Legislature(2001 - 2002)
02/21/2001 03:25 PM House L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 21, 2001
3:25 p.m.
MEMBERS PRESENT
Representative Lisa Murkowski, Chair
Representative Andrew Halcro, Vice Chair
Representative Kevin Meyer
Representative Pete Kott
Representative Norman Rokeberg
Representative Harry Crawford
Representative Joe Hayes
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 119
"An Act exempting joint action agencies from regulation by the
state or municipalities; relating to the relationship between a
joint action agency and the public utilities that form the joint
action agency; relating to powers and immunities of a joint
action agency; requiring filing of the joint action agency
agreement; relating to the financial affairs of a joint action
agency; declaring certain joint action agencies to be political
subdivisions for certain purposes; relating to liability and
indemnification of officers, employees, and agents of joint
action agencies; and defining 'agency agreement' as used with
reference to joint action agencies."
- MOVED CSHB 119(L&C) OUT OF COMMITTEE
PREVIOUS ACTION
BILL: HB 119
SHORT TITLE:PUBLIC UTILITY JOINT ACTION
SPONSOR(S): REPRESENTATIVE(S)WILSON
Jrn-Date Jrn-Page Action
02/09/01 0281 (H) READ THE FIRST TIME -
REFERRALS
02/09/01 0281 (H) L&C, JUD
02/12/01 (H) L&C AT 3:15 PM CAPITOL 17
02/12/01 (H) Heard & Held
MINUTE(L&C)
02/14/01 0328 (H) COSPONSOR REMOVED: MORGAN
02/21/01 (H) JUD AT 1:00 PM CAPITOL 120
02/21/01 (H) <Bill Canceled>
02/21/01 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
REPRESENTATIVE PEGGY WILSON
Alaska State Legislature
Capitol Building, Room 409
Juneau, Alaska 99801
POSITION STATEMENT: Sponsor of HB 119.
MIKE SCHRADER, Legal Counsel
to the Four Dam Pool
Ater Wynne LLP
Attorneys at Law
222 South West Columbia, Suite 1800
Portland, Oregon 97201-6618
POSITION STATEMENT: Answered questions on the proposed CS to HB
119.
BRIAN BJORKQUIST, Assistant Attorney General
Governmental Affairs Section
Civil Division (Anchorage)
Department of Law
1031 West 4th Street, Suite 200
Anchorage, Alaska 99501-1994
POSITION STATEMENT: Spoke on the proposed CS to HB 119.
ACTION NARRATIVE
TAPE 01-21, SIDE A
Number 0001
CHAIR LISA MURKOWSKI called the House Labor and Commerce
Standing Committee meeting to order at 3:25 p.m.
Representatives Kott, Rokeberg, and Hayes joined the meeting as
it was in progress. [The minutes for the State Workforce
Development overview are found in the 3:40 p.m. cover sheet for
the same date.]
HB 119-PUBLIC UTILITY JOINT ACTION AGENCIES
Number 0030
CHAIR MURKOWSKI announced that the committee would hear HOUSE
BILL NO. 119, "An Act exempting joint action agencies from
regulation by the state or municipalities; relating to the
relationship between a joint action agency and the public
utilities that form the joint action agency; relating to powers
and immunities of a joint action agency; requiring filing of the
joint action agency agreement; relating to the financial affairs
of a joint action agency; declaring certain joint action
agencies to be political subdivisions for certain purposes;
relating to liability and indemnification of officers,
employees, and agents of joint action agencies; and defining
'agency agreement' as used with reference to joint action
agencies."
CHAIR MURKOWSKI mentioned that members should have received a
summary from [the law office of] Ater Wynne that details some
background information on HB 119, a proposed CS for HB 119, and
two new zero fiscal notes.
Number 0123
REPRESENTATIVE PEGGY WILSON, Alaska State Legislature, sponsor
of HB 119, said the proposed changes are technical, and she
directed questions to Mike Schrader, Legal Counsel to the Four
Dam Pool, of Ater Wynne.
Number 0143
REPRESENTATIVE HALCRO made a motion to adopt the proposed CS for
HB 119, 22-LS0528/F, as a work draft. There being no objection,
the proposed CS for HB 119 was adopted as a work draft.
Number 0180
MIKE SCHRADER, Legal Counsel to the Four Dam Pool, Ater Wynne
LLP, said his law firm, the Office of the Attorney General, the
Regulatory Commission of Alaska (RCA), and the Alaska Energy
Authority (AEA) had numerous conversations and worked through
the issues that had been raised. He reported that all of the
above mentioned groups are in agreement about the proposed CS to
HB 119, which is before the committee today.
Number 0245
MR. SCHRADER said the changes that have been made include:
adding language to limit the scope of the eminent domain or
condemnation powers within the projects that are being purchased
from the state, which is a geographic or territorial limitation;
reaching agreement on the tax-exempt status of the joint action
agency ("JAA"), with an exception for an electric cooperative
tax; and [defining] the scope of the RCA regulatory authority
over the JAA.
MR. SCHRADER explained that if the JAA were to engage in retail
sales of power, it would be subject to the electric cooperative
tax. He said the proposed CS for HB 119 is currently consistent
in the treatment of the JAA for regulatory exemption. And the
JAA is exempt from RCA regulation as long as any indebtedness
incurred to the state in connection with the acquisition of the
projects is outstanding. He said at such time that the debt is
retired, the JAA becomes subject to regulation by the RCA and
will be required to obtain a certificate of public convenience
and need under Title 42.
Number 0408
MR. SCHRADER said there was discussion about the limited
liability of the JAA, and it was agreed that the language in HB
119 was appropriate, as well as the provisions relating to the
"officer and director of liability." Changes were largely
editorial and not substantive in nature.
Number 0417
REPRESENTATIVE HALCRO referred to page 3, Section 6 [Version F],
and said it looks like that section had been dramatically
changed with regard to assuming liability, and how that plays
with the JAA. He asked why it was changed so dramatically.
Number 0443
MR. SCHRADER replied that Representative Halcro was referring to
the amendment of AS 42.45.310(c), and said:
There was a change. ... We had moved ... [a] provision
about the joint action agency having the powers of a
public utility. We moved that. That had originally
been moved out of section 300 and into 310. So that
came out, and 310 remains in place, as it is.
MR. SCHRADER said the reference to AS 09.65.085, which is an
immunity of a regulated utility, was removed to be consistent
with the fact that the JAA would not be a regulated entity until
such time as the exemption from RCA regulation expires. He said
there was an inconsistency between what was determined to be an
appropriate scope of RCA regulation and this particular immunity
statute that was in place.
Number 0521
CHAIR MURKOWSKI said she appreciated the summary of the
background of the bill that Mr. Schrader provided to the
committee. She said she had [previously] had some concerns and
questions about the state's taxation issue and the RCA
exemption. She understands that there is no opposition to this,
and that the RCA and the Office of the Attorney General are in
agreement. She noted that Jim Strandberg, Commissioner, RCA,
was present and that [the RCA] had signed off on it.
Number 0598
BRIAN BJORKQUIST, Assistant Attorney General, Governmental
Affairs Section, Civil Division (Anchorage), Department of Law,
via teleconference, said his primary client agency is AEA. He
wanted to add two additional changes to the bill. He said in
Section 3, the statutory citation to the JAA has been changed
from AS 42.45.300 to AS 42.45.310. He said the significance of
the change is that the JAAs formed under AS 42.45.310 are more
limited; they are limited to public utilities that form to
purchase a power project from the AEA.
Number 0674
MR. BJORKQUIST added that no entity could be formed without the
legislature's approval - authorizing the public utilities to
form to purchase the power project from AEA.
Number 0696
MR. BJORKQUIST explained that the RCA's exemption from
regulation, in addition to what "was provided" by Mr. Schrader,
is limited to the power project being purchased by the JAA. He
said this means that if the JAA decides to develop another power
project, the new power project would be subject to RCA
regulation. The exemption provided under the proposed CS to HB
119 is limited to the Four Dam Pool power project being
purchased from the AEA.
Number 0745
CHAIR MURKOWSKI said this clears up some of the concerns about
this being broadly expanded, and that any two public utilities
could join together and have whatever exemptions they might
seek.
Number 0771
REPRESENTATIVE CRAWFORD commented that "we" had a number of the
same questions that Chair Murkowski had, and "they" spent quite
a bit of time with "us" before the last meeting and this morning
answering those questions. He said he believes it is a good
idea and the committee should pass the legislation.
Number 0796
REPRESENTATIVE HAYES made a motion to move the CS for HB 119,
Version 22-LS0528\F, out of committee with individual
recommendations and the two attached fiscal notes. There being
no objection, CSHB 119(L&C) moved from the House Labor and
Commerce Standing Committee.
CHAIR MURKOWSKI called a brief at-ease at 3:40 p.m. in order to
prepare for the overview. [The minutes for the State Workforce
Development overview are found in the 3:40 p.m. cover sheet for
the same date.]
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