November 17, 2011

“...there's about $60 million of [liquor] profit there that's going into education, other government services that we'd have to forego if we in fact privatized.” -Governor Herbert

GOVERNOR HERBERT: Good morning everyone.

KEN VERDOIA, KUED: Governor, thanks for joining us today. This week marks the one year anniversary of the Utah compact, that statement of principles on immigration reform. It's not only received widespread acclaim it's also been emulated in other states as they seek to make their own statement on immigration. But if there's one thing certain in the past year congress has not acted on immigration reform, and some voices are saying one of the examples of the reticence is found in Utah's own congressional delegation. They are not on board with the compact. Do you share that concern?

GOVERNOR HERBERT: Well, I'm not sure they're not on board with the compact. I think we need to reflect upon this and understand that the problem we face with illegal immigration in this country has been decades in the making, and we've tried to attempt in Utah, as other states have tried in their own ways, uniquely so, to address the illegal immigration problem. And it's a complex issue. It's fraught with a lot of emotion. And actually not only have we received I think national accolades, mostly in a positive vein, but I do see our congressional delegation trying to work behind the scenes with others in Washington, D.C. to see if we can't get the federal government to get involved, as they should. It's clearly a federal responsibility when it comes to securing the borders, and the immigration/naturalization process and the ability for people to come in and go back out of our country on a legal basis. I think Congressman Chaffetz has got some legislation he's proposing now, as is Senator Lee. They're talking about some things to augment and to help with the illegal immigration issue. So I'm cautiously optimistic. Again, it's taken us a long time to get in the mess, it's going to take us a little while to get out of it and find an appropriate solution. I like the fact that Utah's taken a very comprehensive view of this, and we're trying to find a Utah solution absent the work of the federal government.

JOHN FLOREZ, DESERET NEWS: Is Lee in into the real estate business that he wants to sell real estate to China and Canada?

GOVERNOR HERBERT: I'm not familiar with what you're talking about.

JOHN FLOREZ, DESERET NEWS: Well he and, has proposed legislation to allow people to buy real estate in America, $250,000 to buy real estate, Canada and China.

GOVERNOR HERBERT: The governments themselves want to buy it? I think again, I think people have the ability to buy real estate in America. A willing buyer and a willing seller, and we've not excluded people that are non Americans from acquisition of real estate.

LISA, DESERET NEWS: Are you talking about a proposal that would allow them to get some form of citizenship or entrance into the country?

JOHN FLOREZ, DESERET NEWS: By that.

GOVERNOR HERBERT: You're talking about an investment.

JOHN FLOREZ, DESERET NEWS: An investment.

GOVERNOR HERBERT: I know there are proposals out there for people, particularly like if you came from India, and became an engineer, rather than us educate you and train you and then you go back to India, there's at least some proposals about maybe we ought to stamp on to your degree, diploma, some kind of a visa that allows you to stay here, and if you invest so much money in the United States to grow the economy that you also get some perk and some visa attached to that. So I hear of that proposal, and it probably has some merit for discussion. I don't know where I came down on that issue. But I think there needs to be in fact, better ways for people to legally migrate to America. We talked about the tall fence all the time. We need to talk about the wide gate, and the gate that works, the hinge works so people can come and go based on the law, and I think that would make for a healthier economy.

ROD DECKER, KUTV: Utah lawmakers are thinking, I guess they're in a fight over immigration again. Senator Waddoups says that HB 116, the guest worker bill, which you signed, will be repealed and replaced. Representative Herrod has a bill to make every Utah peace officer, it does other things but it makes every Utah peace officer an immigration officer, a deputy under a provision in federal law. Do you favor in concept the idea of every Utah peace officer being an immigration officer?

GOVERNOR HERBERT: Well, I think the frustration we have is that the federal government should be enforcing the law, and it's not happening. And so the state is taking steps saying, "If you're not going to do it we're going to," which means we have to get help from our local government officials. If we're going to do that we need to make to make sure we give them the resources. I'm not opposed to having local law enforcement enforce the law, if we give them the additional moneys and resources that are necessary to take on that added responsibility. That being said, I think it's premature to know what's going to happen in the upcoming legislative session. I've always believed that House Bill 116 that you referenced here is going to be modified, and whether it's repeal and replace it, with what? Or modification of the current existing 116, I think there's going to be some discussion in the upcoming legislative session, and far be it from me to decide exactly how that's going to come to play. But I do believe there's going to be ongoing discussion on immigration.

ROD DECKER, KUTV: Are you in the preliminary discussions? Are they talking with you, are you talking with them, are you going to have something to say before the bills get there, or are you going to wait and see after they pass?

GOVERNOR HERBERT: Well, as you know, I've given guiding principles I think ought to be part of a Utah solution, based on a rule of law, the business community has accountability, the federal government's got a role to play, we need to respect the humanity of the people we're dealing with. Those kinds of things ought to be part and parcel of any discussion on immigration. I've had legislators stop by, more or less of a courtesy visit to say here's my thinking, I just want to run it by you and let you know this is what I'm planning on proposing. And I appreciate that. Again, I think there's going to be robust discussion. I think we're headed down the right road in what we're doing here in Utah with some fine tuning and nuances and modifications, I think we can bring people together on this issue. I don't think the goals and objectives are that different from anybody, whether you're pro 116 or anti 116. The goal of making sure we have an immigration policy here in America that works, that upholds the rule of law, and respects the familial situation find themselves in here, they're kind of stuck in a situation in limbo, is something we need to work towards a resolution.

ROBERT GEHRKE, SALT LAKE TRIBUNE: So thus far you haven't been approached with changes to 116 that you would say as Governor I can get behind that and that's something we need to do?

GOVERNOR HERBERT: Really I've only heard from people that want to modify or augment, or even have complimentary legislation to 116. I think there's going to be discussion on the E verify program for example, on whether there should be more teeth put into the enforcement of the E verify program. I support E-verify. I think it's a good step in the right direction. Businesses should not be knowingly hiring illegals, that's against the law.

ROBERT GEHRKE, SALT LAKE TRIBUNE: But should every business be required to run every employee through E verify?

GOVERNOR HERBERT: You know again I know we need to do it in a way that doesn't present an undue burden on the business community. I think that's part and parcel of the discussion. But having business be held accountable for their hiring practices that break the law, certainly something we should do.

JOHN FLOREZ, DESERET NEWS: That include penalties?

GOVERNOR HERBERT: Absolutely. That's the teeth. If we don't have E verify program and accountability that has some kind of punishment mechanism in there, then it would probably have an ineffective law.

JEFF ROBINSON, KCPW: Governor

GOVERNOR HERBERT: Let me finish and say that there needs to be discussion. I don't think the business community is opposed to that, by the way. I think they would in fact support it. They just need to have some time to transition and they need to know that if we have an E verify program, and that E verify actually works. They don't want to get punished for unknowingly hiring an undocumented alien, and then have some kind of penalty that puts them out of business or takes away their profitability.

JEFF ROBINSON, KCPW: Governor, earlier this week the legislature's water issues task force signed off on a 15 percent ear mark in future sales tax growth to fund a controversial Lake Powell pipe line. But as Lieutenant Governor Greg Bell noted earlier this week, you were opposed to, for example, an ear mark for road projects. So does that mean you'll also be opposed to this ear mark for the Lake Powell pipe line?

GOVERNOR HERBERT: Well, as a principle, I'm a little concerned about earmarking of any kind. I think the legislature needs to have flexibility to, in fact, address the budget based on the circumstances they find themselves in each and every legislative session. So I think the legislature's better served by having flexibility. We do have some ear marks in the code, so this is not unusual. I would be concerned more about the fact if we're going to earmark it and have all of the state subsidize and pay for a system that's only going to be used by southern Utah, I don't think that's good policy. I think that the users of services ought to be the ones that pay for it. So again there's not a bill proposed yet, I don't know how that's going to come out so I need to see some of the details before I take a position. But as a principle, you know, those who get the benefit of the system ought to pay for the system, and not have it subsidized by others around the state.

LISA RILEY ROCHE, DESERET NEWS: Governor, yesterday lawmakers heard a report from consultant hired by the DABC that came up with a new business plan that proposed putting liquor into grocery stores, in effect. It would be through a separate entrance, a separate facility but still be part of grocery shopping, more like a package agency than a traditional state run liquor store. Sort of a compromise between full privatization and the system we have now. What do you think of that type of idea? It's similar to what's being done already in Wyoming, I understand.

GOVERNOR HERBERT: Well, Mr. Bob Springmeyer I think is you're referencing that came out with that recommendation, his study. And I have not had a chance to review that and to read it. But it has, you know, it perks my attention, and I think there's going to be a lot of discussion, by the way, about alcohol and the distribution and the government role in alcohol sales, and I think that'll come up at the legislative session. It would be all the way from full blown privatization to some compromise to just strengthening the commission, oversight. And frankly, we need to have the discussion. The problem that we've observed here in recent weeks with the Department of Alcoholic Beverage Control did not start with the Herbert administration, but I'm here to tell you it's going to end with the Herbert administration. We will solve that problem, we will have more accountability and better oversight. And there may be a number of models we need to look at. Maybe it should be put under the Department of Commerce, which does handle licensing for our state. Maybe it needs to be a stronger commission, maybe more members, or full time, or maybe it needs to be a cabinet where they answer directly to the Governor. But we will make some changes that are appropriate to clean out that mess. I've sent Francine Giani over there, she's done a great job, and I think we're going to see some positive results. That will be part and parcel to the discussion as we come into the legislative session.

LISA RILEY ROCHE, DESERET NEWS: Do you think that's something Utahns would accept, though, liquor for sale in or near their grocery store?

GOVERNOR HERBERT: Well I don't know. I know the recommendation, at least as I've heard of it, and I have not read the report, it was going to be a separate entrance and a different part of the building so it would not be where you'd commingle with others, kind of an adults only kind of location. So maybe that has some merit. I, again, it kind of perks my interest. I'd like to explore at least the possibilities, like we have some of these packaging agencies around the state in more of our rural areas. That being said, I'm not sure that's the solution to the problem. I don't know if there is a problem other than we've got some people that have broken the law or at least sort of been incompetent in the management of the existing system we have in place now. But I'm always looking for ways to improve, and if there were some recommendations, we ought to consider them. We'll work with the legislature, and the public at large, and see if there's a better way to build a mouse trap. If there is, we'll build it.

TERRY GILDEA, KUER: So Governor, are we looking at a wholesale overhaul of the DABC? And was this perhaps an opportunity to ease some of the restrictions on bars and restaurants applying for liquor licenses?

GOVERNOR HERBERT: I think there's an opportunity for reflection, certainly an opportunity to re evaluate, to see if there's a better way of doing things, as I've mentioned. And so we ought to take the opportunity to do that. I don't think there's going to be a great deal of wholesale change on this, but a discussion of privatization would be, I think, at the top of the list, should we? Should the government be involved and if so at what level? The privatization aspect, as a free market person, has some intrigue to me, but there's about $60 million of profit there that's going into education, other government services that we'd have to forego if we in fact privatized. So that's got to be balanced in there with the equation and see if it's in fact in the best interests of Utah to, in fact, privatize. And that's part of the discussion. I'm not afraid to have the discussion, the debate, and work with the legislature, the business community, the public at large, and we'll make some, I'm sure, modifications. How extensive those will be are yet to be seen.

ROBERT GEHRKE, SALT LAKE TRIBUNE: Governor, should the state remain in the wholesale end of the liquor distribution, do you think?

GOVERNOR HERBERT: That will be part of the discussion. Again, I think we've actually been served well over time. But there's an evolution that takes place, and what the market will bear as far as making change I think we want to be methodical about it and not reactionary here because of a problem that was probably a personal issue as opposed to a structural issue. That being the case, it's certainly oversight and accountability needs to be strengthens and that's going to happen, I can promise you that.

MAX ROTH, FOX13: Governor, one of the $25,000 presenting sponsors for your ball last week was a companied called Anadarco Petroleum. They operate in the Uintah basin, they're also 25 percent owners of that well that spewed so much oil into the Gulf of Mexico. Were you aware of that? Are you satisfied that they're a responsible company that we can trust with our beautiful lands in the Uintah basin, and were you aware that they paid out a $4 billion settlement in the last month for that oil spill?

GOVERNOR HERBERT: I was not aware of that. Again, all that I know of Anadarco is a good company. Mistakes happen, clearly the gulf was one of the bigger mistakes, and again there's probably blame to go around, not only with Anadarco and other companies out there that were drilling, but a recognition that, you know, drilling hundreds of miles below the ocean on the ocean floor has a significant risk factor. That's why I think we ought to be doing more on shore with oil and energy development. We have less environmental risk there, and I think with the new technologies that we have, you know, we can, in fact, use some more domestic sources, whether that be our natural gas we're developing here in the state, or oil reserves, even coal. And clearly we have opportunities with our oil shale and oil sands to actually have a significant impact on the production of oil in this country, as we need to have oil going forward. I know President Obama has been very supportive of offshore drilling, and again, the good news for all of us is that the gulf spill was not as bad, was not as tragic as originally supposed. And people have been held accountable, at least I've talked to Governor Bobby Jindal, and they feel like things have been handled pretty well by all parties.

MAX ROTH, FOX13: Does it concern you that after they sponsored $25,000 for the Governor's ball, that you found out about that in a news conference from someone who just did a Google search this morning?

GOVERNOR HERBERT: No, it doesn't bother me. There's a lot of things that happen out there in the marketplace, you know. I can't know of everything. People that support my re election and like my approach, like the principles we espouse, like the outcomes we're receiving here in the state of Utah, what's not to like? Our economy right now is growing at three times the national average. Our unemployment rates have stabilized and are dropping. We're the second fastest growing economy in America right now. We've just been designated that has the state that has the best economic outlook in America. And we just got notification here a month ago that we've been recognized as the best quality of life in America. Again, they're just one of many people that have contributed to my campaign fund raising. Knowing I've got to run a campaign next year, and I've got a good message, but it takes money to get the message out. I appreciate the support of them and hundreds of others.

JEFF ROBINSON, KCPW: Governor last week state Representative Ken Sumsion of American Fork became the first Republican to formally declare for the Governor's race next year. There's also the prospect of Democratic Congressman Jim Matheson challenging you as well. What do you think? Do you think your strongest challenge will be from a fellow Republican, from Jim Matheson, or how vulnerable do you feel you are in general?

GOVERNOR HERBERT: Well I expect in politics you can expect challenges from a lot of people, you know? That's just kind of the nature of the business. And that's the opportunity we have in a Democratic Republic that we have, and people say I've got something to offer, and here, pick and choose me. So I'm not surprised that there are people that want that, to challenge me. That's the nature of the business. But I feel very comfortable when it comes to the message, I just recounted how good things are going in Utah, and I'm very proud of our record, and I'm pleased to stand on what we've been able to accomplish. And whether you like my approach, you know, my personality, how I part my hair, I don't know about that, but I can tell you we've got darn good outcomes under my leadership with the economy growing again, leading the country. Virtually the envy of America as far as how we're doing things. I get calls from Governors all the time saying, "How come your economy's doing so well? We can't get ours off the ground." We are very fiscally prudent, we build on a foundation of solid fiscal responsibility, and consequently our private sector has been empowered. We have lowered our tax rates, we're reviewing our business regulations. We've got a great message, and I'm proud to run on my record.

ROBERT GEHRKE, SALT LAKE TRIBUNE: A couple of weeks ago we were here, and we heard about the change the at Hill Air Force Base, and at the time you said you were going to engage to see if you can do something to stave those off. What have you been able to do since then? What's the path forward?

GOVERNOR HERBERT: Well, you know it's a federal issue, obviously they will make the determination on what happens with Hill Air Force Base, and the Ogden area logistics center. The disappointment for me was that we just kind of heard it after it looked like to me, in hindsight, it looks like decisions have already been made, and they were made behind closed doors, and we don't even know the rationale. We don't know the motivation. For me, it was simple. Look, if it's in the best interests of national defense, if it's in the best interests of the air force, if it's in the best interests of the taxpayers, let's do it. But we don't know if any of those things are true. We don't know if anything's been taken into account for the Falcon Hill Development up there, where we have private investment of $20 million at Hill. So we ought to have openness and transparency in that discussion, so that the pros and the cons can be discussed, debated, and weighed, and have an opportunity for us to weigh in on it. If, at the end of the day, we say, hey, realignment with the air logistics centers as they're proposing is in the best interests of national defense, the air force, and the taxpayer, I'm in. Now I'm sensitive to those who are losing jobs, and I have talked to General Bush. And General Bush has indicated that those 261 civilian loss of jobs that are going to take place, he hopes are just it, that there's not any more to follow. Although that's a little bit uncertain. And he's also assured me that those 261 will be eliminated by attrition, as people retire they just won't fill those slots, and by the air force has an early retirement incentive program which some will take advantage of. So we'll minimize the impact of some of those losses but we're working with our congressional delegation, I've talked to the Governors of Oklahoma and Georgia that are also impacted with this realignment, to make sure that we have openness and transparency in the process, so we can understand, at least weigh in on the merits of this realignment.

ROBERT GEHRKE, SALT LAKE TRIBUNE: It sounds like you haven't got answers yet on the merits, though, the information that you were seeking about the national defense

GOVERNOR HERBERT: That's right. They've given their announcement, again we're working with our congressional delegation who are a little closer to the people involved, but there's been no status change that I'm aware of. Again, that doesn't mean we're not going to continue to fight. Again, if it's 261, so be it. If it's 2061, then I've got some real concerns.

KEN VERDOIA, KUED: Governor, a quieter employment issue is playing out which seems to be a self inflicted wound and it comes in the form of the NBA walkout lockout player's strike. At first we think it's just millionaires arguing but then you find out that there are hundreds of Utahns that are going to be adversely affected and currently are being adversely affected by the absence of parking lots being filled, restaurants being filled, people working in concessions. This is a significant issue touching hundreds of lives far more than Hill Air Force Base. What's your reaction to this situation we find ourselves in, something beyond the statement of a Jazz fan?

GOVERNOR HERBERT: Well, you touch on a really important principle we all have to understand. It's very easy to point the fingers at the millionaires, and sometimes a little bit of jealousy we think they've got privilege we don't have, and the rest of us normal people don't have access to. But they impact the economy in dramatic fashion. The ripple effect of the millionaires' spending of money, the corporate people out there, the business community impacts so many people as it ripples through the economy. So you're exactly right. I would hope these people could get together and be reasonable and rational and find compromise and move ahead. Because it's not just impacting themselves, but it impacts the livelihood of many others who are associated to their businesses. That's the way it is in the marketplace. You can pick any kind of a business out there, the closure of a grocery store, it could be the closure of some manufacturing plant, and that not only impacts the employees there, but those who are associated and support lines, the delivery boy, the trucking association that delivers the goods and services, that's how free markets work. So I'm certainly hoping that Greg Miller and the Jazz and the rest of the NBA owners can come to grips with what would be fair and that the players themselves can say you know what? We can find a compromise here and move on. Not only just for the fans of NBA basketball, but for all the other people out there that get their livelihood because of this great NBA franchise that's out there.

MAX ROTH, FOX13: Governor, your predecessor, Governor Huntsman, he's not actually running the ads but a so called superpac is running a whole bunch of ads in New Hampshire, and one of the things the ad says very prominently is successful two term Governor. That seems strange to me, because it seems like you're serving out your third year of that second term that they're claiming. So is that fair for those ads to say successful two term Governor for Jon Huntsman?

GOVERNOR HERBERT: You know what we learned in politics there's opportunity for hyperbole, and, you know, to spin the most positive way you can your attributes. And I think Governor Huntsman's got tremendously good attributes, and he was elected twice with a significant margin and I'd like to think I helped him in that effort. He brings a lot to the table. His understanding of international affairs and what's going on around the world is unparalleled I think in the field. So again, you do your best, put your best foot out there, put a smile on your face and hope the electorate is attracted to what you have to offer. So I wish Governor Huntsman well.

LISA RILEY ROCHE, DESERET NEWS: Are you ready to endorse in that race yet, Governor?

GOVERNOR HERBERT: You know I've endorsed both of them. I think Governor Huntsman and Governor Romney bring a lot to the table to be considered. It does look like Governor Romney has got the inside track right now but there's a long ways before now and New Hampshire and to see what's going to happen. I mentioned to you before, I really am frustrated with the presidential election system, the fact that we, within they say the first five or six states it'll be over with, and the rest of the states don't have anything to say about it. You know a rotating regional primary system over a four month period of time makes a lot more sense to me and we ought to take a good, hard look at the presidential system and how we elect presidents in this country to give everybody in the country an opportunity to have a say.

KEN VERDOIA, KUED: Governor, for the 40 plus years we've been doing the news conference here on KUED, we try to reserve a little bit of time at the end of each November to think about thankful moments and so this is your 30 second opportunity to think about, as we approach the Thanksgiving holiday, what you are most thankful for.

GOVERNOR HERBERT: Well, thank you, Ken. I'm thankful for a lot of things, mostly my family. I've got good family, good friends, I've got a great wife who's the first lady of the state doing wonderfully good things. If I can keep up with her the state's going to be in great shape, I can tell you. I'm also thankful to be Governor. I think it's an honor and a privilege to serve in this great state, and I'm just grateful that I'm from Utah. I mean we as Utahns have a lot to be thankful for. We have a special, unique state, and I'm going to do my best to make sure we stay number one in every category.

KEN VERDOIA, KUED: And on that thankful note, we'll end this edition of the news conference. Thank you for joining us.

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