Legislature(2019 - 2020)
2020-03-19 House Journal
Full Journal pdf2020-03-19 House Journal Page 1958 SB 123 The following, which was moved to the bottom of the calendar (page 1956), was before the House in second reading: CS FOR SENATE BILL NO. 123(RBE) "An Act relating to the creation and regulation of electric reliability organizations; relating to participation of electric 2020-03-19 House Journal Page 1959 utilities in electric reliability organizations; relating to duties of electric reliability organizations; providing for integrated resource planning; requiring project preapproval for certain interconnected large energy facilities; and providing for an effective date." Amendment No. 1 was not offered. Amendment No. 2 was offered by Representatives Talerico, Kopp, Spohnholz, and Hopkins: Page 1, line 1, following "Act" (title amendment): Insert "relating to electric and telephone cooperatives; relating to telephone service and related telecommunications services;" Page 1, following line 6: Insert new bill sections to read: "* Section 1. AS 10.15.005 is amended to read: Sec. 10.15.005. Purposes for which cooperatives may be organized. A cooperative may be organized under this chapter for any lawful purpose, except for the purpose of banking or insurance or the furnishing of electric or telephone or a related telecommunications service. * Sec. 2. AS 10.15.575(a) is amended to read: (a) A person other than a cooperative association incorporated under this chapter or a previous law of the state may not use the term "cooperative," or any variation of the term, as part of its corporate or other business name or title. However, this section does not apply to cooperatives organized to generate and transmit electric energy and power or to furnish electric or telephone or a related telecommunications service. * Sec. 3. AS 10.15.585 is amended to read: Sec. 10.15.585. Application of chapter. This chapter applies to the fullest extent permitted by the laws and constitution of the United States and of the state to all existing cooperative associations incorporated under a previously existing law of the state relating to incorporation of cooperative associations. However, this section does not apply to cooperatives organized to generate and transmit electric energy and power or to furnish electric or telephone or a related telecommunications service. * Sec. 4. AS 10.25.010(a) is amended to read: 2020-03-19 House Journal Page 1960 (a) Except as provided in (b) of this section, an electric or telephone cooperative may (1) sue and be sued in its corporate name; (2) have perpetual existence; (3) adopt a corporate seal and alter it; (4) construct, buy, lease, or otherwise acquire, and equip, maintain, and operate, and sell, assign, convey, lease, mortgage, pledge, or otherwise dispose of or encumber lands, buildings, structures, electric or telephone lines or systems, dams, plants and equipment, and any other real or personal property, tangible or intangible, that is necessary, convenient, or appropriate to accomplish the purpose for which the cooperative is organized; (5) buy, lease, or otherwise acquire, and use, and exercise and sell, assign, convey, mortgage, pledge or otherwise dispose of or encumber franchises, rights, privileges, licenses, and easements; (6) borrow money and otherwise contract indebtedness, and issue evidences of indebtedness, and secure the payment of the indebtedness by mortgage, pledge, or deed of trust of, or any other encumbrance upon its real or personal property, assets, franchises, or revenues; (7) construct, maintain, and operate electric transmission and distribution lines [,] or telephone or related telecommunications service lines along, on [UPON], under and across publicly owned lands and public thoroughfares, including, without limitation, all roads, highways, streets, alleys, bridges, and causeways; (8) exercise the power of eminent domain; (9) become a member of other cooperatives or corporations or own stock in them; (10) conduct its business and exercise its powers inside or outside the state; (11) adopt, amend, and repeal bylaws; (12) make all contracts necessary, convenient, or appropriate for the full exercise of its powers; (13) make donations for the public welfare or for charitable, scientific, or educational purposes; (14) do and perform any other act and thing, and have and exercise any other power that may be necessary, convenient, or appropriate to accomplish the purpose for which the 2020-03-19 House Journal Page 1961 cooperative is organized. * Sec. 5. AS 10.25.030(a) is amended to read: (a) A telephone cooperative may (1) furnish, improve, and expand telephone or [SERVICE AND] related telecommunications service to its members [,] and to other users not in excess of 10 percent of the number of its members; however, telephone or a related telecommunications service may be made available by a cooperative through interconnection of facilities to any number of subscribers of other telephone or related telecommunications systems, and through pay stations to any number of users, and a cooperative that [WHICH] acquires existing telephone facilities or related telecommunications facilities may continue service to persons, not exceeding 40 percent of the number of its members, who are already receiving service from the facilities without requiring them to become members, and these persons may become members on [UPON] terms as may be prescribed in the bylaws; (2) connect and interconnect its telephone or related telecommunications service lines, facilities, or systems with other telephone or related telecommunications service lines, facilities, or systems; (3) make its facilities available to persons furnishing telephone or related telecommunications service inside or outside the state. * Sec. 6. AS 10.25.040(a) is amended to read: (a) The name of a cooperative must include the words "electric," [OR] "telephone," "telecommunications," or "telecom," as appropriate to its purpose, and "cooperative" or "association," and the abbreviation "Inc." ["INC."] * Sec. 7. AS 10.25.080(a) is amended to read: (a) Each incorporator of a cooperative shall be a member of the cooperative or of another cooperative that is a member of it. A person may not become a member unless that person agrees to use electric energy, [OR] telephone or a related telecommunications service, or other services furnished by the cooperative when they are made available through its facilities. * Sec. 8. AS 10.25.090(a) is amended to read: (a) An annual meeting of the members of a cooperative shall be conducted as [HELD AT THE TIME AND PLACE] provided 2020-03-19 House Journal Page 1962 in the bylaws of the cooperative. An annual meeting of the members of a cooperative that has been divided into districts as provided for in AS 10.25.190 may consist of separate annual meetings of the members of each district. Unless prohibited by the articles or bylaws of the cooperative, the members of a cooperative may conduct an annual meeting by teleconference or another means of communication that ensures all members participating can hear each other during the meeting. * Sec. 9. AS 10.25.090(c) is amended to read: (c) An annual meeting of district delegates of a cooperative shall be conducted as [HELD AT THE TIME AND PLACE] provided in the bylaws of the cooperative. * Sec. 10. AS 10.25.100 is amended to read: Sec. 10.25.100. Notice of meetings. Except as otherwise provided in this chapter, or the articles or bylaws of a cooperative, written notice stating the time and place of each meeting of the members or district delegates shall be given to each member or district delegate, in person [EITHER PERSONALLY] or by mail, electronic mail, or text message, not less than 15 days nor [OR] more than 60 days before the date of the meeting. Notice of a special meeting of the members, together with notice of the purpose for which the meeting is called, shall be given to each member or district delegate [, EITHER] personally or by mail, electronic mail, or text message, not less than 90 days nor [OR] more than 120 days before the date of the meeting. If mailed, notice is considered given when the notice [IT] is deposited in the United States mail with postage prepaid addressed to the member or district delegate at the address of the member or delegate as the address [IT] appears on the records of the cooperative. When sent by text or electronic mail, notice is considered given when the notice is sent to the member's telephone number, if the telephone is capable of receiving text messages, or the electronic mailing address on record with the cooperative. * Sec. 11. AS 10.25.110(a) is amended to read: (a) Unless the bylaws prescribe the presence of a greater percentage or number of the members for a quorum, a quorum for the transaction of business at all meetings of the members of a cooperative or the members of a district of a cooperative having not more than 1,000 members is five percent of all members [, 2020-03-19 House Journal Page 1963 PRESENT IN PERSON], and a quorum for the transaction of business of the members of a cooperative or the members of a district of a cooperative having more than 1,000 members is 50 members [, PRESENT IN PERSON]. If less than a quorum is present, or is considered present under (c) of this section, at a meeting, a majority of those present, or considered present under (c) of this section [IN PERSON] may adjourn the meeting from time to time without further notice. * Sec. 12. AS 10.25.110 is amended by adding a new subsection to read: (c) Unless prohibited by the articles or bylaws, a member or delegate who votes on a matter by electronic communication received or mail postmarked before a meeting begins is considered to have attended the meeting for the matter on which the member or delegate voted. * Sec. 13. AS 10.25.175(a) is amended to read: (a) A meeting of the board of directors may be attended by members of the cooperative. Except when voice votes are authorized, a vote shall be conducted in such a manner that the members may know the vote of each person entitled to vote. The board of directors may conduct a meeting by teleconference, or another means of communication that ensures all participating directors can hear each other during the meeting, [OR SIMILAR COMMUNICATIONS EQUIPMENT] if the board gives reasonable notice of the meeting and if members of the cooperative are able to attend the meeting sites and hear the meeting. This section applies only to a meeting at which a quorum of the board participates. * Sec. 14. AS 10.25.175(c) is amended to read: (c) The following excepted subjects may be discussed in an executive session: (1) matters the immediate knowledge of which would clearly have an adverse effect on the finances of the cooperative; (2) subjects that tend to prejudice the reputation and character of a person; however, the person may request a public discussion; (3) matters discussed with an attorney for the cooperative, the immediate knowledge of which could have an adverse effect on the legal position of the cooperative; (4) personnel matters. 2020-03-19 House Journal Page 1964 * Sec. 15. AS 10.25.290(a) is amended to read: (a) A corporation organized under the laws of the state and supplying or having the corporate power to supply electric energy [,] or to furnish telephone or a related telecommunications service [,] may be converted into a cooperative by complying with the requirements of this section and thereupon becomes subject to this chapter as if originally organized under this chapter. * Sec. 16. AS 10.25.430 is amended to read: Sec. 10.25.430. Validity of mortgage under Rural Electrification Act [OF 1936]. A mortgage made by a cooperative organized under this chapter to the United States of America, or an agency or instrumentality of it, to secure indebtedness incurred under 7 U.S.C. 901 - 950bb-2 [7 U.S.C. 901 - 950B] (Rural Electrification Act [OF 1936]), as amended, is not void as against creditors of the mortgagor and subsequent purchasers and encumbrancers of the property in good faith for value because the mortgage is not accompanied by an affidavit of the parties to it, or an affidavit of the agent or attorney-in-fact of a party to it, that the mortgage is made in good faith to secure the amount named, and without a design to hinder, delay or defraud creditors. A mortgage made by a cooperative organized under this chapter to the United States of America, or an agency or instrumentality of it to secure indebtedness incurred under 7 U.S.C. 901 - 950bb-2 [7 U.S.C. 901 - 950B] (Rural Electrification Act [OF 1936]), as amended, need not set out [FORTH] the date upon which the indebtedness secured by it becomes due. * Sec. 17. AS 10.25.460 is amended to read: Sec. 10.25.460. Registered office and registered agent. Each cooperative shall have and continuously maintain in the state a registered (1) office, which may be, but need not be, the same as the location of the principal office; (2) agent who is either an individual resident in the state [AND] whose business office is identical with the registered office or a domestic or foreign corporation authorized to transact business in the state whose business office is identical with the registered office. * Sec. 18. AS 10.25.810 is amended to read: Sec. 10.25.810. Purpose. Cooperative, nonprofit, membership corporations may be organized under this chapter for the purpose 2020-03-19 House Journal Page 1965 of supplying electric energy or telephone or a related telecommunications service and promoting and extending the use of these services. * Sec. 19. AS 10.25.820 is amended to read: Sec. 10.25.820. Chapter extended to existing cooperatives. This chapter applies to all nonprofit cooperatives organized under any other law of the state for the purpose of supplying electric energy and power, or telephone or a related telecommunications service, to its members, or for the purpose of promoting and extending the use of electric energy and power [,] or telephone or a related telecommunications service. These cooperatives are subject to this chapter as if originally organized under it. * Sec. 20. AS 10.25.840 is amended by adding a new paragraph to read: (6) "related telecommunications service" means (A) the transmission and reception of messages, impressions, pictures, and signals by means of electricity, electromagnetic waves, or any other source of energy, force variations, or impulses, whether conveyed by cable, wire, radiated through space, or transmitted through other media; or (B) a service capable of electronically generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information, through the use of broadband Internet access, data center services, information technology, or other technology services." Page 1, line 7: Delete "Section 1" Insert "Sec. 21" Renumber the following bill sections accordingly. Page 10, following line 27: Insert a new bill section to read: "* Sec. 22. AS 10.25.030(b) and 10.25.400(e) are repealed." Renumber the following bill sections accordingly. Page 10, line 31, following "by": Insert "sec. 21 of" 2020-03-19 House Journal Page 1966 Page 11, line 3: Delete "Section 2" Insert "Sections 1 - 20, 22, and 23" Page 11, line 4: Delete "sec. 3" Insert "sec. 24" Representative Kopp moved and asked unanimous consent that Amendment No. 2 be adopted. There was objection. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 123(RBE) Second Reading Amendment No. 2 YEAS: 33 NAYS: 1 EXCUSED: 5 ABSENT: 1 Yeas: Carpenter, Claman, Drummond, Edgmon, Foster, Gillis, Hannan, Hopkins, Johnson, Johnston, Josephson, Knopp, Kopp, Kreiss-Tomkins, LeBon, Merrick, Ortiz, Prax, Pruitt, Rauscher, Shaw, Spohnholz, Story, Stutes, Sullivan-Leonard, Talerico, Tarr, Thompson, Tilton, Tuck, Vance, Wool, Zulkosky Nays: Eastman Excused: Fields, Jackson, LeDoux, Lincoln, Rasmussen Absent: Neuman And so, Amendment No. 2 was adopted, and the new title follows: CS FOR SENATE BILL NO. 123(RBE) am H "An Act relating to electric and telephone cooperatives; relating to telephone service and related telecommunications services; relating to the creation and regulation of electric reliability organizations; relating to participation of electric utilities in electric reliability organizations; relating to duties of electric reliability organizations; providing for integrated resource 2020-03-19 House Journal Page 1967 planning; requiring project preapproval for certain interconnected large energy facilities; and providing for an effective date." Representative Thompson moved and asked unanimous consent that Representative Neuman be excused from a call of the House today. There being no objection, it was so ordered. Representative Thompson moved and asked unanimous consent that CSSB 123(RBE) am H be considered engrossed, advanced to third reading, and placed on final passage. There being no objection, it was so ordered. CSSB 123(RBE) am H was read the third time. The question being: "Shall CSSB 123(RBE) am H pass the House?" The roll was taken with the following result: CSSB 123(RBE) am H Third Reading Final Passage YEAS: 33 NAYS: 1 EXCUSED: 6 ABSENT: 0 Yeas: Carpenter, Claman, Drummond, Edgmon, Foster, Gillis, Hannan, Hopkins, Johnson, Johnston, Josephson, Knopp, Kopp, Kreiss-Tomkins, LeBon, Merrick, Ortiz, Prax, Pruitt, Rauscher, Shaw, Spohnholz, Story, Stutes, Sullivan-Leonard, Talerico, Tarr, Thompson, Tilton, Tuck, Vance, Wool, Zulkosky Nays: Eastman Excused: Fields, Jackson, LeDoux, Lincoln, Neuman, Rasmussen And so, CSSB 123(RBE) am H passed the House. Representative Thompson moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There was objection. The question being: "Shall the effective date clause be adopted?" The roll was taken with the following result: 2020-03-19 House Journal Page 1968 CSSB 123(RBE) am H Third Reading Effective Date YEAS: 34 NAYS: 0 EXCUSED: 6 ABSENT: 0 Yeas: Carpenter, Claman, Drummond, Eastman, Edgmon, Foster, Gillis, Hannan, Hopkins, Johnson, Johnston, Josephson, Knopp, Kopp, Kreiss-Tomkins, LeBon, Merrick, Ortiz, Prax, Pruitt, Rauscher, Shaw, Spohnholz, Story, Stutes, Sullivan-Leonard, Talerico, Tarr, Thompson, Tilton, Tuck, Vance, Wool, Zulkosky Excused: Fields, Jackson, LeDoux, Lincoln, Neuman, Rasmussen And so, the effective date clause was adopted. Representative Thompson moved and asked unanimous consent that the House adopt the Senate letter of intent (Senate Journal page 1866). There being no objection, it was so ordered. CSSB 123(RBE) am H was referred to the Chief Clerk for engrossment.