HB 209: "An Act relating to the chair of and the membership of and qualifications of members of the Regulatory Commission of Alaska; adding positions to the partially exempt service; creating an administrative law division and natural gas and oil pipeline division within the commission; amending the timeline requirements for a final order of the commission; relating to the commission's regulatory cost charges; and adding to the duties of the Alaska Judicial Council as they relate to the presentation of nominees for consideration for appointment to the commission."
00 HOUSE BILL NO. 209 01 "An Act relating to the chair of and the membership of and qualifications of members of 02 the Regulatory Commission of Alaska; adding positions to the partially exempt service; 03 creating an administrative law division and natural gas and oil pipeline division within 04 the commission; amending the timeline requirements for a final order of the 05 commission; relating to the commission's regulatory cost charges; and adding to the 06 duties of the Alaska Judicial Council as they relate to the presentation of nominees for 07 consideration for appointment to the commission." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 22.20 is amended by adding a new section to article 4 to read: 10 Sec. 22.20.210. Regulatory Commission of Alaska; additional duties. The 11 judicial council shall have the duties set out in AS 42.04.020(h). 12 * Sec. 2. AS 39.25.120(c) is amended to read: 13 (c) The following positions in the state service constitute the partially exempt
01 service: 02 (1) deputy and assistant commissioners of the principal departments of 03 the executive branch, including the assistant adjutant general of the Department of 04 Military and Veterans' Affairs; 05 (2) the directors of the major divisions of the principal departments of 06 the executive branch and the regional directors of the Department of Transportation 07 and Public Facilities; 08 (3) attorney members of the staff of the Department of Law, of the 09 public defender agency, and of the office of public advocacy in the Department of 10 Administration; 11 (4) one private secretary for each head of a principal department in the 12 executive branch and for the chair of the Regulatory Commission of Alaska; 13 (5) employees of councils, boards, or commissions established by 14 statute in the Office of the Governor or the office of the lieutenant governor, unless a 15 different classification is provided by statute; 16 (6) not more than two special assistants to the commissioner of each of 17 the principal departments of the executive branch and not more than one special 18 assistant for each commissioner of the Regulatory Commission of Alaska, but the 19 number may be increased if the partially exempt service is extended under 20 AS 39.25.130 to include the additional special assistants; 21 (7) the principal executive officer of the following boards, councils, or 22 commissions: 23 (A) Alaska Public Broadcasting Commission; 24 (B) Professional Teaching Practices Commission; 25 (C) Parole Board; 26 (D) Board of Nursing; 27 (E) Real Estate Commission; 28 (F) Alaska Royalty Oil and Gas Development Advisory Board; 29 (G) Alaska State Council on the Arts; 30 (H) Alaska Police Standards Council; 31 (I) Alaska Commission on Aging;
01 (J) Alaska Mental Health Board; 02 (K) State Medical Board; 03 (L) Governor's Council on Disabilities and Special Education; 04 (M) Advisory Board on Alcoholism and Drug Abuse; 05 (N) Statewide Suicide Prevention Council; 06 (O) the State Board of Registration for Architect, Engineers, 07 and Land Surveyors; 08 (8) Alaska Pioneers' Home and Alaska Veterans' Home managers; 09 (9) hearing examiners in the Department of Revenue; 10 (10) the comptroller in the division of treasury, Department of 11 Revenue; 12 (11) airport managers in the Department of Transportation and Public 13 Facilities employed at the Anchorage and Fairbanks International Airports; 14 (12) the deputy director of the division of insurance in the Department 15 of Commerce, Community, and Economic Development; 16 (13) the executive director and staff of the Alaska Public Offices 17 Commission; 18 (14) the rehabilitation administrator of the division of workers' 19 compensation; 20 (15) guards employed by the Department of Public Safety for 21 emergencies; 22 (16) marine pilot coordinator of the Board of Marine Pilots; 23 (17) guards employed by the Department of Corrections, other than in 24 state correctional facilities, to carry out the responsibility of the commissioner of 25 Corrections under AS 33.30.071(b); 26 (18) employees of the administrative law division of, employees of 27 the natural gas and oil pipeline division of, and hearing officers and administrative 28 law judges of the Regulatory Commission of Alaska; 29 (19) the compact administrator appointed under AS 33.36.130; 30 (20) the chief administrative law judge and administrative law judges 31 of the office of administrative hearings.
01 * Sec. 3. AS 42.04.010(b) is amended to read: 02 (b) The governor shall designate one member of the commission [SHALL 03 ANNUALLY ELECT ONE OF ITS MEMBERS] to serve as chair [FOR THE 04 FOLLOWING FISCAL YEAR]. When a vacancy occurs in the office of chair, the 05 governor shall designate one of the members of the commission [SHALL ELECT 06 ONE OF ITS MEMBERS] to serve the remaining term as chair. The term as chair is 07 three years [ONE YEAR. THE CHAIR MAY BE ELECTED TO NOT MORE 08 THAN THREE SUCCESSIVE TERMS AS CHAIR. AFTER A YEAR OF NOT 09 SERVING AS CHAIR, THE COMMISSIONER IS ELIGIBLE FOR ELECTION AS 10 CHAIR AGAIN]. 11 * Sec. 4. AS 42.04.020(a) is amended to read: 12 (a) The commission consists of five commissioners appointed by the governor 13 and confirmed by the legislature in joint session. A commissioner shall be a citizen 14 of the United States and a resident of the state for the five years immediately 15 preceding appointment. The commission shall consist of the following members: 16 (1) three commissioners shall have been engaged in the active 17 practice of law, as defined by AS 22.05.070, for at least five years immediately 18 preceding appointment, and be licensed to practice law in the state at the time of 19 appointment; 20 (2) one commissioner shall have a degree from an appropriately 21 accredited college or university with a major in engineering and shall have been 22 engaged in the active practice of engineering for at least five years immediately 23 preceding appointment; "active practice of engineering" means 24 (A) being actually engaged in advising private employers or 25 clients on engineering matters; 26 (B) rendering engineering services to an agency, branch, or 27 department of a civil government within the United States or a state or 28 territory of the United States in an appointed or employed capacity; or 29 (C) serving as a professor, associate professor, or assistant 30 professor in an engineering program accredited by the Accreditation 31 Board for Engineering and Technology or another nationally recognized
01 organization; and 02 (3) one commissioner shall have a degree from an appropriately 03 accredited college or university with a major in accounting, finance, or economics 04 and shall have been engaged in the active practice of accounting, finance, or 05 economics for at least five years immediately preceding appointment; "active 06 practice of accounting, finance, or economics" means 07 (A) being actually engaged in advising private employers or 08 clients on accounting, finance, or economic matters; 09 (B) rendering accounting, finance, or economic analysis 10 services to an agency, branch, or department of a civil government within 11 the United States or a state or territory of the United States in an 12 appointed or employed capacity; or 13 (C) serving as a professor, associate professor, or assistant 14 professor in an accounting, finance, or economics program accredited by 15 the Association to Advance Collegiate Schools of Business or another 16 nationally recognized organization [TO QUALIFY FOR APPOINTMENT 17 AS A COMMISSIONER, A PERSON MUST BE A MEMBER IN GOOD 18 STANDING OF THE ALASKA BAR ASSOCIATION OR HAVE A 19 DEGREE FROM AN ACCREDITED COLLEGE OR UNIVERSITY WITH 20 A MAJOR IN ENGINEERING, FINANCE, ECONOMICS, ACCOUNTING, 21 BUSINESS ADMINISTRATION, OR PUBLIC ADMINISTRATION. 22 ACTUAL EXPERIENCE FOR A PERIOD OF FIVE YEARS IN THE 23 PRACTICE OF LAW OR IN THE FIELD OF ENGINEERING, FINANCE, 24 ECONOMICS, ACCOUNTING, BUSINESS ADMINISTRATION, OR 25 PUBLIC ADMINISTRATION IS EQUIVALENT TO A DEGREE]. 26 * Sec. 5. AS 42.04.020(c) is amended to read: 27 (c) A vacancy arising in the office of a commissioner shall be filled by 28 appointment by the governor and confirmed by the legislature in joint session, and, 29 except as provided in AS 39.05.080(4), an appointee selected to fill a vacancy shall 30 hold office for the balance of the full term for which the predecessor on the 31 commission was appointed. The governor shall receive nominations from the
01 Alaska Judicial Council within 90 days after a vacancy occurs. The governor 02 shall fill a vacancy or appoint a successor to an impending vacancy within 45 03 days after receiving nominations from the judicial council by appointing one of 04 the persons nominated by the council for each impending vacancy. 05 * Sec. 6. AS 42.04.020(f) is amended to read: 06 (f) Members of the commission 07 (1) appointed before the effective date of this section are in the 08 exempt service and are entitled to a monthly salary equal to Step C, Range 26, of the 09 salary schedule in AS 39.27.011(a) for Juneau, Alaska; the [. THE] chair of the 10 commission is entitled to a monthly salary equal to Step C, Range 27, of the salary 11 schedule in AS 39.27.011(a) for Juneau, Alaska; 12 (2) appointed on or after the effective date of this section are in the 13 exempt service and are compensated at the same level and in the same manner as 14 judges of the superior court under AS 22.10.190; the chair of the commission 15 shall receive an additional monthly payment of $1,000. 16 * Sec. 7. AS 42.04.020 is amended by adding a new subsection to read: 17 (h) In ascertaining and evaluating potential nominees to the commission, the 18 judicial council shall 19 (1) recruit and advertise for an available position on the commission in 20 an appropriate manner; 21 (2) solicit, in lieu of a bar poll, comments from the public on each 22 potential nominee; 23 (3) interview each potential nominee in a public session; and 24 (4) present to the governor every potential nominee who is qualified to 25 fill the vacancy. 26 * Sec. 8. AS 42.04 is amended by adding new sections to read: 27 Sec. 42.04.045. Administrative law division. (a) There is created within the 28 commission the administrative law division. The commission shall use the 29 administrative law division to promote the orderly resolution of matters within the 30 commission's jurisdiction other than matters related to natural gas and oil pipelines. 31 The chair of the commission shall employ and supervise the work of employees of the
01 administrative law division, which may include administrative law judges, alternative 02 resolution dispute officials, and hearing examiners. 03 (b) Employees of the administrative law division are in the partially exempt 04 service and are entitled to an initial monthly salary that is not less than Step A, Range 05 25, and not more than Step M, Range 27, of the salary schedule in AS 39.27.011(a) for 06 Juneau, Alaska. 07 Sec. 42.04.047. Natural gas and oil pipeline division. (a) There is created 08 within the commission the natural gas and oil pipeline division. The commission shall 09 use the natural gas and oil pipeline division to promote the orderly resolution of 10 matters relating to natural gas and oil pipelines. The chair of the commission shall 11 employ and supervise the work of natural gas and oil pipeline division employees, 12 which may include an economist, pipeline financial analysts, engineers, and support 13 staff. 14 (b) Employees of the natural gas and oil pipeline division are in the partially 15 exempt service and are entitled to an initial monthly salary that is not less than Step A, 16 Range 23, and not more than Step M, Range 26, of the salary schedule in 17 AS 39.27.011(a) for Juneau, Alaska. 18 * Sec. 9. AS 42.05.175(a) is amended to read: 19 (a) The commission shall issue a final order not later than 180 days [SIX 20 MONTHS] after a complete application is filed for an application 21 (1) for a certificate of public convenience and necessity; 22 (2) to amend a certificate of public convenience and necessity; 23 (3) to transfer a certificate of public convenience and necessity; and 24 (4) to acquire a controlling interest in a certificated public utility. 25 * Sec. 10. AS 42.05.175(b) is amended to read: 26 (b) Notwithstanding a suspension ordered under AS 42.05.421, the 27 commission shall issue a final order not later than 270 days [NINE MONTHS] after a 28 complete tariff filing is made for a tariff filing that does not change the utility's 29 revenue requirement or rate design. 30 * Sec. 11. AS 42.05.175(c) is amended to read: 31 (c) Notwithstanding a suspension ordered under AS 42.05.421, the
01 commission shall issue a final order not later than 450 days [15 MONTHS] after a 02 complete tariff filing is made for a tariff filing that changes the utility's revenue 03 requirement or rate design. 04 * Sec. 12. AS 42.05.175(d) is amended to read: 05 (d) The commission shall issue a final order not later than 365 days [12 06 MONTHS] after a complete formal complaint is filed against a utility or, when the 07 commission initiates a formal investigation of a utility without the filing of a complete 08 formal complaint, not later than 365 days [12 MONTHS] after the order initiating the 09 formal investigation is issued. 10 * Sec. 13. AS 42.05.175(e) is amended to read: 11 (e) The commission shall issue a final order in a rule-making proceeding not 12 later than 730 days [24 MONTHS] after a complete petition for adoption, amendment, 13 or repeal of a regulation under AS 44.62.180 - 44.62.290 is filed or, when the 14 commission initiates a rule-making docket, not later than 730 days [24 MONTHS] 15 after the order initiating the proceeding is issued. 16 * Sec. 14. AS 42.05.175(f) is amended to read: 17 (f) The commission may extend a timeline required under (a) - (e) of this 18 section if all parties of record consent to the extension or if, for one time only, before 19 the timeline expires, the 20 (1) commission reasonably finds that good cause exists to extend the 21 timeline, which can only occur when 22 (A) a proceeding involves unusually complex and novel 23 questions of law or public policy in comparison with other proceedings of 24 its type; 25 (B) a proceeding involves an unusually complex and large 26 factual record in comparison with other proceedings of its type; or 27 (C) the commission identifies another compelling public 28 policy reason for an extension that is entirely unrelated to the 29 commission's workload, scheduling, or administrative convenience; 30 (2) commission issues a written order extending the timeline and 31 setting out its findings regarding good cause; and
01 (3) extension of time is 90 days or less. 02 * Sec. 15. AS 42.05.175 is amended by adding new subsections to read: 03 (k) In adjudicated docket matters that come before the commission under 04 federal law or involve the review of private settlements and contracts and are not 05 subject to a timeline under federal law or AS 42.05.175(a) - (e), the commission shall 06 issue a final order not later than 180 days after the filing of an initiating petition. If the 07 matter is commenced on the commission's own motion, the commission shall issue a 08 final order not later than 365 days after the issuance of an order opening the docket. 09 This subsection does not apply to a complaint against a utility, a petition to revoke a 10 certificate of public convenience and necessity, or a functionally equivalent filing. 11 (l) If the commission does not issue and serve a final order governed by (k) of 12 this section within the applicable timeline specified, including any extension granted 13 by the commission in accordance with (f) of this section, the initiating petition shall be 14 considered approved and shall take effect immediately, or, if the matter was 15 commenced by the commission, the docket shall be closed with no action taken. 16 (m) If proceedings subject to different timelines under this section are 17 consolidated or if a single proceeding implicates more than one timeline, the latest 18 applicable deadline for the issuance of a final order shall apply. 19 (n) The commission may not evade the requirement of this section by 20 terminating a proceeding in a docket and opening a proceeding in another docket on 21 substantially the same matter. 22 * Sec. 16. AS 42.05.254(a) is amended to read: 23 (a) A regulated public utility operating in the state shall pay to the commission 24 an annual regulatory cost charge in an amount not to exceed the maximum percentage 25 of adjusted gross revenue that applies to the utility sector of which the utility is a part, 26 as follows: 27 (1) the [. THE] regulatory cost charges that the commission expects to 28 collect from all regulated utilities may not exceed the sum of the following 29 percentages of the total adjusted gross revenue of all regulated public utilities derived 30 from operations in the state: 31 (A) until the day before the effective date of this section,
01 (i) [(1)] not more than .7 percent to fund the operations 02 of the commission; [,] and 03 (ii) [(2)] not more than .17 percent to fund operations of 04 the public advocacy function under AS 42.04.070(c) and 05 AS 44.23.020(e) within the Department of Law; and 06 (B) on and after the effective date of this section, 07 (i) not more than .9 percent to fund the operations of 08 the commission; and 09 (ii) not more than .22 percent to fund operations of 10 the public advocacy function under AS 42.04.070(c) and 11 AS 44.23.020(e) within the Department of Law; 12 (2) an [. AN] exempt utility shall 13 (A) until the day before the effective date of this section, pay 14 the actual cost of services provided to it by the commission; and 15 (B) on and after the effective date of this section, pay a fee 16 according to fee schedules approved by the commission. 17 * Sec. 17. AS 42.05.254(e) is amended to read: 18 (e) The commission shall administer and collect the charge imposed under 19 this section. The Department of Revenue shall [COLLECT AND] enforce the charge 20 imposed under this section. The Department of Administration shall identify the 21 amount of the operating budgets of the commission and the Department of Law public 22 advocacy function under AS 42.04.070(c) and AS 44.23.020(e) that lapse into the 23 general fund each year. The legislature may appropriate an amount equal to the lapsed 24 amount to the commission and to the Department of Law public advocacy function 25 under AS 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal 26 year. If the legislature does so, the commission shall reduce the total regulatory cost 27 charge collected for that fiscal year by a comparable amount. 28 * Sec. 18. AS 42.05.254(g) is amended to read: 29 (g) The commission may adopt regulations under AS 44.62 (Administrative 30 Procedure Act) necessary to administer this section, including requirements and 31 procedures for reporting information, [AND] making quarterly payments, and
01 collecting required payments. The Department of Revenue may adopt regulations 02 under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed 03 information [, AND FOR COLLECTING REQUIRED PAYMENTS]. 04 * Sec. 19. AS 42.06.286(a) is amended to read: 05 (a) A regulatory cost charge may not be assessed on pipeline carrier 06 operations under this section unless the operations are within the jurisdiction of 07 the commission. A pipeline carrier operating in the state shall pay to the commission 08 an annual regulatory cost charge in an amount not to exceed the sum of the following 09 percentages of gross revenue derived from operations in the state, as follows: 10 (1) until the day before the effective date of this section, 11 (A) not more than .7 percent to fund the operations of the 12 commission; [,] and 13 (B) [(2)] not more than .17 percent to fund operations of the 14 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) within 15 the Department of Law; and 16 (2) on and after the effective date of this section, 17 (A) not more than .9 percent to fund the operations of the 18 commission; and 19 (B) not more than .22 percent to fund operations of the 20 public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) 21 within the Department of Law. [A REGULATORY COST CHARGE MAY 22 NOT BE ASSESSED ON PIPELINE CARRIER OPERATIONS UNLESS 23 THE OPERATIONS ARE WITHIN THE JURISDICTION OF THE 24 COMMISSION.] 25 * Sec. 20. AS 42.06.286(c) is amended to read: 26 (c) The commission shall administer and collect the charge imposed under 27 this section. The Department of Revenue shall [COLLECT AND] enforce the charge 28 imposed under this section. The Department of Administration shall identify the 29 amount of the operating budgets of the commission and the Department of Law public 30 advocacy function under AS 42.04.070(c) and AS 44.23.020(e) that lapse into the 31 general fund each year. The legislature may appropriate an amount equal to the lapsed
01 amount to the commission and to the Department of Law public advocacy function 02 under AS 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal 03 year. If the legislature does so, the commission shall reduce the total regulatory cost 04 charge collected for that fiscal year by a comparable amount. 05 * Sec. 21. AS 42.06.286(d) is amended to read: 06 (d) The commission may adopt regulations under AS 44.62 (Administrative 07 Procedure Act) necessary to administer this section, including requirements and 08 procedures for reporting information, [AND] making quarterly payments, and 09 collecting required payments. The Department of Revenue may adopt regulations 10 under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed 11 information [, AND FOR COLLECTING REQUIRED PAYMENTS]. 12 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 VACANCY IN OFFICE; APPOINTMENT OF NEW MEMBERS OF THE 15 REGULATORY COMMISSION OF ALASKA. (a) Notwithstanding any other provision of 16 law, the term of office of each incumbent commissioner of the Regulatory Commission of 17 Alaska serving on the effective date of this section terminates on December 31, 2007. Under 18 AS 42.04.020, as amended by this Act, the governor shall appoint five new members to 19 succeed the incumbent members. 20 (b) AS 39.05.055(3) applies to the appointments initially made by the governor to the 21 commission under AS 42.04.020, as amended by sec. 4 of this Act, and (a) of this section.