Legislature(1993 - 1994)

04/13/1993 03:00 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                         April 13, 1993                                        
                            3:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Bill Hudson, Chairman                                                   
  Rep. Joe Green, Vice Chairman                                                
  Rep. Brian Porter                                                            
  Rep. Bill Williams                                                           
  Rep. Eldon Mulder                                                            
  Rep. Jerry Mackie                                                            
  Rep. Joe Sitton                                                              
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 50:    "An Act authorizing the Anchorage to Kenai                         
            Peninsula and the Healy to Fairbanks power                         
            transmission interties and approving the design                    
            and construction costs of the interties; and                       
            providing for an effective date."                                  
                                                                               
            PASSED OUT OF COMMITTEE                                            
                                                                               
  HB 51:    "An Act making a special appropriation for design                  
            and construction of power transmission interties                   
            between Anchorage and the Kenai Peninsula and                      
            between Healy and Fairbanks; and providing for an                  
            effective date."                                                   
                                                                               
            PASSED OUT OF COMMITTEE                                            
                                                                               
  *HB 279:  "An Act extending the termination date of the                      
            Alaska Public Utilities Commission to June 30,                     
            1997."                                                             
                                                                               
            PASSED OUT OF COMMITTEE                                            
                                                                               
  SB 86:    "An Act relating to funds transfers under the                      
            Uniform Commercial Code; changing Alaska Rule of                   
            Civil Procedure 82; and providing for an effective                 
            date."                                                             
                                                                               
            PASSED OUT OF COMMITTEE                                            
                                                                               
  SB 112:   "An Act relating to the Uniform Commercial Code;                   
            amending Alaska Rules of Civil Procedure 8 and 82,                 
            and Alaska Rule of Evidence 402; and providing for                 
            an effective date."                                                
                                                                               
            PASSED OUT OF COMMITTEE                                            
                                                                               
  SB 149:   "An Act revising the laws governing financial                      
            institutions and relating to trust companies, the                  
            Alaska Small Loans Act, and the Premium Financing                  
            Act; amending Alaska Rule of Criminal Procedure 17                 
            and Alaska Rule of Civil Procedure 45(b); and                      
            providing for an effective date."                                  
                                                                               
            PASSED OUT OF COMMITTEE                                            
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  REP. RAMONA BARNES                                                           
  Alaska State Legislature                                                     
  State Capitol                                                                
  Juneau, Alaska 99801-1182                                                    
  465-3438                                                                     
  Position Statement: Supported HB 50 and HB 51                                
                                                                               
  MIKE KELLEY                                                                  
  Golden Valley Electric Association                                           
  758 Illinois                                                                 
  Fairbanks, Alaska  99706                                                     
  Position Statement:  Supported HB 50 and HB 51                               
                                                                               
  CLAYTON HURLISS                                                              
  Copper Valley Electric                                                       
  P.O. Box 45                                                                  
  Glennallen, Alaska  99588                                                    
  822-3211                                                                     
  Position Statement:  Supported HB 50 and HB 51                               
                                                                               
  SENATOR ROBIN TAYLOR                                                         
  Alaska State Legislature                                                     
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  465-3873                                                                     
  Position Statement:  Supported HB 50 and HB 51                               
                                                                               
  THOMAS STEVENSON                                                             
  Ketchikan Public Utilities                                                   
  City of Ketchikan                                                            
  Ketchikan, Alaska  99901                                                     
  225-1000, ext 377                                                            
  Position Statement:  Supported HB 50 and HB 51                               
                                                                               
  DON SCHROER, Chairman                                                        
  Alaska Public Utilities Commission                                           
  1016 W. 6th, Ste. 400                                                        
  Anchorage, Alaska  99501-1963                                                
  276-6222                                                                     
  Position Statement:  Supported HB 279                                        
                                                                               
  DAVE HUTCHINS                                                                
  Alaska Rural Electric Cooperative Association                                
  703 W. Tudor, #200                                                           
  Anchorage, Alaska  99503                                                     
  561-6103                                                                     
  Position Statement:  Supported 279                                           
                                                                               
  BOB LOHR, Executive Director                                                 
  Alaska Public Utilities Commission                                           
  1016 W. 6th, Suite 400                                                       
  Anchorage, Alaska  99501-1963                                                
  276-6222                                                                     
  Position Statement:  Supported HB 279                                        
                                                                               
  BILL KELDER, Staff                                                           
  Senator Jay Kertulla                                                         
  Alaska State Legislature                                                     
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  465-6600                                                                     
  Position Statement:  Read sponsor statement on SB 86 and                     
                       SB 112                                                  
                                                                               
  ART PETERSON, Staff Attorney                                                 
  Offices of Dillon and Findley                                                
  One Sealaska Plaza, Suite 202                                                
  Juneau, Alaska  99801                                                        
  586-4000                                                                     
  Position Statement:  Supported SB 86 and SB 112                              
                                                                               
  WILLIS KIRKPATRICK, Director                                                 
  Division of Banking and Securities                                           
  P.O. Box 110807                                                              
  Juneau, Alaska  99811-0807                                                   
  465-2521                                                                     
  Position Statement:  Supported SB 86 and SB 112                              
                                                                               
  MICHAEL BURNS, President                                                     
  Key Bank                                                                     
  101 W. Benson                                                                
  Anchorage, Alaska 99503                                                      
  564-0250                                                                     
  Position Statement:  Supported SB 149                                        
                                                                               
  RICHARD HARDCASTLE                                                           
  Private Insurance Company                                                    
  100 Main Street                                                              
  Ketchikan, Alaska  99901                                                     
  225-2176                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  ALLAN SHATTUCK                                                               
  Shattuck and Grummett Insurance                                              
  301 Seward St.                                                               
  Juneau, Alaska  99503                                                        
  586-2414                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  HOWARD JAEGAR, Vice President                                                
  Shattuck and Grummett                                                        
  301 Seward St.                                                               
  Juneau, Alaska 99503                                                         
  586-2414                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  KAREN HOFSTAD                                                                
  Petersburg Insurance Company                                                 
  P.O. Box 203                                                                 
  Petersburg, Alaska  99833                                                    
  772-3858                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  SUSAN ERICKSON                                                               
  P.O. Box 53                                                                  
  Petersburg, Alaska  99833                                                    
  772-9237                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  JIM SARVELA                                                                  
  First Bank                                                                   
  P.O. Box 7920                                                                
  Ketchikan, Alaska  99901                                                     
  228-4219                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  JACK DAVIES                                                                  
  100 Main St.                                                                 
  Ketchikan, Alaska 99901                                                      
  225-2176                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  CRAIG INGHAM                                                                 
  McKinley Bank                                                                
  P.O. Box 73880                                                               
  Fairbanks, Alaska  99707                                                     
  452-1751                                                                     
  Position Statement:  Supported SB 149                                        
                                                                               
  GORDON DEPUE                                                                 
  P.O. Box 70531                                                               
  Fairbanks, Alaska 99707                                                      
  452-6891                                                                     
  Position Statement: Opposed SB 149                                           
                                                                               
  GARY ROTH                                                                    
  Denali Bank                                                                  
  119 N. Cushman                                                               
  Fairbanks, Alaska  99701                                                     
  456-1400                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  JOHN SWEENEY                                                                 
  508 Marine Way                                                               
  Kodiak, Alaska  99615                                                        
  486-3101                                                                     
  Position Statement: Opposed SB 149                                           
                                                                               
  DAVID STRATTON                                                               
  Life Underwriter                                                             
  8300 Briarwood, Suite B                                                      
  Anchorage, Alaska  99518                                                     
  522-1194                                                                     
  Position Statement: Opposed SB 149                                           
                                                                               
  KEITH SILVER                                                                 
  Alaska State Insurance                                                       
  505 W. Northern Lights, #216                                                 
  Anchorage, Alaska  99503                                                     
  272-4445                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
  JOHN GEORGE, Lobbyist                                                        
  9515 Moraine Way                                                             
  Juneau, Alaska 99801                                                         
  789-0172                                                                     
  Position Statement:  Opposed SB 149                                          
                                                                               
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB  50                                                                
  SHORT TITLE: AUTHORIZING POWER TRANSMISSION INTERTIES                        
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S)NAVARRE,Carney,Brice,Sitton,                    
  Menard,Davies                                                                
                                                                               
  TITLE: "An Act authorizing the Anchorage to Kenai Peninsula                  
  and the Healy to Fairbanks power transmission interties and                  
  approving the design and construction costs of the                           
  interties; and providing for an effective date."                             
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/14/93        58    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/14/93        59    (H)   LABOR & COMMERCE, FINANCE                        
  02/11/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  02/11/93              (H)   MINUTE(L&C)                                      
  02/15/93       350    (H)   COSPONSOR(S): GREEN                              
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  04/08/93              (H)   MINUTE(L&C)                                      
  04/13/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB  51                                                                
  SHORT TITLE: APPROP: POWER TRANSMISSION INTERTIES                            
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) NAVARRE,Carney,Brice,                          
  Sitton,Menard,Davies                                                         
                                                                               
  TITLE: "An Act making a special appropriation for design and                 
  construction of power transmission interties between                         
  Anchorage and the Kenai Peninsula and between Healy and                      
  Fairbanks; and providing for an effective date."                             
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/14/93        59    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/14/93        59    (H)   LABOR & COMMERCE, FINANCE                        
  02/11/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  02/11/93              (H)   MINUTE(L&C)                                      
  02/15/93       351    (H)   COSPONSOR(S):  GREEN                             
  04/08/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  04/08/93              (H)   MINUTE(L&C)                                      
  04/13/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB 279                                                                
  SHORT TITLE: EXTEND ALASKA PUBLIC UTILITIES COMMISSION                       
  BILL VERSION:                                                                
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  TITLE: "An Act extending the termination date of the Alaska                  
  Public Utilities Commission to June 30, 1994."                               
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  04/08/93      1110    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/08/93      1110    (H)   LABOR & COMMERCE                                 
  04/13/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  SB  86                                                                
  SHORT TITLE: FUND TRANSFERS UNDER THE UCC                                    
  BILL VERSION:                                                                
  SPONSOR(S): SENATOR(S) KERTTULA                                              
                                                                               
  TITLE: "An Act relating to funds transfers under the Uniform                 
  Commercial Code; changing Alaska Rule of Civil Procedure 82;                 
  and providing for an effective date."                                        
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/03/93       220    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/03/93       221    (S)   LABOR & COMMERCE, JUDICIARY                      
  03/02/93              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/02/93              (S)   MINUTE(L&C)                                      
  03/03/93       588    (S)   L&C RPT  1DP 2NR                                 
  03/03/93       588    (S)   ZERO FISCAL NOTES (DCED, LAW)                    
  03/12/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  03/15/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  03/19/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  03/22/93       896    (S)   JUD RPT  4NR                                     
  03/22/93       896    (S)   PREVIOUS ZERO FNS (DCED, LAW)                    
  03/31/93              (H)   MINUTE(ECO)                                      
  04/02/93      1063    (S)   RULES 3CAL 1NR     4/2/93                        
  04/02/93      1069    (S)   READ THE SECOND TIME                             
  04/02/93      1069    (S)   ADVANCED TO THIRD READING                        
                              UNAN CONSENT                                     
  04/02/93      1069    (S)   READ THE THIRD TIME  SB 86                       
  04/02/93      1070    (S)   PASSED Y20 N-                                    
  04/02/93      1070    (S)   EFFECTIVE DATE VOTE SAME AS                      
                              PASSAGE                                          
  04/02/93      1070    (S)   COURT RULE CHANGE VOTE SAME AS                   
                              PASSAGE                                          
  04/02/93      1080    (S)   TRANSMITTED TO (H)                               
  04/02/93       954    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/02/93       954    (H)   LABOR & COMMERCE, JUDICIARY                      
  04/13/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  SB 112                                                                
  SHORT TITLE: UNIFORM COMMERCIAL CODE REVISIONS                               
  BILL VERSION: CSSB 112(JUD)                                                  
  SPONSOR(S): SENATOR(S) KERTTULA                                              
                                                                               
  TITLE: "An Act relating to the Uniform Commercial Code;                      
  amending Alaska Rules of Civil Procedure 8 and 82, and                       
  Alaska Rule of Evidence 402; and providing for an effective                  
  date."                                                                       
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/11/93       338    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/11/93       338    (S)   LABOR & COMMERCE, JUDICIARY,                     
                              FINANCE                                          
  03/02/93              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/02/93              (S)   MINUTE(L&C)                                      
  03/04/93              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/05/93       613    (S)   L&C RPT  CS  1DP 3NR SAME TITLE                  
  03/05/93       613    (S)   ZERO FISCAL NOTES TO SB & CS                     
                              (DCED, LAW)                                      
  03/19/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  03/22/93       897    (S)   JUD RPT  CS  4NR  SAME TITLE                     
  03/22/93       897    (S)   ZERO FISCAL NOTE TO L&C & JUD                    
                              CS (DNR)                                         
  03/22/93       897    (S)   PREVIOUS ZERO FNS APPLY TO CS                    
                              (DCED,LAW)                                       
  03/22/93              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  03/23/93       911    (S)   FIN RPT  3DP 4NR (JUD)CS  SAME                   
                              TITLE                                            
  03/23/93       911    (S)   PREVIOUS ZERO FNS APPLY (DCED,                   
                              LAW, DNR)                                        
  03/23/93              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  03/31/93      1004    (S)   RULES RPT 3CAL 1NR 3/31/93                       
  03/31/93      1008    (S)   READ THE SECOND TIME                             
  03/31/93      1008    (S)   JUD  CS ADOPTED UNAN CONSENT                     
  03/31/93      1008    (S)   THIRD READING 4/1 CALENDAR                       
  03/31/93              (H)   MINUTE(ECO)                                      
  04/01/93      1032    (S)   READ THE THIRD TIME                              
                              CSSB 112(JUD)                                    
  04/01/93      1033    (S)   PASSED Y20 N-                                    
  04/01/93      1033    (S)   COURT RULE CHANGES VOTE SAME AS                  
                              PASSAGE                                          
  04/01/93      1033    (S)   EFFECTIVE DATE CLAUSES SAME AS                   
                              PASSAGE                                          
  04/01/93      1033    (S)   KELLY  NOTICE OF RECONSIDERATION                 
  04/02/93      1079    (S)   RECONSIDERATION NOT TAKEN UP                     
  04/02/93      1080    (S)   TRANSMITTED TO (H)                               
  04/02/93       954    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/02/93       955    (H)   LABOR & COMMERCE, JUDICIARY                      
  04/13/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  SB 149                                                                
  SHORT TITLE: REVISION OF BANKING CODE                                        
  BILL VERSION: CSSB 149(FIN)                                                  
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  TITLE: "An Act revising the laws governing financial                         
  institutions and relating to trust companies, the Alaska                     
  Small Loans Act, and the Premium Financing Act; amending                     
  Alaska Rule of Criminal Procedure 17 and Alaska Rule of                      
  Civil Procedure 45(b); and providing for an effective date."                 
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/05/93       616    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/05/93       616    (S)   JUDICIARY, FINANCE                               
  03/19/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  03/22/93              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  03/22/93       898    (S)   JUD RPT  1DP 2NR                                 
  03/22/93       898    (S)   ZERO FISCAL NOTE (DCED)                          
  03/23/93              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  03/23/93       911    (S)   FIN RPT  CS  5DP 2NR                             
                              SAME TITLE                                       
  03/23/93       911    (S)   PREVIOUS ZERO FN (DCED)                          
  03/31/93      1004    (S)   RULES   3CAL 1NR   3/31/93                       
  03/31/93      1007    (S)   READ THE SECOND TIME                             
  03/31/93      1007    (S)   FIN  CS ADOPTED UNAN CONSENT                     
  03/31/93      1008    (S)   ADVANCE TO 3RD RDG FAILED Y12 N8                 
  03/31/93      1008    (S)   THIRD READING 4/1 CALENDAR                       
  04/01/93      1031    (S)   READ THE THIRD TIME                              
                              CSSB 149(FIN)                                    
  04/01/93      1032    (S)   PASSED Y18 N2                                    
  04/01/93      1032    (S)   COURT RULE CHANGE VOTE SAME AS                   
                              PASSAGE                                          
  04/01/93      1032    (S)   EFFECTIVE DATE VOTE SAME AS                      
                              PASSAGE                                          
  04/01/93      1032    (S)   ADAMS NOTICE OF RECONSIDERATION                  
  04/02/93      1079    (S)   RECONSIDERATION NOT TAKEN UP                     
  04/02/93      1081    (S)   TRANSMITTED TO (H)                               
  04/02/93       955    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/02/93       955    (H)   LABOR & COMMERCE, JUDICIARY                      
  04/13/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-37, SIDE A                                                           
  Number 001                                                                   
                                                                               
  CHAIRMAN HUDSON convened the House Labor and Commerce                        
  Committee at 3:10.  Members present were Reps. Hudson,                       
  Green, Porter, Williams, Mulder, Sitton and Mackie.                          
  HB  50 AUTHORIZING POWER TRANSMISSION INTERTIES                              
  HB  51 APPROP: POWER TRANSMISSION INTERTIES                                  
                                                                               
  REPRESENTATIVE RAMONA BARNES, SPEAKER OF THE HOUSE, spoke on                 
  behalf of HB 50 and HB 51 and gave the following summary of                  
  the history of the energy fund:                                              
                                                                               
  "In 1981, SB 25 and 26 created the energy plan for Alaska.                   
  This plan included the 4 Dam Pool, Power Cost Equalization                   
  and a clause that was known as the blackmail clause.  This                   
  clause in essence said that the grants that were given to                    
  the 4 Dam Pool would be paid back to the state, plus                         
  interest, if by the year 1991 there was less than $1 billion                 
  to construct Susitna/Watana Dam and an intertie system for                   
  the railbelt.                                                                
                                                                               
  "In 1984, the representatives of the 4 Dam Pool came back to                 
  Juneau seeking to have the blackmail clause removed from the                 
  statutes due to cost overruns that would require additional                  
  funds.  Their claim was that unless the state gave them                      
  another outlay of cash they would not be able to bond at a                   
  favorable rate due to the existence of the blackmail clause                  
  in statute.                                                                  
                                                                               
  "The Railbelt then gave up the blackmail clause with the                     
  understanding that in exchange there would be $200 million                   
  per year appropriated in the same manner as the Senior                       
  Citizens Longevity Bonus, as an example.  In addition to                     
  that appropriation, there was to be $100 million deposited                   
  into the Bradley Lake Dam account.  At that time, we also                    
  increased the per kilowatt amount to be subsidized by Power                  
  Cost Equalization.                                                           
                                                                               
  "This then, became law.  Although this continuing                            
  appropriation was no different from any other that is                        
  required annually, the environmental community took it to                    
  court and a ruling was made that one legislature could not                   
  bind another, even though it was no different than numerous                  
  other annual appropriations.  That first $200 million plus                   
  the $100 million for Bradley Lake Dam were the only funds                    
  ever deposited into the energy account.                                      
                                                                               
  "In 1990, a deal was cut to raid the fund, and approximately                 
  $123 million was spent on various capital projects, very few                 
  of which had anything to do with energy.  There is currently                 
  $123 million in an intertie reserve account.  These two                      
  bills contain funding for a Northern and Southern intertie                   
  at $55 million for one and $40 million for the other, which                  
  only pays for 1/2 of each project.  The utilities themselves                 
  would bond for the other half of the money.                                  
                                                                               
  "We must look to the needs of the whole state.  HB 50 and 51                 
  contain not only the Northern and Southern interties, but                    
  funding for Tyee, Swan Lake, and Sutton to Glennallen.                       
                                                                               
  "There is a portion of the bill that has an ongoing                          
  appropriation of $800,000 to the Alaska Energy Authority.                    
  The Speaker suggests that the Alaska Energy Authority has                    
  outlived its usefulness, and that when the bills finally get                 
  to the floor, that the appropriation to the AEA be deleted                   
  and the money to go directly to the utilities involved."                     
                                                                               
  Number 190                                                                   
                                                                               
  SPEAKER BARNES also suggested that Power Cost Equalization                   
  be addressed under the Department of Community and Regional                  
  Affairs.  The Speaker believed that the Department of                        
  Community and Regional Affairs better knows the needs of                     
  rural Alaska and that the money saved by not funding the                     
  energy authority could be used by the rural communities.                     
                                                                               
  Number 210                                                                   
                                                                               
  MIKE KELLEY, GENERAL MANAGER, GOLDEN VALLEY ELECTRIC                         
  ASSOCIATION, testified that the previous speaker gave an                     
  excellent history of the railbelt fund.                                      
                                                                               
  MR. KELLEY asked that the committee pass HB 50 and HB 51 out                 
  to Finance to be fine-tuned and eventually passed into law.                  
                                                                               
  Number 222                                                                   
                                                                               
  CLAYTON HURLISS, GENERAL MANAGER, COPPER VALLEY ELECTRIC,                    
  stated that his organization was very pleased that these                     
  bills were going forward and would work together with the                    
  members of the legislature to make sure these bills go                       
  through in the best form possible.                                           
                                                                               
  MR. HURLISS stated that his group was concerned about the                    
  order of priorities.  Mr. Hurliss said that projects ought                   
  to be considered and funded on the basis of whether they are                 
  ready and to go and if there is enough time to build them.                   
                                                                               
  Number 240                                                                   
                                                                               
  REP. MACKIE asked Speaker Barnes if she had problems with                    
  Tyee and Swan Lake being in the bill.                                        
                                                                               
  SPEAKER BARNES responded that she supports Tyee and Swan                     
  Lake, as well as the Sutton to Glennallen interties.                         
                                                                               
  Number 250                                                                   
                                                                               
  REP. MACKIE stated that the legislature should look at these                 
  projects with a statewide prospective, which also includes                   
  Power Cost Equalization.                                                     
                                                                               
  Number 264                                                                   
                                                                               
  REP. PORTER stated that he would be supportive of moving the                 
  bills out of committee.                                                      
                                                                               
  Number 285                                                                   
                                                                               
  SPEAKER BARNES asked the record to reflect that it is true                   
  that one legislature cannot bind the next and that there are                 
  many new people in the legislature, but that she has been in                 
  the legislature all the years referred to above.  Speaker                    
  Barnes added that the agreements she made in previous years                  
  that relate to the energy package before this committee has                  
  borne out her support for Power Cost Equalization.                           
                                                                               
  Number 295                                                                   
                                                                               
  REP. GREEN inquired about the funding sources for these                      
  projects.                                                                    
                                                                               
  SPEAKER BARNES responded that each of the interties will be                  
  bonded separately.                                                           
                                                                               
  Number 324                                                                   
                                                                               
  SPEAKER BARNES stated that the difference between HB 50 and                  
  HB 51 and the proposal the Alaska Energy Authority came up                   
  with is that their bill would have used all the Railbelt                     
  energy money.                                                                
                                                                               
  Number 350                                                                   
                                                                               
  REP. MACKIE clarified his position on this issue.  Rep.                      
  Mackie stated that it was his view that Power Cost                           
  Equalization not be tinkered with and that the energy needs                  
  of Southeast Alaska be included in the statewide perspective                 
  of this bill.                                                                
                                                                               
  Number 368                                                                   
                                                                               
  SENATOR ROBIN TAYLOR echoed Speaker Barnes' comments and                     
  added that these bills are the culmination of a lengthy and                  
  arduous process over many years.  Sen. Taylor believes that                  
  we are now in a place where we can put our differences aside                 
  and put forth a bill that would put some good projects on                    
  line.                                                                        
                                                                               
  SEN. TAYLOR stated he believes the state will eventually be                  
  relieved of the burden of Power Cost Equalization when all                   
  these projects come on line.                                                 
                                                                               
  Number 408                                                                   
                                                                               
  THOMAS STEVENSON, MANAGER, KETCHIKAN PUBLIC UTILITIES,                       
  testified that HB 50 and HB 51 are necessary ingredients for                 
  the economic development of the state.                                       
                                                                               
  Number 429                                                                   
                                                                               
  REP. MACKIE moved HB 50 and HB 51 with individual                            
  recommendations.  No objections were heard; it was so                        
  ordered.                                                                     
  Number 449                                                                   
                                                                               
  HB 279 EXTEND ALASKA PUBLIC UTILITIES COMMISSION                             
                                                                               
  DON SCHROER, ALASKA PUBLIC UTILITIES COMMISSION (APUC),                      
  stated that the APUC is due to end on June 30, 1993, at                      
  which time they would go into a wind down year.  He said HB
  279 would extend the commission for four years.                              
                                                                               
  MR. SCHROER stated that there is a Senate bill that would                    
  only extend the commission for one year, but it was his                      
  feeling that it would save costs and resources to extend                     
  four years and forego another legislative audit within a                     
  year.                                                                        
                                                                               
  REP. MULDER asked if he had understood that the reason there                 
  was a proposal to sunset every year was that the commission                  
  was taken off of the state payroll and funded through                        
  program receipts, which would mean that the legislature lost                 
  fiscal oversight.                                                            
                                                                               
  REP. MULDER asked Mr. Schroer how he thought the commission                  
  had worked under this new funding scenario.                                  
                                                                               
  MR. SCHROER answered that the budget APUC requested this                     
  year was slightly less than the one requested last year, and                 
  added that the commission was still part of the overall                      
  budget process and can't arbitrarily spend money or raise                    
  salaries.                                                                    
                                                                               
  Number 525                                                                   
                                                                               
  DAVE HUTCHINS, EXECUTIVE DIRECTOR, ALASKA RURAL ELECTRIC                     
  COOPERATIVE ASSOCIATION, testified that they are in support                  
  of extending the APUC.  Mr. Hutchins noted, however, that                    
  since the legislative budget and audit report came in late,                  
  the commission should only be extended for one year to give                  
  the legislature a chance to take a look at the report and                    
  its recommendations.                                                         
                                                                               
  Number 572                                                                   
                                                                               
  BOB LOHR, EXECUTIVE DIRECTOR, APUC, testified that not only                  
  is the APUC accountable to the legislature, but they are                     
  also accountable to the customers of the utilities.                          
                                                                               
  Number 595                                                                   
                                                                               
  REP. MACKIE moved am 1 to shorten the sunset date from 4                     
  years to one year.                                                           
                                                                               
  TAPE 93-37, SIDE B                                                           
  Number 001                                                                   
                                                                               
  REP. PORTER objected.                                                        
                                                                               
  A roll call vote was taken with Rep. Porter voting against                   
  the amendment; Reps. Mulder, Williams, Green, Mackie, Sitton                 
  and Hudson voting for it.                                                    
                                                                               
  Amendment 1 passed.                                                          
                                                                               
  Number 037                                                                   
                                                                               
  REP. MULDER moved HB 279 and amended with individual                         
  recommendations and fiscal note.                                             
                                                                               
  No objections were heard; it was so ordered.                                 
  Number 085                                                                   
                                                                               
  SB  86 FUND TRANSFERS UNDER THE UCC                                          
  SB 112 UNIFORM COMMERCIAL CODE REVISIONS                                     
                                                                               
  BILL KELDER, STAFF, SEN. JAY KERTTULA, testified in support                  
  of SB 86.  Mr. Kelder read a sponsor statement on Sen.                       
  Kertulla's behalf.  Mr. Kelder stated that SB 86 is known as                 
  the "funds transfer bill" and generally speaking brings the                  
  funds transfer portion of Alaska's uniform commercial code                   
  up to date with regard to current electronic technology as                   
  it applies to modern business practices.                                     
                                                                               
  Number 100                                                                   
                                                                               
  MR. KELDER added that SB 112 makes amendments to Alaska's                    
  Uniform Commercial Code, and in most instances these changes                 
  are designed to bring the code up to date with the rest of                   
  the country.                                                                 
                                                                               
  Number 220                                                                   
                                                                               
  ART PETERSON, STAFF ATTORNEY, DILLON AND FINDLEY, private                    
  law offices and a Uniform Law Commissioner for Alaska, said                  
  he supports SB 86 and SB 112.  Mr. Peterson echoed Mr.                       
  Kelder's remarks and pointed out two significant things in                   
  the bills:                                                                   
                                                                               
  1)  it recognizes that modern technology plays a major part                  
  in today's business and;                                                     
                                                                               
  2)  doing business that way raises questions that these                      
  bills will provide answers for.                                              
                                                                               
  Number  300                                                                  
                                                                               
  REP. PORTER moved SB 86 with individual recommendations and                  
  fiscal note.                                                                 
                                                                               
  No objections were heard; it was so ordered.                                 
                                                                               
  REP. GREEN moved SB 112 with individual recommendations and                  
  fiscal note.                                                                 
                                                                               
  No objections were heard; it was so ordered.                                 
  Number 415                                                                   
                                                                               
  SB 149 REVISION OF BANKING CODE                                              
                                                                               
  WILLIS KIRKPATRICK, DIRECTOR, DIVISION OF BANKING, testified                 
  in support of SB 149.  Mr. Kirkpatrick stated that the                       
  current Alaska Banking Code was critically obsolete.  The                    
  existing code was taken from Oregon law at the time of                       
  Alaska statehood and has had only minor revisions since                      
  then.  The Division of Banking, Securities, and Corporations                 
  has for the past few years been working to identify areas                    
  where changes in the code are needed.  These changes fall                    
  into three basic categories:                                                 
                                                                               
  1) obsolescence concerning today's financial institution                     
  marketplace;                                                                 
                                                                               
  2) obsolescence in addressing problems or failing banks; and                 
                                                                               
                                                                               
  3)  the need for a banking law that could provide additional                 
  economic development opportunities.                                          
                                                                               
  MR. KIRKPATRICK went on to explain these changes in detail.                  
  (the details are in a position paper in the committee files)                 
                                                                               
  Number 560                                                                   
                                                                               
  MICHAEL BURNS, PRESIDENT, KEY BANK, testified in support of                  
  SB 149.  Mr. Burns spoke specifically on the section of the                  
  bill which would allow the banking industry to sell                          
  insurance.  Mr. Burns stated that this section would allow                   
  the banking industry to compete much the same as Allstate,                   
  the insurance company, competes with the banks in providing                  
  loans.  Mr. Burns stated that he didn't see any reason that                  
  banks should be prohibited from competing in the insurance                   
  market.                                                                      
                                                                               
  MR. BURNS stated that the committee would hear the argument                  
  that banks could be in the position of exerting undue                        
  influence on loan applicants to purchase insurance from                      
  them, but Mr. Burns believes this argument is wrong as the                   
  bill contains anti-tie-in clauses that would prohibit this.                  
                                                                               
  REP. MACKIE questioned how the banking industry expected                     
  small independent insurers to stay in business with the                      
  banking industry competing.                                                  
                                                                               
  TAPE 93-38, SIDE A                                                           
  Number 001                                                                   
                                                                               
  MR. BURNS replied that the market place would take care of                   
  itself.  If the banking industry doesn't provide a better                    
  product, then the insurance agency will get the business.                    
                                                                               
  Number 005                                                                   
                                                                               
  RICHARD HARDCASTLE, PRESIDENT, HARDCASTLE/DAVIES INSURERS OF                 
  KETCHIKAN, testified against the section of SB 149 that                      
  would allow banks to sell insurance.  Mr. Hardcastle said he                 
  believes allowing banks to sell insurance was unfair                         
  competition and pointed out two of the more important                        
  reasons:                                                                     
                                                                               
  1) large capitalized institutions have a tremendous number                   
  of captive prospects in their existing files can use their                   
  influence to sell them insurance; and                                        
                                                                               
  2) loan applicants would feel obligated to buy insurance                     
  from banks in order to get the loan.                                         
                                                                               
  Number 020                                                                   
                                                                               
  MR. HARDCASTLE stated that the banking industry suggests                     
  that the anti-tie-in provisions in law would prevent any                     
  problems, but as a practical matter they just don't work.                    
                                                                               
  Number 025                                                                   
                                                                               
  MR. HARDCASTLE suggested the committee delete the section of                 
  the bill allowing banks in the insurance business and pass                   
  the bill out.                                                                
                                                                               
  Number 050                                                                   
                                                                               
  ALAN SHATTUCK, PRESIDENT, SHATTUCK AND GRUMMET INSURANCE,                    
  spoke against sections 2, 4 and 5.  Mr. Shattuck said he                     
  believes these sections take too much of the legislative                     
  oversight away and put it into regulations.                                  
                                                                               
  MR. SHATTUCK dittoed Mr. Hardcastle's remark that anti-tie-                  
  in laws do not work well.                                                    
                                                                               
  Number 073                                                                   
                                                                               
  HOWARD JAEGAR, VICE PRESIDENT, SHATTUCK AND GRUMMETT, AND                    
  PRESIDENT OF ALASKA INDEPENDENT INSURANCE AGENTS AND                         
  BROKERS, stated that his group was against allowing banks to                 
  sell insurance.  Mr. Jaegar added that allowing banks to                     
  sell insurance was in direct conflict to the very businesses                 
  they hold deposits for or lend money to.                                     
                                                                               
  MR. JAEGAR stated that allowing large banking organizations                  
  to compete with local merchants.  Because banks control the                  
  extension of needed credit, they have unlimited access and                   
  there would be a temptation to exert coercion to sell other                  
  products.                                                                    
                                                                               
  Number 158                                                                   
                                                                               
  REP. MACKIE stated that it was his belief that small                         
  insurers would be hurt and he therefore moved to delete page                 
  24, line 18, of section 47.                                                  
                                                                               
  Number 230                                                                   
                                                                               
  REP. PORTER objected and expressed his concern that he                       
  didn't have enough information yet and he would like to hear                 
  from the other persons waiting on teleconference.                            
                                                                               
  Number 257                                                                   
                                                                               
  REP. GREEN added that he wanted further information of                       
  sections 4 and 5 of the bill.                                                
                                                                               
  Number 280                                                                   
                                                                               
  KAREN HOFSTAD, INDEPENDENT INSURER, testified from                           
  Petersburg and noted that she had sold insurance in another                  
  state that allowed banks to sell insurance and she saw that                  
  it caused a lot of conflict and abuse.  Ms. Hofstad stated                   
  that when banks loan money and provide insurance, there is a                 
  subtle indication that the person or business should buy                     
  from the bank.                                                               
                                                                               
  MS. HOFSTAD suggested the committee delete sections 2, 4 and                 
  5 from the bill.                                                             
                                                                               
  Number 305                                                                   
                                                                               
  SUSAN ERICKSON testified from Petersburg and echoed Ms.                      
  Hofstad's comments.                                                          
                                                                               
  Number 310                                                                   
                                                                               
  JIM SARVELA, CHIEF FINANCIAL OFFICER, 1ST BANK, testified                    
  from Ketchikan that his concern was that banks be on an                      
  equal playing field with other institutions.  Mr. Sarvella                   
  pointed out that the other institutions that primarily sell                  
  insurance also make loans.  This bill would give all the                     
  participants equal opportunities in the marketplace.                         
                                                                               
  Number 330                                                                   
                                                                               
  JACK DAVIES, HARDCASTLE AND DAVIES INSURANCE, stated the                     
  impact of section 2 is anti-consumer.  Mr. Davies added that                 
  as far as he knew there was never a consumer coming before                   
  asking that banks be allowed to sell insurance.                              
                                                                               
  Number 343                                                                   
                                                                               
  CRAIG INGHAM, PRESIDENT OF MT. MCKINLEY BANK, noted that                     
  currently Allstate, State Farm, etc., are involved in the                    
  credit side of the equation in offering loans.  Mr. Ingham                   
  further stated that the banks would create a separate                        
  corporation or subsidiary to sell this insurance, which                      
  would alleviate any undue pressure a borrower might feel.                    
                                                                               
  Number 368                                                                   
                                                                               
  GORDON DEPUE urged deletion of section 2 of the bill.  Mr.                   
  Depue said he does not believe that anti-tie-in provisions                   
  would prohibit the banks from pressuring customers to buy                    
  insurance on property they are borrowing from them for.                      
                                                                               
  Number 374                                                                   
                                                                               
  GARY ROTH, PRESIDENT, DENALI STATE BANK, testified that SB
  149 should pass as is.  Mr. Roth said he believed that this                  
  was a turf war and that compromise was not possible.                         
                                                                               
  Number 416                                                                   
                                                                               
  JOHN SWEENEY echoed comments above against section 2 of the                  
  bill.                                                                        
                                                                               
  Number 431                                                                   
                                                                               
  DAVID STRATTON, PRESIDENT, ALASKA LIFE UNDERWRITER, stated                   
  that section 2 must be deleted.  Mr. Stratton quoted Senator                 
  Murkowski as being against banks getting into the insurance                  
  industry.                                                                    
                                                                               
  Number 451                                                                   
                                                                               
  KEITH SILVER stated that he supports the removal of section                  
  2 of SB 149.  Mr. Silver dittoed the remarks of Mr. Stratton                 
  and the others.                                                              
                                                                               
  Number 460                                                                   
                                                                               
  JOHN GEORGE, REPRESENTING THE AMERICAN COUNCIL OF LIFE                       
  INSURANCE, testified that an asset that the independent                      
  insurance agent has is his expiration dates.  Mr. George                     
  explained that this is a list of all the policy holders and                  
  the dates their policies expire.  Mr. George pointed out                     
  that if section 2 passes it would in effect give the                         
  independent insurance agencies' most tightly guarded secret                  
  away to their competitor.  Mr. George suggested that this                    
  would give an unfair advantage to the competitors.                           
                                                                               
  MR. GEORGE pointed out that sections 4 and 5 should be                       
  deleted also to eliminate the possibility of a back door                     
  opening for banks to get into the insurance business.                        
                                                                               
  Number 485                                                                   
                                                                               
  REP. MACKIE responded that according to Mr. Kirkpatrick                      
  deleting section 2 would be sufficient since federal law                     
  specifically requires that insurance sales be specifically                   
  allowed in state statute.                                                    
                                                                               
  REP. PORTER removed his earlier objection to Rep. Mackie's                   
  amendment to delete section 2 from the SB 149.                               
                                                                               
  REP. SITTON moved SB 149 with individual recommendations,                    
  fiscal note and unanimous consent.                                           
                                                                               
  No objections were heard; it was so ordered.                                 
                                                                               
  CHAIRMAN HUDSON adjourned the committee at 5:15 p.m.                         

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