00               HOUSE CS FOR CS FOR SENATE BILL NO. 190(L&C)                                                             
01 "An Act extending the termination date of the Regulatory Commission of Alaska;                                          
02 relating to Regulatory Commission of Alaska regulations regarding refuse utilities;                                     
03 relating to municipal refuse utilities; relating to the powers and duties of the legislative                            
04 audit division; and providing for an effective date."                                                                   
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
07 to read:                                                                                                                
08       LEGISLATIVE INTENT. (a) It is the intent of the legislature that the Regulatory                                   
09 Commission of Alaska shall adopt regulations authorized under sec. 2 of this Act that are                               
10 specific to refuse utilities and that provide for sufficient public notice and time for ratepayers                      
11 to meaningfully comment on rate filings.                                                                                
12 (b)  It is the intent of the legislature under sec. 4 of this Act to ensure the Regulatory                              
13 Commission of Alaska and local decision makers make informed decisions in the public                                    
14 interest; it is not the intent of the legislature to interfere with normal rate-making                                  

01 methodologies.                                                                                                          
02    * Sec. 2. AS 42.05.381(e) is amended to read:                                                                      
03 (e)  The commission shall adopt regulations for electric cooperatives, [AND                                         
04 FOR] local exchange telephone utilities, and refuse utilities, setting a range for                                  
05 adjustment of rates by a simplified rate filing procedure. A cooperative, [OR]                                      
06 telephone utility, or refuse utility may apply for permission to adjust its rates over a                            
07 period of time under the simplified rate filing procedure regulations. The commission                                   
08 shall grant the application if the cooperative, [OR] telephone utility, or refuse utility                       
09 satisfies the requirements of the regulations. The commission may review                                                
10 implementation of the simplified rate filing procedure at reasonable intervals and may                                  
11 revoke permission to use the procedure or require modification of the rates to correct                                  
12       an error.                                                                                                         
13    * Sec. 3. AS 42.05.641 is amended to read:                                                                         
14 Sec. 42.05.641. Regulation by municipality. The commission's jurisdiction                                             
15 and authority extend to public utilities, including a municipal refuse utility,                                     
16 operating within a municipality, whether home rule or otherwise. In the event of a                                      
17 conflict between a certificate, order, decision, or regulation of the commission and a                                  
18 charter, permit, franchise, ordinance, rule, or regulation of [SUCH] a local                                            
19 governmental entity, the certificate, order, decision, or regulation of the commission                                  
20       shall prevail.                                                                                                    
21    * Sec. 4. AS 42.05.641 is amended by adding new subsections to read:                                               
22 (b)  A municipality that seeks to privatize a municipal refuse utility that is                                          
23 subject to the provisions of this chapter shall submit a proposal to the commission for                                 
24 review. The commission may approve the proposal if the commission finds, after                                          
25 consideration of whether the proposal will result in higher rates for consumers, that                                   
26       privatization is in the public interest. A privatization proposal must include                                    
27                 (1)  a business plan that lists the prospective vendors;                                                
28 (2)  the projected cost of private operation compared to continued                                                      
29       municipal operation for a 10-year period;                                                                         
30 (3)  disclosure of any potential conflicts of interest on the part of                                                   
31       municipal officials; and                                                                                          

01                 (4)  proposed methods                                                                                   
02                      (A)  for periodically evaluating the utility's performance to                                      
03            avoid diminished service quality, interruption, or stoppage of work by the                                   
04            contractor;                                                                                                  
05                      (B)  to encourage competition and productivity;                                                    
06                      (C)  for monitoring a contract in order to detect any contractor                                   
07            defaults, monitor penalties, and prepare for contract renewals or renegotiations                             
08            and inflation; and                                                                                           
09                      (D)  to address municipal employee displacement.                                                   
10            (c)  In this section, "privatize" means                                                                      
11 (1)  selling, renting, leasing, transferring, or bequeathing a certificate of                                           
12       public convenience and necessity obtained by a municipality to another entity; or                                 
13 (2)  subcontracting a portion of refuse collection in a particular service                                              
14       area to another entity.                                                                                           
15    * Sec. 5. AS 42.05.990(6) is amended to read:                                                                      
16                 (6)  "public utility" or "utility" includes every                                                       
17 (A)  corporation whether public, cooperative, or otherwise,                                                         
18 company, individual, or association of individuals, their lessees, trustees, or                                         
19 receivers appointed by a court, that owns, operates, manages, or controls any                                           
20            plant, pipeline, or system for                                                                               
21 (i) [(A)]  furnishing, by generation, transmission, or                                                              
22                 distribution, electrical service to the public for compensation;                                        
23 (ii) [(B)]  furnishing telecommunications service to the                                                            
24                 public for compensation;                                                                                
25 (iii) [(C)]  furnishing water, steam, or sewer service to                                                           
26                 the public for compensation;                                                                            
27 (iv) [(D)]  furnishing by transmission or distribution of                                                           
28                 natural or manufactured gas to the public for compensation;                                             
29 (v) [(E)]  furnishing for distribution or by distribution                                                           
30 petroleum or petroleum products to the public for compensation when                                                     
31 the consumer has no alternative in the choice of supplier of a                                                          

01                 comparable product and service at an equal or lesser price;                                             
02                           (vi) [(F)]  furnishing collection and disposal service of                                 
03                 garbage, refuse, trash, or other waste material to the public for                                       
04                 compensation;                                                                                           
05                           (vii) [(G)]  furnishing the service of natural gas storage                                
06                 to the public for compensation;                                                                         
07                           (viii) [(H)]  furnishing the service of liquefied natural                                 
08                 gas storage to the public for compensation;                                                         
09                      (B)  plant, pipeline, or system for furnishing collection and                                  
10            disposal service of garbage, refuse, trash, or other waste material to the                               
11            public for compensation that is owned, operated, managed, or controlled                                  
12            by a municipality;                                                                                       
13    * Sec. 6. AS 44.66.010(a)(3) is amended to read:                                                                   
14                 (3)  Regulatory Commission of Alaska (AS 42.04.010) - June 30, 2030                                 
15       [2022];                                                                                                           
16    * Sec. 7. AS 24.20.271(11) is repealed.                                                                          
17    * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).