qualified to opine  about what a reasonable  and prudent operator                                                               
does, and he  wasn't sure that any of the  committee members were                                                               
qualified to  make the judgment either.  Nevertheless, the leases                                                               
are  an  enforceable  agreement  and   he  had  no  qualms  about                                                               
enforcing them  in the proper  circumstances. Point Thomson  is a                                                               
prime example.                                                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI   relayed  that  the  old   standard  is  a                                                               
"reasonable and prudent operator"  that considers both the lessee                                                               
and lessor, whereas  the newer leases specifically  say there has                                                               
to  be  production development  when  the  companies can  make  a                                                               
reasonable profit.  He asked  if he  had any  thoughts as  to the                                                               
meaning of "reasonable  profit," and if he would  hire experts to                                                               
analyze a  case that  had facts  about profit  and high  rates of                                                               
return.                                                                                                                         
                                                                                                                                
ATTORNEY GENERAL GERAGHTY replied he  would go to the Division of                                                               
Oil and Gas for the essentials  and the Department of Revenue may                                                               
have  insights  as well.  Although  he  wouldn't rush  to  retain                                                               
outside expertise, he would do so if it was prudent.                                                                            
                                                                                                                                
2:13:05 PM                                                                                                                    
SENATOR  WIELECHOWSKI questioned  whether  it might  be a  better                                                               
practice  for DOL  and DNR  to write  lease terms  that are  more                                                               
easily understood  by all parties  so as to avoid  future lengthy                                                               
litigation.                                                                                                                     
                                                                                                                                
ATTORNEY  GENERAL   GERAGHTY  replied   there  are   upsides  and                                                               
downsides to too  much flexibility and too  much specificity, but                                                               
litigating  to prosperity  is not  a good  goal. To  some extent,                                                               
Point Thomson proves it's not sound policy.                                                                                     
                                                                                                                                
SENATOR  WIELECHOWSKI agreed  that litigation  is a  last resort,                                                               
but at some point the state has  to act as a sovereign and demand                                                               
the lessee fulfill the terms of  the lease. On the North Slope 25                                                               
percent  of  the leases  are  sitting  idle. Point  Thomson,  the                                                               
largest undeveloped  oil and  gas reserve  in North  America, has                                                               
been  sitting  for 30  years  through  23 plans  of  development.                                                               
Sometimes litigation is necessary.                                                                                              
                                                                                                                                
ATTORNEY  GENERAL  GERAGHTY agreed  that  the  state waited  long                                                               
enough on  Point Thomson, and  added the caution that  things are                                                               
never as clear cut as one would like to think.                                                                                  
                                                                                                                                
2:17:51 PM                                                                                                                    
CHAIR FRENCH  said he and  Senator Wielechowski have  wondered if                                                               
the same  idea carries  over to  the North  Slope in  general. He                                                               
urged him to think about whether  there is a threshold upon which                                                               
the state can  rely to tell the industry it  isn't developing its                                                               
leases when it could make a reasonable profit here.                                                                             
                                                                                                                                
ATTORNEY  GENERAL  GERAGHTY  responded  that  it's  difficult  to                                                               
answer in the abstract, but he is cautionary.                                                                                   
                                                                                                                                
CHAIR FRENCH  urged him  to think about  whether the  language in                                                               
the leases that  could be structured differently so as  to form a                                                               
better business relationship.  It doesn't have to  be a courtroom                                                               
experience if it's structured right in the first place, he said.                                                                
                                                                                                                                
ATTORNEY GENERAL GERAGHTY said fair enough.                                                                                     
                                                                                                                                
2:19:55 PM                                                                                                                    
CHAIR FRENCH asked him to review  for the record where he went to                                                               
law school and other personal background.                                                                                       
                                                                                                                                
ATTORNEY  GENERAL GERAGHTY  relayed  that he  graduated from  the                                                               
University  of Santa  Clara  Law  School in  1978,  and he  began                                                               
practice  with a  firm that  has  offices in  both Fairbanks  and                                                               
Anchorage. About 20 years ago they parted company.                                                                              
                                                                                                                                
CHAIR FRENCH asked what kinds of cases he did.                                                                                  
                                                                                                                                
ATTORNEY  GENERAL GERAGHTY  listed examples  of civil  litigation                                                               
and  trial  work, and  said  it  taught  him  the value  of  open                                                               
communication and avoiding litigation and trials.                                                                               
                                                                                                                                
CHAIR FRENCH asked if he'd done any criminal defense work.                                                                      
                                                                                                                                
ATTORNEY GENERAL GERAGHTY  said not typically, but in  the 90s he                                                               
represented  a Native  corporation subsidiary  that was  indicted                                                               
for a homicide on the North Slope.                                                                                              
                                                                                                                                
2:25:57 PM                                                                                                                    
SENATOR COGHILL expressed  concern that the DOL  sometimes gets a                                                               
little  myopic  when it  represents  other  departments. He  also                                                               
expressed  interest in  closing  any gaps  in  the privacy  laws,                                                               
particularly personal information that is stored in databases.                                                                  
                                                                                                                                
ATTORNEY GENERAL GERAGHTY said he  takes the constitutional right                                                               
to privacy  very seriously.  With regard to  the first  point, he                                                               
said  DOL tries  to  be  perfect and  isn't,  but  he'd like  any                                                               
specific concerns brought to his attention.                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI thanked the  attorney general for his prompt                                                               
response when  that his office  contacted him  regarding Transfer                                                               
of    Responsibilities   Agreement    (TORA)   agreements.    His                                                               
constituents were very pleased.                                                                                                 
                                                                                                                                
ATTORNEY GENERAL GERAGHTY shared  credit with his predecessor and                                                               
invited other members of the committee to bring issues forward.                                                                 
                                                                                                                                
2:29:31 PM                                                                                                                    
CHAIR FRENCH asked  if he would follow up on  a question that was                                                               
raised in a letter to Dan  Sullivan when he was attorney general.                                                               
The letter asked whether marine  pilotage laws would apply in the                                                               
new development  areas in  the Beaufort  and Chukchi  seas beyond                                                               
the three mile limit.                                                                                                           
                                                                                                                                
ATTORNEY GENERAL GERAGHTY agreed to follow up.                                                                                  
                                                                                                                                
CHAIR FRENCH  found no  further questions  or comments  and asked                                                               
for a motion.                                                                                                                   
                                                                                                                                
2:30:43 PM                                                                                                                    
SENATOR  WIELECHOWSKI  moved  to  forward  the  name  Michael  C.                                                               
Geraghty  to   a  joint  session   for  consideration   with  the                                                               
understanding that  it does not reflect  an intent by any  of the                                                               
members to vote for or against the confirmation of Mr. Geraghty.                                                                
                                                                                                                                
CHAIR  FRENCH announced  that without  objection, Mr.  Geraghty's                                                               
name would be forwarded.                                                                                                        
                                                                                                                                
2:31:09 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair French adjourned the meeting at 2:31 p.m.                                                                                 

Document Name Date/Time Subjects
Lynn Willis Testimony.pdf SJUD 3/14/2012 1:30:00 PM
Written testimony Attorney General confirmation