Legislature(2007 - 2008)BELTZ 211
03/11/2008 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HJR25 | |
| SB289 | |
| SB294 | |
| SB297 | |
| SB160 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 294 | TELECONFERENCED | |
| *+ | SB 297 | TELECONFERENCED | |
| += | SB 160 | TELECONFERENCED | |
| += | SB 289 | TELECONFERENCED | |
| += | HJR 25 | TELECONFERENCED | |
SB 294-RCA POSITIONS AND SALARIES
1:36:52 PM
CHAIR ELLIS announced SB 294 to be up for consideration.
DANA OWEN, staff to Senator Ellis, explained this measure is the
result of the work of the Regulatory Commission of Alaska (RCA)
Task Force. Two of the recommendations were singled out for this
bill because they had broad support.
1:37:25 PM
SENATOR BUNDE joined the committee.
MR. OWEN explained that Sections 1, 2 and 3 stipulate that a new
executive director will be part of the exempt service and it
moves administrative law judges into the exempt service (from
partially exempt). Section 3 changes the pay levels for
commissioners from a Step C, Range 26, to Step F, Range 30. The
remainder of the bill authorizes the commission to employ an
executive director in an administrative position.
1:40:05 PM
CHAIR ELLIS asked the RCA chair's opinion of this legislation.
TONY PRICE, Chairman, Regulatory Commission of Alaska, supported
SB 294 with a couple of changes. One is that it's not clear who
employs administrative law judges; it could be either the
commission or the executive director. He also proposed adding
language stating "The executive director shall not participate
in the adjudication of any matter to come before the
commission." This would address issues that arose in past
commissions.
His final recommendations were first to AS 42.05.254(a) to
increase the RCA cap from what it is presently at .7 percent to
.9 percent. Some people say they don't want to increase the cap,
but their budget is set; this allows him to collect the revenue
to feed it. He said he didn't think they would be at the cap,
but he didn't know what next year's revenues would be. He also
suggested increasing the RCA cap in AS 42.06.286(a) from .7
percent to .9 percent for the same reason.
1:42:46 PM
SENATOR STEVENS joined the committee.
CHAIR ELLIS asked him to submit those suggestions in writing. He
then asked him to comment on the commission's overall needs,
underfunding and understaffing and why this should be compelling
legislation.
MR. PRICE responded that his presentation to the Task Force was
86 minutes, but he would give them a briefer version. At this
level of staffing they have three engineer positions, but only
one is filled. They need all three. The commission's utility
financial analyst needs to have a very high skills set regarding
accounting and financial review; it has five of those positions
and only two are filled - with staff that have been there for
over five years, and "their docket load is oppressive to say the
least." He explained that they are in the situation where they
have taken staff that were legal office assistants to the
commissioners, redefined their jobs and put them in the ALJ
section to help move orders out; the commissioners now have no
support. However, he said, the commissioners can do their own
filing.
Complicating all this is another change that has dramatically
increased the workload. Besides all the other statutory
deadlines, last year another bill imposed a six-month deadline
on all things that did not otherwise have one. They are
completing dockets virtually days before the statutory deadline
or on the day of. They don't have the revenues or the staff.
Alternatively, they will have to hire consultants from the Lower
48 and pay them at a much higher rate.
CHAIR ELLIS said Mr. Price's concerns are not unique to the RCA
and he was personally convinced they needed to take some action.
He said that most legislators had not heard his comments.
Positions throughout state government are having trouble
recruiting people.
1:50:06 PM
RICH GAZAWAY, RCA commissioner, agreed with Mr. Price's
comments.
CHAIR ELLIS said he would have a committee substitute prepared
with some of his proposed changes.
1:50:51 PM
SENATOR LISEL MCGUIRE, chair of the RCA Task Force, wanted to
add "a little bit of soul" to Mr. Price's comments. She said the
RCA is one of the most important commissions in the state. It
deals with highly technical complex matters that affect
consumers in the state more than any other commission. Yet it
has a great challenge recruiting and retaining staff including
the highly technical positions and the commissioners themselves.
She said RCA commissioners effectively act as a Supreme Court
judge because they preside over for example, the TAPS tariff
case affecting billions of dollars to consumers and producers.
But they are at the lower level salary in looking at the
marketplace.
SENATOR McGUIRE said you want folks with juris doctorate
degrees, CPAs, business backgrounds and experience in the
private sector. These are the kinds of individuals who will come
from the private sector and those make a lot more money.
She said she thought the commission needed an executive director
who would act as a manager. Currently, one of the five
commissioners serves as chair, but he also has the
administrative function of hiring and firing and the rudimentary
business part of the commission.
SENATOR MCGUIRE emphasized that she was very disturbed as a
lawmaker to see the volumes of rate cases with which they are
dealing. One department has only one person who has only two
years on the job in the office.
CHAIR ELLIS said he supports this legislation. He thinks it is
necessary to pay quality wages to the commissioners, but
considers the position on of public service as well. While he
supported the entire package, the staff vacancies and staff pay
were more important to him.
SENATOR MCGUIRE thanked the RCA commissioners who are looking
out for the state's best interests.
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