05/19/2003 08:46 AM Senate FIN

                                                                                                                                
     CSHB 111(JUD) AM                                                                                                           
     "An Act relating to policies in telecommunications                                                                         
     regulations; extending the termination date of the Regulatory                                                              
     Commission of Alaska; and providing for an effective date."                                                                
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  stated  that this  legislation  would  extend  the                                                            
Regulatory Commission  of Alaska (RCA) to June 30,  2007 and require                                                            
the  RCA to  review  regulations  pertaining  to telecommunications                                                             
regulations and present  proposed regulations on the matter no later                                                            
than November  15, 2003.  In addition, he  removed himself  from the                                                            
discussion on this bill  due to the fact that there is a conflict of                                                            
interest because he is  "a minority shareholder in a utility that is                                                            
regulated by the RCA."                                                                                                          
                                                                                                                                
AT EASE 7:54 PM / 7:54 PM                                                                                                       
                                                                                                                                
[NOTE: Vice-Chair Bunde chaired this portion of the meeting.]                                                                   
                                                                                                                                
Senator  Taylor  moved  to  report  the  bill  from  Committee  with                                                            
individual  recommendations and attached  fiscal notes. He  objected                                                            
to allow for testimony.                                                                                                         
                                                                                                                                
PATRICK LUBA, Legislative  Representative, AARP, testified that AARP                                                            
supports the  four-year extension  of the RCA. He asserted  that the                                                            
RCA is  an "essential"  entity because  it is  the only place  where                                                            
consumers could  go to present concerns regarding  a public utility.                                                            
He asserted that the consumers need the Commission.                                                                             
                                                                                                                                
Senator  Bunde  voiced the  understanding  that  the Administration                                                             
supports the original  version of this bill as opposed  to the House                                                            
Judiciary  committee   substitute.  He  asked  for  an  explanation                                                             
regarding the Administration's preference.                                                                                      
                                                                                                                                
DANIEL  PATRICK  O'TIERNEY,   Senior  Assistant  Attorney   General,                                                            
Regulatory  Affairs  Section,  Department  of  Law stated  that  the                                                            
original bill  "simply sought a four-year extension  of the RCA." He                                                            
noted   that  the   committee   substitute  before   the   Committee                                                            
additionally  "tasks the RCA  with other  interim duties."  He noted                                                            
that  the Administration  objects  because  these other  duties  are                                                            
perceived  to be "one-sided  and  over-reaching"  in that they  give                                                            
"one  of the  market  players  an  advantage."  He stated  that  the                                                            
Administration considers this to be "problematic."                                                                              
                                                                                                                                
Senator  Bunde clarified  that  a new  fiscal note  accompanies  the                                                            
bill.                                                                                                                           
                                                                                                                                
Senator Taylor  removed his objection. He clarified  that his motion                                                            
to move the bill specified, "attached fiscal notes."                                                                            
                                                                                                                                
There being  no further objection,  CS HS  111(JUD) am was  REPORTED                                                            
from Committee  with  a new $6,039,200  fiscal note,  dated May  19,                                                            
2003, from the Department of Community and Economic Development.                                                                
                                                                                                                                
AT EASE 7:59 PM / 7:59 PM                                                                                                       
                                                                                                                                
[Co-Chair Wilken resumed chairmanship of the meeting.]