Legislature(2021 - 2022)ADAMS 519

05/18/2022 09:00 AM House FINANCE


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09:07:31 AM Start
09:08:54 AM SB190
09:22:09 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
Bills Previously Heard/Scheduled
+= SB 190 REGULATORY COMMISSION AK/REFUSE UTILITIES TELECONFERENCED
Moved HCS CSSB 190(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       May 18, 2022                                                                                             
                         9:07 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:07:31 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 9:07 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Teresa Woldstad, Staff, Senator Robert Myers; Kris Curtis,                                                                      
Legislative Auditor, Alaska Division of Legislative Audit.                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Bob  Pickett,  Chairman,  Regulatory Commission  of  Alaska,                                                                    
Department of Commerce,  Community and Economic Development;                                                                    
Stuart  Goering, Assistant  Attorney General,  Department of                                                                    
Law.                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 190(FIN)                                                                                                                   
          REGULATORY COMMISSION AK/REFUSE UTILITIES                                                                             
                                                                                                                                
          HCS CSSB  190(FIN) was  REPORTED out  of committee                                                                    
          with  six "do  pass" recommendations  and one  "no                                                                    
          recommendation"   recommendation   and  with   one                                                                    
          previously    published   fiscal    impact   note:                                                                    
          FN3(CED).                                                                                                             
                                                                                                                                
Co-Chair Foster reviewed the agenda for the meeting.                                                                            
                                                                                                                                
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."                                                                                                           
                                                                                                                                
9:08:54 AM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  invited  Ms.  Woldsted  staff  to  Senator                                                                    
Robert Meyers  to the table.  He highlighted  the importance                                                                    
of  passing  the  bill  that  would  extend  the  Regulatory                                                                    
Commission  of  Alaska (RCA)  sunset  date.  He explained  a                                                                    
couple of key  points related to the bill  including the RCA                                                                    
termination  extension  to  2030  and the  ability  for  the                                                                    
auditor to  continue auditing  the RCA.  He noted  there was                                                                    
also the issue of a proposal  to include refuse in the bill.                                                                    
He stated  his preference to  pass the simplest form  of the                                                                    
bill  to  include  the  audit  extension  and  the  auditing                                                                    
function.  He  pointed out  that  it  was  the last  day  of                                                                    
session. He remarked  that making changes to  the bill would                                                                    
slow the process down.                                                                                                          
                                                                                                                                
9:11:06 AM                                                                                                                    
                                                                                                                                
TERESA  WOLDSTAD,  STAFF,  SENATOR ROBERT  MYERS,  explained                                                                    
that the  Senate Finance Committee  version of the  bill had                                                                    
been  a simple  "housekeeping" version  that did  not change                                                                    
anything substantial  regarding the refuge utilities  of the                                                                    
RCA.  She detailed  that the  specific  version allowed  the                                                                    
refuge utilities, already under the  RCA, to use a different                                                                    
rate filing  process for  addressing refuge  utility backlog                                                                    
with a simplified rate filing  procedure. She explained that                                                                    
it  was  the  bill  version  that  came  to  the  House  for                                                                    
concurrence.                                                                                                                    
                                                                                                                                
Co-Chair Foster  remarked that the House  Labor and Commerce                                                                    
Committee had  made some changes  to the bill. He  asked for                                                                    
confirmation that the Senate version was version W.                                                                             
                                                                                                                                
Ms. Woldstad agreed.                                                                                                            
                                                                                                                                
Co-Chair  Foster   remarked  that   if  the   House  Finance                                                                    
Committee  adopted the  Senate version  it would  go to  the                                                                    
[House] floor  and back  to the  Senate for  concurrence. He                                                                    
believed the  original version  of the  bill was  limited to                                                                    
the sunset  extension. He stated his  understanding that the                                                                    
Senate Finance  Committee had added  refuse in the  bill. He                                                                    
asked to hear from the Division of Legislative Audit.                                                                           
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE  AUDIT,  did not  have  a  position on  anything                                                                    
added  with the  exception of  Section 4  of version  W. She                                                                    
elaborated that Section 4 of version  W was the repeal of AS                                                                    
24.20.271(11), which  was a duty  added specifically  to the                                                                    
Division of Legislative  Audit around 15 years  back; it was                                                                    
the  only  explicit audit  requirement  listed  in terms  of                                                                    
auditing someone  specifically. She explained  the provision                                                                    
required  the  division to  audit  the  RCA's annual  report                                                                    
every  two years  in addition  to the  regular sunset  audit                                                                    
requirement.  The  division  spent approximately  500  hours                                                                    
conducting the  audit every  two years.  She stated  that in                                                                    
her experience it had not been  used by the public or policy                                                                    
makers. She did  not believe it was a good  use of resources                                                                    
and she supported the repeal.                                                                                                   
                                                                                                                                
Co-Chair  Foster stated  his understanding  there may  be an                                                                    
amendment  offered to  take  the bill  version  back to  the                                                                    
Senate Finance Committee version.                                                                                               
                                                                                                                                
9:14:15 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:16:00 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative   Josephson  stated   he   would  support   a                                                                    
conceptual amendment  that may be offered  by Representative                                                                    
LeBon.  Otherwise,  he would  support  the  House Labor  and                                                                    
Commerce version.                                                                                                               
                                                                                                                                
Co-Chair    Foster    stated    his    understanding    that                                                                    
Representative LeBon  had a conceptual amendment  that would                                                                    
take the  bill back  to the  original sunset  extension with                                                                    
the auditing  repeal and removing  the refuse  component. He                                                                    
thought   Representative  Johnson   may   have  a   separate                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative   Johnson   replied   that   the   conceptual                                                                    
amendment to  be offered by Representative  LeBon would take                                                                    
care of the change her amendment would have addressed.                                                                          
                                                                                                                                
9:17:17 AM                                                                                                                    
                                                                                                                                
Representative LeBon  MOVED to ADOPT  conceptual Amendment 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Page 1, line 1 to Page 4, line 17                                                                                          
          Delete all material                                                                                                   
          Insert                                                                                                                
     " "An Act extending the termination date of the                                                                            
     Regulatory Commission of Alaska; and providing for an                                                                      
     effective date."                                                                                                           
     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF                                                                           
     ALASKA:                                                                                                                    
    * Section 1. AS 44.66.010(a)(3) is amended to read:                                                                         
          (3)   Regulatory   Commission    of   Alaska   (AS                                                                    
          42.04.010) - June 30, 2030 [2022];                                                                                    
     * Sec. 2. AS 24.20.271(11) is repealed.                                                                                    
     * Sec. 3. This Act takes effect immediately under AS                                                                       
     01.10.070(c)."                                                                                                             
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative LeBon explained  the amendment. The amendment                                                                    
returned the  bill action to  extending the RCA to  June 30,                                                                    
2030. The  amendment would also repeal  a redundant biennial                                                                    
audit  that  was beyond  what  was  reasonable in  an  audit                                                                    
process.                                                                                                                        
                                                                                                                                
Co-Chair  Foster invited  available  individuals  to make  a                                                                    
comment regarding the amendment.                                                                                                
                                                                                                                                
9:18:48 AM                                                                                                                    
                                                                                                                                
BOB  PICKETT,  CHAIRMAN,  REGULATORY COMMISSION  OF  ALASKA,                                                                    
DEPARTMENT OF COMMERCE,  COMMUNITY AND ECONOMIC DEVELOPMENT,                                                                    
ANCHORAGE (via  teleconference), believed the  amendment was                                                                    
a  very  reasonable  approach. He  noted  it  addressed  the                                                                    
concerns by  the auditor.  The RCA's  primary concern  was a                                                                    
clean extension.                                                                                                                
                                                                                                                                
STUART  GOERING, ASSISTANT  ATTORNEY GENERAL,  DEPARTMENT OF                                                                    
LAW  (via teleconference),  replied that  the Department  of                                                                    
Law had no issues with the original version of the bill.                                                                        
                                                                                                                                
Ms. Woldstad was amenable to the amendment.                                                                                     
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There  being NO  further OBJECTION,  conceptual Amendment  1                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Co-Chair Foster asked for Mr.  Pickett to address the fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
Mr. Pickett indicated  the fiscal note matched  the note the                                                                    
RCA submitted with the original bill.                                                                                           
                                                                                                                                
9:20:13 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:21:02 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster clarified the  conceptual amendment had been                                                                    
made  to version  O of  the bill  that had  come out  of the                                                                    
House Labor and Commerce Committee.                                                                                             
                                                                                                                                
Co-Chair Merrick  MOVED to report  HCS CSSB 190(FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HCS CSSB  190(FIN) was  REPORTED out  of committee  with six                                                                    
"do  pass"  recommendations   and  one  "no  recommendation"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN3(CED).                                                                                                          
                                                                                                                                
Co-Chair Foster indicated the committee  would recess to the                                                                    
call of the chair [note: the meeting never reconvened].                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:22:09 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:22 a.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 190 Conceptual Amendment LeBon 051822 .pdf HFIN 5/18/2022 9:00:00 AM
SB 190