Legislature(2017 - 2018)GRUENBERG 120

04/11/2018 01:00 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 6:15 pm --
+ HB 230 TELECOMMUNICATIONS & INTERNET PRIVACY TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 205 TELECOMMUNICATIONS REGULATION/EXEMPTIONS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 351 JUVENILES: JUSTICE,FACILITES,TREATMENT TELECONFERENCED
Moved CSHB 351(HSS) Out of Committee
+= HB 336 SUPPORTIVE DECISION-MAKING AGREEMENTS TELECONFERENCED
Moved CSHB 336(JUD) Out of Committee
+= HB 387 AG SCHEDULE CONTROLLED SUBSTANCES TELECONFERENCED
Moved CSHB 387(JUD) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                         April 11, 2018                                                                                         
                           2:21 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Matt Claman, Chair                                                                                               
Representative Jonathan Kreiss-Tomkins, Vice Chair                                                                              
Representative Louise Stutes                                                                                                    
Representative Gabrielle LeDoux                                                                                                 
Representative David Eastman                                                                                                    
Representative Chuck Kopp                                                                                                       
Representative Lora Reinbold                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Charisse Millett (alternate)                                                                                     
Representative Tiffany Zulkosky (alternate)                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 230                                                                                                              
"An Act  relating to  the collection  of customer  information by                                                               
telecommunications   and   Internet    service   providers;   and                                                               
establishing  an unfair  trade practice  under the  Alaska Unfair                                                               
Trade Practices and Consumer Protection Act."                                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 205(L&C)                                                                                                 
"An  Act  relating  to  the   Regulatory  Commission  of  Alaska;                                                               
relating  to  the  public utility  regulatory  cost  charge;  and                                                               
relating to telecommunications  regulations, exemptions, charges,                                                               
and rates."                                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 387                                                                                                              
"An  Act  relating  to  scheduled  substances;  relating  to  the                                                               
Controlled  Substances Advisory  Committee;  and authorizing  the                                                               
attorney general  to schedule substances by  emergency regulation                                                               
or repeal an emergency regulation that scheduled a substance."                                                                  
                                                                                                                                
     - MOVED CSHB 387(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 351                                                                                                              
"An Act  relating to care  of juveniles and to  juvenile justice;                                                               
relating  to employment  of juvenile  probation  officers by  the                                                               
Department of Health and Social  Services; relating to terms used                                                               
in  juvenile justice;  relating to  mandatory reporters  of child                                                               
abuse or  neglect; relating to adjudication  of minor delinquency                                                               
and   the  deoxyribonucleic   acid  identification   registration                                                               
system; relating to sexual assault  in the third degree; relating                                                               
to sexual assault  in the fourth degree;  repealing a requirement                                                               
for  administrative revocation  of  a  minor's driver's  license,                                                               
permit, privilege to drive, or  privilege to obtain a license for                                                               
consumption or possession of alcohol  or drugs; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED CSHB 351(HSS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 336                                                                                                              
"An  Act  relating  to supported  decision-making  agreements  to                                                               
provide for  decision- making assistance; and  amending Rule 402,                                                               
Alaska Rules of Evidence."                                                                                                      
                                                                                                                                
     - MOVED CSHB 336(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 230                                                                                                                  
SHORT TITLE: TELECOMMUNICATIONS & INTERNET PRIVACY                                                                              
SPONSOR(s): REPRESENTATIVE(s) DRUMMOND                                                                                          
                                                                                                                                
04/15/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/15/17       (H)       L&C, JUD                                                                                               
05/01/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/01/17       (H)       Heard & Held                                                                                           
05/01/17       (H)       MINUTE(L&C)                                                                                            
03/30/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/30/18       (H)       Heard & Held                                                                                           
03/30/18       (H)       MINUTE(L&C)                                                                                            
04/04/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/04/18       (H)       Moved HB 230 Out of Committee                                                                          
04/04/18       (H)       MINUTE(L&C)                                                                                            
04/05/18       (H)       L&C RPT 2DP 2DNP 3NR                                                                                   
04/05/18       (H)       DP: STUTES, WOOL                                                                                       
04/05/18       (H)       DNP: SULLIVAN-LEONARD, BIRCH                                                                           
04/05/18       (H)       NR: JOSEPHSON, KNOPP, KITO                                                                             
04/11/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: SB 205                                                                                                                  
SHORT TITLE: TELECOMMUNICATIONS REGULATION/EXEMPTIONS                                                                           
SPONSOR(s): SENATOR(s) MEYER                                                                                                    
                                                                                                                                
02/19/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/18       (S)       L&C                                                                                                    
02/27/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/27/18       (S)       Heard & Held                                                                                           
02/27/18       (S)       MINUTE(L&C)                                                                                            
03/08/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/08/18       (S)       Heard & Held                                                                                           
03/08/18       (S)       MINUTE(L&C)                                                                                            
04/02/18       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/02/18       (S)       Heard & Held                                                                                           
04/02/18       (S)       MINUTE(L&C)                                                                                            
04/03/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/18       (S)       Moved CSSB 205(L&C) Out of Committee                                                                   
04/03/18       (S)       MINUTE(L&C)                                                                                            
04/04/18       (S)       L&C RPT CS  3DP 1NR   NEW TITLE                                                                        
04/04/18       (S)       DP: COSTELLO, MICCICHE, MEYER                                                                          
04/04/18       (S)       NR: GARDNER                                                                                            
04/09/18       (S)       TRANSMITTED TO (H)                                                                                     
04/09/18       (S)       VERSION: CSSB 205(L&C)                                                                                 
04/11/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 387                                                                                                                  
SHORT TITLE: AG SCHEDULE CONTROLLED SUBSTANCES                                                                                  
SPONSOR(s): REPRESENTATIVE(s) CLAMAN                                                                                            
                                                                                                                                
02/21/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/18       (H)       JUD, FIN                                                                                               
03/16/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/16/18       (H)       Heard & Held                                                                                           
03/16/18       (H)       MINUTE(JUD)                                                                                            
04/04/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
04/04/18       (H)       Heard & Held                                                                                           
04/04/18       (H)       MINUTE(JUD)                                                                                            
04/11/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 351                                                                                                                  
SHORT TITLE: JUVENILES: JUSTICE,FACILITES,TREATMENT                                                                             
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ                                                                                         
                                                                                                                                
02/16/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/18       (H)       HSS, JUD                                                                                               
03/06/18       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/06/18       (H)       Heard & Held                                                                                           
03/06/18       (H)       MINUTE(HSS)                                                                                            
03/08/18       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/08/18       (H)       Moved CSHB 351(HSS) Out of Committee                                                                   
03/08/18       (H)       MINUTE(HSS)                                                                                            
03/09/18       (H)       HSS RPT CS(HSS) 6DP                                                                                    
03/09/18       (H)       DP: JOHNSTON, CLAMAN, EDGMON, SULLIVAN-                                                                
                         LEONARD, KITO, TARR                                                                                    
04/06/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
04/06/18       (H)       Heard & Held                                                                                           
04/06/18       (H)       MINUTE(JUD)                                                                                            
04/11/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 336                                                                                                                  
SHORT TITLE: SUPPORTIVE DECISION-MAKING AGREEMENTS                                                                              
SPONSOR(s): REPRESENTATIVE(s) MILLETT                                                                                           
                                                                                                                                
02/07/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/18       (H)       HSS, JUD                                                                                               
03/01/18       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/01/18       (H)       Heard & Held                                                                                           
03/01/18       (H)       MINUTE(HSS)                                                                                            
03/08/18       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/08/18       (H)       Moved CSHB 336(HSS) Out of Committee                                                                   
03/08/18       (H)       MINUTE(HSS)                                                                                            
03/09/18       (H)       HSS RPT CS(HSS) 6DP                                                                                    
03/09/18       (H)       DP: JOHNSTON, CLAMAN, EDGMON, SULLIVAN-                                                                
                         LEONARD, KITO, TARR                                                                                    
04/09/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
04/09/18       (H)       Heard & Held                                                                                           
04/09/18       (H)       MINUTE(JUD)                                                                                            
04/11/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE HARRIET DRUMMOND                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the hearing of HB 230, presented the                                                              
legislation as prime sponsor.                                                                                                   
                                                                                                                                
PATRICK FITZGERALD, Staff                                                                                                       
Representative Harriet Drummond                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the hearing of HB 230, offered a                                                                  
sectional analysis and answered questions.                                                                                      
                                                                                                                                
JONATHAN CLEMENT, Assistant Attorney General                                                                                    
Commercial and Fair Business Section                                                                                            
Department of Law (DOL)                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   During  the hearing of  HB 230,  answered a                                                             
question.                                                                                                                       
                                                                                                                                
SENATOR KEVIN MEYER                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the  hearing of SB 205, presented the                                                             
legislation as prime sponsor.                                                                                                   
                                                                                                                                
EDRA MORLEDGE, Staff                                                                                                            
Senator Kevin Meyer                                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the  hearing of SB 205, presented the                                                             
sectional analysis.                                                                                                             
                                                                                                                                
CHRISTINE O'CONNOR, Executive Director                                                                                          
Alaska Telecom Association (ATA)                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   During the  hearing of SB 205,  offered the                                                             
"SB   205  Telecommunications   Statutes   Simply  &   Modernize"                                                               
PowerPoint Presentation.                                                                                                        
                                                                                                                                
LIZZIE KUBITZ, Staff                                                                                                            
Representative Matt Claman                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During the  hearing of  HB 387,  presented                                                             
Version D and offered its sectional analysis.                                                                                   
                                                                                                                                
REPRESENTATIVE IVY SPOHNHOLZ                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During  the hearing  of CSHB  351, answered                                                             
questions.                                                                                                                      
                                                                                                                                
QUINLAN STEINER, Director                                                                                                       
Central Office                                                                                                                  
Public Defender Agency (PDA)                                                                                                    
Department of Administration (DOA)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   During the  hearing of CSHB  351, discussed                                                             
Amendment 1.                                                                                                                    
                                                                                                                                
MATT DAVIDSON, Social Services Program Officer                                                                                  
Division of Juvenile Justice                                                                                                    
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During  the hearing  of CSHB  351, answered                                                             
questions.                                                                                                                      
                                                                                                                                
JUDY JESSEN, Staff                                                                                                              
Representative Ivy Spohnholz                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During the hearing of CSHB  351, answered a                                                             
question.                                                                                                                       
                                                                                                                                
HANS RODVIK, Staff                                                                                                              
Representative Charisse Millett                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During  the hearing of  HB 336,  answered a                                                             
question.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:21:21 PM                                                                                                                    
                                                                                                                                
CHAIR MATT  CLAMAN called the House  Judiciary Standing Committee                                                             
meeting  to order  at 2:21  p.m. Representatives  Claman, Kreiss-                                                               
Tomkins, LeDoux, Kopp,  Reinbold, and Stutes were  present at the                                                               
call to  order.   Representative Eastman  arrived as  the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
          HB 230-TELECOMMUNICATIONS & INTERNET PRIVACY                                                                      
                                                                                                                                
2:21:56 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  first order of business would be                                                               
HOUSE  BILL  NO. 230,  "An  Act  relating  to the  collection  of                                                               
customer information  by telecommunications and  Internet service                                                               
providers; and  establishing an unfair  trade practice  under the                                                               
Alaska Unfair Trade Practices and Consumer Protection Act."                                                                     
                                                                                                                                
2:22:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIET   DRUMMOND,  Alaska   State  Legislature,                                                               
advised that in  March 2017, the United States  Congress passed a                                                               
bill that  repealed an  FCC regulation  known as  "Protecting the                                                               
Privacy  of Customers  of Broadband  and Other  Telecommunication                                                               
Services."   She  explained that  this  regulation mandates  that                                                               
internet service  providers (ISPs)  must receive  permission from                                                               
users  before  harvesting personal  data.    The repeal  of  this                                                               
regulation  allowed an  opening  for  ISPs and  telecommunication                                                               
companies to  collect data  without the  consent of  the customer                                                               
whose  data was  being collected.   She  stressed that  there are                                                               
absolutely   no   accusations   here   that   any   of   Alaska's                                                               
telecommunication  companies or  ISPs  are doing  this, and  they                                                               
have been clear  in letting her office know that  they do not use                                                               
this type of  trade practice.  However, she remarked,  there is a                                                               
need  to protect  the  privacy of  Alaskans  by solidifying  into                                                               
statute a civil penalty that  can be used on a telecommunications                                                               
company or  ISP if  they are found  to have been  doing so  by an                                                               
Alaska court.   This legislation  implements a new  section under                                                               
AS 45.48.800  to establish  the collection  of personal  data and                                                               
information by an  ISP or telecommunication company  as an unfair                                                               
trade practice.   She further advised that  this legislation will                                                               
keep  Alaskans' information  safe  and will  allow  the state  to                                                               
bring action against violators of  the new section, and hopefully                                                               
it will never be used.                                                                                                          
                                                                                                                                
2:24:14 PM                                                                                                                    
                                                                                                                                
PATRICK  FITZGERALD,  Staff,   Representative  Harriet  Drummond,                                                               
Alaska State  Legislature, paraphrased the sectional  analysis as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Sec.  1.   Establishing  the  collecting   of  personal                                                                    
     information   by    Telecommunications   companies   or                                                                    
     Internet service  providers without the consent  of the                                                                    
     customer or  user of service  is considered  (1) Effect                                                                    
     on  public  interest (2)  Not  a  reasonable method  of                                                                    
     conducting  or preserving  business  (3)  is an  unfair                                                                    
     trade and deceptive practice of business operations.                                                                       
                                                                                                                                
     Sec. 2    AS 45.48 is  amended by adding a  new section                                                                    
     to read:  Article 6A. Information Disclosure                                                                               
                                                                                                                                
          Sec. 45.48.800  Approval required  for Information                                                                    
     disclosure.  Telecommunications   Company  or  Internet                                                                    
     service providers  are not allowed to  collect personal                                                                    
     information without  the expressed written  approval of                                                                    
     the  customer. Telecommunications  Company or  Internet                                                                    
     service  providers   may  not  discriminate   a  paying                                                                    
     customer  solely because  a customer  denied the  right                                                                    
     for the Telecommunications  Company or Internet service                                                                    
     providers to collect information.                                                                                          
                                                                                                                                
        Telecommunications Company is defined as Cable,                                                                         
     telegraph, telephone, or broadcasting.                                                                                     
                                                                                                                                
     Sec.  3     AS  45.50.471   Adds  a  new  paragraph  AS                                                                    
     45.48.800  explaining  violation of  credit/debit  card                                                                    
     information   sharing   now   includes   Internet   and                                                                    
     telecommunications providers.                                                                                              
                                                                                                                                
      Sec. 4 AS 45.48.800 Definition of "Telecommunication                                                                      
     service" and establishes an effective date.                                                                                
                                                                                                                                
2:26:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  the  type  of personal  information                                                               
being collected  because if she googles  Antarctica, for example,                                                               
and  the  next  thing  she   knows  is  that  advertisements  for                                                               
vacations in  that area  pop up  on her  screen.   She questioned                                                               
whether that is the type  of personal information being collected                                                               
that would no longer be available to harvest.                                                                                   
                                                                                                                                
REPRESENTATIVE  DRUMMOND  opined   that  Representative  LeDoux's                                                               
example takes  place through  Facebook's or  Google's algorithms,                                                               
and  this is  not about  the  software companies  that run  those                                                               
programs on the  internet, but rather it is about  the people who                                                               
send that  information to our  homes and offices initially.   She                                                               
explained that  this legislation  is for those  service providers                                                               
to whom  consumers pay their  bills for internet access,  and she                                                               
is  trying to  keep sensitive  information  out of  the hands  of                                                               
those providers.   She said  she does not  know what can  be done                                                               
about issues  such as  Representative LeDoux's  example, although                                                               
the federal  government is trying  to deal with Facebook  and its                                                               
privacy issues.   This bill is  simply about the GCIs,  the ACSs,                                                               
the APTIs, and the other  service providers in Alaska because the                                                               
FCC   withdrew  this   rule  that   protects  consumer   privacy.                                                               
Therefore, she pointed out, the states  need to step in, and many                                                               
state  legislatures   have  stepped  up  to   help  ensure  their                                                               
constituents' privacy from "their ISPs prying fingers."                                                                         
                                                                                                                                
MR. FITZGERALD  added that the  sponsor's office  has information                                                               
from  the Council  of  State Governments  and  other states  with                                                               
legislation similar to  HB 230, which advised that  many areas in                                                               
the country have  only one internet service  provider for certain                                                               
areas.    Under  those  circumstances,  he  said,  a  person  has                                                               
relatively no option  as far as their information  being used and                                                               
shared, which is one of the reasons for this legislation.                                                                       
                                                                                                                                
2:29:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX requested  an example  of the  information                                                               
Mr. Fitzgerald was discussing, what  information is being shared,                                                               
and whether it includes her social security number.                                                                             
                                                                                                                                
MR.  FITZGERALD   answered  that   the  definition   of  personal                                                               
information varies,  and the sponsor requested  a memorandum from                                                               
Legislative Legal  and Research Services on  that definition, and                                                               
issues  such as  state  identification  numbers, social  security                                                               
numbers, billing information, and so forth.                                                                                     
                                                                                                                                
2:30:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  questioned  how  GCI or  ACS  would  even                                                               
receive her state identification number.                                                                                        
                                                                                                                                
REPRESENTATIVE DRUMMOND  responded that  all of  this information                                                               
travels from her keyboard through  the software, such as Facebook                                                               
or a shopping  website, and the hardware that is  provided by the                                                               
person's internet  service provider  to get  that signal  to her.                                                               
Those entities have  the ability to "grab  that information along                                                               
the way," never mind what Facebook  marketing is doing with it as                                                               
that is dealt with in a  different manner.  Many of these devices                                                               
have  the capability  to retain  the memory  of account  numbers,                                                               
social  security   numbers,  credit  card   information,  medical                                                               
information, and online  purchases, she advised.   The passage of                                                               
HB 230  would put into  law that the  telecommunication companies                                                               
and internet service providers must  be given consent by the user                                                               
of any  service or device  before they  can sell, trade,  or gift                                                               
the information entered  by a private citizen.   She offered that                                                               
the entity may already have  this information because all of this                                                               
information passes through its equipment  and at any point it can                                                               
reach  in and  grab the  information.   This legislation  directs                                                               
that   the  entities   cannot   grab   the  information   without                                                               
permission.  This  is something that can easily  take place since                                                               
the consumer  pays the  service provider  hundreds of  dollars in                                                               
fees every month,  and in exchange it needs to  get permission to                                                               
use any information that might be harvested.                                                                                    
                                                                                                                                
2:32:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  whether it  was likely  the service                                                               
providers  have a  form  that is  similar to  form  she see  when                                                               
logging  onto  the state  internet  stating,  "You agree  to  the                                                               
terms."                                                                                                                         
                                                                                                                                
REPRESENTATIVE DRUMMOND answered, "Probably yes."                                                                               
                                                                                                                                
2:33:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  whether  this  bill deals  solely                                                               
with internet  service providers  and it has  nothing to  do with                                                               
software or apps.                                                                                                               
                                                                                                                                
REPRESENTATIVE DRUMMOND  replied that this legislation  is solely                                                               
about   telecommunication   companies    and   internet   service                                                               
providers,  "not  the  Microsoft, Facebook  Zuckerberg's  of  the                                                               
world," unless  Microsoft is an  internet service provider.   Her                                                               
only  concern, she  remarked, is  with Alaska's  internet service                                                               
providers and the  impacts of protecting the  privacy of Alaska's                                                               
citizens through this legislation.                                                                                              
                                                                                                                                
2:35:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked whether there  is any way  to "get                                                               
them on the  hook," as she would look forward  to an amendment to                                                               
target these  people and in  dealing with the software  aspect as                                                               
well.                                                                                                                           
                                                                                                                                
REPRESENTATIVE   DRUMMOND  commented   that   this   is  a   good                                                               
conversation to have and AT&T  and GCI are both telecommunication                                                               
companies that lease the use  of phones to Alaskans, for example.                                                               
In the  event the legislature  directs those entities  to protect                                                               
Alaskans' privacy,  they will need  to come  up with a  manner in                                                               
which to protect  that privacy or obtain  a customer's permission                                                               
before using any  of the data.  This legislation  is aimed at the                                                               
closest  people it  can impact,  and AT&T  and GCI  are close  at                                                               
hand, she  explained that those  are the people  this legislation                                                               
is talking to, not Microsoft or Facebook.                                                                                       
                                                                                                                                
2:36:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD noted that she  was unsure whether it was                                                               
real,  but there  were contracts  between AT&T  and NSA  all over                                                               
Facebook.  She offered that  could be a broader conversation that                                                               
"they are  working with or  whether they are  not.  I  think that                                                               
that may be another intriguing aspect of this conversation."                                                                    
                                                                                                                                
2:37:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN suggested  that it  would probably  be in                                                               
the  best interests  of the  committee  to have  a definition  of                                                               
personal information somewhere in the  bill, or at least point to                                                               
a definition somewhere  else that will apply.   He commented that                                                               
"As I  look at  just personal  information, it  would seem  to me                                                               
from just reading the  bill that if I don't want  to give my full                                                               
name to an ISP, that I don't have  to.  And, if they want to bill                                                               
me  they are  going to  have to  find some  other way,  some non-                                                               
personal information  way, if  I refuse to  give consent  to give                                                               
that  kind of  information."   He  asked the  impact the  sponsor                                                               
foresees  as  to   the  passage  of  this  bill   having  on  law                                                               
enforcement.   For example, if  someone is committing  crimes and                                                               
the ISP is aware, except it is not allowed to keep any of ...                                                                   
                                                                                                                                
CHAIR CLAMAN  advised that Representative Eastman  had passed his                                                               
one-minute time  limit, and  said that the  question is,  what is                                                               
the impact on law enforcement.                                                                                                  
                                                                                                                                
MR.  FITZGERALD replied  that the  sponsor has  looked into  that                                                               
question  and  it  is  awaiting an  official  response  from  the                                                               
Legislative  Legal  and Research  Services  drafter  and a  legal                                                               
opinion.   However, he  said, it is  his informal  knowledge that                                                               
court  ordered warrants  are specific  and this  legislation does                                                               
not stop any  warrant from being issued if there  is suspicion of                                                               
illegal  activity taking  place through  any sort  of ISP  or any                                                               
individual using  their own personal  computer "for things."   He                                                               
said  he would  provide  the committee  with  any information  he                                                               
receives.                                                                                                                       
                                                                                                                                
2:39:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN commented  that that  did not  answer his                                                               
question, and said that the bill  read that it is illegal for the                                                               
telecommunications  service   provider  to  collect   a  person's                                                               
information.   In the event  he was  a member of  law enforcement                                                               
"and I  go with  that search warrant  to collect  the information                                                               
from  you,  you  would  have  first, as  the  ISP,  had  to  have                                                               
collected  that information  to begin  with.   And, if  you don't                                                               
hold onto  it in some  way, which is usually  called 'collecting'                                                               
then there may  be nothing for the search warrant  to go back to.                                                               
You may say,  hey, we'd like to  help you but we  just don't know                                                               
any information to help you out with your search warrant."                                                                      
                                                                                                                                
MR. FITZGERALD  clarified that this legislation  makes it illegal                                                               
to collect  information without the  user's consent.   That being                                                               
said,  he  opined that  (audio  difficulties)  reason to  suspect                                                               
illegal  activity taking  place  with  an individual's  computer,                                                               
then law  enforcement would  be able  to go  through the  ISP and                                                               
serve a warrant for a search.                                                                                                   
                                                                                                                                
2:40:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  referred to  the violations "in  the memo                                                               
you provided,"  wherein it  spells out  that for  each violation,                                                               
the person must  be subject to a penalty of  not less than $1,000                                                               
fine or more  than $25,000 fine.  He asked  how that might impact                                                               
a willingness  for the companies to  stay in this market  if they                                                               
will now be  liable, especially if it is  an accidental technical                                                               
error that  results in  5,000 customers being  affected.   In the                                                               
event each one of those customers  is a violation, that could put                                                               
a company  out of business,  impact insurance rates,  or customer                                                               
service charges, he said.                                                                                                       
                                                                                                                                
MR. FITZGERALD  responded that the  sponsor does not  believe the                                                               
risk of a  company that does not handle  their customer's privacy                                                               
diligently should be exempt from penalties.                                                                                     
                                                                                                                                
2:42:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP asked whether  the intent of this legislation                                                               
is that  no information, such as  a phone number or  address, can                                                               
be   retained   by   an   internet    service   provider   or   a                                                               
telecommunication  provider  unless   they  have  the  consumer's                                                               
consent.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  DRUMMOND responded  that  obviously the  internet                                                               
service provider  requires some information from  the consumer in                                                               
order to provide  the service.  Information such  as a consumers'                                                               
telephone  number, address,  credit  card  numbers, bank  account                                                               
number with which the consumer  pays their invoices, and anything                                                               
else collected by  that service provider must stay  private.  She                                                               
said  that  she assumes  the  service  provider would  want  that                                                               
information and  that they should be  able to keep it  private in                                                               
order to  provide their  services.   Beyond that,  she explained,                                                               
service  providers do  not  get to  profit  from collecting  that                                                               
information, or share  it with marketing companies,  or any other                                                               
entity, without  the consumer's permission.   She stated  that in                                                               
her opinion it  should simply be that when a  person signs up for                                                               
service with GCI,  AT&T, or any other service  provider, there is                                                               
a  simple  "yes  or  no"  box to  check  indicating  whether  the                                                               
consumer's personal information can be shared.                                                                                  
                                                                                                                                
2:44:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP surmised that this  bill is not so much about                                                               
the  collection of  data, but  what  actions are  taken with  the                                                               
personal information data.                                                                                                      
                                                                                                                                
REPRESENTATIVE DRUMMOND answered in the affirmative.                                                                            
                                                                                                                                
2:44:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP commented  that  he has  served many  search                                                               
warrants for  pagers and  cells phones,  and on  internet service                                                               
providers for  particular IP addresses which  shows associations,                                                               
dates  and times,  exactly when  the criminal  act occurred,  and                                                               
when all the  communication stopped because "the deed  is done so                                                               
these people do not need to  talk to each other anymore."  (Audio                                                               
difficulties) wanting to  make sure the bill  sponsor's intent is                                                               
more  about commercially  selling  a  consumer's information  and                                                               
being pulled into whatever marketing someone else offered.                                                                      
                                                                                                                                
REPRESENTATIVE DRUMMOND answered in the affirmative.                                                                            
                                                                                                                                
2:45:31 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN opened public testimony on HB 230.                                                                                 
                                                                                                                                
REPRESENTATIVE  EASTMAN  asked  Jonathan Clement,  Department  of                                                               
Law, (audio difficulties) having on law enforcement.                                                                            
                                                                                                                                
2:46:50 PM                                                                                                                    
                                                                                                                                
JONATHAN  CLEMENT,  Assistant  Attorney General,  Commercial  and                                                               
Fair Business Section,  Department of Law (DOL),  advised that he                                                               
works  in  the area  of  consumer  protection and  Representative                                                               
Eastman's question would be better  directed to the Department of                                                               
Law,  Criminal  Division.   He  offered  to  work with  the  bill                                                               
sponsor to have  someone available to answer the  question at the                                                               
next hearing.                                                                                                                   
                                                                                                                                
2:47:16 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN,  after  ascertaining  no one  wished  to  testify,                                                               
closed public hearing on HB 230.                                                                                                
                                                                                                                                
2:47:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  referred  to the  Constitution  of  the                                                               
State of Alaska, Article 1, Sec. 22, which read as follows:                                                                     
                                                                                                                                
     Right of Privacy.                                                                                                          
                                                                                                                                
     The right of the people to privacy is recognized and                                                                       
     shall not be infringed. The legislature shall                                                                              
     implement this section. [Amended 1972]                                                                                     
                                                                                                                                
REPRESENTATIVE  REINBOLD commented  that she  believes this  is a                                                               
bill  that  could possibly  be  agreed  upon because  legislators                                                               
swore to defend the constitution.                                                                                               
                                                                                                                                
2:47:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN commented  that he  values the  intent of                                                               
this  legislation,  he  appreciates the  protection  for  privacy                                                               
being  pursued,  and that  his  questions  were  in the  form  of                                                               
devil's  advocate because  attorneys  do not  always catch  where                                                               
legislators are trying to go with legislation.                                                                                  
                                                                                                                                
[HB 230 was held over.]                                                                                                         
                                                                                                                                
                                                                                                                                
        SB 205-TELECOMMUNICATIONS REGULATION/EXEMPTIONS                                                                     
                                                                                                                                
2:48:51 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
SENATE  BILL  NO.  205,  "An   Act  relating  to  the  Regulatory                                                               
Commission   of  Alaska;   and  relating   to  telecommunications                                                               
regulations, exemptions, charges, and rates."                                                                                   
                                                                                                                                
2:49:24 PM                                                                                                                    
                                                                                                                                
SENATOR KEVIN  MEYER, Alaska State Legislature,  advised that all                                                               
of the telecommunication companies support  SB 205, which is rare                                                               
because this business is competitive  with 15 different telephone                                                               
companies  in Alaska.    The  intent of  this  legislation is  to                                                               
modernize   the   state's  telecommunication   statutes   because                                                               
technology has  changed and  consumer preferences  for telephones                                                               
have changed  extensively since  the laws  were written  in 1990.                                                               
In fact,  he advised,  it is  estimated that  only 40  percent of                                                               
homes continue  to maintain a  landline.  He explained  that this                                                               
legislation  removes  the  outdated regulation  of  long-distance                                                               
competition and  remedies the current  distortion that  exists as                                                               
to which  companies pay  the regulatory costs  charge.   Under SB                                                               
205, he  said, all  of the  companies will  pay the  RCC charges,                                                               
thereby spreading  the cost amongst  all of the carriers  and not                                                               
to just  a few  as it is  currently.  He  related that  this bill                                                               
also removes  the requirement for  the RCA to  designate carriers                                                               
of last  resort (COLR) because  it is unnecessary and  results in                                                               
unfairly  imposing burdens  on  one  carrier in  a  market.   All                                                               
carriers in a market should be  treated equally unless there is a                                                               
compelling reason  to do otherwise.   Another reason  the carrier                                                               
of last  resort (COLR)  is no longer  necessary is  because there                                                               
are  state statutes  and regulations  in place  at the  state and                                                               
federal  level  that  will  remain  and  prohibit  carriers  from                                                               
discontinuing a service without the permission of the RCA.                                                                      
                                                                                                                                
2:51:36 PM                                                                                                                    
                                                                                                                                
SENATOR  MEYER reiterated  that  SB 205  simply removes  obsolete                                                               
inequity regulatory  burdens while maintaining the  obligation to                                                               
provide landline service.   The legislation provides efficiencies                                                               
for both  the industry and RCA  by allowing all parties  to focus                                                               
on  relevant regulatory  activity,  and it  preserves the  public                                                               
interest oversight  role that RCA  has today.  He  cautioned that                                                               
having been  with this bill for  a while, it is  a technical bill                                                               
and experts are available to better answer questions.                                                                           
                                                                                                                                
2:52:24 PM                                                                                                                    
                                                                                                                                
EDRA  MORLEDGE,  Staff,  Senator  Kevin  Meyer,  paraphrased  the                                                               
sectional analysis as follows [original punctuation provided]:                                                                  
                                                                                                                                
     Section 1  Municipal powers and duties. AS 29.35.070                                                                     
     Public Utilities. Section 11 repeals AS 42.05.810,                                                                         
     therefore it is removed from reference in this section                                                                     
     of the statute.                                                                                                            
                                                                                                                                
MS. MORLEDGE  advised that Section  1 was necessary  because Sec.                                                               
11, AS  42.05.810 is repealed;  therefore, the reference  to that                                                               
statute is in Section 1.                                                                                                        
                                                                                                                              
     Section 2  Alaska Public Utilities Regulatory Act. AS                                                                    
     42.05.141 Adds two new subsections (e) and (f) to the                                                                      
     general powers and duties of the RCA. These                                                                                
     subsections state that the Commission may not                                                                              
     designate a local exchange carrier or an interexchange                                                                     
     carrier as the carrier of last resort, and that the                                                                        
     Commission may designate an eligible                                                                                       
     telecommunications carrier consistent with the federal                                                                     
     code that allows for federal subsidies under the                                                                           
     Universal Service Fund.                                                                                                    
                                                                                                                                
     A carrier of last resort is a telecommunications                                                                         
     company that commits (or is required by law) to                                                                            
     provide service to any customer in a service area that                                                                     
     requests it, even if serving that customer would not                                                                       
     be economically viable at prevailing rates.                                                                                
                                                                                                                                
     The Universal Service Fund is a system of                                                                                
     telecommunications subsidies and fees managed by the                                                                       
     U.S. Federal Communications Commission intended to                                                                         
     promote universal access to telecommunications                                                                             
     services at reasonable and affordable rates for all                                                                        
     consumers.                                                                                                                 
                                                                                                                              
     Section 3  Annual Report. This section requires the                                                                      
     RCA to submit an annual report to the Legislature                                                                          
     detailing the activity and costs related to regulating                                                                     
     each type of telecommunications carrier.                                                                                   
                                                                                                                              
     Section 4  Amends AS 42.05.254(a) from the previous                                                                      
     version of the bill that eliminated the Regulatory                                                                         
     Cost Charge (RCC). This section maintains the current                                                                      
     RCC funding mechanism of calculating and assessing the                                                                     
     charge and applies it to all telecommunications                                                                            
     companies.                                                                                                                 
                                                                                                                              
     Sections 5 & 6 both relate to implementing the                                                                           
     Regulatory Cost Charge for all                                                                                             
     telecommunications companies.                                                                                              
                                                                                                                              
     Section 7   Alaska  Public Utilities Regulatory Act. AS                                                                  
     42.05.711    Exemptions.     This    section    exempts                                                                    
     telecommunications  carriers from  the  Act except  for                                                                    
     the following provisions:                                                                                                  
                                                                                                                                
          AS 42.05.141(f)  New section in the bill                                                                              
     (Section 2 above)                                                                                                          
                                                                                                                                
          AS 42.05.221  Requiring a Certificate of Public                                                                       
     Convenience and Necessity                                                                                                  
                                                                                                                                
          AS 42.05.231  Provision for applying for the                                                                          
     certificate                                                                                                                
                                                                                                                                
          AS 42.05.241  Conditions of issuing/denial of a                                                                       
     certificate                                                                                                                
                                                                                                                                
        AS 42.05.251  Allow public utilities to obtain a                                                                        
     permit for the use of streets in municipalities                                                                            
                                                                                                                                
          AS 42.05.254  Regulatory cost charge                                                                                  
                                                                                                                                
          AS 42.05.261  Prohibits a public utility from                                                                         
     discontinuing or abandoning service for which a                                                                            
     certificate has been issued                                                                                                
                                                                                                                                
          AS 42.05.271  Allows the RCA to amend, modify,                                                                        
     suspend or revoke a certificate                                                                                            
                                                                                                                                
          AS 42.05.281  Prohibiting a sale, lease,                                                                              
     transfer or inheritance of certificate without RCA                                                                         
     permission                                                                                                                 
                                                                                                                                
          AS 42.05.296  Requirements for providing                                                                              
     telephone services for certain impaired subscribers                                                                        
                                                                                                                                
          AS 42.05.306  Allows discounted rates for                                                                             
     customers receiving benefits from a social services                                                                        
     assistance program administered by the state or                                                                            
     federal government                                                                                                         
                                                                                                                                
          AS 42.05.631  Allows a public utility to                                                                              
     exercise the power of eminent domain                                                                                       
                                                                                                                                
          AS 42.05.641  Extends RCA's jurisdiction to                                                                           
     public utilities operating in a municipality                                                                               
                                                                                                                                
          AS 42.05.830  Requires the RCA to establish                                                                           
     exchange access charges to be paid by long distance                                                                        
     carriers to compensate local exchange carriers for the                                                                     
     cost of originating and terminating long distance                                                                          
     services                                                                                                                   
                                                                                                                                
          AS 42.05.850  Relating to the administration of                                                                       
     access charges by an exchange carrier association                                                                          
                                                                                                                                
          AS 42.05.840  Allows the RCA to establish a                                                                           
     universal service fund                                                                                                     
                                                                                                                                
          AS 42.05.860  Prohibits a carrier from                                                                                
     restricting the resale of telecommunications services                                                                      
                                                                                                                              
     Section 8  AS 42.05.820 No Municipal Regulation. In                                                                      
     addition to a long distance telephone company, this                                                                        
     section amends AS 42.05.820 to add 'local exchange                                                                         
     carrier' that is exempted in whole or in part from                                                                         
     this chapter from being regulated by a municipality.                                                                       
                                                                                                                                
     Section 9  AS 42.05.890 Definitions. This section                                                                        
     defines "local exchange carrier," "long distance                                                                           
     telephone company," and "long distance telephone                                                                           
     service.                                                                                                                   
                                                                                                                              
     Section 10  Relates to implementing Section 4, the                                                                       
     Regulatory Cost Charge.                                                                                                    
                                                                                                                              
     Section 11  Repealers. This section repeals the                                                                          
     following provisions, as the changing nature of the                                                                        
     industry and market conditions have rendered them                                                                          
     obsolete:                                                                                                                  
                                                                                                                                
          AS 42.05.325  Registration and regulation of                                                                          
     alternate operator services                                                                                                
                                                                                                                                
          AS 42.05.800  Findings                                                                                                
                                                                                                                                
        AS 42.05.810     Competition      unnecessary in                                                                        
     today's market                                                                                                             
                                                                                                                                
2:58:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  acknowledged that  it is unusual  when all                                                               
of  the   telecommunication  companies  can  actually   agree  on                                                               
anything,  which  obviously  means  the bill  is  great  for  the                                                               
telecommunication companies.   She  asked how  great the  bill is                                                               
for the  consumer because when  reviewing the bill  and sectional                                                               
analysis,   a   person   would   have  to   be   an   expert   in                                                               
telecommunications  law  in  order  to  actually  understand  the                                                               
legislation.   She  opined that  the telecommunication  companies                                                               
receive  subsidies from  "someone, maybe  it's the  state or  the                                                               
federal  government"  to make  sure  that  the companies  provide                                                               
services  for areas  which normally  would not  receive services.                                                               
It  appears  that this  bill  will  take  away the  guarantee  of                                                               
services  because it  is  doing  away with  the  carrier of  last                                                               
resort, she said.   In the event it is  taking away the guarantee                                                               
for  the  services,  she   asked  whether  the  telecommunication                                                               
companies will still receive the  subsidies, and if so, why would                                                               
they   continue  receiving   the  subsidies   if  they   are  not                                                               
guaranteeing the service.                                                                                                       
                                                                                                                                
SENATOR  MEYER   responded  that   the  committee  will   hear  a                                                               
presentation  from   the  Alaska  Telephone   Association,  which                                                               
encompasses all 15 telephone companies  in Alaska as to how those                                                               
subsidies work.   There will be some savings to  the consumer now                                                               
that  the RCC  charges are  spread  across all  of the  different                                                               
companies,  and he  could  not  say the  amount  of the  savings.                                                               
First of  all, he explained, all  areas will still be  covered as                                                               
required by the  State of Alaska and the FCC,  and he opined that                                                               
the  subsidies  would  probably  still  continue  to  whoever  is                                                               
providing that service in those remote areas.                                                                                   
                                                                                                                                
3:01:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  argued that if  the RCA does not  have the                                                               
authority  to keep  carriers in  these  remote communities,  what                                                               
guarantee is  there that the  carriers will remain in  the remote                                                               
communities because those communities probably  are not much of a                                                               
profit sector.                                                                                                                  
                                                                                                                                
SENATOR  MEYER  clarified that  the  RCA  will continue  to  have                                                               
jurisdiction  over the  carriers  and it  will  make certain  the                                                               
remote communities are covered.  Even  if the RCA does not do it,                                                               
he said, the FCC will require  that coverage, but the experts can                                                               
better answer the question.                                                                                                     
                                                                                                                                
3:02:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  related that  she knows there  are various                                                               
consumer  advocacy groups,  for example  advocacy airline  groups                                                               
advising  which is  a  good airline  company,  and asked  whether                                                               
there  is  any  such  group  with  respect  to  telecommunication                                                               
service, and if so, she would like to hear from those groups.                                                                   
                                                                                                                                
SENATOR MEYER answered that he did not have the answer.                                                                         
                                                                                                                                
CHAIR  CLAMAN  noted  that  occasionally  he  does  see  consumer                                                               
reports  giving  advice  about  all  of  the  Lower-48  telephone                                                               
companies, but  they do  not seem  to mention  Alaska's telephone                                                               
companies.                                                                                                                      
                                                                                                                                
3:02:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   stressed  that  this  is   an  extremely                                                               
complicated statute  and she  was unsure whether,  at the  end of                                                               
the  day, most  of the  60 legislators  will actually  understand                                                               
what they  are voting  on in this  particular statute.   Clearly,                                                               
she  said, it  benefits the  telecommunication companies  but she                                                               
was  unsure that  it benefits,  or at  least does  not harm,  the                                                               
consumers, and she would like an answer.                                                                                        
                                                                                                                                
SENATOR  MEYER commented  that that  is a  fair question  because                                                               
legislators are  elected to benefit their  constituencies and not                                                               
the  telecommunication industry.   Letters  are contained  within                                                               
the committee packet from previous  and current commissioners who                                                               
like  where this  bill  is going,  and  other commissioners  have                                                               
concerns.    He  opined  that   after  hearing  from  the  Alaska                                                               
Telecommunication Association  (ATA) and the  RCA, Representative                                                               
LeDoux will be better able to make that decision.                                                                               
                                                                                                                                
3:04:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD pointed  out  that  she is  disappointed                                                               
about what took  place on the Senate Floor with  HB 140, "getting                                                               
rid  of the  regulation,  and so  you guys  come  and talk  about                                                               
regulation  and then  you go  and get  rid of  oversights."   She                                                               
stressed  that  that is  a  huge  contention for  her  currently,                                                               
(audio difficulties) analysis so people  who do want just a quick                                                               
glance  at what  this bill  does, it  does basically  de-regulate                                                               
telecommunication companies  in this state according  to the RCA.                                                               
However, (audio  difficulties) with regard  to the RCA,  "I think                                                               
they are  very expensive, it's a  very big -- you  know, I worked                                                               
with them as Reg Review Chair  and I think they're expensive, and                                                               
I'm not  sure that  they always  have the  best interests  of the                                                               
consumer at  hand."  She  offered that she  is on the  fence with                                                               
regard  "to  some of  this  stuff  right  now," and  asked  about                                                               
subsidies without providing the service  because she may not have                                                               
all of the details, but it sounds like "big government waste."                                                                  
                                                                                                                                
CHAIR  CLAMAN  noted that  Senator  Meyer  had responded  to  the                                                               
subsidy question to the best of his ability.                                                                                    
                                                                                                                                
3:06:17 PM                                                                                                                    
                                                                                                                                
[CHAIR CLAMAN, in reference  to Representative Eastman's question                                                               
regarding slide 2 of the  PowerPoint yet to be presented, advised                                                               
Representative Eastman  that the committee would  not discuss the                                                               
PowerPoint presentation until it had been presented.]                                                                           
                                                                                                                                
3:07:02 PM                                                                                                                    
                                                                                                                                
CHRISTINE      O'CONNOR,      Executive     Director,      Alaska                                                               
Telecommunications  Association  (ATA),   pointed  out  that  the                                                               
legislation is technical with many  details and that many answers                                                               
to  the   questions  offered  today  are   contained  within  the                                                               
PowerPoint.  She  suggested the committee keep in  mind that this                                                               
legislation is  solely about  landline service  and long-distance                                                               
access  through  landline service.    This  legislation is  about                                                               
modernizing the  statutes adopted in  1990, the "in the  pin drop                                                               
era where they were just starting to compete for long-distance."                                                                
She paraphrased the "SB 205  Telecommunications Statutes Simply &                                                               
Modernize" PowerPoint Presentation as follows:                                                                                  
                                                                                                                                
3:08:13 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR turned to slide 2, "Unanimous Support for SB 205"                                                                  
and advised that the legislation is supported by all ATA                                                                        
members, which include the following entities:                                                                                  
                                                                                                                                
     Adak Eagle Enterprises                                                                                                     
     Alaska Communications                                                                                                      
     Alaska Telephone Company                                                                                                   
     Arctic Slope Telephone                                                                                                     
     Association Cooperative                                                                                                    
     ASTAC Wireless                                                                                                             
     AT&T                                                                                                                       
     Bettles Telephone                                                                                                          
     Bristol Bay Cellular Partnership                                                                                           
     Bristol Bay Telephone                                                                                                      
     Cooperative                                                                                                                
     Bush-Tell                                                                                                                  
     Copper Valley Telephone                                                                                                    
     Cooperative                                                                                                                
     Copper Valley Wireless                                                                                                     
     Cordova Telephone                                                                                                          
     Cooperative                                                                                                                
     Cordova Wireless                                                                                                           
     GCI                                                                                                                        
     Interior Telephone                                                                                                         
     Mukluk Telephone                                                                                                           
     Ketchikan Public Utilities                                                                                                 
     Matanuska Telephone                                                                                                        
     Association                                                                                                                
     North Country Telephone                                                                                                    
     Nushagak Cooperative                                                                                                       
     OTZ Telephone Cooperative                                                                                                  
     OTZ Wireless                                                                                                               
     Summit Telephone Company                                                                                                   
     TelAlaska Cellular                                                                                                         
     United Utilities                                                                                                           
     Windy City Wireless                                                                                                        
     Yukon Telephone Company                                                                                                    
                                                                                                                                
MS. O'CONNOR said, (audio difficulties.) "I appreciate                                                                          
Commissioner Pickett's frankness, and we agree wholeheartedly                                                                   
with  his characterization  of this  activity as  without value."                                                               
(Audio  difficulties) SB  205 to  public comment,  such as  this,                                                               
given from  the commission  from the dais  over the  past two-to-                                                               
three years.                                                                                                                    
                                                                                                                                
3:09:42 PM                                                                                                                    
                                                                                                                                
MS.   O'CONNOR  turned   to   slide   3,  "Transformation,"   and                                                               
paraphrased as follows:                                                                                                         
                                                                                                                                
     Telecommunications have changed completely since                                                                           
     many of Alaska's telecom statutes were adopted in                                                                          
     1990.                                                                                                                      
                                                                                                                                
     The 1996 Telecom Act completely transformed the                                                                            
       marketplace and started an evolution toward light                                                                        
     touch regulation.                                                                                                          
                                                                                                                                
     Landline and long-distance use is dramatically                                                                             
     reduced.                                                                                                                   
                                                                                                                                
     Long distance revenues reduced from $64M to $16M                                                                           
     between 2006-2016.                                                                                                         
                                                                                                                                
     Only 48% of households still have a landline.                                                                              
                                                                                                                                
     Landline services are still important, and will                                                                            
     continue under SB205.                                                                                                      
                                                                                                                                
MS. O'CONNOR (Audio  difficulties.)  She said she  will "hit this                                                               
again and again  today" because she has heard  this question over                                                               
and over,  which puzzles  her because  this legislation  does not                                                               
degrade  landline  service.   That,  she  explained, is  not  the                                                               
commitment  of the  companies  in  the Alaska  Telecommunications                                                               
Association (ATA), many of which  are rural cooperatives and some                                                               
are statewide providers.   Simply because a person  is talking on                                                               
a cell phone,  they are only wireless to the  tower, and then the                                                               
person is on the landline network;  or if a person is using their                                                               
ISP, that  is also on the  landline networks.  She  stressed that                                                               
the landline  network is critical  and it will continue  under SB                                                               
205, ATA is  saying that there are a lot  of resources that could                                                               
be saved  by providers to let  "us focus on better  services" and                                                               
by the RCA to let it focus on more pressing matters.                                                                            
                                                                                                                                
3:11:50 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR turned to slide  4, "Landline Service will Continue"                                                               
and  advised that  this  is a  list  of some  of  the rules  that                                                               
require it, and paraphrased as follows:                                                                                         
                                                                                                                                
     Certificate of Public  Convenience & Necessity prevents                                                                    
     abandonment of service without  permission from the RCA                                                                    
     and the FCC.                                                                                                               
                                                                                                                                
     Eligible   telecommunications    carrier   designations                                                                    
     require service.                                                                                                           
                                                                                                                                
     Federal and  state rules  require provision  of service                                                                    
     upon reasonable request.                                                                                                   
                                                                                                                                
     April   6,  2018   DC   Circuit   Court  affirmed   FCC                                                                    
     requirement  that companies  continue to  provide voice                                                                    
     services.                                                                                                                  
                                                                                                                                
MS.  O'CONNOR (audio  difficulties) every  utility must  apply to                                                               
the RCA to obtain a certificate  before it begins operation.  The                                                               
RCA  must find  that  a  company is  fit,  willing,  and able  to                                                               
provide service.   She explained that before a  company can leave                                                               
service  in  an  area,  it  must   go  to  the  RCA  and  request                                                               
permission,  and the  RCA  must find  that it  is  in the  public                                                               
interest for the company to  depart (audio difficulty) rarely, if                                                               
ever, granted.  This legislation  does not impact the certificate                                                               
of  authority of  the commission,  the  commission has  authority                                                               
over  the  "eligible   telecommunications  carrier  designation,"                                                               
which assigns a service area  and authorizes a company to receive                                                               
federal funding.  Last week,  she related, a Federal D.C. Circuit                                                               
Court decision came down that  companies must continue to provide                                                               
voice services even in the absence of support or a subsidy.                                                                     
                                                                                                                                
3:13:16 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR turned to slide  5, "Universal Service Funds," noted                                                               
that  questions came  up this  week  regarding universal  service                                                               
funds, and paraphrased as follows:                                                                                              
                                                                                                                                
     Due  to both  federal and  state USF  support, Alaskans                                                                    
     have   remarkable  access   to  communications   across                                                                    
     Alaska,  and deployment  of improved  infrastructure is                                                                    
     accelerating.                                                                                                              
                                                                                                                                
     Without  Universal Service  Funds  telecom networks  in                                                                    
     Alaska would not exist in many areas.                                                                                      
                                                                                                                                
     Alaska's Universal  Service Fund  (AUSF) is  a critical                                                                    
     component  for sustaining  voice service  and improving                                                                    
     broadband service statewide.                                                                                               
                                                                                                                                
     The  RCA   has  full   jurisdiction  over   the  Alaska                                                                    
     Universal Service Fund.                                                                                                    
                                                                                                                                
MS. O'CONNOR noted  that a question was asked  regarding what has                                                               
happened  to  those  funds, (audio  difficulties)  without  those                                                               
funds,  there would  not  be communication  networks  in most  of                                                               
Alaska, it  is that expensive.   Universal service is  similar to                                                               
the original  Rural Electrification  Act created to  make certain                                                               
everyone was  connected to the  electric grid, and  she described                                                               
that it  was very effective.   Universal  service is funded  by a                                                               
sur charge  on everyone's  bills in the  nation, and  those funds                                                               
are targeted to the highest  cost areas.  Naturally, she advised,                                                               
with  Alaska being  22 percent  of the  United States  land mass,                                                               
remote  and rugged,  a  lot  of those  funds  do  come to  Alaska                                                               
proportionally, not  a large amount of  the whole pot, but  it is                                                               
important  funding.     She  related  that  it   is  reported  on                                                               
extensively  to both  the federal  and state  commissions, "we're                                                               
very accountable,"  and the RCA  has complete authority  over the                                                               
state  universal service  fund  and dictates  what reporting  and                                                               
information it wants from companies (audio difficulties).                                                                       
                                                                                                                                
3:15:02 PM                                                                                                                    
                                                                                                                                
MS.  O'CONNOR  turned to  slide  6,  "COLR Designation  vs.  COLR                                                               
Support," (audio difficulties) in the  weeds, but it is important                                                               
to explain the slide clearly, and paraphrased as follows:                                                                       
                                                                                                                                
     Carrier of  last resort  (COLR) designation  requires a                                                                    
     company to  serve a certain  area. (So  do Certificate,                                                                    
     ETC and USF rules)                                                                                                         
                                                                                                                                
     Carrier of last resort  (COLR) designation is funded in                                                                    
     some  areas of  the state  by a  portion of  the Alaska                                                                    
     Universal Service Fund.                                                                                                    
                                                                                                                                
     The RCA  is considering Docket  R-18-001 "Consideration                                                                    
     for the  Full Repeal  of Alaska Universal  Service Fund                                                                    
     Regulations."                                                                                                              
                                                                                                                                
     The stated  timeline to eliminate all  funds, including                                                                    
     COLR support, is Jan. 1, 2019.                                                                                             
                                                                                                                                
     Industry  has  responded  to  the  RCA  invitation  for                                                                    
     comment by  proposing two  different paths  forward for                                                                    
     the AUSF  both eliminating COLR support.                                                                                   
                                                                                                                                
     There  is   no  disconnect  between   eliminating  COLR                                                                    
     designation  and corresponding  COLR  support. The  RCA                                                                    
     has made  it clear that  any possible path  forward for                                                                    
     the AUSF will  have a new funding structure.  We do not                                                                    
     expect the old structure to continue.                                                                                      
                                                                                                                                
     Regardless of  the RCA's decision  in the  AUSF docket,                                                                    
     all  rules requiring  landline service  will remain  in                                                                    
     place.                                                                                                                     
                                                                                                                                
MS.  O'CONNOR advised  that  the carrier  of  last resort  (COLR)                                                               
designation says that a company must  serve, but ATA also has the                                                               
certificate, the  Eligible Telecommunications Carrier  (ETC), and                                                               
(audio  difficulties) it  is by  far the  only thing  requiring a                                                               
company to  serve.  The  designation is  funded in some  areas of                                                               
the state  to some  companies but not  all, and  that designation                                                               
allows them to receive a  portion of the Alaska Universal Service                                                               
Fund.   Currently,  she  offered,  the RCA  has  a docket  opened                                                               
titled,  "Consideration   of  the  Full  Repeal   of  the  Alaska                                                               
Universal Service  Fund," this has  been under discussion  at the                                                               
RCA to  eliminate this fund (audio  difficulties).  Particularly,                                                               
she  offered, the  focus has  been  the COLR  support, which  the                                                               
commission  has   been  critical,  and  the   ATA  submitted  two                                                               
different proposals for how this  reform might take place, and in                                                               
both cases, there will not  be explicit COLR support.  Therefore,                                                               
when ATA was drafting  SB 205, it knew that it  was in the record                                                               
that  COLR   support  would  probably  be   completely  revamped,                                                               
possibly done away with, and  the commission has an active docket                                                               
wherein there was an eight-hour  hearing last Monday.  Naturally,                                                               
she  related, if  a company  is  not receiving  the funding,  ATA                                                               
thought  the  designation  did  not  need  to  be  there  either.                                                               
Conversely,  she said,  there is  no  company that  will give  up                                                               
responsibility and still  receive funding, in fact,  even if this                                                               
funding  goes away,  the  companies will  still  be obligated  to                                                               
continue  these  duties.   No  subsidy  is  being given  when  no                                                               
responsibility is being performed, she advised.                                                                                 
                                                                                                                                
3:17:07 PM                                                                                                                    
                                                                                                                                
MS.  O'CONNOR  turned  to  slide   7,  "41  States  Have  Reduced                                                               
Regulation," and advised that 41  other states have eliminated or                                                               
reduced   telecommunication  regulation.     Although   there  is                                                               
variation in the  details of what the other states  have done, it                                                               
generally  means that  telecommunication  companies manage  their                                                               
own  rates, as  half of  the companies  in Alaska  do today,  she                                                               
said.     Currently,   approximately  90   percent  of   Alaska's                                                               
population  is already  served by  a company  that can  raise its                                                               
local  rates  without permission  from  the  RCA.   However,  she                                                               
commented, rates  have not  risen dramatically,  and even  if the                                                               
rates  were to  raise,  there  is a  federal  rule limiting  that                                                               
increase and the maximum it could  possibly go is $49 and change.                                                               
Most  landline  rates  are  in  the $30-$35  range  so  it  would                                                               
theoretically be an approximate  $14 increase, but most companies                                                               
have not  raised rates  in five  years.   Part of  the obligation                                                               
under the  federal funding is  for those rates to  be reasonable,                                                               
and should the  rates raise to the cap and  someone cannot afford                                                               
it, there is  a federal lifeline program that  would support that                                                               
customer and they would probably qualify for a free phone.                                                                      
                                                                                                                                
3:18:24 PM                                                                                                                    
                                                                                                                                
MS.  O'CONNOR turned  to slide  8, titled  "Rate Regulation  - It                                                               
Depends Who You Are," and paraphrased as follows:                                                                               
                                                                                                                                
     Cooperatives, with the approval of their members, and                                                                      
      municipal telcos manage their own tariffs. All other                                                                      
     companies must maintain a tariff at the RCA.                                                                               
                                                                                                                                
     90% of Alaskans are served by company which can manage                                                                     
     its own rates.                                                                                                             
                                                                                                                                
       But for the remainder, review & approval for rate                                                                        
     changes varies, with timelines as long as 420 days.                                                                        
                                                                                                                                
      This limits the introduction of new offerings due to                                                                      
         the expense of preparing and supporting tariff                                                                         
     filings.                                                                                                                   
                                                                                                                                
     SB205 adopts the cooperative model for tariffs and                                                                         
     rate changes.                                                                                                              
                                                                                                                                
MS. O'CONNOR explained that rate  regulation is quite a patchwork                                                               
of  obligation (audio  difficulties) and  the RCA  has complained                                                               
that  under  existing  regulation and  statutory  timelines,  one                                                               
company  might  make  an  informational filing  that  has  to  be                                                               
drafted, reviewed,  sent to the RCA,  and the RCA must  accept it                                                               
without any  revision because  it has no  authority to  make that                                                               
change.  Or,  she related, it could be a  more traditional filing                                                               
which takes 30-45 days and in  some cases a company might have to                                                               
create a  Rate Case that  is extremely  detailed and it  can take                                                               
over  420 days  (audio  difficulties) remember,  only related  to                                                               
landline and long-distance  service.  Instead of  this, she said,                                                               
ATA is proposing  that all companies be on the  same basis as the                                                               
cooperatives  today  where  they  manage  their  own  rates,  are                                                               
answerable to their own customers,  and the commission's consumer                                                               
protection division  would still be there  for quality complaints                                                               
and  so forth.   Co-ops  have operated  in this  manner for  many                                                               
years and  approximately one-half of  the companies in  the state                                                               
already do  this as  it has  been successful as  it is  much more                                                               
efficient, she said.                                                                                                            
                                                                                                                                
3:19:42 PM                                                                                                                    
                                                                                                                                
MS.  O'CONNOR  turned  to  slide 9-10,  titled  "Burden  of  Rate                                                               
Regulation,"  and  advised  the  following are  two  examples  of                                                               
telephone companies, and paraphrased as follows:                                                                                
                                                                                                                                
     Summit Telephone Company                                                                                                 
                                                                                                                                
     Family-owned serving Dalton Highway and Chena Hot                                                                          
     Springs Road                                                                                                               
                                                                                                                                
     Needs to replace obsolete technology                                                                                       
                                                                                                                                
     Tried  to  change  the tariff  to  focus  resources  on                                                                    
     broadband.                                                                                                                 
                                                                                                                                
     "This  process   of  educating   the  RCA   causes  the                                                                    
     expenditure/depletion   of  Summit's   already  limited                                                                    
     resources while what  I need to do with  those funds is                                                                    
     extend  FTTP  (fiber  to   the  premise)  and  wireless                                                                    
     Broadband/Middle  Mile facilities  to our  subscribers.                                                                    
     Soon after  I filed the  Tariff Notice - I  withdrew it                                                                    
     in  that it  immediately became  apparent that  the RCA                                                                    
     process was  a Tar  Baby that  would deplete  Summit of                                                                    
     funds  needed for  the extension  of  Broadband to  its                                                                    
     subscribers."                                                                                                              
                                                                                                                                
     Roger Shofstall, Owner of Summit Telephone Company                                                                         
                                                                                                                                
MS.  O'CONNOR advised  that  the Summit  Telephone  Company is  a                                                               
small company with  a federal mandate to  provide broadband along                                                               
the  Dalton  Highway and  out  toward  Chena  Hot Springs.    The                                                               
company was  trying to change  its tariff to focus  its resources                                                               
on  broadband, and  the  above  is a  quote  from  its owner  who                                                               
eventually   decided  to   "muddle   along   with  the   obsolete                                                               
technology."                                                                                                                    
                                                                                                                                
     Alaska Communications                                                                                                    
                                                                                                                                
     "We have  4 local  exchange tariffs  with a  mixture of                                                                    
     tariff  rules that  apply?Each time  we  make a  tariff                                                                    
     change  we must  do  basically 5  times  for the  local                                                                    
     exchange since  one study area  has different  rules to                                                                    
     follow. We also have  an long-distance tariff which has                                                                    
     even different  rules. When filing 5  different tariffs                                                                    
     plus  a  long-distance  tariff, it  simply  is  not  an                                                                    
     efficient  business  practice   especially  when  these                                                                    
     regulations do not apply across all other carriers."                                                                       
                                                                                                                                
     -Lisa Phillips, Senior  Manager, Regulatory Affairs and                                                                    
     Risk Management                                                                                                            
                                                                                                                                
MS.  O'CONNOR  offered  that Alaska  Communications  is  a  large                                                               
company, it  is under the  same burden,  and it is  managing five                                                               
different tariffs with  a range of rates all  related to landline                                                               
service in different areas of the state.                                                                                        
                                                                                                                                
3:20:36 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR turned  to slide 11, titled  "Tariffs Filings 2017,"                                                               
and  advised   that  the  information  is   from  the  Regulatory                                                               
Commission's 2017 Annual Report, and paraphrased as follows:                                                                    
                                                                                                                                
     Regulatory Commission of Alaska                                                                                          
                                                                                                                                
     Fiscal Year 2017 Annual Report                                                                                             
                                                                                                                                
                                                                                                                                
MS. O'CONNOR  (audio difficulties)  accept and review  them, this                                                               
is a  lot of expense by  providers that could be  better spent on                                                               
service, and  a lot of  expense by  the commission when  it could                                                               
better use its  time on other issues.  She  opined that these may                                                               
be  the  filings  Commissioner   Robert  Pickett  may  have  been                                                               
referring when he said, "How is this doing anybody any good?"                                                                   
                                                                                                                                
3:21:08 PM                                                                                                                    
                                                                                                                                
MS.  O'CONNOR turned  to slide  12, titled,  "Obsolete Statutes,"                                                               
and  advised  that  the  legislation  repeals  obsolete  statutes                                                               
related to long-distance companies, and paraphrased as follows:                                                                 
                                                                                                                                
     Long distance competition statutes at 42.05.800-810                                                                        
     (adopted in 1990) require the RCA to manage                                                                                
     competition in the long-distance market.                                                                                   
                                                                                                                                
     Even though these statutes were made obsolete by the                                                                       
     1996 Telecom Act, they are still on the books in                                                                           
     Alaska.                                                                                                                    
                                                                                                                                
     They require tariff filings and reporting.                                                                                 
                                                                                                                                
     SB 205 removes outdated regulation of long                                                                                 
     distance retail competition.                                                                                               
                                                                                                                                
MS. O'CONNOR explained that these  obsolete statutes date back to                                                               
before  the 1996  Telecommunications Act  and were  actually pre-                                                               
empted by  that Act, but they  are still in the  statute books so                                                               
they  are  generating filings  and  generating  reports that  are                                                               
wasting everyone's resources.                                                                                                   
                                                                                                                                
3:21:31 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR  turned to slide  13, titled  "Consumer Protection,"                                                               
and   offered  that   consumer  protection   still  exists,   and                                                               
paraphrased as follows:                                                                                                         
                                                                                                                                
     Strong consumer protections exist today                                                                                    
                                                                                                                                
     Certificate of Public Convenience and Necessity (CPCN)                                                                     
                                                                                                                                
     Eligible Telecommunications Carrier (ETC)                                                                                  
                                                                                                                                
     RCA Consumer Protection & Information Section                                                                              
                                                                                                                                
     Attorney General Consumer Protection Unit                                                                                  
                                                                                                                                
     FCC Consumer Complaint Center                                                                                              
                                                                                                                                
     SB 205 maintains these protections.                                                                                        
                                                                                                                                
MS. O'CONNOR  offered that the Certificate  of Public Convenience                                                               
and Necessity (CPCN) and  the Eligible Telecommunications Carrier                                                               
(ETC)  designation,  both  require  a company  to  offer  service                                                               
throughout its service  area and to not  withdraw service without                                                               
permission.  There  are FCC rules requiring the above  and SB 205                                                               
does  not  change this  rule.    This  legislation does  not  de-                                                               
regulate telecommunications, and companies  are still required to                                                               
submit to RCA's  authority about where they serve,  and when, and                                                               
if they stop serving, she pointed out.                                                                                          
                                                                                                                                
3:22:11 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR turned to slide  14, titled "Benefits to Consumers,"                                                               
and paraphrased as follows:                                                                                                     
                                                                                                                                
     Increases incentive for companies to offer new service                                                                     
     bundles                                                                                                                    
                                                                                                                                
     Focuses resources on consumer services                                                                                     
                                                                                                                                
     Spreads cost of regulation equitably, with support                                                                         
     from all companies.                                                                                                        
                                                                                                                                
     SB 205 does not include new taxes, it corrects                                                                             
     existing unfair assessment of regulatory costs.                                                                            
                                                                                                                                
MS.  O'CONNOR  advised  that  it   increases  the  incentive  for                                                               
companies to  offer new  service bundles.   The  companies (audio                                                               
difficulties)  serving areas  where they  have to  make the  most                                                               
extensive tariff  filings, they just  simply do not  make changes                                                               
even if it is something their  consumers desire because it is too                                                               
expensive  to go  through the  process.   The resources  that ATA                                                               
could save  would be  better focused on  consumer services.   She                                                               
related that there is a  change that corrects an existing problem                                                               
with  the RCA's  budget  as the  statutes  have become  outdated,                                                               
according to  existing statute, the co-operatives  are not paying                                                               
the regulatory  cost charge  of which  is the  RCA's self-funding                                                               
mechanism.  She  pointed out that that leaves  the other one-half                                                               
of the  companies paying the  full burden of the  RCA's oversight                                                               
authority.   Telecommunication  oversight is  still taking  place                                                               
and this bill would fix  that problem because all companies would                                                               
access the regulatory  cost charge, which would lower  it for the                                                               
companies  that   are  currently  carrying  the   entire  burden.                                                               
Everyone agreed  to this,  she said, there  was no  objection and                                                               
she gave kudos to "my members"  for recognizing the inequity.  It                                                               
was  mentioned that  SB  205 is  bringing a  new  tax, which  she                                                               
described as  a misunderstanding of  this provision in  that this                                                               
is not a new tax, it simply corrects an existing inequity.                                                                      
                                                                                                                                
3:23:39 PM                                                                                                                    
                                                                                                                                
MS.   O'CONNOR   turned   to  slide   15,   titled   "Right-touch                                                               
Regulation,"  (audio  difficulties)  landline  and  long-distance                                                               
service, and paraphrased as follows:                                                                                            
                                                                                                                                
     SB 205 maintains RCA oversight                                                                                             
                                                                                                                                
     Removes obsolete statutes & exempts from many                                                                              
     provisions in 42.05 which are outdated or apply to                                                                         
     other industries                                                                                                           
                                                                                                                                
     Adopts cooperative model for rates                                                                                         
                                                                                                                                
     Requires RCA and FCC approval before discontinuance of                                                                     
     service                                                                                                                    
                                                                                                                                
     Reduces cost and delay of regulation for RCA &                                                                             
     providers                                                                                                                  
                                                                                                                                
     Resolves existing inequity in the RCA's budget                                                                             
     process                                                                                                                    
                                                                                                                                
MS.  O'CONNOR advised  that the  legislation peels  away obsolete                                                               
statutes and allows companies and  the commission to operate more                                                               
efficiently,  as  many  of  the statutes  under  AS  42.05  apply                                                               
generally  to the  operation of  the commission  and those  would                                                               
continue.   She  said that  others apply  to other  industries so                                                               
they are not  applicable to telecommunication.   She related that                                                               
SB  205 will  allow  companies  to focus  on  better service  for                                                               
Alaskans,  and allow  the  RCA  to focus  on  the important  work                                                               
before the RCA  because it is also the  regulatory commission for                                                               
the Trans-Alaska Pipeline (TAPS),  electric issues, water, waste,                                                               
and  natural  gas industries.    These  are all  fully  regulated                                                               
utilities,   she    offered,   which   are    structured   (audio                                                               
difficulties)  nation  in  order  to function  well.    The  1996                                                               
Telecommunications Act  changed telecommunications and put  it on                                                               
a   path  toward   competition,  innovation,   and  right   touch                                                               
regulation.   She asked  that the  Alaska legislature  tailor its                                                               
statutes  to   ensure  service   continues,  but   stops  wasting                                                               
resources on work that is without  value.  When the RCA was asked                                                               
to provide  its opinion on  SB 205,  it cited concerns  about its                                                               
budget  and  those  concerns have  been  completely  resolved  by                                                               
correcting  the  RCC mechanism.    She  related that  it  claimed                                                               
landline  service will  be  threatened, but  this  is simply  not                                                               
accurate because  landline service will be  required under multi-                                                               
state  and federal  rules unless  it is  found to  not be  in the                                                               
public  interest by  state  and federal  regulators.   That,  she                                                               
offered, is the situation today and  it will not be changed under                                                               
SB 205.  On the day  that the RCA considered SB 205, Commissioner                                                               
Jan Wilson put it simply, "I  think it's time for the legislature                                                               
in our state  to address these issues.  So,  I'm hesitant to take                                                               
a  position  that   the  bill  not  pass  because   it  might  be                                                               
interpreted that  this commission, as  a body, believes  that the                                                               
statutes as  they are today  are (audio difficulties) and  I just                                                               
don't think  they are.   I think changes need  to be made  in the                                                               
statutes to conform  to the industry the way it  is today, rather                                                               
than the industry  as it was in the 1970s,  1980s, and that's it.                                                               
It is  entirely completely different than  it was in 1990."   Ms.                                                               
O'Connor said, "We couldn't agree more."                                                                                        
                                                                                                                                
3:26:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  noted  that   several  times  within  the                                                               
presentation  Ms.  O'Connor  said,   "Landline  service  will  be                                                               
continued.   Landline service will  be continued," and  she asked                                                               
how this will affect landline service.                                                                                          
                                                                                                                                
MS. O'CONNOR  answered that  it will  affect landline  service in                                                               
freeing up resources  for the companies to  help with maintenance                                                               
and operation.   In the grand scope of what  is spent on networks                                                               
in  Alaska, it  is  a small  amount  but it  is  still useful  in                                                               
avoiding  waste.   She advised  that there  is nothing  here that                                                               
allows a  company to let their  landline service stop, to  let it                                                               
deteriorate,  and   should  a   company  do   so,  the   RCA  has                                                               
demonstrated its  ability to  call that company  in front  of it,                                                               
demand an explanation, and enforce its rules.                                                                                   
                                                                                                                                
3:27:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked that  as far  as Ms.  O'Connor could                                                               
tell, whether this will affect rates on landlines.                                                                              
                                                                                                                                
MS. O'CONNOR answered  "No," the biggest thing  that could affect                                                               
rates  is  a loss  of  these  supports, these  universal  service                                                               
supports.   She  said that  in the  event the  AUSF was  entirely                                                               
repealed,  that could  definitely  cause rates  to  rise in  some                                                               
areas.   In the event  of a  disruption of the  federal universal                                                               
service, which  is not likely at  this point because it  was just                                                               
stabilized  last year,  those  are the  things  that would  drive                                                               
local rates higher, she explained.                                                                                              
                                                                                                                                
3:27:54 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN advised  that he thought Ms. O'Connor  had said that                                                               
with the  de-regulation, local rates  could go  up to $14  a line                                                               
increase.                                                                                                                       
                                                                                                                                
MS.  O'CONNOR  answered (audio  difficulties),  but  a couple  of                                                               
things  are  going  on  there,   with  landline  rates  there  is                                                               
competition  in  99 percent  of  the  state from  either  another                                                               
landline  provider or  wireless, which  is why  "we are  down" to                                                               
only  42 percent  of  landlines.   People  are simply  abandoning                                                               
their landline service (audio difficulties) increases.                                                                          
                                                                                                                                
3:28:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  whether Juneau,  Anchorage,  and                                                               
Fairbanks were basically subsidizing the smaller communities.                                                                   
                                                                                                                                
MS. O'CONNOR  answered that  it is  a national  sur charge.   She                                                               
explained  that  there  are  two sur  charges,  as  follows:  the                                                               
federal  sur charge  (audio difficulties)  so they  pay and  send                                                               
funds to support Alaska; and the  state sur charge is not as much                                                               
(audio  difficulties)  every  company  in the  state  receives  a                                                               
portion of it to support their operations.                                                                                      
                                                                                                                                
3:29:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  whether it  was similar  to Power                                                               
Cost Equalization (PCE).                                                                                                        
                                                                                                                                
MS.  O'CONNOR responded  (audio  difficulties)  different as  she                                                               
understands PCE is  a fund, an endowment, and that  goes to lower                                                               
electric rates which  is a more direct manner  of lowering rates.                                                               
Whereas, she explained,  the AUS (indisc.) fund,  the state fund,                                                               
is a  fund to help  build and operate networks  and it is  not as                                                               
direct  of an  offset, she  explained that  it is  not really  an                                                               
offset to the rates because it has an indirect effect.                                                                          
                                                                                                                                
REPRESENTATIVE REINBOLD  noted that there is  the regulatory cost                                                               
charge, which is completely separate, and it funds the RCA.                                                                     
                                                                                                                                
3:30:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  referred to  slide  14,  and asked  Ms.                                                               
O'Connor to  put the consumer  benefits into more  specific terms                                                               
and how consumers will directly benefit.                                                                                        
                                                                                                                                
MS.  O'CONNOR  offered  that  the  best  example  is  the  Summit                                                               
Telephone  Company  where  it  is   trying  to  basically  retire                                                               
obsolete  services   and  build   a  fiber  network   to  deliver                                                               
broadband.   The  Summit  Telephone  Company had  to  give up  on                                                               
retiring that obsolete service due to  the cost of that filing of                                                               
the commission.   In the  event the Summit Telephone  Company did                                                               
not have  to wrestle with those  filings, it could put  the money                                                               
it  is saving  toward  the new  fiber network  that  it has  been                                                               
mandated to build by the federal funding.                                                                                       
                                                                                                                                
3:31:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD (audio  difficulties) RCA  is a  massive                                                               
de-regulation bill  which appears  to be  important.   The fiscal                                                               
note read that  the RCA will be  a liaison with the FCC,  it is a                                                               
significant  de-regulation,   but  is  still   beneficial  across                                                               
Alaska,  she  said.    She  related that  she  heard  the  Senate                                                               
presentation   and  she   is  contemplating   offering  the   two                                                               
amendments Senator Bill Wielechowski offered  on the floor of the                                                               
Senate.   She  said  that,  "If you  have  a  docket that  you've                                                               
already sent that says virtually the same thing to the RCA, ..."                                                                
                                                                                                                                
CHAIR CLAMAN interjected  that Representative Reinbold's question                                                               
is  whether Ms.  O'Connor has  a response  to the  two amendments                                                               
offered by Senator  Wielechowski on the floor of the  Senate.  He                                                               
commented that he did not hear  the two amendments, and asked Ms.                                                               
O'Connor to tell the committee  what the two amendments entailed,                                                               
whether or not she supported the amendments, and why.                                                                           
                                                                                                                                
CHAIR CLAMAN  advised that the  committee could come back  to the                                                               
questions if she was not ready to address these questions.                                                                      
                                                                                                                                
3:34:16 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR  said she was  ready and addressed Amendment  1, and                                                               
referred  to Sec.  2, [AS  42.05.141(e)(f), page  2, lines  1-4],                                                               
which read as follows:                                                                                                          
                                                                                                                                
          (e) The commission may not designate a local                                                                          
     exchange carrier or an interexchange carrier as the                                                                        
     carrier of last resort.                                                                                                    
                                                                                                                                
          (f) The commission may designate an eligible                                                                          
     telecommunications carrier consistent with 47 U.S.C.                                                                       
     214(e).                                                                                                                    
                                                                                                                                
MS.  O'CONNOR  explained  that  Amendment  1  would  have  struck                                                               
subsections (e)  and (f).   Subsection (e) is actually  the point                                                               
of the  amendment where  the bill read,  "the commission  may not                                                               
designate a  COLR" and  the objection was  "You are  getting COLR                                                               
funding, how can you not accept  the designation of a COLR?"  She                                                               
said that as  she had previously explained, that  COLR funding is                                                               
being completely revamped and "our  proposal" reduces all funding                                                               
by 49 percent.  Therefore, that is  going away in one form or the                                                               
other and  "we are  very strongly  advocating" that  some funding                                                               
continue because it is important.   The explicit COLR funding has                                                               
been  (audio  difficulties)  and  "we  have  proposed"  that  the                                                               
explicit  COLR  funding  go  away,  so it  made  sense  that  the                                                               
designation would not continue.                                                                                                 
                                                                                                                                
3:35:37 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  surmised that Amendment  1 would  actually maintain                                                               
the COLR designation.                                                                                                           
                                                                                                                                
MS.  O'CONNOR agreed  that Amendment  1 would  maintain the  COLR                                                               
designation  and  the ATA  does  not  support  that issue.    She                                                               
explained that  subsection (f) simply codifies  something the RCA                                                               
already does, and  the ATA did not consider  it controversial and                                                               
she explained  that this is  the designation that the  FCC (audio                                                               
difficulties)  in order  for universal  service  funding to  come                                                               
into   the  state.     It   is  important   funding,  it   builds                                                               
infrastructure,  it  operates  networks,  and that  is  almost  a                                                               
housekeeping  item just  to say  that the  RCA will  continue the                                                               
funding, she said.                                                                                                              
                                                                                                                                
3:36:21 PM                                                                                                                    
                                                                                                                                
MS.  O'CONNOR referred  to Amendment  2 (audio  difficulties) the                                                               
designation was  not there  and the subsidy  should not  be there                                                               
either.    In effect,  she  reiterated,  that is  probably  where                                                               
"we're"  headed with  the RCA  and the  "R Docket."   The  Alaska                                                               
Telecommunications  Association  (ATA)  stressed in  hundreds  of                                                               
pages  of  testimony  to  the   RCA,  the  importance  of  (audio                                                               
difficulties)  universal   service  fund.     She   comment  that                                                               
explicitly  designated COLR  does  not appear  to  be the  future                                                               
path,  but there  must be  some  support coming  from the  Alaska                                                               
Universal  Service  Fund in  order  that  there is  not  negative                                                               
impacts on landline service or all services in Alaska.                                                                          
                                                                                                                                
3:37:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX   surmised   that  the   impetus   [audio                                                               
difficulties continued to timestamp 3:37:55.]                                                                                   
                                                                                                                                
MS. O'CONNOR  (audio difficulties) several  years and it  has not                                                               
yet been accomplished.                                                                                                          
                                                                                                                                
3:38:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  whether  that  was  something  the                                                               
legislature could mandate.                                                                                                      
                                                                                                                                
MS. O'CONNOR answered  that the RCA is a  commission that reports                                                               
to the legislature.                                                                                                             
                                                                                                                                
3:38:20 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN asked whether anything  in this legislation requires                                                               
legislative action,  or is  everything being  requested something                                                               
that the RCA could perform entirely by regulation.                                                                              
                                                                                                                                
MS.   O'CONNOR  responded   [audio   difficulties  continued   to                                                               
timestamp 3:39:05].                                                                                                             
                                                                                                                                
3:39:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  whether   the  statutes  could  be                                                               
changed  in order  to streamline  the regulations  without simply                                                               
exempting  the carriers  from the  RCA jurisdiction,  "which this                                                               
bill basically does."                                                                                                           
                                                                                                                                
MS. O'CONNOR replied that it  exempts the remaining carriers that                                                               
are serving approximately 10 percent  of Alaska's population that                                                               
are still  under rate regulation.   [Audio difficulties continued                                                               
to 3:40:00.]  these service, and  that has  to be granted  upon a                                                               
finding of  the public interest.   The  Alaska Telecommunications                                                               
Association (ATA) considers that strong RCA jurisdiction.                                                                       
                                                                                                                                
3:40:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX referred to  the fiscal note analysis [page                                                               
2, paragraph 2,] which read in part:                                                                                            
                                                                                                                                
     The RCA would still be required to certificate                                                                             
     wireline telecommunications carriers and adjudicate                                                                        
     the relinquishment or transfer of those certificates.                                                                      
                                                                                                                                
REPRESENTATIVE  LEDOUX  surmised  that  the  RCA  still  has  the                                                               
authority to prevent a carrier from "leaving someplace."                                                                        
                                                                                                                                
MS.  O'CONNOR answered  that Representative  LeDoux was  correct.                                                               
(Audio  difficulties)  sectional,  that   is  one  of  the  exact                                                               
sections,  a  separate  section,  that is  solely  regarding  the                                                               
requirement  to  request  permission before  a  carrier  deceases                                                               
service.   (Audio difficulties)  as well  as regulations  tied to                                                               
"your very substantial universal service funding."                                                                              
                                                                                                                                
3:41:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked whether  eliminating the  carrier of                                                               
last resort  impacts [audio  difficulties continued  to timestamp                                                               
3:41:58].                                                                                                                       
                                                                                                                                
3:42:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked the criteria for deceasing service.                                                                 
                                                                                                                                
MS. O'CONNOR answered [audio  difficulties continued to timestamp                                                               
3:42:29] only has two people left,  and ATA believes it is in the                                                               
public interest that it would  stop [audio difficulties continued                                                               
to timestamp 3:42:47].                                                                                                          
                                                                                                                                
3:42:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   surmised  that  it  is   a  high  hurdle                                                               
currently,  and asked  whether it  would still  be a  high hurdle                                                               
under this legislation.                                                                                                         
                                                                                                                                
MS. O'CONNOR responded (audio difficulties.)                                                                                    
                                                                                                                                
3:44:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  moved  that the  committee  decide  that                                                               
hence forth it will let someone  ask a question before "we decide                                                               
to cut them off."                                                                                                               
                                                                                                                                
CHAIR  CLAMAN ruled  that  this committee  is  managed under  the                                                               
rules of  Mason's Manual and  he will continue to  follow Mason's                                                               
Manual.  Chair Claman ruled  Representative Eastman's motion out-                                                               
of-order.                                                                                                                       
                                                                                                                                
3:45:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  referred   to  Senator  Meyer's  opening                                                               
presentation regarding all of  the telecommunication companies in                                                               
support  of CSSB  205, and  asked why  Verizon is  not listed  on                                                               
slide 2.                                                                                                                        
                                                                                                                                
SENATOR  MEYER responded  that Verizon  does  not offer  landline                                                               
services in Alaska.                                                                                                             
                                                                                                                                
3:45:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked whether  Senator Meyer  had reached                                                               
out to any of the  other communications companies that might want                                                               
to  service Alaska,  that  are  not currently  in  the state,  to                                                               
obtain their  comments as to  whether this legislation  will make                                                               
their decision to move into Alaska more or less likely.                                                                         
                                                                                                                                
SENATOR MEYER advised that he  had not reached out, and currently                                                               
there are 15 companies in Alaska so it is a competitive field.                                                                  
                                                                                                                                
3:46:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked Senator  Meyer's perspective  as to                                                               
whether  this legislation  would  make it  less  likely that  new                                                               
companies  would   form  in  the   future  to  compete   in  this                                                               
competitive market.   He opined  that one  of the reasons  all of                                                               
the current  providers are supportive  is because the  bill might                                                               
make it less likely that they would have increased competition.                                                                 
                                                                                                                                
SENATOR MEYER answered  that he does not believe  this bill would                                                               
prohibit new  companies from coming  into Alaska,  and reiterated                                                               
that  this  bill  pertains  to   landlines,  and  landlines  have                                                               
decreased to approximately 40 percent in Alaskan homes.                                                                         
                                                                                                                                
3:47:54 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  opened  public  testimony  on  CSSB  205.    After                                                               
ascertaining no  one wished to  testify, closed  public testimony                                                               
on CSSB 205.                                                                                                                    
                                                                                                                                
[SB 205 was held over.]                                                                                                         
                                                                                                                                
3:50:36 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT - RECESS                                                                                                          
                                                                                                                                
CHAIR CLAMAN  recessed the House Judiciary  Standing Committee to                                                               
a call of the chair, to resume at 6:15 p.m.                                                                                     
                                                                                                                                
                                                                                                                                
6:15:24 PM                                                                                                                    
                                                                                                                                
CHAIR MATT  CLAMAN called the House  Judiciary Standing Committee                                                               
meeting  back  to  order at  6:15  p.m.  Representatives  Claman,                                                               
Stutes, Reinbold,  and Kopp  were present at  the call  to order.                                                               
Representatives  Kreiss-Tomkins   and  Eastman  arrived   as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
            HB 387-AG SCHEDULE CONTROLLED SUBSTANCES                                                                        
                                                                                                                                
6:15:42 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 387,  "An Act  relating to  scheduled substances;                                                               
relating  to the  Controlled Substances  Advisory Committee;  and                                                               
authorizing  the  attorney  general  to  schedule  substances  by                                                               
emergency  regulation  or  repeal an  emergency  regulation  that                                                               
scheduled a substance."                                                                                                         
                                                                                                                                
6:16:18 PM                                                                                                                    
                                                                                                                                
LIZZIE KUBITZ,  Staff, Representative  Matt Claman,  Alaska State                                                               
Legislature, referred to  [CSHB 387, page 2,  lines 4-11] Section                                                               
1, which read as follows:                                                                                                       
                                                                                                                                
          LEGISLATIVE  INTENT.  It  is  the  intent  of  the                                                                    
     legislature  that, if  a person's  criminal convictions                                                                    
     or  charges  outside  the  state   are  included  in  a                                                                    
     pretrial risk assessment conducted  under AS 33.07, the                                                                    
     result  of that  assessment  will  control the  release                                                                    
     decision  and  the  section of  this  bill  allowing  a                                                                    
     defendant  to be  detained for  48 hours  and directing                                                                    
     presumptive release  on a person's own  recognizance or                                                                    
     on an  unsecured bond  when the  person has  a criminal                                                                    
     conviction or  charge outside the state  will no longer                                                                    
     apply.                                                                                                                     
                                                                                                                                
MS. KUBITZ advised that Sections 2-4 remain unchanged.                                                                          
                                                                                                                                
6:17:26 PM                                                                                                                    
                                                                                                                                
MS.  KUBITZ turned  to Sec.  5, and  advised that  it contains  a                                                               
technical change  as to  the 4/4/18 adopted  Amendment 1  and has                                                               
been  integrated  into the  bill  to  clarify that  the  attorney                                                               
general may schedule a substance  by emergency regulation only if                                                               
the  substance  is  currently  listed  on  a  federal  controlled                                                               
substance schedule.                                                                                                             
                                                                                                                                
MS. KUBITZ advised that Sections 6-7 remain unchanged.                                                                          
                                                                                                                                
6:18:07 PM                                                                                                                    
                                                                                                                                
MS. KUBITZ  turned to Sec. 8,  and advised that it  allows (audio                                                               
difficulties)  if the  person has  (audio difficulties)  that the                                                               
release  of   this  person  will  not   reasonably  ensure  their                                                               
appearance in court or the safety of the community.                                                                             
                                                                                                                                
6:18:59 PM                                                                                                                    
                                                                                                                                
MS. KUBITZ turned to Sec. 9, (audio difficulties).                                                                              
                                                                                                                                
6:19:27 PM                                                                                                                    
                                                                                                                                
MS. KUBITZ turned to Sec. 10, conforming (audio difficulties).                                                                  
                                                                                                                                
6:19:52 PM                                                                                                                    
                                                                                                                                
MS. KUBITZ turned to Sec. 11, (audio difficulties).                                                                             
                                                                                                                                
6:20:15 PM                                                                                                                    
                                                                                                                                
MS.  KUBITZ  turned  to  Sec.  12,  and  advised  that  it  makes                                                               
conforming and  technical changes to the  mandatory conditions of                                                               
release.                                                                                                                        
                                                                                                                                
MS.  KUBITZ  turned  to  Sec.  13,  and  advised  that  it  makes                                                               
conforming changes to clarify that  the court shall consider out-                                                               
of-state convictions when determining the conditions of release.                                                                
                                                                                                                                
MS. KUBITZ  turned to Sec.  14, and  advised that it  changes the                                                               
law so that  when a defendant who would  otherwise be mandatorily                                                               
released  on  their own  recognizance  (OR)  has an  out-of-state                                                               
criminal conviction or  charge that is a felony,  a crime against                                                               
a person,  or a sex crime,  and has not been  used in determining                                                               
the  person's  risk  assessment  under  AS  33.07,  the  judicial                                                               
officer  may require  monetary bail  upon finding  on the  record                                                               
that there is clear and  convincing evidence the other conditions                                                               
are not sufficient to ensure public safety.                                                                                     
                                                                                                                                
MS. KUBITZ turned to Sec. 15, (audio difficulties).                                                                             
                                                                                                                                
6:21:36 PM                                                                                                                    
                                                                                                                                
MS.  KUBITZ  turned  to  Sec.  16,  and  advised  that  it  makes                                                               
conforming changes  to ensure pre-trial services  officers comply                                                               
(audio difficulties) with the court  (audio difficulties) with or                                                               
without a warrant and request  (audio difficulties) violations of                                                               
conditions of release.                                                                                                          
                                                                                                                                
MS.  KUBITZ  turned  to Sec.  17,  [audio  difficulties  continue                                                               
throughout Sections 17-22].                                                                                                     
                                                                                                                                
MS.  KUBITZ turned  to Sec.  23, and  advised that  it integrates                                                               
Amendment  2  [adopted  on 4/4/18]  clarifying  that  any  (audio                                                               
difficulties).                                                                                                                  
                                                                                                                                
6:22:32 PM                                                                                                                    
                                                                                                                                
MS.  KUBITZ  turned to  Sec.  24,  and  advised that  it  remains                                                               
unchanged.                                                                                                                      
                                                                                                                                
MS. KUBITZ turned to Sec. 25,  and advised that it is an indirect                                                               
court  rule   amendment  stating  that  Sections   9-13,  and  AS                                                               
12.30.011(m) enacted by  Section 14, have the  effect of changing                                                               
Criminal Rule 41 by changing release conditions for defendants.                                                                 
                                                                                                                                
MS. KUBITZ  turned to  Sec. 26,  and advised  that it  relates to                                                               
applicability.                                                                                                                  
                                                                                                                                
6:23:05 PM                                                                                                                    
                                                                                                                                
MS.  KUBITZ  turned to  Sec.  27,  and  advised  that it  is  the                                                               
conditional effect.                                                                                                             
                                                                                                                                
MS. KUBITZ turned to Sec. 28,  and advised that it relates to the                                                               
effective date.                                                                                                                 
                                                                                                                                
MS. KUBITZ turned  to Sec. 29, states that Sections  1, 8,15, 16,                                                               
and  25-27  of   this  Act  take  effect   immediately  under  AS                                                               
01.10.070(c).                                                                                                                   
                                                                                                                                
6:23:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  moved to  adopt CSHB  387, Version                                                               
30-LS1461\D as the working document.                                                                                            
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
6:24:01 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives LeDoux,  Kreiss-                                                               
Tomkins, Reinbold,  Kopp, Stutes,  and Claman  voted in  favor of                                                               
the adoption  of CSHB 387,  30-LS1461\D as the  working document.                                                               
Representative Eastman  voted against  it.  Therefore,  CSHB 387,                                                               
Version D was adopted by a vote of 6-1.                                                                                         
                                                                                                                                
6:24:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD commented  that she  reviewed CSHB  387,                                                               
Version D,  and performed a  comparison (audio  difficulties) and                                                               
she   found  the   following  three   valuable  issues   in  this                                                               
legislation: prior  to the attorney  general adding  an emergency                                                               
regulation, the substance  must be on a  federal schedule; (audio                                                               
difficulties) contention  for two  years and she  is happy  it is                                                               
addressed in  this legislation; and out-of-state  convictions can                                                               
be  included, which  is critical.   In  addition, she  said, this                                                               
bill  unshackles the  state's judges  by  offering more  judicial                                                               
discretion, and she will be a yes vote.                                                                                         
                                                                                                                                
6:26:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP commended  Chair Claman  for addressing  the                                                               
following key  pieces of public  safety legislation in  one bill:                                                               
the attorney general's authority  to control dangerous substances                                                               
within the  state's criminal  law that are  causing havoc  on the                                                               
streets;  this   bill  deals   with  the   out-of-state  criminal                                                               
offenses; it  gives the  prosecutors more  time to  make critical                                                               
detention  decisions; it  gives judges  the discretion  they have                                                               
been requesting; a defendant with a misdemeanor from an out-of-                                                                 
state conviction  is no  longer excluded  by the  risk assessment                                                               
tool; and he truly appreciates  the increase in authority for the                                                               
pretrial  officers to  make  arrests and  request  warrants.   He                                                               
described  this legislation  as a  great piece  of public  safety                                                               
legislation and he, again, commended  Chair Claman for moving the                                                               
bill.                                                                                                                           
                                                                                                                                
6:27:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN commented that  this legislation is asking                                                               
the   attorney  general   to  take   on  a   different  type   of                                                               
responsibility than was  previously asked, and he  opined that it                                                               
would be  unexpected to find  an attorney general who  is already                                                               
in  possession of  (audio difficulties)  that the  legislature is                                                               
now  expecting them  to make  decision.   While the  state has  a                                                               
Controlled Substances  Advisory Committee  that can  offer input,                                                               
there  is  nothing in  the  bill  requiring  that that  input  is                                                               
listened  to,  or read.    Under  this  bill, he  commented,  the                                                               
attorney general can simply ignore  that input and issue whatever                                                               
scheduling of  a drug or other  items it feels is  appropriate in                                                               
its  own  discretion,  which  appears  to be  "an  awful  lot  of                                                               
authority" to  give to one  person.  He  said that he  is hopeful                                                               
that authority be well used,  but he believes that experience has                                                               
shown that "that  hope is not always borne out  and that those --                                                               
that large  of a  grant of  authority is likely  to be  abused at                                                               
some point so I am still holding reservations about that."                                                                      
                                                                                                                                
6:28:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP asked whether  Chair Claman would clarify the                                                               
concerns [of  Representative Eastman] or whether  the chair would                                                               
like  Representative Kopp  to clarify  that the  attorney general                                                               
has to  use the  controls of  the Controlled  Substances Advisory                                                               
Committee.                                                                                                                      
                                                                                                                                
CHAIR  CLAMAN clarified  that  as was  discussed  earlier in  the                                                               
amendments, the whole  purpose of the adopted  two amendments was                                                               
to limit  the drugs the attorney  general can list to  those that                                                               
have  already   been  considered   by  the   federal  government.                                                               
Clearly,  that   significantly  limits  the   attorney  general's                                                               
authority.    Also  included  is  the  three-year  sunset  clause                                                               
wherein if  the legislature does not  believe it is a  good idea,                                                               
it  can stop  that authority  at  any point.   In  the event  the                                                               
legislature has  not acted  within three  years, then  it lapses.                                                               
Therefore, in both  of those instances, the  committee is putting                                                               
significant  restrictions on  what actions  can be  taken by  the                                                               
attorney general and, he added,  Attorney General Jahna Lindemuth                                                               
joined the Controlled Substances  Advisory Committee and would be                                                               
fully informed as to the controlled substances at issue.                                                                        
                                                                                                                                
6:30:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  moved to report CSHB  387, Version                                                               
30-LS1461\D,  out of  committee  with individual  recommendations                                                               
and the accompanying fiscal notes.                                                                                              
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
6:30:29 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Stutes,  LeDoux,                                                               
Kreiss-Tomkins, Reinbold, Kopp, and Claman  voted in favor of the                                                               
passage of  CSHB 387  out of  committee.   Representative Eastman                                                               
voted against it.   Therefore, CSHB 387(JUD) was  reported out of                                                               
the House Judiciary Standing Committee by a vote of 6-1.                                                                        
                                                                                                                                
         HB 351-JUVENILES: JUSTICE,FACILITES,TREATMENT                                                                      
                                                                                                                                
6:31:15 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
HOUSE BILL NO. 351, "An Act  relating to care of juveniles and to                                                               
juvenile justice;  relating to  employment of  juvenile probation                                                               
officers  by  the  Department  of  Health  and  Social  Services;                                                               
relating  to   terms  used  in  juvenile   justice;  relating  to                                                               
mandatory  reporters  of  child  abuse or  neglect;  relating  to                                                               
adjudication of  minor delinquency and the  deoxyribonucleic acid                                                               
identification  registration system;  relating to  sexual assault                                                               
in the  third degree;  relating to sexual  assault in  the fourth                                                               
degree; repealing a requirement  for administrative revocation of                                                               
a  minor's  driver's  license, permit,  privilege  to  drive,  or                                                               
privilege to  obtain a license  for consumption or  possession of                                                               
alcohol or drugs; and providing for an effective date."                                                                         
                                                                                                                                
6:31:38 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  moved to adopt Amendment  1, labeled 30-LS0416\N.3,                                                               
Laffen, 4/10/18, which read as follows:                                                                                         
                                                                                                                                
     Page 1, line 5, following "system;":                                                                                     
          Insert "relating to jurisdiction for delinquency                                                                    
     proceedings;"                                                                                                            
                                                                                                                                
     Page 1, line 8, following "drugs;":                                                                                      
          Insert "amending Rules 2, 3, 8, 12, 14, 16, 21,                                                                     
     22, 23, and 25, Alaska Delinquency Rules;"                                                                               
                                                                                                                                
     Page 9, following line 4:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 17. AS 47.12.020(b) is amended to read:                                                                     
          (b)  Except as otherwise provided in this                                                                             
     chapter,  proceedings relating  to a  person who  is 18                                                                    
     years of  age or over  are governed by this  chapter if                                                                    
     the person is alleged to have committed a violation of                                                                     
               (1)  the criminal law of the state or a                                                                      
     municipality of the state, the violation occurred when                                                                     
     the person  was under 18  years of age, and  the period                                                                    
     of limitation under AS 12.10 has not expired; or                                                                       
               (2)  AS 11.56.760(a)(2) and was adjudicated                                                                  
     as a delinquent  for the offense that  required the DNA                                                                
     testing under AS 44.41.035."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 19, following line 14:                                                                                                
     Insert a new bill section to read:                                                                                         
        "*  Sec. 41.  The  uncodified law  of  the State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          INDIRECT COURT RULE AMENDMENT. AS 47.12.020(b),                                                                       
     as amended  by sec. 17 of  this Act, has the  effect of                                                                    
     amending  the  following  Alaska Delinquency  Rules  by                                                                    
     providing  that  certain persons  18  years  of age  or                                                                    
     older are subject to adjudication as minors:                                                                               
               (1)  Rule 2(n), Alaska Delinquency Rules;                                                                        
               (2)  Rule 3(b), Alaska Delinquency Rules;                                                                        
               (3)  Rule 3(c), Alaska Delinquency Rules;                                                                        
               (4)  Rule 8(b), Alaska Delinquency Rules;                                                                        
               (5)  Rule 8(c), Alaska Delinquency Rules;                                                                        
               (6)  Rule 12(b), Alaska Delinquency Rules;                                                                       
               (7)  Rule 12(c), Alaska Delinquency Rules;                                                                       
               (8)  Rule 12(d), Alaska Delinquency Rules;                                                                       
               (9)  Rule 14(b), Alaska Delinquency Rules;                                                                       
               (10)  Rule 16(a), Alaska Delinquency Rules;                                                                      
               (11)  Rule 16(b), Alaska Delinquency Rules;                                                                      
               (12)  Rule 21(g), Alaska Delinquency Rules;                                                                      
               (13)  Rule 22(c), Alaska Delinquency Rules;                                                                      
               (14)  Rule 23(b), Alaska Delinquency Rules;                                                                      
               (15)  Rule 25(b), Alaska Delinquency Rules;                                                                      
               (16)  Rule 25(c)(4), Alaska Delinquency                                                                          
     Rules."                                                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page  19, line  22, following  the first  occurrence of                                                                    
     "Act":                                                                                                                     
          Insert "AS 47.12.020(b), as amended by sec. 17 of                                                                     
     this Act,"                                                                                                                 
                                                                                                                                
     Page 19, line 22:                                                                                                          
          Delete "sec. 19"                                                                                                      
          Insert "sec. 20"                                                                                                      
                                                                                                                                
     Page 19, line 23:                                                                                                          
          Delete "secs. 2 - 9 and 19"                                                                                           
          Insert "secs. 2 - 9, 17, and 20"                                                                                      
                                                                                                                                
     Page 19, following line 29:                                                                                                
     Insert a new bill section to read:                                                                                         
         "* Sec. 44. The uncodified law of the State of                                                                     
     Alaska is amended by adding a new section to read:                                                                         
          CONDITIONAL EFFECT. Section 17 of this Act takes                                                                      
      effect only if sec. 41 of this Act receives the two-                                                                      
      thirds majority vote of each house required by art.                                                                       
     IV, sec. 15, Constitution of the State of Alaska."                                                                         
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 19, line 30:                                                                                                          
          Delete "Section 41"                                                                                                   
          Insert "Section 43"                                                                                                   
                                                                                                                                
REPRESENTATIVE STUTES objected for purposes of discussion.                                                                      
                                                                                                                                
6:32:16 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  explained that he  is moving Amendment 1  on behalf                                                               
of the bill sponsor.                                                                                                            
                                                                                                                                
6:32:39 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 6:32 p.m. to 6:33 p.m.                                                                       
                                                                                                                                
6:33:20 PM                                                                                                                    
                                                                                                                                
[Discussion regarding the amendments.]                                                                                          
                                                                                                                                
6:34:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  IVY  SPOHNHOLZ  advised   that  Amendment  1  was                                                               
requested  by   Quinlan  Steiner,  Public  Defender   and  he  is                                                               
available by telephone.                                                                                                         
                                                                                                                                
CHAIR CLAMAN asked Quinlan Steiner to explained Amendment 1.                                                                    
                                                                                                                                
6:34:20 PM                                                                                                                    
                                                                                                                                
QUINLAN  STEINER,  Director,   Central  Office,  Public  Defender                                                               
Agency (PDA),  Department of  Administration (DOA),  advised that                                                               
as he  reviewed CSHB 351, he  noted that in creating  a new crime                                                               
for failing  to provide  a DNA sample,  there is  the possibility                                                               
that it  would result  in an  adult criminal  conviction stemming                                                               
from an  arrest and adjudication  under the  juvenile delinquency                                                               
rules.   This,  he  explained, created  a  situation wherein  the                                                               
legislature   should  consider   the  following   two  particular                                                               
problems: it  would leave an  adult record that was  visible that                                                               
required a  predicated conviction which  would not be  visible on                                                               
CourtView, and  that would  be an indication  that someone  had a                                                               
juvenile  record.   Thereby,  openly  undermining the  juveniles'                                                               
attempts  at  rehabilitation.   The  inconsistency  of  having  a                                                               
juvenile  adjudication  running at  the  same  time as  an  adult                                                               
criminal  offense,  where  this   adult  criminal  offense  could                                                               
ultimately override  the primary concerns of  rehabilitation in a                                                               
juvenile  delinquency   matter,  and  those  two   appear  to  be                                                               
inconsistent.  Consequently, he said  that he made the suggestion                                                               
to  handle   this  entire  matter,   stemming  from   a  juvenile                                                               
delinquency matter,  under the juvenile delinquency  rules, which                                                               
would be more consistent with the focus on rehabilitation.                                                                      
                                                                                                                                
6:36:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   moved  Conceptual   Amendment  1                                                               
Version  30-LS0416\N.4,  to  Amendment 1  Version  30-LS0416\N.3,                                                               
which read as follows:                                                                                                          
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new paragraph to read:                                                                                            
               "(1)  Rule 2(k), Alaska Delinquency Rules;"                                                                      
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new paragraph to read:                                                                                            
               "(1)  Rule 2(k), Alaska Delinquency Rules;"                                                                      
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
CHAIR CLAMAN asked Mr. Steiner to explain Amendment N.4.                                                                        
                                                                                                                                
6:36:45 PM                                                                                                                    
                                                                                                                                
MR. STEINER advised  that he had not seen  Conceptual Amendment 1                                                               
to Amendment 1.                                                                                                                 
                                                                                                                                
CHAIR  CLAMAN explained  how  the above  amendment  read, and  he                                                               
explained that it adds one more  delinquency rule that was not in                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
MR. STEINER responded  that those were discussions  "we had," but                                                               
that is the  definition of a juvenile.   Therefore, he explained,                                                               
the committee would be making  an indirect rule amendment to make                                                               
clear   that  the   definition  of   juvenile  in   this  limited                                                               
circumstance includes  an individual who  was 18 years of  age at                                                               
the time this  failure to provide DNA event  occurred.  Normally,                                                               
he further explained,  someone who is 18 years of  age, under the                                                               
juvenile  delinquency  rules,  the conduct  predates  their  18th                                                               
birthday.   He explained that  the court  can make this  clear in                                                               
the rules  that what was happening  now needed to be  governed by                                                               
the delinquency rules.                                                                                                          
                                                                                                                                
6:37:47 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  asked  whether  there  was  an  objection  to  the                                                               
adoption of Conceptual  Amendment 1 to Amendment 1.   There being                                                               
no objection, Conceptual Amendment 1 to Amendment 1 was adopted.                                                                
                                                                                                                                
6:37:59 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  asked  whether  there  was  an  objection  to  the                                                               
adoption of Amendment 1, as amended.                                                                                            
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
6:38:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  referred to Amendment 1,  and commented that                                                               
it looks like  a DNA swab based on a  juvenile offense, and asked                                                               
whether this amendment  changes what the law  would be currently.                                                               
For  example,  if a  16-year-old  committed  an assault  and  was                                                               
required to submit to a DNA  test, and for various reasons by the                                                               
time they  were served with  an order they  were age 18  and they                                                               
refused  to submit  a  DNA sample,  "so now  they  have an  adult                                                               
charge  based on  a  two-year  old juvenile  charge."   He  asked                                                               
whether the law (audio difficulties).                                                                                           
                                                                                                                                
MR. STEINER responded  that under current statute,  a juvenile is                                                               
required to provide  a sample and that doesn't  change, it simply                                                               
makes  it  a  criminal  offense.   The  concern  comes  in  where                                                               
someone's  conduct occurs  just prior  their 18th  birthday, they                                                               
are arrested or  adjudicated after their 18th  birthday, and they                                                               
then choose to not provide a sample.   In the prior law, that was                                                               
non-criminal and  now it becomes  criminal, it is simply  that it                                                               
would  be handled  as a  juvenile  offense rather  than an  adult                                                               
offense, he offered.                                                                                                            
                                                                                                                                
6:39:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP (audio difficulties).                                                                                       
                                                                                                                                
MR. STEINER answered  that the bill actually changes  the way the                                                               
law works  because the  bill itself makes  it a  criminal offense                                                               
where it  was not  a criminal  offense.   Amended Amendment  1 is                                                               
focused  on  making sure  the  underlying  case continues  to  be                                                               
handled as  a juvenile  matter even  though the  refusal occurred                                                               
after an  18th birthday.   He  said that will  put the  two cases                                                               
together, essentially, and ensure  that focus for that individual                                                               
remains  on  rehabilitation  as  is  generally  the  case  (audio                                                               
difficulties).                                                                                                                  
                                                                                                                                
CHAIR CLAMAN referred  to Sec. 19 [AS 47.12.120(l)]  page 12, 14-                                                               
25, and explained  that it turns what was  a non-criminal offense                                                               
into a  criminal offense.   Under current  law, not giving  a DNA                                                               
sample is  not a criminal offense,  and this bill will  make it a                                                               
criminal offense.                                                                                                               
                                                                                                                                
6:41:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  surmised that  if  a  person committed  a                                                               
crime  as a  juvenile, and  then after  their 18th  birthday they                                                               
commit the  other crime of failing  to submit a DNA  sample, this                                                               
amendment would  still make that  subject to the  juvenile rules.                                                               
She asked why  the committee should do that because  they were an                                                               
adult when they decided to not provide their DNA.                                                                               
                                                                                                                                
MR.  STEINER answered  that Representative  LeDoux is  correct as                                                               
long as  the requirement that  the person provide the  DNA sample                                                               
stems from  something that  occurred as a  juvenile.   Under this                                                               
amendment, that  adult conduct would  be treated similarly  as to                                                               
the  case  with the  juvenile  conduct.    The reason  being,  he                                                               
explained, is two-fold:  one is that you would  have on CourtView                                                               
and in  the public record, a  record of a conviction  for which a                                                               
predicate  must  exist.   The  predicate  being a  conviction  or                                                               
adjudication  for  something  that   would  lead  to  information                                                               
indicating that that  person had a juvenile record.   Thereby, he                                                               
pointed out,  essentially opening  up confidentiality  and making                                                               
clear that  there is a  possible juvenile record there,  it could                                                               
have been an out-of-state record but  it could also be a juvenile                                                               
record.  He pointed out that it  would be counter to the goals of                                                               
rehabilitation and  keeping confidentiality for juvenile  so they                                                               
can move  past whatever juvenile  conduct took place.   The other                                                               
reason  being, he  offered, is  that this  can happen  relatively                                                               
quickly in that someone could  be arrested just before their 18th                                                               
birthday, and then this event  could occur right after their 18th                                                               
birthday, all based upon juvenile  conduct.  Again, he said, that                                                               
would  sever  the juvenile  goals  and  now there  are  competing                                                               
interests  in  this  adult  case  and  that  might  overwhelm  or                                                               
overrule the  focus on  juvenile rehabilitation  and a  chance to                                                               
move ahead.                                                                                                                     
                                                                                                                                
6:44:00 PM                                                                                                                    
                                                                                                                                
MATT  DAVIDSON,  Social  Services Program  Officer,  Division  of                                                               
Juvenile  Justice,  explained  that   Amendment  1,  as  amended,                                                               
addresses an issue  that Mr. Steiner identified  to the division,                                                               
and the Department of Health  and Social Services (DHSS) does not                                                               
have  a concern  about  the  amendment.   He  explained that  the                                                               
division  collects  DNA  samples  if the  offense  was  a  felony                                                               
against  persons and  occurred  after their  16th  birthday.   He                                                               
remarked  that the  scenario  of a  juvenile  refusing to  submit                                                               
their DNA  sample "doesn't really  happen," so  it is not  a case                                                               
the  division  sees   a  lot  of  where  the   juveniles  are  an                                                               
adjudicated  delinquent for  a crime  against a  person and  they                                                               
turn  18 years  of age,  and  then they  refuse to  submit a  DNA                                                               
sample, "that doesn't  happen."  In the event it  did take place,                                                               
the division  believes it  is appropriate  that they  continue to                                                               
stay  in  the  juvenile  justice   system.    Juveniles  who  are                                                               
adjudicated  close  to  their  18th  birthday  can  stay  in  the                                                               
juvenile justice system  up to age 20.   Therefore, he explained,                                                               
they can commit a crime when they  are almost 18 years of age and                                                               
continue  to stay  in the  system  up to  age 20  with their  own                                                               
agreement.   He offered  that the  issues Mr.  Steiner identified                                                               
are  appropriate in  that the  conduct  that would  lead to  this                                                               
criminal offense  is related  to a  delinquency offense,  and the                                                               
division is prepared to handle those  cases in the same manner it                                                               
handles other delinquency offenses.                                                                                             
                                                                                                                                
6:45:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  commented  that  possibly  the  committee                                                               
should reconsider CourtView but she  would not make a decision as                                                               
to  whether  or  not  something  should  be  a  criminal  offense                                                               
depending upon whether it would be listed on CourtView.                                                                         
                                                                                                                                
6:46:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN offered  his impression  that one  of the                                                               
distinctions  between  dealing  with   this  under  the  juvenile                                                               
section versus the  adult section is due to the  hope that by the                                                               
time  someone  becomes  an  adult   they  could  have  then  been                                                               
rehabilitated  and  had  the  opportunity  to  learn  from  their                                                               
mistakes.  He asked whether he had misinterpreted the testimony.                                                                
                                                                                                                                
MR.  DAVIDSON explained  that the  delinquency  statutes and  the                                                               
purpose  of the  division is  slightly different  than the  adult                                                               
correctional  system, and  one example  is that  juvenile records                                                               
are  deemed confidential.   Mr.  Steiner identified  this unusual                                                               
circumstance which could take place  here, wherein juveniles have                                                               
been added  to the crime of  failure to submit a  DNA sample, and                                                               
they are in the juvenile  justice system proceeding through their                                                               
process and possibly  in a treatment program, but  they refuse to                                                               
submit a  DNA sample.   The juvenile  would stay in  the juvenile                                                               
justice system, therefore, this  offense that occurred related to                                                               
their previous  delinquency offense  would be attached,  of which                                                               
the division is not concerned.                                                                                                  
                                                                                                                                
6:47:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  offered a  scenario  of  a juvenile  who                                                               
commits a  felony, they are  in the  system for that  felony, and                                                               
now "we  want to say that"  just because they turned  18 does not                                                               
mean they should be treated as  an adult and should be treated as                                                               
a juvenile.   He asked, at  what point does the  division want to                                                               
"cut them loose," at what age if it is not age 18.                                                                              
                                                                                                                                
JUDY JESSEN,  Staff, Representative  Ivy Spohnholz,  Alaska State                                                               
Legislature, responded that (audio difficulties).                                                                               
                                                                                                                                
6:49:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  pointed  out  that Ms.  Jessen  did  not                                                               
answer  his  question,  and  his question  was  directed  to  the                                                               
Division of Juvenile Justice.                                                                                                   
                                                                                                                                
MR. DAVIDSON answered that, after the  age of 18 the new criminal                                                               
acts are referred to the adult  criminal justice system.  As this                                                               
act  is  related  to  a  delinquent act  and  it  is  actually  a                                                               
responsibility that  the division is administering,  the division                                                               
and the public defender believe it  is appropriate to stay in the                                                               
juvenile  justice system.   He  explained that  it is  similar to                                                               
conditions of  conduct for  release from  custody, some  of those                                                               
conditions  become criminal  acts  because the  person failed  to                                                               
follow through on their appropriate  probation conditions.  Those                                                               
people  stay in  the  juvenile justice  system  even though  they                                                               
could be viewed  as new criminal acts because they  are under the                                                               
division's supervision.   He reiterated  that this is  an unusual                                                               
circumstance,  it is  not something  the division  sees, and  the                                                               
drafter  identified that  juveniles  are required  to submit  DNA                                                               
samples  and they  had not  been  included in  this criminal  act                                                               
under  Title  11.    That   issue,  he  explained,  the  drafters                                                               
identified as  a bit of incongruity  in the fact they  were under                                                               
Title 44, they were required to  submit DNA samples but they were                                                               
not subject to the penalties, the same requirements.                                                                            
                                                                                                                                
6:50:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP asked  whether the  only circumstance  under                                                               
which  a DNA  swab  would be  sought  would be  due  to a  felony                                                               
offense against a person.                                                                                                       
                                                                                                                                
MR. DAVIDSON responded, a minor over  the age of 16 who commits a                                                               
felony against a person.                                                                                                        
                                                                                                                                
6:51:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  referred  to  a  less  severe  offense  and                                                               
offered the scenario  of a 17-year-old being arrested  for a DUI,                                                               
"and then  when they turn  18, by the  time they are  offered the                                                               
breath test because  they were arrested at 11:00 p.m.,  they do a                                                               
breath  test refusal."   He  commented  that that  is a  separate                                                               
class  A misdemeanor  offense, or  it could  be felony  depending                                                               
upon whether  they had refused  the test previously.   He related                                                               
that that is only possible because  they were arrested for a DUI,                                                               
and he  asked whether that  would be the same  circumstance under                                                               
juvenile law because they do not serve three days in prison.                                                                    
                                                                                                                                
MR.  DAVIDSON  replied  that Representative  Kopp  identified  an                                                               
offense that is  outside of the juvenile justice system,  it is a                                                               
driving offense  and handled by  the district court.   He related                                                               
that he was not in a position to  speak as to how a DUI fits into                                                               
the scenario.                                                                                                                   
                                                                                                                                
6:52:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD commented that  she believes in "catching                                                               
them early" and  helping kids to change their ways  and heart due                                                               
to a conviction.  She related that  it is fair to all Alaskans to                                                               
know whether  a person  committed a felony  against a  person and                                                               
that  past behavior  is  often predicted  future  behavior.   She                                                               
asked whether this  legislation makes it softer or  easier in any                                                               
manner, or is  this a technical change with regard  to people not                                                               
being able to see records or  understand that a person had been a                                                               
danger in the past.                                                                                                             
                                                                                                                                
MR.  DAVIDSON answered  that he  does  not believe  it does,  the                                                               
offense  being discussed  is refusing  to submit  to a  DNA test,                                                               
which  is  a  mouth  swab   administered  in  the  office.    The                                                               
underlying offense would not be the  offense that led them to the                                                               
DNA sample and  it would not be available to  the public, so that                                                               
change is not a concern.                                                                                                        
                                                                                                                                
REPRESENTATIVE EASTMAN  maintained his objection to  Amendment 1,                                                               
as amended.                                                                                                                     
                                                                                                                                
6:54:00 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Stutes,  Kreiss-                                                               
Tomkins, and Claman  voted in favor of the  adoption of Amendment                                                               
1,  as  amended.   Representatives  Kopp,  LeDoux,  Eastman,  and                                                               
Reinbold voted against  it.  Therefore, Amendment  1, as amended,                                                               
failed to be adopted by a vote of 3-4.                                                                                          
                                                                                                                                
6:54:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN moved to adopt Amendment 2, labeled 30-                                                                  
LS0416\N.1, Laffen, 4/6/18, which read as follows:                                                                              
                                                                                                                                
     Page 18, line 20, through page 19, line 12:                                                                                
          Delete all material and insert:                                                                                       
        "* Sec. 38. AS 47.17.020(a) is amended to read:                                                                     
          (a)  The following persons who, in the                                                                                
     performance of their occupational  duties  or [,] their                                                                
     appointed  duties under  (8)  of  this subsection,  [OR                                                                    
     THEIR VOLUNTEER  DUTIES UNDER (9) OF  THIS SUBSECTION,]                                                                    
     have  reasonable  cause to  suspect  that  a child  has                                                                    
     suffered harm  as a  result of  child abuse  or neglect                                                                    
     shall  immediately  report  the  harm  to  the  nearest                                                                    
     office of the department:                                                                                                  
               (1)  practitioners of the healing arts;                                                                          
               (2)        school   teachers    and    school                                                                    
     administrative   staff   members,  including   athletic                                                                    
     coaches, of public and private schools;                                                                                    
               (3)  peace officers and officers of the                                                                          
     Department of Corrections;                                                                                                 
               (4)         administrative     officers    of                                                                    
     institutions;                                                                                                              
               (5)  child care providers;                                                                                       
               (6)  paid employees of domestic violence and                                                                     
     sexual  assault programs,  and crisis  intervention and                                                                    
     prevention programs as defined in AS 18.66.990;                                                                            
               (7)  paid employees of an organization that                                                                      
     provides   counseling  or   treatment  to   individuals                                                                    
     seeking to control their use of drugs or alcohol;                                                                          
               (8)  members of a child fatality review team                                                                     
     established under  AS 12.65.015(e) or 12.65.120  or the                                                                    
     multidisciplinary child  protection team  created under                                                                    
     AS 47.14.300;                                                                                                              
               (9)  juvenile probation officers, juvenile                                                                   
     probation   office  staff,   and   staff  of   juvenile                                                                
     detention    facilities    and    juvenile    treatment                                                                
     facilities, as those terms  are defined in AS 47.12.990                                                                
     [VOLUNTEERS WHO  INTERACT WITH CHILDREN IN  A PUBLIC OR                                                                    
     PRIVATE SCHOOL FOR MORE THAN FOUR HOURS A WEEK].                                                                           
        * Sec. 39. AS 47.17.022(e) is amended to read:                                                                        
          (e)  Each school district that provides training                                                                      
     under this  section shall provide notice  to public and                                                                    
     private schools  located in the school  district of the                                                                    
     availability  of the  training  [AND INVITE  VOLUNTEERS                                                                    
     WHO  ARE  REQUIRED  TO  REPORT   ABUSE  OR  NEGLECT  OF                                                                    
     CHILDREN  UNDER  AS 47.17.020  TO  PARTICIPATE  IN  THE                                                                    
     TRAINING AT NO COST TO THE VOLUNTEER]."                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 19, line 14:                                                                                                          
          Delete "and 47.14.990(9)"                                                                                             
          Insert ", 47.14.990(9); and AS 47.17.020(j)"                                                                          
                                                                                                                                
     Page 19, line 30:                                                                                                          
          Delete "Section 41"                                                                                                   
          Insert "Section 42"                                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS objected.                                                                                         
                                                                                                                                
6:54:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  advised  that  the  legislature  made  a                                                               
mistake in  adopting a  recent statute "and  in that  statute you                                                               
can find  the change listed  on page 2  of the amendment,  at the                                                               
first line."   The  legislature put  into statute,  and basically                                                               
incorporating  for  the  first time  that  volunteers  under  the                                                               
category of mandatory reporting,  makes them criminally liable if                                                               
they fail to report.   He said, even as few as  four hours a week                                                               
which  could be  a high  school football  game within  which they                                                               
volunteer.  In  the event the committee permits  this to continue                                                               
in  statute, before  the change  was made,  and now,  and in  the                                                               
future,  there is  nothing that  prohibits or  makes it  hard for                                                               
volunteers  to report  issues  of which  they  are concerned,  or                                                               
observe.    The criminal  liability  is  (audio difficulties)  if                                                               
dealing with a  volunteer, he opined, that is raising  the bar to                                                               
such an  extent that  volunteers no longer  volunteer.   He added                                                               
that since there is nothing that  will make it difficult for them                                                               
to report  or be involved  in identifying  abuse of any  sort, he                                                               
opined that it  needs to be made clear that  volunteers should be                                                               
volunteering and this criminal liability should not be added.                                                                   
                                                                                                                                
6:56:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  IVY SPOHNHOLZ  stated that  she does  not support                                                               
Amendment 2, it  introduces a concept into the bill  which is not                                                               
part  of the  original  bill updating  the  Division of  Juvenile                                                               
Justice   definitions  in   statute.      This  amendment   would                                                               
essentially eliminate the  mandatory reporting requirement passed                                                               
in  2015, specifically  requiring  that  volunteers working  with                                                               
children become  mandatory reporters.   She advised that  this is                                                               
part of  the Alaska  Safe Children's Act  which was  an important                                                               
piece  of legislation  designed to  actually increase  safety for                                                               
children and  make clear  to the community  that it  is essential                                                               
that harm and child abuse is reported.                                                                                          
                                                                                                                                
6:57:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS maintained  his objection primarily                                                               
due to the scope of the bill.   He said he was sympathetic to the                                                               
notion  of being  skeptical about  putting volunteers  in schools                                                               
for as  little as  four hours  a week in  a position  of criminal                                                               
liability.                                                                                                                      
                                                                                                                                
6:58:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  commented  that  this  issue  was  quite  a                                                               
discussion  in  2015,  and  it  was  a  small  meltdown  for  the                                                               
legislature.    There  was a  lively  discussion  between  former                                                               
Senator  Lesil McGuire,  former Senator  Fred Dyson,  and several                                                               
other  senators about  how  to  deal with  the  issue of  regular                                                               
volunteers in  the school versus  those who are called  to simply                                                               
step in  for a  volleyball practice, for  example, and  that some                                                               
volunteers have  never had training  in recognizing  or reporting                                                               
abuse.    This  compromise  came  out  of  the  Senate  Judiciary                                                               
Standing Committee  where language was  included that "you  are a                                                               
mandatory reporter if you interact  with children in a school for                                                               
more  than four  hours a  week."   He completely  philosophically                                                               
agrees  that  the  legislature wants  to  minimize  liability  to                                                               
volunteers, and he suggested that  that could be its own separate                                                               
bill.                                                                                                                           
                                                                                                                                
7:00:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  commented that  CSHB  351  adds a  ninth                                                               
category  of people  to  the  list of  mandatory  reporters.   He                                                               
offered concern that  this list is growing too long  and as a new                                                               
category is being  added, Amendment 2 would  remove one category.                                                               
Professionals  are added  to  the  mandatory reporting  category,                                                               
which  is entirely  appropriate, but  volunteers are  a different                                                               
matter, he  said, and they should  not be treated with  that same                                                               
level of criminal liability.                                                                                                    
                                                                                                                                
7:00:52 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representative Eastman  voted in                                                               
favor of the adoption of  Amendment 2.  Representatives Reinbold,                                                               
Kopp, Stutes,  LeDoux, Kreiss-Tomkins,  and Claman  voted against                                                               
it.  Therefore, Amendment 2 failed to  be adopted by a vote of 1-                                                               
6.                                                                                                                              
                                                                                                                                
7:01:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  commented that  this legislation  was the                                                               
source  of  lively discussion  in  the  House Health  and  Social                                                               
Services  Standing Committee  and  while parts  of  the bill  are                                                               
beneficial,  he will  be a  no vote  on passing  CSHB 351  out of                                                               
committee.                                                                                                                      
                                                                                                                                
7:03:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS moved  to report  CSHB 351  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being  no objection, CSHB 351(HSS) moved out                                                               
of the House Judiciary Standing Committee.                                                                                      
                                                                                                                                
          HB 336-SUPPORTIVE DECISION-MAKING AGREEMENTS                                                                      
                                                                                                                                
7:03:25 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  final order of business would be                                                               
HOUSE BILL NO. 336, "An Act relating to supported decision-                                                                     
making  agreements to  provide for  decision- making  assistance;                                                               
and amending Rule 402, Alaska Rules of Evidence."                                                                               
                                                                                                                                
CHAIR CLAMAN  noted that a  companion senate bill  already passed                                                               
the senate,  and he  asked Hans  Rodvik, staff  to Representative                                                               
Charisse Millett whether that bill is identical to HB 336.                                                                      
                                                                                                                                
7:04:05 PM                                                                                                                    
                                                                                                                                
HANS  RODVIK,  Staff,  Representative  Charisse  Millett,  Alaska                                                               
State  Legislature,  answered  [audio difficulties  continued  to                                                               
timestamp 7:04:20] carried by Senator  Peter Micciche, and it was                                                               
one of the  priorities of the Governor's  Council on Disabilities                                                               
and Special Education  this year (GCDSE), but it  was a different                                                               
bill.                                                                                                                           
                                                                                                                                
7:04:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  moved to report CSHB  336, labeled                                                               
30-LS1239\U,  out of  committee  with individual  recommendations                                                               
and the  accompanying fiscal  notes.   There being  no objection,                                                               
CSHB 336(JUD) moved from the House Judiciary Standing Committee.                                                                
                                                                                                                                
7:05:51 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Judiciary Standing Committee meeting was adjourned at 7:05 p.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
HB230 ver D 4.11.18.PDF HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Sponsor Statement 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Sectional Analysis ver D 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-Existing Policies for Consumer Protection - AT&T 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-Explanation of Protections - AT&T 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-FCC Federal Regulations Internet Privacy Section 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-Internet Privacy BBC Article 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-ACLU 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-Internet Privacy BBC Article 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Supporting Document-Pioneer Press Minnesota News 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
HB230 Fiscal Note LAW-CIV 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
SB205 ver U 4.11.18.PDF HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Sponsor Statement 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Summary of Changes 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Sectional Summary 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-ATA Executive Summary 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-Modernization Act FAQ 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-ATA Letter to RCA 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-ATA Supplemental Information 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-ATA Response to RCA 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-Copper Valley Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-AP&T Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-AT&T Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-TelAlaska Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-MTA Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-ACS Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supprting Document-OTZ Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Supporting Document-ASTAC Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Fiscal Note DCCED-RCA 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
HB230 Supporting Document-Legal Memo - Explanation of Penalties 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
HB 230
SB205 Supporting Document-RCA Staff Analysis 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 Opposing Document-Rep. Guttenberg Letter 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205
SB205 PowerPoint Presentation 4.11.18.pdf HJUD 4/11/2018 1:00:00 PM
SB 205