Legislature(2007 - 2008)CAPITOL 17

02/19/2007 03:00 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 116 BROADCASTING PROMOTING CHARITABLE GAMING TELECONFERENCED
Moved Out of Committee
*+ HB 28 POWER SOURCE DISCLOSURE TELECONFERENCED
Heard & Held
+= HJR 8 WASHINGTON CONTAINER FEE TELECONFERENCED
Moved CSHJR 8(L&C) Out of Committee
<Bill Hearing Rescheduled from 02/16/07>
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 19, 2007                                                                                        
                           3:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Mark Neuman, Vice Chair                                                                                          
Representative Carl Gatto                                                                                                       
Representative Gabrielle LeDoux                                                                                                 
Representative Jay Ramras                                                                                                       
Representative Robert L. "Bob" Buch                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Berta Gardner                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 8                                                                                                    
Opposing the  enactment by the  Washington State Legislature  of a                                                              
bill  proposing to  impose a  fee  on the  processing of  shipping                                                              
containers  in the  State of  Washington because  of the  negative                                                              
impact of the fee on the people and the economy of this state.                                                                  
                                                                                                                                
     - MOVED CSHJR 8(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 116                                                                                                              
"An Act relating to the use of broadcasting to promote                                                                          
charitable raffles and lotteries."                                                                                              
                                                                                                                                
     - MOVED HB 116 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 28                                                                                                               
"An Act requiring retail suppliers of electricity to disclose                                                                   
sources of electricity to consumers."                                                                                           
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR  8                                                                                                                  
SHORT TITLE: WASHINGTON CONTAINER FEE                                                                                           
SPONSOR(s): REPRESENTATIVE(s) THOMAS                                                                                            
                                                                                                                                
02/07/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/07       (H)       TRA, L&C                                                                                               
02/15/07       (H)       TRA AT 1:30 PM CAPITOL 17                                                                              
02/15/07       (H)       Moved CSHJR  8(TRA) Out of Committee                                                                   
02/15/07       (H)       MINUTE(TRA)                                                                                            
02/16/07       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
02/16/07       (H)       <Bill Hearing Rescheduled to 02/19/07>                                                                 
02/19/07       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
                                                                                                                                
BILL: HB 116                                                                                                                  
SHORT TITLE: BROADCASTING PROMOTING CHARITABLE GAMING                                                                           
SPONSOR(s): REPRESENTATIVE(s) JOHANSEN                                                                                          
                                                                                                                                
02/01/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/01/07       (H)       L&C, STA                                                                                               
02/19/07       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
                                                                                                                                
BILL: HB  28                                                                                                                  
SHORT TITLE: POWER SOURCE DISCLOSURE                                                                                            
SPONSOR(s): REPRESENTATIVE(s) RAMRAS                                                                                            
                                                                                                                                
01/16/07       (H)       PREFILE RELEASED 1/5/07                                                                                

01/16/07 (H) READ THE FIRST TIME - REFERRALS

01/16/07 (H) L&C, FIN 02/19/07 (H) L&C AT 3:00 PM CAPITOL 17 WITNESS REGISTER REPRESENTATIVE BILL THOMAS ALASKA STATE LEGISLATURE Juneau, Alaska POSITION STATEMENT: Sponsor of HJR 8. KACI SCHROEDER-HOTCH, Staff to Representative Bill Thomas Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on HJR 8, on behalf of Representative Thomas, sponsor. EVERETT BILLINGSLEA, Vice President of Administrative & Legal Affairs Lynden, Inc. Seattle, Washington POSITION STATEMENT: Answered questions during hearing on HJR 8. REPRESENTATIVE KYLE JOHANSEN Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of HB 116. RANDY RUARO, Staff to Representative Kyle Johansen Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on HB 116 on behalf of Representative Johansen, sponsor. BOB KERN, President TLP Communications, Inc.; Commissioner Alaska Public Broadcasting Commission (APBC) Ketchikan, Alaska POSITION STATEMENT: Testified in support of HB 116. JULIE SLANAKER, Rainy Day Quilter's Guild; Ketchikan Little League Ketchikan, Alaska POSITION STATEMENT: Testified in support of HB 116. DENNIS BOOKIE, General Manager Anchorage Media Group Morris Communications Company, LLC Anchorage, Alaska POSITION STATEMENT: Testified in support of HB 116. DENNIS EGAN, President & General Manager Alaska Juneau Communications Juneau, Alaska POSITION STATEMENT: Testified in support of HB 116. BARBARA COTTING, Staff to Representative Jay Ramras Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented HB 28 on behalf of Representative Ramras, sponsor. JAMES KEEN, Chief/Engineering Regulatory Commission of Alaska (RCA) Department of Commerce, Community, & Economic Development (DCCED) Anchorage, Alaska POSITION STATEMENT: Answered questions during hearing on HB 28. RICHARD GAZAWAY, Common Carrier Specialist Common Carrier Section Regulatory Commission of Alaska (RCA) Department of Commerce, Community, & Economic Development (DCCED) Anchorage, Alaska POSITION STATEMENT: Answered questions during hearing on HB 28. ACTION NARRATIVE CHAIR KURT OLSON called the House Labor and Commerce Standing Committee meeting to order at 3:05:04 PM. Representatives Gatto, LeDoux, Buch, Neuman, and Olson were present at the call to order. Representative Ramras arrived as the meeting was in progress. HJR 8-WASHINGTON CONTAINER FEE CHAIR OLSON announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 8, Opposing the enactment by the Washington State Legislature of a bill proposing to impose a fee on the processing of shipping containers in the State of Washington because of the negative impact of the fee on the people and the economy of this state. 3:05:45 PM REPRESENTATIVE BILL THOMAS, Alaska State Legislature, sponsor of HJR 8, stated that he represents House District 5. He gave a brief description of the aforementioned district. 3:06:28 PM REPRESENTATIVE NEUMAN made a motion to adopt [CSHJR 8, Version 25-LS0533\E, Bullock, 2/15/07] as the working document. There being no objection, [Version E] was before the committee. 3:06:59 PM REPRESENTATIVE THOMAS explained that HJR 8 is a resolution opposing the "shipping container tax" which is currently be considered by the Washington State Legislature. Alaska has been a "trading partner" with the state of Washington for over 100 years. Washington State is considered the "gateway to Alaska," and in 2003, Alaska was the Puget Sound's fifth largest trading partner. This economic relationship is responsible for an estimated 103,500 jobs and over $4 billion in labor earnings. He explained that 97 percent of the weight shipped to Alaska is shipped via water. He opined that addressing the aforementioned shipping container tax is critical to the state of Alaska. This tax would be apply to shipping containers traveling to and from Washington State, at a rate of $50 per twenty-foot equivalent. He pointed out that this would mean an additional $100 per 20- foot van, and $200 per 40-foot van. Additionally, Alaska Marine Lines (AML) utilizes a 53-foot van, which would result in a higher tax. REPRESENTATIVE THOMAS explained that the majority of communities in his district are fishing communities, and would be negatively impacted be the proposed tax. He opined that this additional cost would be devastating, pointing out a community with an unemployment rate of 87 percent. Some communities have gas costs as high as $6 per gallon. 3:10:13 PM KACI SCHROEDER-HOTCH, Staff to Representative Bill Thomas, Alaska State Legislature, sponsor, explained that the Washington State Legislature refers legislation to only one committee, taking public testimony during the first hearing. All following hearings are "executive sessions," allowing the public to listen; however, they may not testify. She pointed out that the opportunity for testimony on this issue has passed. CHAIR OLSON expressed his intention to move the bill on to its next committee of referral, due to its time sensitive nature. 3:11:12 PM EVERETT BILLINGSLEA, Vice President of Administrative and Legal Affairs, Lynden Transport, in response to a question from Chair Olson, agreed that he is in support of the resolution. REPRESENTATIVE THOMAS pointed out that a recent estimation shows that the proposed tax would have a $40-$50 million impact statewide. He opined that this would be "catastrophic." 3:11:35 PM REPRESENTATIVE GATTO asked for more information regarding California and its role in the proposed shipping container tax. REPRESENTATIVE THOMAS offered his understanding that California passed similar legislation; however, this was vetoed by the Governor. An additional attempt to pass this legislation is expected. He explained that when the Washington House of Representatives holds a hearing on this issue, a representative from Alaska will be present to testify. In response to an additional question, he explained that California and Washington State are attempting to tax shipping containers from China and Japan. Alaska is "an innocent bystander." He offered his understanding that the additional funds would be used for improvements to the transportation system in Washington State. 3:15:14 PM REPRESENTATIVE RAMRAS stated that he is in support of HJR 8. He inquired as to the legality of the proposed shipping container tax, in regard to inter-state trade laws. REPRESENTATIVE THOMAS offered his understanding that the proposed tax is legal, as it would apply to all parties bringing containers in or out of Washington State. REPRESENTATIVE GATTO offered his understanding that according to the Constitution of the United States, barriers to inter-state commerce are prohibited. He questioned whether the shipping container tax would be considered a "barrier." MS. SCHROEDER-HOTCH replied that there are some legal concerns. HJR 8 recommends that the attorney general research these issues in preparation for any federal injunctions that may be necessary, should the legislation pass. REPRESENTATIVE LEDOUX pointed out that the tax effects cargo both in and out of Washington State, which would also effect Washington State residents. She opined that if the tax is not considered to be in violation with the inter-state commerce laws, this may be why. CHAIR OLSON reiterated his intent to move the bill. 3:17:33 PM REPRESENTATIVE NEUMAN moved to report CSHJR 8, Version 25- LS0533\E, Bullock, 2/15/07, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHJR 8(L&C) was reported from the House Labor and Commerce Standing Committee. 3:18:14 PM HB 116-BROADCASTING PROMOTING CHARITABLE GAMING CHAIR OLSON announced that the next order of business would be HOUSE BILL NO. 116, "An Act relating to the use of broadcasting to promote charitable raffles and lotteries." 3:18:34 PM REPRESENTATIVE KYLE JOHANSEN, Alaska State Legislature, sponsor, explained that HB 116 would allow lawful charitable organizations to advertise charitable "gaming" activities on television and radio. Currently, these organizations may only promote using newsprint. In 1988, the federal gaming law was amended, giving states the option to allow charitable organizations to promote raffles on radio or television. He went on to say that 48 states have exercised this option. HB 116 would benefit charitable organizations throughout the state, along with those individuals who are helped with money raised at the aforementioned raffles. Letters of support have been received from numerous charitable organizations. REPRESENTATIVE JOHANSEN relayed a story involving a fundraiser for diabetes in Ketchikan, Alaska, the previous year. An announcement was made on the local radio station, resulting in a warning from the Federal Communications Commission (FCC). After researching this issue, he discovered that Alaska is one of two states that do not currently allow charitable organizations to advertise raffles and fundraisers in this manner. 3:21:24 PM REPRESENTATIVE NEUMAN asked if current statute allows a public radio station to advertise its own charitable gaming events. 3:22:24 PM RANDY RUARO, Staff to Representative Kyle Johansen, Alaska State Legislature, sponsor, offered his understanding that this is not currently legal. The broadcasting of any type of raffle [charitable or otherwise], is not allowed. He explained that HB 116 would amend current statute, thus allowing charitable gaming events to be advertised. 3:23:18 PM REPRESENTATIVE RAMRAS opined that the current law is "antiquated." His business hosts many charitable events, which often fail due to poor advertising. He stated that this is much needed and will have a positive effect on communities across the state. REPRESENTATIVE LEDOUX commented that a similar bill was introduced during the previous legislative session, and inquired as to why the aforementioned bill did not pass. REPRESENTATIVE JOHANSEN offered his understanding that this legislation was delayed in the House Rules Committee. REPRESENTATIVE GATTO pointed out the bill would allow the promotion of a "fish derby." He inquired as to whether this would unintentionally allow other types of gambling to occur. REPRESENTATIVE JOHANSEN replied that his office has been working with Legislative Legal and Research Services to ensure that this is not the case. He reiterated that the intent of the bill is to allow charitable organizations to advertise in a "more efficient way." In response to an additional question, he stated that his office has not received any concerns or opposition of this legislation from newspapers. MR. RUARO agreed that this is correct. 3:28:29 PM BOB KERN, President, TLP Communications, Inc.; Commissioner, Alaska Public Broadcasting Commission (APBC), stated that TLP Communications, Inc. owns and operates KFMJ Radio in Ketchikan, Alaska, in addition to publishing The Local Paper. He explained that while he is not speaking on behalf of the APBC, he feels this legislation would favorably impact public broadcasting. He urged passage of HB 116, as it would allow radio stations to assist non-profit organizations in fundraising efforts. In addition, it would eliminate the confusion that currently exists regarding this issue. He then offered examples of the confusion that occurs. In response to a question from Chair Olson, he confirmed that he is in favor of HB 116. 3:34:02 PM JULIE SLANAKER, Rainy Day Quilter's Guild; Ketchikan Little League, stated that both organizations strongly support HB 116. She explained that the Rainy Day Quilter's Guild holds two quilt raffles each year. The funds raised at these raffles are used for scholarships and community service projects. It has been difficult to increase the amount of fundraising without substantially increasing advertising costs. In regard to Ketchikan Little League, she explained that there are strict fundraising rules which apply. While raffles are approved, it would be possible to raise more funds if radio and television advertising was allowed. She stated that locally, the cost of print advertising has gone up more than 25 percent over the past three years. However, broadcasting rates have remained relatively stable, in addition to offering special rates for non-profit organizations. 3:36:33 PM DENNIS BOOKIE, General Manager, Anchorage Media Group, Morris Communications Company, LLC, commented that "everyone [is] in support." He pointed out that HB 116 would also allow public service announcements (PSAs). He explained that this would allow broadcasters to use any unused inventory for PSAs advertising charitable gaming events. In regard to opposition by print media, he stated that Morris Communications Company, LLC, owns several newspapers across the state, and offered his understanding that there is no opposition to this legislation. However, revenue streams may be effected. 3:37:46 PM DENNIS EGAN, President and General Manager, Alaska Juneau Communications, stated that he is also a member of the Alaska Broadcasters Association (ABA) Board of Directors. He is in support of HB 116, which provides a solution to the "disparate treatment" which is being imposed on Alaska's broadcasters. He stated that newspapers are currently allowed to promote charitable gaming, while the broadcasting of such events is illegal. In 1988, U.S. Congress passed the "Charity Games Advertising Clarification Act." He stated that only two states have not ratified this Act. Alaska's broadcasters, he said, are asking that all media be given the same treatment with regard to the type of advertising that is allowed. 3:40:48 PM REPRESENTATIVE NEUMAN inquired as to whether there are additional inconsistencies in the media restrictions. MR. EGAN replied yes. For example, he said, broadcasters are prohibited from charging political candidates the going rate, while print media is not. He explained that broadcasters are required to charge the "lowest unit charge," which can be difficult to calculate and report. In response to an additional question, he stated that charging political candidates a rate higher than the current going rate is prohibited by federal law. 3:42:47 PM REPRESENTATIVE GATTO requested clarification of the term "broadcasting." MR. EGAN explained that "broadcasting" is "electronic distribution over ... publicly owned airways." REPRESENTATIVE GATTO inquired as to why broadcasting was prohibited from promoting charitable gaming. MR. EGAN replied that he does not know. REPRESENTATIVE LEDOUX inquired as to how this applies to internet advertising. MR. EGAN replied that currently, there are no statutory restrictions on internet advertising. In response to an additional question, he offered his understanding that web sites based in the U.S. and funded in foreign countries which run online gaming can not be restricted at this time. REPRESENTATIVE LEDOUX asked for clarification that Alaska is unable to restrict these web sites. MR. EGAN explained that because these websites are being run in another country, there are no restrictions. This is currently being debated by the U.S. Congress. In response to an additional request for clarification, he stated that currently, the federal law supersedes state law in regard to internet web sites. REPRESENTATIVE NEUMAN asked when AS 05.15.640 was enacted. MR. EGAN replied that he does not have this information. In response to a question from Representative Gatto, he explained that federal law does not oppose the advertising of charitable gaming; however, the decision of whether or not to allow this is left to each state. 3:46:41 PM REPRESENTATIVE NEUMAN moved to report HB 116 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 116 was reported from the House Labor and Commerce Standing Committee. The committee took an at-ease from 3:47:37 PM to 3:50:03 PM. HB 28-POWER SOURCE DISCLOSURE 3:50:12 PM CHAIR OLSON announced that the final order of business would be HOUSE BILL NO. 28, "An Act requiring retail suppliers of electricity to disclose sources of electricity to consumers." REPRESENTATIVE NEUMAN made a motion to adopt CSHB 28, Version 25-LS0189\C, Kane, 2/15/07, as the working document. There being no objection, Version C was before the committee. 3:50:40 PM BARBARA COTTING, Staff to Representative Jay Ramras, sponsor, began by explaining the changes made by Version C. Section 3 is the "crux" of the bill, adding a new section. Version C removes the words "potential end-use" from Section 3. This new section requires retail suppliers supplying electricity consumed in Alaska to disclose the sources of electricity to consumers annually. The Regulatory Commission of Alaska (RCA) would establish how and when this should be done. 3:51:54 PM CHAIR OLSON offered his understanding that this is done by several utilities, currently. MS. COTTING agreed, adding that the RCA may wish to establish a more uniform reporting requirement. The remainder of the bill is conforming language. REPRESENTATIVE LEDOUX inquired as to what this is expected to cost utilities. MS. COTTING replied that the RCA submitted a zero fiscal note. She pointed out that Section 3(b) states that the cost of the aforementioned disclosures will be considered generation- related. More information would be required from the utilities in order to make this estimation. She surmised that the cost would also depend on the regulations established by the RCA. REPRESENTATIVE LEDOUX questioned how "generation-related" costs would effect the consumer, and asked whether the tariffs can be raised. MS. COTTING offered her understanding that the tariffs can be raised. REPRESENTATIVE GATTO surmised that the reporting requirement would be satisfied with a sentence in the utility's annual report. MS. COTTING replied [yes]. CHAIR OLSON offered his understanding that the Homer Electric Association, Inc., currently provides this information. REPRESENTATIVE NEUMAN inquired as to how this would effect small companies wishing to produce electricity to sell into a power grid. MS. COTTING offered her understanding that the utility purchasing the electricity would be required to report the information, rather than the company selling the electricity. REPRESENTATIVE NEUMAN inquired as to the intent behind the legislation. REPRESENTATIVE RAMRAS speaking as sponsor of HB 28, explained that previously, there was resistance to alternative energy sources "based on the notion that this would increase the portfolio cost of energy for consumers." He then gave examples of this. He stated that he owns property in California, and receives a yearly statement disclosing energy use and sources. This information was included as an insert, which is more likely to be noticed. He explained that this information is already tracked by the utility, therefore the only cost would be in producing the document. He explained that this requirement would apply to the utilities that are purchasing the wholesale electricity for retail use. He opined that over time, this would result in a greater appetite for alternative energy among consumers, which is the intent. This is not meant to be a burden for consumers or utilities. 3:59:37 PM REPRESENTATIVE NEUMAN offered his understanding that it would be the utilities responsibility to include this information. MS. COTTING [replied yes]. REPRESENTATIVE RAMRAS, in response to a question from Representative Neuman, reiterated that the method of reporting would be left up to the RCA; however, he would prefer a separate document. 4:02:57 PM JAMES KEEN, Chief/Engineering, Regulatory Commission of Alaska (RCA), Department of Commerce, Community, & Economic Development (DCCED), explained that there are several methods of reporting that may be used. These include: a separate insert, a "line item" on a bill, adding it to the annual report, or posting the information on a web page. One area of concern is Section 5(e), which requires that those utilities grossing less than $50,000 to comply. The RCA does not keep track of utilities that it does not regulate. All utilities grossing more than $50,000 are regulated. Through the public comment period and regulatory proceedings, the RCA would come up with the reporting requirements. In response to a question from Chair Olson, he said that he is unable to estimate how many unregulated utilities exist. REPRESENTATIVE LEDOUX shared her concern regarding the effect this requirement might have on smaller utilities. REPRESENTATIVE NEUMAN inquired as to whether utilities currently send out this information. MR. KEEN replied that he is unsure of this. He offered his understanding that this is not required. He opined that the commission would consider the size of the utility, and would attempt to minimize costs. 4:06:57 PM REPRESENTATIVE BUCH referring to Page 2, line 4, inquired as to the definition of "retail supplier." MR. KEEN replied that he is not aware of the definition. In response to questions, he explained that the RCA regulates all utilities which gross over $50,000. It does not regulate those grossing less than $50,000. He said "It would just be those utilities grossing less than $50,000 annually that would not have to comply, if you change this legislation." In response to a question from Representative Gatto, he stated that under this legislation, a village using a diesel engine would be required to report this to the community, if the utility in question was certificated by the RCA. REPRESENTATIVE RAMRAS, in response to a question from Representative Gatto regarding the "Findings and Purpose" in Section 1, offered his understanding that this language was inserted by Legislative Legal and Research Services. 4:10:54 PM MS. COTTING explained that Legislative Legal and Research Services based this on California law. She offered her understanding that the intent language does not become statute; however, she opined that if HB 28 were to pass, this would be an accurate statement. REPRESENTATIVE GATTO said that he is careful to "search out ... challengeable statements." He added that when he finds a challengeable statement with no "proper answer," he is "caught off guard." However, he stated his intent to vote in favor of HB 28. 4:12:11 PM REPRESENTATIVE LEDOUX asked whether the intent of the legislation is to require villages and those utilities grossing less than $50,000 annually to report this information. REPRESENTATIVE RAMRAS replied that the intent was to conform to the current RCA regulation standards. He stated that this would apply to the aforementioned communities and utilities, as the intent is not to make a distinction between rural and urban use. He opined that this would not be a "heinous" burden. He reiterated the importance of creating "an appetite" for alternative energy sources, adding that benchmarking the source of energy once a year is a "useful and constructive exercise." He stated that he recently met with individuals regarding utilizing nuclear energy for Galena, in addition to how the nuclear waste should be dealt with. He would like to see alternative sources of energy used. 4:17:02 PM REPRESENTATIVE LEDOUX offered her understanding that currently , the RCA does not regulate utilities grossing less than $50,000 annually. MR. KEEN agreed that this is correct. He reiterated that because the RCA does not regulate these utilities, it would be difficult to inform them of regulatory discussions, as well as to enforce this once regulations are in place. REPRESENTATIVE GATTO expressed concern regarding the language in Section 5. He opined that "does not gross $50,000 annually" is not specific enough, and questioned whether this should be rewritten. 4:19:01 PM RICHARD GAZAWAY, Common Carrier Specialist, Common Carrier Section, Regulatory Commission of Alaska (RCA), Department of Commerce, Community, & Economic Development (DCCED), explained that $50,000 is the maximum an unregulated utility can gross. REPRESENTATIVE GATTO opined that the current language does not properly communicate the intent of the bill. MR. GAZAWAY offered his understanding that this is an incorporation of existing statutory language. REPRESENTATIVE LEDOUX requested further clarification as to whether the sponsor intends for the reporting requirement to apply to utilities that earn less than $50,000 annually. REPRESENTATIVE RAMRAS [replied no]. MR. KEEN, in response to a question from Chair Olson, suggested removing Section 5, if the bill is not intended to apply to those utilities grossing less than $50,000 annually. 4:20:47 PM REPRESENTATIVE RAMRAS said "we're certainly not trying to regulate utilities that the RCA is currently not regulating." He opined that Legislative Legal and Research Services should be consulted regarding the removal of this language. REPRESENTATIVE NEUMAN expressed confusion regarding the sectional analysis. MS. COTTING noted that the sectional analysis contains errors. MR. GAZAWAY, in response to a question from Representative Gatto regarding the use of $500,000 on Page 3, line 2, explained that the bold underlined text is new. The remainder is current statutory language. He explained that the $500,000 exemption has been in statute since 1970. 4:24:27 PM REPRESENTATIVE GATTO suggested that the sponsor clarify the term "exempt," in addition to the use of $50,000 and $500,000. CHAIR OLSON stated that the bill would be held over until the next committee hearing. ADJOURNMENT There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 4:25:14 PM.

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