Legislature(2021 - 2022)BARNES 124

04/27/2022 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 382 INSULIN COVERAGE:INSURANCE;MEDICAID TELECONFERENCED
<Bill Hearing Rescheduled to 04/29/22>
<Pending Referral>
+ SB 45 AGE FOR NICOTINE/E-CIG; TAX E-CIG. TELECONFERENCED
<Bill Hearing Canceled>
<Pending Referral>
+= HB 405 ESTABLISHMENT OF TRUSTS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 406 MORATORIUM ON TRUSTS/PROPERTY ACQUISITION TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 186 EXTEND BOARD OF EXAMINERS IN OPTOMETRY TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 04/25/22>
+ SB 190 REGULATORY COMMISSION AK/REFUSE UTILITIES TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 04/25/22>
+ SB 193 EXTEND BOARD OF CHIROPRACTIC EXAMINERS TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 04/25/22>
         SB 190-REGULATORY COMMISSION AK/REFUSE UTILITIES                                                                   
                                                                                                                                
3:39:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced  that the next order  of business would                                                               
be  CS  FOR SENATE  BILL  NO.  190(FIN),  "An Act  extending  the                                                               
termination  date   of  the  Regulatory  Commission   of  Alaska;                                                               
relating   to  Regulatory   Commission   of  Alaska   regulations                                                               
regarding refuse utilities; relating to  the powers and duties of                                                               
the legislative  audit division;  and providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
3:39:46 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:40:24 PM                                                                                                                    
                                                                                                                                
SENATOR  ROBERT MYERS,  Alaska State  Legislature,  as the  prime                                                               
sponsor,  he  testified  that  CSSB  190(FIN)  would  extend  the                                                               
termination  date of  the Regulatory  Commission of  Alaska (RCA)                                                               
until  6/30/30,  in alignment  with  the  recommendations of  the                                                               
legislative  auditor.     He  explained   that  the  RCA   is  an                                                               
independent,  quasi-judicial   regulatory  body  formed   by  the                                                               
legislature  in  1999  to replace  the  Alaska  Public  Utilities                                                               
Commission.  The RCA, he  continued, monitors active certificates                                                               
for  public  utilities  and pipelines,  with  these  certificates                                                               
covering   a  broad   range   of   activities  from   provisional                                                               
certificates for  small village  water and wastewater  systems to                                                               
fully  regulated telecommunications,  electric,  and natural  gas                                                               
monopolies.    He noted  that  the  changes  made in  the  Senate                                                               
Finance Committee  were simple housekeeping  that he  supports as                                                               
they address  the refuse  utility backlog by  adding them  to the                                                               
simplified  rate  filing  procedure  and removing  an  extra  RCA                                                               
annual report  review process  on the  advice of  the legislative                                                               
auditor.                                                                                                                        
                                                                                                                                
3:41:58 PM                                                                                                                    
                                                                                                                                
DAWSON   MANN,  Staff,   Senator  Robert   Myers,  Alaska   State                                                               
Legislature, on behalf of Senator  Myers, prime sponsor, provided                                                               
the  sectional analysis  for CSSB  190(FIN).   He spoke  from the                                                               
written  sectional analysis  titled "SB  190 Ver.  W    Sectional                                                               
Analysis," which stated [original punctuation provided]:                                                                        
                                                                                                                                
     Section 1: Page 1, Lines 6-11                                                                                          
     This section  adds intent language that  the Regulatory                                                                    
     Commission of  Alaska shall adopt  regulations specific                                                                    
     to refuse  utilities to  provide for  sufficient public                                                                    
     notice and time for  ratepayers to meaningfully comment                                                                    
     on rate filings.                                                                                                           
                                                                                                                                
     Section 2:  AS 42.05.381(e)  Page 1, Lines  12-14, Page                                                                
     2, Lines 1-8                                                                                                             
     This section  amends AS 42.05.381(e) to  include refuse                                                                    
     utilities. AS  42.05.381(e) is the section  of law that                                                                    
     provides for a simplified rate filing procedure.                                                                           
                                                                                                                                
     Section 3: AS 44.66.010(a)(3) Page 2, Lines 9-11                                                                       
     This  section  extends  the termination  date  for  the                                                                    
     Regulatory Commission of Alaska until June 30, 2030.                                                                       
                                                                                                                                
     Section 4: AS 24.20.271(11) Page 2, Line 12                                                                            
     This  section repeals  AS 24.20.271(11),  a requirement                                                                    
     for the legislative audit division  to conduct an audit                                                                    
     every  two years  of information  found  in the  annual                                                                    
     reports   regarding   compliance  by   the   Regulatory                                                                    
     Commission of Alaska.                                                                                                      
                                                                                                                                
     Section [5]: Page 3, Line 13                                                                                           
     This section establishes an immediate effective date.                                                                      
                                                                                                                                
3:42:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS asked what prompted  the addition of the language                                                               
in Section 1 on page 1, lines 6-11.                                                                                             
                                                                                                                                
MR. MANN offered  his understanding that the  intent language was                                                               
added [in  the Senate Finance  Committee] to make clear  that the                                                               
RCA  was going  to adopt  internal rules  to make  sure there  is                                                               
public notice in  relation to refuse utilities as  per the change                                                               
made in Section 2.                                                                                                              
                                                                                                                                
MR. MANN returned to the  sectional analysis and pointed out that                                                               
the inclusion  of refuse utilities  in Section 2 was  an addition                                                               
made in  the Senate  Finance Committee.   He further  pointed out                                                               
that the repeal in Section 4  of the audit under AS 24.20.271(11)                                                               
was added  by the Senate  Finance Committee on  recommendation of                                                               
the legislative auditor.                                                                                                        
                                                                                                                                
3:44:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  asked whether the  intent language  was prompted                                                               
by rates going up sharply somewhere in the state.                                                                               
                                                                                                                                
SENATOR MYERS  replied that this  is not due  to a jump  in waste                                                               
utility rates,  but rather  to waste  utilities trying  to expand                                                               
outside some  of their traditional  areas within city  limits but                                                               
the  regulations   have  not  been   allowing  them  to   do  so.                                                               
Currently,  he explained,  due  to the  way  waste utilities  are                                                               
regulated,  it takes  about two  years to  go through  the entire                                                               
process to update a utility's rates.   He deferred to the RCA and                                                               
the legislative auditor to expand further.                                                                                      
                                                                                                                                
3:46:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS opened invited testimony.                                                                                       
                                                                                                                                
3:46:25 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   CPA,  CISA,  Legislative  Auditor,   Division  of                                                               
Legislative Audit, provided invited  testimony during the hearing                                                               
on CSSB  190(FIN).  She  spoke from  the written audit  report in                                                               
the committee  packet titled "A  Sunset Review of  the Department                                                               
of  Commerce,  Community,  and Economic  Development,  Regulatory                                                               
Commission of Alaska (RCA)," dated  9/21/21.  [Referring to pages                                                               
3-4  of  the report],  she  said  the  audit concluded  that  RCA                                                               
operated in an effective manner  and served the public's interest                                                               
by:     assessing  the  capabilities  of   utility  and  pipeline                                                               
companies  to safely  serve the  public;  evaluating tariffs  and                                                               
charges made  by regulated  entities; verifying  the pass-through                                                               
charges  to consumers  from electric  and natural  gas utilities;                                                               
adjudicating disputes between  ratepayers and regulated entities;                                                               
providing consumer protection  services; and conducting financial                                                               
reviews  as part  of the  power cost  equalization program.   She                                                               
stated that  the division is  therefore recommending  the maximum                                                               
eight-year extension.                                                                                                           
                                                                                                                                
MS.  CURTIS discussed  the survey  conducted by  the division  as                                                               
part of the sunset audit (Appendix  B pages 19-20).  She said the                                                               
survey was sent  to 188 stakeholders that were party  to a docket                                                               
or a tariff  filing during the audit period,  with 59 responding.                                                               
She noted that  by far the responses to the  survey questions are                                                               
positive or  neutral, with  only a small  percent negative.   She                                                               
listed  the  four  questions  that  were  asked:    Overall,  how                                                               
satisfied are  you with the  following services provided  by RCA?                                                               
To  what extent  do  you  agree that  RCA  acts  in the  public's                                                               
interest?  Based on your experience,  how often does RCA meet its                                                               
statutory  timelines?    To  what extent  do you  agree that  RCA                                                               
effectively communicates?                                                                                                       
                                                                                                                                
MS. CURTIS returned to page 4 of  the audit report.  She said the                                                               
division  concluded  that  RCA  resolved  most  of  its  consumer                                                               
complaints  within its  internal,  non-statutory,  measure of  30                                                               
days.  To provide an idea  of the types of complaints received by                                                               
RCA, she drew attention to  the listing of consumer complaints in                                                               
Exhibit 3 on page 5.  She  revisited page 4 and said the division                                                               
also  concluded that  RCA processed  tariff  filings and  dockets                                                               
within the statutory and regulatory timelines.                                                                                  
                                                                                                                                
MS. CURTIS  turned to page 9  of the report and  pointed out that                                                               
the  audit  makes  one administrative  recommendation,  which  is                                                               
related to RCA's  monthly meetings.  Regulations  for RCA require                                                               
meetings twice  a month, she  said, but in instances  where there                                                               
are  no  agenda  items  RCA has  been  cancelling  the  meetings.                                                               
During  the  audit  period,  she  related,  25  of  88  scheduled                                                               
meetings were  cancelled, including six instances  where meetings                                                               
were consecutively  cancelled.  According to  RCA management, she                                                               
related, regulations  require the meetings, but  regulations also                                                               
allow RCA  to waive a  regulatory requirement by its  own motion.                                                               
Auditors confirmed that there is an  ability to waive but that it                                                               
must  be  an  official  motion,  she  continued,  so  these  were                                                               
cancelled without  official motion.   It is  certainly reasonable                                                               
to cancel  a meeting  when there  is nothing  on the  agenda, she                                                               
allowed, but it does not  explicitly comply with the regulations,                                                               
so this was brought to RCA's attention.                                                                                         
                                                                                                                                
MS.  CURTIS directed  attention to  pages 23-26  and stated  that                                                               
both  the  DCCED commissioner  and  the  RCA board  chairman  are                                                               
supportive of the eight-year extension.                                                                                         
                                                                                                                                
3:50:51 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:50:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  requested  background  on  the  integration  of                                                               
expansion  of refuse  collection and  utility service  areas into                                                               
the bill.                                                                                                                       
                                                                                                                                
3:51:27 PM                                                                                                                    
                                                                                                                                
KEITH  KURBER,  Commissioner,  Regulatory  Commission  of  Alaska                                                               
(RCA),  responded that  two separate  issues were  brought up  by                                                               
Senator Myers.   Regulated and non-regulated  utilities require a                                                               
Certificate  of  Public  Convenience  and  Necessity  (CPCN),  he                                                               
explained, and  an expansion  of service  area is  typically done                                                               
through  amendment  of a  CPCN.    It  is  routine and  not  time                                                               
consuming,  he  stated,  the   commission  just  revalidates  the                                                               
utility's previously validated  fitness, willingness, and ability                                                               
to accomplish  its task.  He  said he doesn't know  what prompted                                                               
[the Senate  Finance Committee's]  change, but that  RCA Chairman                                                               
Picket stated  in his testimony on  the Senate side that  this is                                                               
not a  difficult task  for the commission  to re-do  a regulation                                                               
docket  to  assess and  modify  the  commission's regulations  to                                                               
allow  for simplified  rate  filing for  refuse  utilities.   Mr.                                                               
Kurber specified  that both full-blown rate  cases and simplified                                                               
rate  filings require  standard public  notice requirement,  with                                                               
timelines  typically  shorter  for simplified  rate  filings  and                                                               
hence  the term  simplified.    Quite a  bit  of  expense can  be                                                               
involved in doing  a full-blown rate case, he  noted, and smaller                                                               
utilities,  whether  electric  cooperatives  in  rural  areas  or                                                               
refuse  utilities, may  not  have the  staff to  do  some of  the                                                               
calculations necessary to  produce the final result.   He said he                                                               
therefore speculates that this could  be an assistance to some of                                                               
the smaller rate regulated refuse utilities.                                                                                    
                                                                                                                                
3:54:24 PM                                                                                                                    
                                                                                                                                
SENATOR MYERS  added that  refuse utilities,  for the  most part,                                                               
have  existed and  operated within  a  city -  the city  requires                                                               
residential  trash pickup,  so the  rates reflect  that basically                                                               
everybody is getting  trash pickup.  Refuse  utilities are trying                                                               
to  expand  outside  of  the  city limits,  he  explained.    For                                                               
example,  in Fairbanks  they are  trying to  expand north  of the                                                               
city  limits   and  pick  up   more  customers,   which  requires                                                               
experimenting with their  rates to make them work.   The problem,                                                               
he said,  is that  the current process  for altering  rates takes                                                               
about two years.   So, if the utility picks a  number that is too                                                               
high or too  low it takes a  long time for that to  get fixed and                                                               
creates  a  backlog within  the  RCA  to address  those  changes.                                                               
Hence,  he  continued, the  suggestion  was  made in  the  Senate                                                               
Finance  Committee to  put  it into  the  simplified rate  filing                                                               
process  so that  those changes  can  be addressed  within a  few                                                               
months rather than about two years.                                                                                             
                                                                                                                                
3:55:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  asked  whether this  [proposed]  process                                                               
will  allow for  people  in  the expanded  service  area to  have                                                               
feedback on whether they want to be part of a collection.                                                                       
                                                                                                                                
SENATOR MYERS  answered that  the proposed  new process  does not                                                               
require somebody  to be a  refuse customer, as opposed  to people                                                               
living within city limits being  required to sign up.  Simplified                                                               
rate filings still provide time  for public feedback as the rates                                                               
change, he explained, but because  the simplified rate process is                                                               
a shorter  time period there are  also limits as to  how much the                                                               
rate  can change  within  that  time period.    A refuse  utility                                                               
wanting a larger  change, he specified, would have  to go through                                                               
the original longer process.   In further response, Senator Myers                                                               
confirmed that  this would  not force people  to pay  a business,                                                               
they could choose to take their garbage to the dump themselves.                                                                 
                                                                                                                                
3:57:37 PM                                                                                                                    
                                                                                                                                
[CSSB 190(FIN) was held over.]                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 186 Sponsor Statement 2.22.2022.pdf HL&C 4/27/2022 3:15:00 PM
SB 186
SB 186 ver. A 2.9.22.PDF HL&C 4/27/2022 3:15:00 PM
SB 186
SB 186 Fiscal Note DCCED-CBPL 3.4.2022.pdf HL&C 4/27/2022 3:15:00 PM
SB 186
SB 186 Optometry Audit June 2021 4.6.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 186
SB 190 v. A 4.14.22.PDF HL&C 4/27/2022 3:15:00 PM
SB 190
SB 190 v. W Sectional Analysis 4.14.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 190
SB 190 v. W Sponsor Statement 4.14.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 190
CSSB 190 Fiscal Note DCCED-RCA 4.22.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 190
SB 190 Support Document- Legislative Audit RCA Sunset Review 9.21.21.pdf HL&C 4/27/2022 3:15:00 PM
SB 190
CSSB 190 v. W 4.14.22.PDF HL&C 4/27/2022 3:15:00 PM
SB 190
SB 190 Explanation of Changes ver. I to W 03.25.2022.pdf HL&C 4/27/2022 3:15:00 PM
SB 190
SB 190 Explanation of Changes version A to I 4.14.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 190
SB 193 Full Audit 4.11.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 193
SB 193 Letter of Support 2.28.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 193
SB 193 Sponsor Statement Version G 4.11.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 193
SB 193 Verison G 4.11.22.PDF HL&C 4/27/2022 3:15:00 PM
SB 193
CSSB 193 (FIN) Fiscal Note DCCED-CBPL 4.22.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 193
SB 193 Audit Summary 4.11.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 193
SB 193 Explanation of Changes, version I to G 4.11.22.pdf HL&C 4/27/2022 3:15:00 PM
SB 193
HB 405-406 Letter of Support - Gov Tony Knowles 4.27.22.pdf HL&C 4/27/2022 3:15:00 PM
HB 405
HB 405-406 Opposition Letters 4.27.22.PDF HL&C 4/27/2022 3:15:00 PM
HB 405
HB 405-406 Letter of Support - AKPIRG 4.22.22.pdf HL&C 4/27/2022 3:15:00 PM
HB 405
HB 405-406 SupportDoc - TJN Complex Ownership Structures 4.27.22.pdf HL&C 4/27/2022 3:15:00 PM
HB 405
HB 405-406 Opposition Letters (email) 4.27.22.pdf HL&C 4/27/2022 3:15:00 PM
HB 405