05/11/2019 11:00 AM House LABOR & COMMERCE
| Audio | Topic | 
|---|---|
| Start | |
| SB16 | |
| SB83 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 83 | TELECONFERENCED | |
| += | SB 16 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                          May 11, 2019                                                                                          
                           3:08 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Adam Wool, Chair                                                                                                 
Representative Andi Story                                                                                                       
Representative Zack Fields                                                                                                      
Representative Sara Hannan                                                                                                      
Representative Louise Stutes                                                                                                    
Representative Josh Revak                                                                                                       
Representative Dave Talerico                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 16(FIN)                                                                                                  
"An  Act  relating to  certain  alcoholic  beverage licenses  and                                                               
permits; relating  to the bond requirement  for certain alcoholic                                                               
beverage license holders; and providing for an effective date."                                                                 
                                                                                                                                
     - MOVED HCS CSSB 16(L&C) OUT OF COMMITTEE                                                                                  
                                                                                                                                
SENATE BILL NO. 83                                                                                                              
"An  Act  relating  to  the   Regulatory  Commission  of  Alaska;                                                               
relating to  the public utility regulatory  cost charge; relating                                                               
to the regulation of  telecommunications; relating to exemptions,                                                               
charges,  and rates  applicable to  telecommunications utilities;                                                               
relating  to regulation  of telephone  services; and  relating to                                                               
alternate operator services."                                                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  16                                                                                                                  
SHORT TITLE: ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS                                                                          
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
01/16/19       (S)       PREFILE RELEASED 1/11/19                                                                               
01/16/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/19       (S)       L&C, FIN                                                                                               
02/05/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/05/19       (S)       Heard & Held                                                                                           
02/05/19       (S)       MINUTE(L&C)                                                                                            
02/14/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/14/19       (S)       Scheduled but Not Heard                                                                                
02/19/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/19/19       (S)       Moved CSSB 16(L&C) Out of Committee                                                                    
02/19/19       (S)       MINUTE(L&C)                                                                                            
02/25/19       (S)       L&C RPT CS 5DP NEW TITLE                                                                               
02/25/19       (S)       DP: REINBOLD, BIRCH, BISHOP, COSTELLO,                                                                 
                         GRAY-JACKSON                                                                                           
03/08/19       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/08/19       (S)       Heard & Held                                                                                           
03/08/19       (S)       MINUTE(FIN)                                                                                            
04/01/19       (S)       FIN RPT CS 3DP 4NR NEW TITLE                                                                           
04/01/19       (S)       DP: VON IMHOF, MICCICHE, WILSON                                                                        
04/01/19       (S)       NR: STEDMAN, HOFFMAN, SHOWER, OLSON                                                                    
04/01/19       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/01/19       (S)       Moved CSSB 16(FIN) Out of Committee                                                                    
04/01/19       (S)       MINUTE(FIN)                                                                                            
04/08/19       (S)       TRANSMITTED TO (H)                                                                                     
04/08/19       (S)       VERSION: CSSB 16(FIN)                                                                                  
04/09/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/19       (H)       L&C, FIN                                                                                               
05/01/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/01/19       (H)       Heard & Held                                                                                           
05/01/19       (H)       MINUTE(L&C)                                                                                            
05/08/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/08/19       (H)       Heard & Held                                                                                           
05/08/19       (H)       MINUTE(L&C)                                                                                            
05/11/19       (H)       L&C AT 11:00 AM BARNES 124                                                                             
                                                                                                                                
BILL: SB  83                                                                                                                  
SHORT TITLE: TELECOMMUNICATIONS REGULATION/EXEMPTIONS                                                                           
SPONSOR(s): SENATOR(s) BIRCH                                                                                                    
                                                                                                                                
03/11/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/19       (S)       L&C                                                                                                    
03/26/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/26/19       (S)       Heard & Held                                                                                           
03/26/19       (S)       MINUTE(L&C)                                                                                            
04/02/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/02/19       (S)       Moved SB 83 Out of Committee                                                                           
04/02/19       (S)       MINUTE(L&C)                                                                                            
04/03/19       (S)       L&C RPT 4DP                                                                                            
04/03/19       (S)       DP: REINBOLD, GRAY-JACKSON, COSTELLO,                                                                  
                         BIRCH                                                                                                  
04/15/19       (S)       TRANSMITTED TO (H)                                                                                     
04/15/19       (S)       VERSION: SB  83                                                                                        
04/16/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/16/19       (H)       L&C, FIN                                                                                               
04/17/19       (H)       JUD REPLACES FIN REFERRAL                                                                              
05/01/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/01/19       (H)       Heard & Held                                                                                           
05/01/19       (H)       MINUTE(L&C)                                                                                            
05/08/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/08/19       (H)       Heard & Held                                                                                           
05/08/19       (H)       MINUTE(L&C)                                                                                            
05/11/19       (H)       L&C AT 11:00 AM BARNES 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ERIKA MCCONNELL, Director                                                                                                       
Alcohol and Marijuana Control Office                                                                                            
Department of Commerce, Community & Economic Development                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on SB
16.                                                                                                                             
                                                                                                                                
SARAH OATES, President/CEO                                                                                                      
Alaska Cabaret, Hotel, Restaurant, and Retailers Association                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on SB
16.                                                                                                                             
                                                                                                                                
ASHLEY STRAUCH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
POSITION STATEMENT:  Presented Amendment 2, on behalf of                                                                      
Representative Wool, during the hearing on SB 16.                                                                               
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, answered questions during                                                              
the hearing on SB 16.                                                                                                           
                                                                                                                                
JEROME HERTEL, Manager                                                                                                          
Alaska State Fair                                                                                                               
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions during the                                                              
hearing on SB 16.                                                                                                               
                                                                                                                                
BOB PICKETT, Commissioner                                                                                                       
Regulatory Commission of Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on SB
83.                                                                                                                             
                                                                                                                                
STUART GOERING, Attorney                                                                                                        
Department of Law                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on SB
83.                                                                                                                             
                                                                                                                                
JIMMY JACKSON, Regulatory Attorney                                                                                              
General Communication Inc.                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on SB
83.                                                                                                                             
                                                                                                                                
SENATOR CHRIS BIRCH                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   As  prime  sponsor,  testified during  the                                                             
hearing on SB 83.                                                                                                               
                                                                                                                                
CHRISTINE O'CONNOR, Executive Director                                                                                          
Alaska Telecom Association                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on SB
83.                                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:08:19 PM                                                                                                                    
                                                                                                                                
CHAIR  ADAM WOOL  called the  House Labor  and Commerce  Standing                                                             
Committee meeting to order at  3:08 p.m.  Representatives Hannan,                                                               
Stutes, Story, Talerico, Fields, Revak,  and Wool were present at                                                               
the  call to  order.   Representatives Claman  and Kreiss-Tomkins                                                               
joined in the audience.                                                                                                         
                                                                                                                                
        SB  16-ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS                                                                    
                                                                                                                                
3:09:07 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL  announced that the  first order of business  would be                                                               
HOUSE CS FOR CS FOR SENATE  BILL NO. 16(L&C), "An Act relating to                                                               
certain alcoholic beverage licenses  and permits; relating to the                                                               
bond requirement for certain alcoholic beverage license holders;                                                                
and providing for an effective date."                                                                                           
                                                                                                                                
3:09:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO moved to adopt Amendment 1, [labeled 31-                                                                
LS0283\O.1, Bruce, 5/9/19], which read:                                                                                         
                                                                                                                                
     Page 2, line 17, following "license":                                                                                  
          Insert ";                                                                                                         
               (25)  music festival permit"                                                                                 
                                                                                                                                
     Page 5, following line 19:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec. 10.  AS 04.11 is  amended by  adding a  new                                                                
     section to read:                                                                                                           
          Sec. 04.11.245. Music festival permit. (a) A                                                                        
     music  festival  permit  authorizes  the  holder  of  a                                                                    
     restaurant or eating place license  to sell or dispense                                                                    
     beer  and  wine  for  consumption at  a  festival  with                                                                    
     multiple live music performances  held off the holder's                                                                    
     licensed premises.                                                                                                         
          (b)  The board may issue a music festival permit                                                                      
     only for                                                                                                                   
               (1)  a designated premises and for a limited                                                                     
     period, not to exceed four calendar days; and                                                                              
               (2)  a music festival that has existed for a                                                                     
     period of at least 10  years before the application for                                                                    
     the permit is filed.                                                                                                       
          (c)  The board may not issue more than one music                                                                      
     festival  permit  to  the holder  of  a  restaurant  or                                                                    
     eating place license in a calendar year.                                                                                   
          (d)  A music festival permit may not be                                                                               
     transferred or renewed.                                                                                                    
          (e)  An applicant for a music festival permit                                                                         
     under this  section shall  obtain the  written approval                                                                    
     of a  law enforcement  agency having  jurisdiction over                                                                    
     the  site of  the event  for which  the music  festival                                                                    
     permit is  sought and provide  the written  approval to                                                                    
     the board with the application.                                                                                            
          (f)  The fee for a music festival permit is $50                                                                       
     for  each  day of  the  event  and must  accompany  the                                                                    
     application for the permit."                                                                                               
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 5, line 27, following "04.11.240(b),":                                                                                
          Insert "04.11.245(e)"                                                                                             
                                                                                                                                
     Page 7, line 18, following "(16)":                                                                                     
          Insert "music festival permit;                                                                                    
               (17)"                                                                                                        
                                                                                                                                
CHAIR WOOL objected for the purpose of discussion.                                                                              
                                                                                                                                
3:10:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TALERICO  explained   that  Amendment   1  would                                                               
reinsert   the  music   festival   permit   with  the   following                                                               
stipulations:  The permit  could not  exceed four  calendar days;                                                               
the festival must have existed for  a period of at least 10 years                                                               
before the  application is  filed; the board  may not  issue more                                                               
than one music  festival permit to the holder of  a restaurant or                                                               
eating place  license (REPL) in  a calendar year; and  the permit                                                               
may not be transferred or renewed.                                                                                              
                                                                                                                                
CHAIR  WOOL asked  if Amendment  1 is  intended for  Chickenstock                                                               
Music festival.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  TALERICO  answered  yes.   He  said  the  biggest                                                               
difficulty for  Chickenstock is that  a precedence was  set seven                                                               
or eight years  ago when they were given a  permit to operate and                                                               
now that  permit is no longer  available to them due  to a change                                                               
in personnel at the Alcohol and Marijuana Control Office (AMCO).                                                                
                                                                                                                                
CHAIR WOOL asked  how many years Chickenstock  had been operating                                                               
with a beverage dispensary license (BDL).                                                                                       
                                                                                                                                
REPRESENTATIVE TALERICO answered, "three years."                                                                                
                                                                                                                                
CHAIR WOOL  asked Ms. McConnell when  Chickenstock Music Festival                                                               
started operating with a BDL instead of a REPL.                                                                                 
                                                                                                                                
3:13:49 PM                                                                                                                    
                                                                                                                                
ERIKA MCCONNELL, Director, Alcohol  and Marijuana Control Office,                                                               
Department of  Commerce, Community  & Economic  Development, said                                                               
that happened in 2016.                                                                                                          
                                                                                                                                
CHAIR WOOL  noted that he was  hesitant to make a  change for one                                                               
specific  business,  especially  since  [Chickenstock]  has  been                                                               
functioning with a BDL for several years.                                                                                       
                                                                                                                                
3:15:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES agreed.  Nonetheless,  she pointed out that                                                               
Chicken, Alaska is remote and there  is only one BDL in the area.                                                               
She  said there's  a lot  of  liability involved  with lending  a                                                               
license  to be  used  for a  caterer's permit.    She added  that                                                               
Chicken is  a small,  remote community  interested in  having one                                                               
event.   She  said she's  leaning  towards voting  in a  positive                                                               
manner.                                                                                                                         
                                                                                                                                
CHAIR WOOL  said he understands  that Chickenstock would  like to                                                               
sell alcohol;  however, he disagreed  that distance  or geography                                                               
is a  barrier.  He pointed  out that it's standard  for people to                                                               
cater festivals or concerts.                                                                                                    
                                                                                                                                
3:18:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  said he would  not support Amendment  1 if                                                               
it was  unlimited or allowed  restaurant owners in an  urban area                                                               
to have  a festival at  their location  when there are  dozens of                                                               
BDL  permit   holders  in   the  same   area.     However,  given                                                               
Chickenstock's limited  circumstance and the fact  that this bill                                                               
is a package of one-off's, he  said he would support Amendment 1.                                                               
He added  that given  the remote  nature of  this festival  it is                                                               
highly unlikely to negatively impact BDL holders elsewhere.                                                                     
                                                                                                                                
3:19:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked if there  were any REPLs  aside from                                                               
Chickenstock's that were revoked in 2016.                                                                                       
                                                                                                                                
3:20:25 PM                                                                                                                    
                                                                                                                                
MS. MCCONNELL said not that she is aware of.                                                                                    
                                                                                                                                
3:20:52 PM                                                                                                                    
                                                                                                                                
SARAH  OATES, President/CEO,  Alaska Cabaret,  Hotel, Restaurant,                                                               
and Retailers Association, in  response to Representative Hannan,                                                               
said there were permits issued in  the past that did not meet the                                                               
necessary qualifications  because they weren't  providing banquet                                                               
or dinner events.   Those permits are no longer  issued because a                                                               
change  in  AMCO  staff  brought   in  someone  who  paid  closer                                                               
attention to the statutes.                                                                                                      
                                                                                                                                
3:21:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked what the  REPLs were being  used for                                                               
before the statute was reinterpreted.                                                                                           
                                                                                                                                
MS.  OATES pointed  out  that under  the  proposed definition  of                                                               
"music festival," any concert with  more than one performer would                                                               
qualify for  this permit.   She said  despite being  intended for                                                               
Chickenstock, because of how it's  written this bill would expand                                                               
upon it more than anticipated.                                                                                                  
                                                                                                                                
REPRESENTATIVE HANNAN  referred to  Amendment 1, lines  15-16, "a                                                               
music  festival that  has existed  for a  period of  at least  10                                                               
years  before the  application for  the  permit is  filed."   She                                                               
offered her  belief that  the intention  was to  stop a  new REPL                                                               
from being  used to  host a  concert if  they had  not previously                                                               
done it for a period of 10 years.                                                                                               
                                                                                                                                
MS. OATES  said if  that's the intention  the language  should be                                                               
clarified.     She  opined  that  it's relatively  impossible  to                                                               
determine if  a festival has  been in  existence for 10  years or                                                               
more, adding that has seen a  lot of things get pushed beyond the                                                               
intent.                                                                                                                         
                                                                                                                                
3:24:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked if  it would be  clearer to  say, "a                                                               
music  festival that  has existed  in a  specific location  for a                                                               
period of 10 years."                                                                                                            
                                                                                                                                
MS. OATES said  limiting it to a particular licensee  or to REPLs                                                               
that  are  located  in  an   organized  area  with  no  organized                                                               
government would make it more palatable.                                                                                        
                                                                                                                                
CHAIR WOOL questioned  whether a band that  plays somewhere every                                                               
year for a  weekend could retroactively be  considered a festival                                                               
to gain a REPL music festival permit.                                                                                           
                                                                                                                                
MS. OATES confirmed that.                                                                                                       
                                                                                                                                
CHAIR WOOL offered  his understanding that a permit  is a one-off                                                               
deal.  He asked if permits can be transferred.                                                                                  
                                                                                                                                
3:26:32 PM                                                                                                                    
                                                                                                                                
MS. MCCONNELL  said a permit  is issued for one  particular event                                                               
and if another event occurs, the holder will need a new one.                                                                    
                                                                                                                                
MS. MCCONNELL  said her understanding  of this amendment  is that                                                               
any REPL could  apply for a music festival permit,  but the music                                                               
festival  itself must  have been  in  existence for  at least  10                                                               
years.   A  qualifying music  festival, like  Chickenstock, could                                                               
use a different REPL to get their  permit each year.  They do not                                                               
have to stick  with the same licensee to serve  at their festival                                                               
every year.                                                                                                                     
                                                                                                                                
CHAIR  WOOL questioned  whether, according  to this  amendment, a                                                               
Chinese   restaurant  in   Juneau  could   cater  the   REPL  for                                                               
Chickenstock.                                                                                                                   
                                                                                                                                
MS. MCONNELL said yes.                                                                                                          
                                                                                                                                
3:28:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  asked if  the maker  of Amendment  1 would                                                               
consider  a friendly  conceptual amendment  to ensure  that music                                                               
festivals aren't popping up in urban areas.                                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS  asked if  the language could  be clarified                                                               
to say "license" rather than "permit" for consistency.                                                                          
                                                                                                                                
REPRESENTATIVE  STUTES turned  attention to  line 19,  subsection                                                               
(d), and  suggested changing  the language  to "A  music festival                                                               
permit may not be renewed upon transfer for sale of the REPL."                                                                  
                                                                                                                                
CHAIR WOOL objected to "weigh into the legal language."                                                                         
                                                                                                                                
3:31:37 PM                                                                                                                    
                                                                                                                                
MS. MCCONNELL  said permits  are not  renewed at  all -  they are                                                               
discreet  and  get evaluated  on  a  case  by  case basis.    She                                                               
addressed the  assumption that the  REPL serving the  festival is                                                               
somehow tied together in perpetuity, which  is not the case.  She                                                               
stated that attempting to create  a tie between a particular REPL                                                               
and  a particular  festival would  require different  language on                                                               
line 19.                                                                                                                        
                                                                                                                                
REPRESENTATIVE   STUTES   suggested  replacing   "renewed"   with                                                               
"issued."                                                                                                                       
                                                                                                                                
CHAIR  WOOL directed  attention  back to  the "unorganized  area"                                                               
language because of its limiting factors.                                                                                       
                                                                                                                                
REPRESENTATIVE TALERICO withdrew Amendment 1.                                                                                   
                                                                                                                                
3:34:28 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL  moved to adopt  Amendment 2,  [labeled 31-LS0283\O.4,                                                               
Bruce, 5/10/19], which read:                                                                                                    
                                                                                                                                
     Page 4, lines 7 - 8:                                                                                                       
          Delete all material and insert:                                                                                       
               "(3)  a public ski area                                                                                      
               (A)  where skiing and snowboarding occur;                                                                    
               (B)  that sells lift tickets; and                                                                            
               (C)  that has a permanent public structure."                                                                 
                                                                                                                                
     Page 4, line 20:                                                                                                           
          Delete "fairs and other events"                                                                                       
          Insert "an annual fair"                                                                                               
                                                                                                                                
     Page 4, line 26:                                                                                                           
          Delete "fair"                                                                                                         
          Insert "annual fair"                                                                                                  
                                                                                                                                
REPRESENTATIVE STUTES objected for the purpose of discussion.                                                                   
                                                                                                                                
3:35:01 PM                                                                                                                    
                                                                                                                                
ASHLEY STRAUCH,  Staff, Representative  Adam Wool, said  that the                                                               
purpose of Amendment 2 is to  clarify that a "public ski area" is                                                               
a place  that has  skiing and  snowboarding, sells  lift tickets,                                                               
and has a permanent public structure.                                                                                           
                                                                                                                                
3:35:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  questioned whether  a public  structure is                                                               
one that is used  by the public who patronize a  facility or if a                                                               
public structure is one that is owned by the public.                                                                            
                                                                                                                                
MS.  STRAUCH said  it  is used  by the  public,  adding that  the                                                               
intent  is to  prevent someone  with a  shed on  private property                                                               
from selling a lift ticket and calling it a public ski area.                                                                    
                                                                                                                                
CHAIR WOOL added that the intent  was to more solidly define what                                                               
a ski area is.                                                                                                                  
                                                                                                                                
3:36:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES removed her objection.                                                                                  
                                                                                                                                
3:36:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  inquired  as  to  the  remaining  changes                                                               
included in Amendment 2.                                                                                                        
                                                                                                                                
MS. STRAUCH explained  that the intent of the changes  on page 1,                                                               
lines 8-14, were to more clearly define the word "fair."                                                                        
                                                                                                                                
REPRESENTATIVE HANNAN  surmised that the distinction  being drawn                                                               
is between  the sequence  of time, "the  fair," and  the physical                                                               
location.                                                                                                                       
                                                                                                                                
CHAIR WOOL answered yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE  HANNAN  questioned   whether  the  aforementioned                                                               
changes in Amendment 2 would  maintain the original intent of the                                                               
bill.                                                                                                                           
                                                                                                                                
3:39:15 PM                                                                                                                    
                                                                                                                                
SENATOR PETER  MICCICHE, Alaska State Legislature,  prime sponsor                                                               
of SB 16, deferred the question to Jerome Hertel.                                                                               
                                                                                                                                
CHAIR  WOOL,  in  response to  Representative  Hannan,  said  the                                                               
Alaska  State  Fair  was previously  using  a  recreational  site                                                               
license, which is  grandfathered into SB 16 to  ensure they don't                                                               
lose any of the abilities they've had in the past.                                                                              
                                                                                                                                
3:39:58 PM                                                                                                                    
                                                                                                                                
JEROME HERTEL, Manager, Alaska State  Fair, opined that Amendment                                                               
2 would restrict the fair's  ability to develop off-season events                                                               
and  to  generate  revenue  for  such events.    He  noted  that,                                                               
currently, they  use a special  events permit, which  are limited                                                               
permits, for  their off-season  events.   He said  he is  more in                                                               
favor  of  keeping  the  current language  that  allows  them  to                                                               
provide those services to the community.                                                                                        
                                                                                                                                
CHAIR WOOL  offered his understanding  that the fair was  using a                                                               
recreational  site license  until  December  2018, which  allowed                                                               
them to do events there.                                                                                                        
                                                                                                                                
MR. HERTEL deferred to Erika McConnell.                                                                                         
                                                                                                                                
3:42:26 PM                                                                                                                    
                                                                                                                                
MS.  MCCONNELL offered  her understanding  that  in general,  the                                                               
fair was using  a recreational site license to  operate a variety                                                               
of  events  throughout the  year;  however,  there was  an  issue                                                               
involving  events on  portions of  their  licensed premises  that                                                               
accommodated unaccompanied minors.   She worked with  the fair to                                                               
develop and  alternating premises system, which  is allowed under                                                               
regulation.   She opined that there  was no need for  the fair to                                                               
use permits  while using their  license for various  events year-                                                               
round.                                                                                                                          
                                                                                                                                
CHAIR WOOL  speculated that if  they use their  grandfathered rec                                                               
site license they could continue with  their events.  He asked if                                                               
that were true.                                                                                                                 
                                                                                                                                
MS. MCCONNELL answered yes.                                                                                                     
                                                                                                                                
CHAIR WOOL  asked Mr.  Hertel if he's  considered buying  BDL for                                                               
the events he puts on every year.                                                                                               
                                                                                                                                
MR. HERTEL asked if  the fair would qualify for a  BDL.  He noted                                                               
that regarding their  annual events, not all  75 utilize alcohol.                                                               
He said that approximately 15-20 events serve alcohol.                                                                          
                                                                                                                                
3:45:14 PM                                                                                                                    
                                                                                                                                
SENATOR MICCICHE  said he drafted  this bill to support  an event                                                               
that  all  Alaskans  enjoy.    He  acknowledged  that  it  is  an                                                               
expensive  event  and pointed  out  that  the fair  utilizes  the                                                               
earnings  from  alcohol  to provide  programs  for  children  and                                                               
agriculture.   He  emphasized that  it's an  important event  for                                                               
Alaskans  and taking  a step  that  could potentially  negatively                                                               
impact the  fair is dangerous.   He  stated that he  supports the                                                               
first part of Amendment 1  and expressed concern about the second                                                               
part.                                                                                                                           
                                                                                                                                
CHAIR  WOOL offered  his  understanding  that the  grandfathering                                                               
section alone would  keep the fair running as is.   He noted that                                                               
the intent  was to help  future fairs  that want to  sell alcohol                                                               
increase their revenue and sustainability.   He reemphasized that                                                               
the  grandfathering  section  would  preserve  the  Alaska  State                                                               
Fair's successful business model, while  the fair license on page                                                               
2, line 17, would enable future  fairs to join that elite club of                                                               
fairs that  keep their own  alcohol revenue.   He stated  that he                                                               
likes the language offered in the amendment.                                                                                    
                                                                                                                                
3:47:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REVAK  suggested postponing  this discussion  to a                                                               
later date.                                                                                                                     
                                                                                                                                
3:48:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES reminded  members that  the fair  won't be                                                               
impeded by having their events  and could continue to operate the                                                               
same way that they always have.   She asked Ms. McConnell if that                                                               
were true.                                                                                                                      
                                                                                                                                
MS. MCCONNELL affirmed that.                                                                                                    
                                                                                                                                
3:48:38 PM                                                                                                                    
                                                                                                                                
SENATOR MICCICHE said if that's the case and this doesn't                                                                       
[negatively] impact the fair then he supports it.  He expressed                                                                 
his support for Amendment 3 as well.                                                                                            
                                                                                                                                
3:49:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES removed her objection to Amendment 2.                                                                     
There being no further objection, Amendment 2 was adopted.                                                                    
                                                                                                                                
3:49:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL moved Amendment 3, [labeled 31-LS0283\O.3, Bruce,                                                                 
5/11/19], which read:                                                                                                           
                                                                                                                                
     Page 2, lines 23 - 27:                                                                                                     
          Delete all material and insert:                                                                                       
               "(2)  may only provide entertainment on the                                                                      
     licensed premises  between the hours of  11:00 a.m. and                                                                
     7:00 p.m. or  3:00 p.m. and 11:00 p.m.  as permitted in                                                            
     (h) of  this section,  unless approved by  the director                                                                
     after written  request by the  licensee for  a specific                                                                    
     occasion   [;   IN  THIS   PARAGRAPH,   "ENTERTAINMENT"                                                                    
     INCLUDES  DANCING,   KARAOKE,  LIVE   PERFORMANCES,  OR                                                                    
     SIMILAR ACTIVITIES,  BUT DOES  NOT INCLUDE  RECORDED OR                                                                    
     BROADCAST PERFORMANCES WITHOUT LIVE PARTICIPATION]."                                                                       
                                                                                                                                
     Page 2, following line 27:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "*  Sec. 3.  AS 04.11.100 is  amended by  adding new                                                                
     subsections to read:                                                                                                       
          (h)  An applicant for initial licensure or                                                                            
     renewal of  a restaurant or eating  place license shall                                                                    
     select, at  the time of application,  whether to permit                                                                    
     entertainment  on  the  licensed premises  between  the                                                                    
     hours of 11:00 a.m. and  7:00 p.m. or between the hours                                                                    
     of 3:00 p.m.  and 11:00 p.m. A licensee  may not change                                                                    
     the   permitted  hours   of  entertainment   until  the                                                                    
     licensee  submits an  application  for  renewal of  the                                                                    
     license.                                                                                                                   
          (i)  In this section, "entertainment" includes                                                                        
        dancing, karaoke, live performances, or similar                                                                         
     activities, but does not include recorded or broadcast                                                                     
     performances without live participation."                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 8, line 25:                                                                                                           
          Delete "sec. 6"                                                                                                       
          Insert "sec. 7"                                                                                                       
                                                                                                                                
     Page 9, line 2:                                                                                                            
          Delete "Section 6"                                                                                                    
          Insert "Section 7"                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES objected for the purpose of discussion.                                                                   
                                                                                                                                
3:49:25 PM                                                                                                                    
                                                                                                                                
MS. STRAUCH explained that Amendment  3 would allow a business to                                                               
choose  between the  11:00 a.m.  to 7:00  p.m. timeframe  and the                                                               
3:00 p.m.  to 11:00  p.m. timeframe  to provide  entertainment on                                                               
the  licensed premises.    After the  two-year  duration of  that                                                               
business's license they could  change their designation; however,                                                               
for  the  duration of  that  two-year  license period,  whichever                                                               
timeframe they choose they must abide by.                                                                                       
                                                                                                                                
3:50:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  expressed her  full support  for Amendment                                                               
3.                                                                                                                              
                                                                                                                                
CHAIR WOOL  noted that this  amendment allows businesses  to have                                                               
the option of providing entertainment during lunch hour.                                                                        
                                                                                                                                
3:51:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  removed  her objection  to  Amendment  3.                                                               
There being no further objection, Amendment 3 was adopted.                                                                      
                                                                                                                                
3:52:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to  report HCS  CSSB  16,  Version                                                               
LS0283\O,  Bruce,  5/4/19,  out   of  committee  with  individual                                                               
recommendations  and  the  accompanying fiscal  notes.    Without                                                               
objection, HCS  CSSB 16(L&C) was  moved from the House  Labor and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
3:52:42 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:52 to 3:55 p.m.                                                                            
                                                                                                                                
        SB  83-TELECOMMUNICATIONS REGULATION/EXEMPTIONS                                                                     
                                                                                                                                
3:55:48 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL  announced that the  final order of business  would be                                                               
SENATE  BILL  NO.   83,  "An  Act  relating   to  the  Regulatory                                                               
Commission of  Alaska; relating to the  public utility regulatory                                                               
cost charge;  relating to  the regulation  of telecommunications;                                                               
relating  to   exemptions,  charges,  and  rates   applicable  to                                                               
telecommunications   utilities;   relating   to   regulation   of                                                               
telephone   services;   and   relating  to   alternate   operator                                                               
services."                                                                                                                      
                                                                                                                                
3:56:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  inquired as  to  the  meaning of  "rates,                                                               
terms, and  conditions of service"  in Section  7.  He  asked if,                                                               
for example, the existence of service is a condition of service.                                                                
                                                                                                                                
3:57:21 PM                                                                                                                    
                                                                                                                                
BOB  PICKETT,  Commissioner,  Regulatory  Commission  of  Alaska,                                                               
deferred to Stuart Goering.                                                                                                     
                                                                                                                                
3:57:30 PM                                                                                                                    
                                                                                                                                
STUART  GOERING, Attorney,  Department  of Law,  said the  simple                                                               
answer  is yes,  the circumstances  under which  someone acquires                                                               
service  from  a  utility  is   included  within  the  terms  and                                                               
conditions of service.                                                                                                          
                                                                                                                                
3:57:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS  asked   if   that   would  include   the                                                               
preservation  of  service;  for   example,  would  withdrawal  of                                                               
service be a change in the conditions of service.                                                                               
                                                                                                                                
MR.  GOERING  answered  yes,  any terms  that  might  affect  the                                                               
discontinuance  of  service  would  be a  term  or  condition  of                                                               
service.                                                                                                                        
                                                                                                                                
REPRESENTATIVE FIELDS  asked Mr.  Goering to address  meanings of                                                               
"incumbent  local  exchange  carrier" versus  "competitive  local                                                               
exchange carrier" in subsections (l) and (m) of section 7.                                                                      
                                                                                                                                
MR. GOERING  explained that an  incumbent local  exchange carrier                                                               
(ILEC)  is the  first local  exchange carrier  to an  area.   Any                                                               
carrier  that  comes after  that  would  be a  competitive  local                                                               
exchange  carrier  (CLEC).    He   added  that  those  terms  are                                                               
exclusive of one another.                                                                                                       
                                                                                                                                
REPRESENTATIVE FIELDS  questioned whether there are  carriers who                                                               
provide  basic residential  telephone  service  that are  neither                                                               
ILEC or CLEC and are not encompassed in section 7.                                                                              
                                                                                                                                
MR.  GOERING said  his initial  reaction is  no, ILECS  and CLECS                                                               
provide   all   basic   residential  local   telephone   service.                                                               
Nonetheless, he  said he could  stand to be corrected  by someone                                                               
in the  industry who knows of  a small segment that  he's unaware                                                               
of.                                                                                                                             
                                                                                                                                
4:02:44 PM                                                                                                                    
                                                                                                                                
JIMMY JACKSON,  Regulatory Attorney, General  Communication Inc.,                                                               
in response  to Representative Fields,  explained that  any local                                                               
carrier is either  an ILEC or CLEC, there would  not be any local                                                               
exchange carriers that are outside the scope of either one.                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS asked if Section  7 effectively prohibits a                                                               
carrier from withdrawing service from  an area that is uneconomic                                                               
to serve.                                                                                                                       
                                                                                                                                
4:03:29 PM                                                                                                                    
                                                                                                                                
MR. PICKETT noted  that there is also a "certificate  issue."  He                                                               
said  that  abandonment  of  service is  a  type  of  certificate                                                               
(indisc.), adding that  he only experienced that one  time with a                                                               
small  community  called Healy  Lake,  which  involved the  power                                                               
company,  the  local exchange  carrier,  and  the inner  exchange                                                               
carrier, AT&T.   After the proceeding the  commission declined to                                                               
allow them to abandon service in that area.                                                                                     
                                                                                                                                
REPRESENTATIVE  FIELDS said  he  is not  sure  that answered  his                                                               
previous question.   He repeated  his question, "does  section 7,                                                               
by  requiring uniform  rates, terms  and  conditions of  service,                                                               
prohibit carriers from eliminating service that is uneconomic."                                                                 
                                                                                                                                
4:04:30 PM                                                                                                                    
                                                                                                                                
MR.  GOERING   replied  that  AS  42.05.261   would  prevent  the                                                               
discontinuance,   suspension  or   abandonment  of   certificated                                                               
service.   He noted that the  language in Section 7  does suggest                                                               
that if  there was, for example,  a provision in the  tariff that                                                               
said  service in  a  particular area  could  be discontinued,  it                                                               
would have to be done in  a way that the conditions were uniform.                                                               
If the carrier  did have reason to discontinue  service, it would                                                               
have to  be done on  a uniform  basis as opposed  to selectively.                                                               
He offered his belief that  the exact interaction of AS 42.05.261                                                               
and  the new  language  in  AS 42.05.381  (l)  and  (m) would  be                                                               
subject to debate if that happened.                                                                                             
                                                                                                                                
REPRESENTATIVE  FIELDS  stressed the  need  to  have the  correct                                                               
understanding of what the language does.                                                                                        
                                                                                                                                
MR. GOERING  said the  fact that AS  42.05.261 would  continue to                                                               
apply  to telecommunication  carriers would  prevent the  carrier                                                               
from discontinuing  service in a certificated  area without prior                                                               
approval.  He said that provision  is not identical to carrier of                                                               
last resort (COLR), but it would service the same purpose.                                                                      
                                                                                                                                
REPRESENTATIVE  FIELDS  pointed  out  that section  7  refers  to                                                               
residential  local  telephone  service.    He  asked  if  private                                                               
businesses are not included in this language presently.                                                                         
                                                                                                                                
MR. GOERING said  carriers have tariffs, which  define what their                                                               
classes of service  are, and the Regulatory  Commission of Alaska                                                               
(RCA)  regulations require  that carriers  offer residential  and                                                               
business service as  separate classes of service.   He noted that                                                               
the  later  would  be  annulled   by  this  bill  and  how  basic                                                               
residential  telephone service  is defined  would be  less clear.                                                               
He  acknowledged that  there  would be  classes  of service  that                                                               
would not be  covered by the scope of subsections  (l) and (m) of                                                               
Section 7, including business service or commercial service.                                                                    
                                                                                                                                
4:08:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  sought   clarification  the  distinctions                                                               
between types of service that would be annulled by this bill.                                                                   
                                                                                                                                
MR. GOERING said  that, currently, the classes of  service that a                                                               
particular carrier  offers are  defined by  their tariff.   Under                                                               
this bill,  the carrier  would no  longer be  required to  have a                                                               
tariff.   It  would be  up  to the  carrier to  define who  would                                                               
qualify  for what  class of  service and  it would  no longer  be                                                               
within the scope of AS 42.05 ability to control.                                                                                
                                                                                                                                
REPRESENTATIVE  FIELDS  asked Mr.  Goering  to  define the  other                                                               
classes of service.                                                                                                             
                                                                                                                                
MR.  GOERING  said  it  varies;  however,  basic  distinction  is                                                               
between residential  and business  or residential  and commercial                                                               
service.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  FIELDS  asked  if  business  and  commercial  are                                                               
interchangeable terms.                                                                                                          
                                                                                                                                
MR.  GOERING  reiterated  that,   currently,  the  carriers  have                                                               
definitions  of their  classes of  service within  their tariffs.                                                               
Therefore, depending on the carrier  there might be a distinction                                                               
drawn  between  different classes  of  services,  which would  be                                                               
defined.   For example, a  particular carrier might have  a class                                                               
of service that  they call "basic business" and  another class of                                                               
service called "large  commercial," in which case  there would be                                                               
a distinction.   Alternatively, they might have one  or the other                                                               
and refer  to one kind either  way.  Regardless, the  name of the                                                               
service and how one qualifies for it is defined by the tariff.                                                                  
                                                                                                                                
4:11:26 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL asked for definition of the term tariff.                                                                             
                                                                                                                                
MR.  GOERING  said  for  the purposes  of  public  utilities  and                                                               
pipeline carriers,  the tariff is  the document  that establishes                                                               
all  rates,   terms,  and  conditions   of  service   that  their                                                               
certificated service is offered under.   Essentially, he said, it                                                               
is  the  contract between  carrier  and  their customer  that  is                                                               
publicly  available  and  can  only   be  revised  under  certain                                                               
procedures under AS 42.05.                                                                                                      
                                                                                                                                
CHAIR  WOOL asked  if  by  getting rid  of  the  tariff, the  RCA                                                               
wouldn't  have  to look  at  large  filings,  which is  the  main                                                               
impetus of bill.                                                                                                                
                                                                                                                                
MR. GOERING said  he thinks that is true, as  the sponsors intent                                                               
is to  streamline the process.   Nonetheless, whether there  is a                                                               
tariff or not, there must be  terms and conditions of service and                                                               
rates that people  pay, and the business must make  that known to                                                               
their  customers.   He said  even though  there won't  be tariffs                                                               
that are filed  with the RCA, there will still  be something that                                                               
defines the  rules and costs,  it just  won't be called  a tariff                                                               
anymore.                                                                                                                        
                                                                                                                                
CHAIR  WOOL asked  if it  would define  a residential  service as                                                               
separate than  a business or  commercial service.   He questioned                                                               
whether somewhere in the industry  those distinctions would still                                                               
be made.                                                                                                                        
                                                                                                                                
MR. GOERING offered his understanding  that their intention would                                                               
be to put those things on  their website; however, it wouldn't be                                                               
in a  document as  formal as  a tariff, they  would migrate  to a                                                               
plainer language file.                                                                                                          
                                                                                                                                
4:14:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS asked  if there  is  a way  to write  that                                                               
language to  ensure that Section  7 protections are  provided for                                                               
business  and commercial,  while recognizing  that those  classes                                                               
are fluid under this bill.                                                                                                      
                                                                                                                                
MR.  GOERING offered  his  belief  that many  of  the classes  of                                                               
service  will be,  in some  locations, classes  of one  and small                                                               
classes subject to negotiated rates.   The idea of uniformity was                                                               
probably deliberate.   the  intention was  for residential  to be                                                               
protected by  uniform rates  but to  allow larger  customers that                                                               
may  have unique  circumstances  the ability  negotiate with  the                                                               
carrier.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  FIELDS   asked  if,   setting  aside   those  who                                                               
negotiate special  rates, it would  be advantageous to  make sure                                                               
this  language includes  the respective  classes of  services and                                                               
not merely limit it to residential.                                                                                             
                                                                                                                                
MR. GOERING deferred policy questions to Commissioner Pickett.                                                                  
                                                                                                                                
4:17:21 PM                                                                                                                    
                                                                                                                                
MR. PICKETT said the tariffs  are information type filing for the                                                               
commission;  therefore, when  a particular  carrier redefines  or                                                               
changes their classes of service it is approved.                                                                                
                                                                                                                                
REPRESENTATIVE FIELDS  reemphasized his  desire to  cover certain                                                               
classes of services  with the important caveat  that it shouldn't                                                               
be  so  far reaching  that  it  inadvertently precluded  a  local                                                               
school  district, for  example, from  negotiation more  favorable                                                               
rates.                                                                                                                          
                                                                                                                                
4:18:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked Mr. Goering  if he has  any concerns                                                               
from his  legal perspective  that this  bill leaves  consumers in                                                               
Alaska at a disadvantaged position.                                                                                             
                                                                                                                                
MR.   GOERING   observed   that    to   the   extent   that   the                                                               
telecommunications industry is  no longer economically regulated,                                                               
there's an  argument that  the Department of  Law has  a consumer                                                               
protection function.   He  continued by saying  the purpose  of a                                                               
tariff is  to make  the rates, terms,  and conditions  of service                                                               
clear  to  public,  and eliminating  that  without  something  to                                                               
replace it with does raise the  question of how someone will know                                                               
what they  are paying in  regard to what  his or her  neighbor is                                                               
paying.  He indicated a new normal will have to be worked out.                                                                  
                                                                                                                                
4:23:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO  recalled his  own experience  looking at                                                               
tariffs on  the RCA website.   He  wondered how many  people have                                                               
gone online  to look at  the rates  instead of being  informed by                                                               
their  carrier.   He  said  tariffs  appear  to be  a  reasonably                                                               
complicated  legal docket  and  questioned  how much  information                                                               
they actually provide.                                                                                                          
                                                                                                                                
CHAIR  WOOL acknowledged  that he  has never  looked at  a tariff                                                               
document.                                                                                                                       
                                                                                                                                
4:24:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  agreed  and  said  she  is  feeling  more                                                               
assured that this  wouldn't change how the public  will get their                                                               
information.  If  someone is keeping landline  at their property,                                                               
she said, it's for something like bad cell service, she said.                                                                   
                                                                                                                                
CHAIR  WOOL stated  that  they  have heard  from  places with  no                                                               
cellphone  service expressing  concern that  there could  be poor                                                               
quality or  intermittent service. He  asked if the RCA  loses any                                                               
authority to  enforce quality or  consistency of service  if this                                                               
bill  were to  pass.   He asked  if the  RCA has  recourse for  a                                                               
community that goes without service 30 percent of the time.                                                                     
                                                                                                                                
4:26:30 PM                                                                                                                    
                                                                                                                                
MR. PICKETT said  yes, they do have recourse.   He explained that                                                               
after receiving a complaint the  staff will continue to work with                                                               
whoever  submitted it  as  well  as the  carrier.    He said  the                                                               
carriers need to be reactive  and responsive to these complaints.                                                               
He said  at the  end of  the day, the  RCA still  has certificate                                                               
power  and   he  anticipates  that  going   forward,  the  Alaska                                                               
Universal Service Fund  (AUSF) will be the tool that  they use to                                                               
address these rural communities in Alaska.                                                                                      
                                                                                                                                
CHAIR WOOL  asked if COLR gets  funds from AUSF to  maintain that                                                               
COLR line.                                                                                                                      
                                                                                                                                
MR.  PICKETT said  no, effective  January 1,  2019, COLR  funding                                                               
from the  AUSF does not exist.   The entire fund  has been capped                                                               
at  half  and  the  remaining support  is  in  essential  network                                                               
services.                                                                                                                       
                                                                                                                                
MR.  PICKETT,  responding  to   a  question  from  Representative                                                               
Stutes, said regulatory cost charge  (RCC) revenues are portioned                                                               
among  the various  industry groups.    It is  an annual  process                                                               
based on the  RCA's actual costs, which includes  staff costs and                                                               
administrative overhead for each sector.                                                                                        
                                                                                                                                
4:30:34 PM                                                                                                                    
                                                                                                                                
SENATOR  CHRIS  BIRCH, Alaska  State  Legislature,  said this  is                                                               
piece    of   legislation    has    full    support   from    the                                                               
telecommunications industry and  the RCA.  He stated  that it's a                                                               
deregulation bill "that does a lot of good work."                                                                               
                                                                                                                                
4:31:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS,  referencing an  email from  Ms. O'Connor,                                                               
asked  why business  rates that  apply  to schools  are lower  in                                                               
rural areas than in urban areas.                                                                                                
                                                                                                                                
4:32:21 PM                                                                                                                    
                                                                                                                                
CHRISTINE   O'CONNOR,   Executive    Director,   Alaska   Telecom                                                               
Association,  said  one theory  is  that  urban areas  have  more                                                               
complex business  systems and services  leading to a  higher bulk                                                               
in  sheer numbers  of business  lines.   She added  that business                                                               
rates need  less protection  than residential  rates due  to more                                                               
competition between higher revenue customers.                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS asked  if a rural school is  a big customer                                                               
by industry standard.                                                                                                           
                                                                                                                                
MS. O'CONNOR said  in each community the school is  most likely a                                                               
large customer;  however, it would  depend on the  perspective of                                                               
the provider.                                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS  asked if Mr. Pickett  agreed that business                                                               
rates tend to be lower in rural areas.                                                                                          
                                                                                                                                
MR. PICKETT said he has yet to see a "full-blown" rate case.                                                                    
                                                                                                                                
4:35:06 PM                                                                                                                    
                                                                                                                                
MR.  JACKSON echoed  Mr. Pickett's  sentiments, adding  that they                                                               
were all  surprised by  the aforementioned  findings and  are not                                                               
sure  how  to  explain them.    He  said  it  may be  an  unusual                                                               
circumstance.                                                                                                                   
                                                                                                                                
CHAIR WOOL explained that more  competition in urban areas should                                                               
drive the  rates down  if they are  all competing  for particular                                                               
contracts.  Whereas in rural  communities with one school and one                                                               
carrier,  it becomes  more of  a monopoly.   He  opined that  the                                                               
findings are  counterintuitive and  asked if Ms.  O'Connor wished                                                               
to comment.                                                                                                                     
                                                                                                                                
4:36:18 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR related that the  third largest landline provider in                                                               
the state said raising business  rates is the farthest thing from                                                               
their mind because they want to  keep their customers.  She added                                                               
landline is important, but it's a small portion of the business.                                                                
                                                                                                                                
CHAIR WOOL sought to clarify her  answer and asked if schools and                                                               
hospitals are subsidized.                                                                                                       
                                                                                                                                
MS. O'CONNOR answered  yes, adding that it's common  to see these                                                               
services  bundled together.   She  said that  schools and  health                                                               
care are  heavily subsidized through  the federal  government and                                                               
separate  programs under  the AUSF.    All of  which have  strict                                                               
rules.     In the  case of  schools, there  are confidential  RFC                                                               
procedures to get the lowest rates possible.                                                                                    
                                                                                                                                
CHAIR WOOL expressed concern about  communities with poor quality                                                               
or intermittent  service and a landline-only  option, like Prince                                                               
of Wales  Island, for  example.   He said he  would like  to make                                                               
certain that  there is  no license  for loss  of service  if this                                                               
bill were to pass.                                                                                                              
                                                                                                                                
MS.  O'CONNOR  replied  that   service  providers  are  currently                                                               
working  to  establish  LTE  service   and  upgrades  for  mobile                                                               
broadband in communities like Prince  of Wales Island, Craig, and                                                               
Klawock.   She  maintained  that outages  are  an aberration  and                                                               
unexpected.  She  said that the Alaska  Telecom Association (ATA)                                                               
discussed  outage   reporting  with  the  RCA   and  assured  the                                                               
commission that  they would continue  to report outages if  SB 83                                                               
were to  pass.  She added  that the RCA, through  its certificate                                                               
authority, holds the  ability to stop and start  service, as well                                                               
as to open a docket on negligent actions made by carriers.                                                                      
                                                                                                                                
4:41:54 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL asked if there was  concern that the AUSF is capped at                                                               
10 percent.                                                                                                                     
                                                                                                                                
MS. O'CONNOR  explained that the  AUSF was reformed  and changed.                                                               
Part of  that change, effective January  1, 2019, was a  cap that                                                               
reduced  the   fund  by  between   one-third  and   one-half  and                                                               
eliminated the payments for COLR.   It also retained a portion of                                                               
the fund  being paid  to carriers  and renamed  Essential Network                                                               
Support,  which supports  intrastate telecommunication  services.                                                               
As part  of that  reform, she  said, the  commission will  open a                                                               
docket in 2021 with the goal of explicitly funding broadband.                                                                   
                                                                                                                                
MS.  O'CONNOR,   in  response  to   a  follow-up   question  from                                                               
Representative Wool,  reiterated that  the fund  is capped  at 10                                                               
percent which reduced the revenue between one-third and one-                                                                    
half.                                                                                                                           
                                                                                                                                
CHAIR  WOOL   sought  clarification  on  whether,   without  COLR                                                               
designation, last  carriers would still  receive help.   He asked                                                               
where that help would come from.                                                                                                
                                                                                                                                
MS. O'CONNOR  said the "old"  AUSF had multiple segments  and was                                                               
paying for  different functions,  including a  portion explicitly                                                               
for COLR.  The largest  portion reimbursed companies for "carrier                                                               
common line cost,"  with the intention of  lowering instate long-                                                               
distance rates.                                                                                                                 
                                                                                                                                
CHAIR WOOL announced that the  committee would take up amendments                                                               
to SB 83.                                                                                                                       
                                                                                                                                
4:46:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt Amendment 1, [labeled 31-                                                                  
LS0563\M.6, Fisher, 5/10/19], which read:                                                                                       
                                                                                                                                
     Page 2, line 1:                                                                                                            
          Delete "new subsections"                                                                                              
          Insert "a new subsection"                                                                                             
                                                                                                                                
     Page 2, lines 2 - 5:                                                                                                       
          Delete all material.                                                                                                  
                                                                                                                                
     Page 2, line 6:                                                                                                            
          Delete "(f)"                                                                                                          
          Insert "(e)"                                                                                                          
                                                                                                                                
     Page 3, following line 28:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec. 8.  AS 42.05  is amended  by  adding a  new                                                                
     section to read:                                                                                                           
          Sec. 42.05.566. Civil penalty related to service                                                                    
     outages in  areas served by  a carrier of  last resort.                                                                  
     (a)  The  commission  may  designate  an  interexchange                                                                    
     carrier as a carrier of  last resort to provide service                                                                    
     in a particular area.                                                                                                      
          (b)  The commission may impose a penalty of up to                                                                     
     $10,000 on  a carrier  of last resort  designated under                                                                    
     (a) of this  section if the carrier  fails to implement                                                                    
     repairs necessary  to end a  service outage in  an area                                                                    
     in which it has carrier of last resort obligations."                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE REVAK objected.                                                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS proposed a conceptual amendment to                                                                        
Amendment 1, which would remove lines 1-10 relating to COLR.                                                                    
                                                                                                                                
CHAIR WOOL pointed out that the current daily penalty is $100.                                                                  
He opined that raising it to $10,000 is too much.                                                                               
                                                                                                                                
4:47:53 PM                                                                                                                    
                                                                                                                                
MR.  GOERING observed  that, although  members from  the ATA  say                                                               
they  will continue  to report  outages,  as SB  83 is  currently                                                               
written the  RCA could not  enforce that.   He explained  that AS                                                               
42.05.141  (a)(5)  is  the  current  mechanism  that  allows  the                                                               
commission to require utilities to  file reports.  He pointed out                                                               
that under  SB 83, telecommunications carriers  would be exempted                                                               
from that  statute.  He  added that  this may lead  to unreported                                                               
outages, which could result to difficult implementation.                                                                        
                                                                                                                                
4:49:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  emphasized the  necessity to  maintain the                                                               
requirement that  outages are reported.   He indicated  that this                                                               
bill  should  structure  policy   to  protect  consumers  without                                                               
relying on  the good will  of businesses.   He asked  Mr. Goering                                                               
what to change to ensure the requirement of reporting outages.                                                                  
                                                                                                                                
MR.  GOERING  suggested  conceptually   that  language  could  be                                                               
drafted for this  section that requires outages be  reported in a                                                               
certain period of time, or  that outages be required as specified                                                               
in regulations  to be adopted by  the RCA.  The  other option, he                                                               
said,  is to  remove AS  42.05.141 (a)(5)  from the  exemption so                                                               
that general reporting could continue to be required.                                                                           
                                                                                                                                
MR. GOERING  directed attention  to Section  8 of  the bill.   He                                                               
said that  if SB 83 were  to pass as it's  currently written, the                                                               
reporting requirement  for utilities  providing telecommunication                                                               
services would be terminated.                                                                                                   
                                                                                                                                
4:52:19 PM                                                                                                                    
                                                                                                                                
SENATOR BIRCH expressed concern  with rushing the process, adding                                                               
that he  only received the  seven amendments shortly  before this                                                               
meeting.  He  stated that he is not supportive  of Amendment 1 or                                                               
any of  them.  He emphasized  the need for dialogue  and said, as                                                               
the bill sponsor, he would have appreciated it.                                                                                 
                                                                                                                                
4:55:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  voiced  her opposition  to  Amendment  1,                                                               
offering her belief  that allowing service outages is  not to the                                                               
benefit of any provider.                                                                                                        
                                                                                                                                
4:56:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS asked  if  there were  suggestions for  an                                                               
alternative penalty fee,  adding that the current  amount of $100                                                               
seems meaningless.                                                                                                              
                                                                                                                                
4:56:43 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR pointed out that  the statute in question applies to                                                               
all utilities not  just telecom.  She acknowledged  that $100 per                                                               
day is outdated;  however, she said the statute  is structured to                                                               
apply to all utilities.  She  offered her belief that changing it                                                               
should be a separate matter.                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS said  there  will  be economic  conditions                                                               
under  which carriers  become  monopolies in  Alaska  due to  the                                                               
state's geography.   He  added that [the  service outage]  in his                                                               
colleague's  district seems  to indicate  that sometimes  there's                                                               
not   an  economic   imperative   to  fix   an  outage   quickly;                                                               
consequently, he said he will continue to offer the amendment.                                                                  
                                                                                                                                
CHAIR WOOL suggested changing the penalty to $1,000.                                                                            
                                                                                                                                
REPRESENTATIVE STUTES made a call for the question.                                                                             
                                                                                                                                
4:58:16 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:58:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS   said,  "I've   accepted  that   I  think                                                               
amendment to the amendment, so it would be $1,000 daily fine."                                                                  
                                                                                                                                
4:59:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked Commissioner  Pickett whether the RCA                                                               
has the  ability to adjust  penalties via regulation, or  if it's                                                               
done via statute.                                                                                                               
                                                                                                                                
MR.  PICKETT  said they  have  not  addressed directly  addressed                                                               
fines  and   penalties,  primarily  due  to   significant  issues                                                               
regarding potential reform  of the utilities that  they have been                                                               
working on.                                                                                                                     
                                                                                                                                
REPRESENTATIVE HANNAN  questioned whether  the RCA's  report will                                                               
indicate  a   penalty  change  for  utilities   addressed  across                                                               
multiple  sectors  of  regulated  utilities, which  can  be  done                                                               
without a statutory change.                                                                                                     
                                                                                                                                
MR. PICKETT deferred to Mr. Goering.                                                                                            
                                                                                                                                
5:00:50 PM                                                                                                                    
                                                                                                                                
MR.  GOERING said  that the  specific statute  in question  is AS                                                               
42.05.571  (a), which  dates  back  to 1970  and  provides for  a                                                               
maximum penalty  of $100 per violation.   He pointed out  that AS                                                               
42.05.581 provides  that each violation  of any  order, decision,                                                               
regulation,  or  written  requirement  of  the  commission  is  a                                                               
separate and  distinct offense; therefore,  there is  an argument                                                               
that in  the case  of an  outage, every customer  who was  out of                                                               
service  for a  particular  day would  be  a separate  violation,                                                               
making it  $100 multiplied  by the  number of  effected customers                                                               
multiplied by  the number of  days the outage lasted.   Regarding                                                               
the increased penalty, the maximum  penalty of $100 per violation                                                               
is  in statute  and cannot  be  increased by  regulation; only  a                                                               
statutory amendment can change that.                                                                                            
                                                                                                                                
5:02:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  asked  what   other  utilities  might  be                                                               
affected.                                                                                                                       
                                                                                                                                
MR.  PICKETT  answered any  utilities  that  are subject  to  the                                                               
commission's  jurisdiction.   He  noted  that  the RCA  regulates                                                               
electric  utilities,  waste  providers,  and  natural  gas  local                                                               
distribution companies.                                                                                                         
                                                                                                                                
5:02:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  asked  if  the amendment  is  drafted  to                                                               
change the penalty for all those utilities.                                                                                     
                                                                                                                                
MR. GOERING said  that as it's currently written,  lines 12-23 of                                                               
Amendment  1, would  not apply  to  telecommunication carriers  -                                                               
unless  a  carrier had  been  designated  as  a COLR  to  provide                                                               
service in  a particular area.   Therefore, the  penalty wouldn't                                                               
be applicable to every telecommunications  carrier with an outage                                                               
-only a COLR with an outage - as it's drafted.                                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS said he's  only concerned in a monopolistic                                                               
environment where there's potentially no economic incentive.                                                                    
                                                                                                                                
CHAIR WOOL  added that it's a  penalty "of up to,"  which doesn't                                                               
make it  mandatory.  He  referenced the incident in  Kodiak where                                                               
an outage  lasted 47 days  and asked  if that provider  was fined                                                               
$4700.                                                                                                                          
                                                                                                                                
MR.  PICKETT answered  no,  adding that  no  proceeding had  been                                                               
started to initiate a $4700 fine against that carrier.                                                                          
                                                                                                                                
5:04:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  acknowledged that  the incident  in Kodiak                                                               
and  the fact  that  there's  not a  meaningful  penalty was  the                                                               
reason behind this amendment.                                                                                                   
                                                                                                                                
REPRESENTATIVE  TALERICO pointed  out that  Amendment 1  does not                                                               
define whether the penalty is daily, monthly, or annually.                                                                      
                                                                                                                                
5:05:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  said  the  intention  was  to  amend  the                                                               
maximum daily fine.                                                                                                             
                                                                                                                                
MR.  GOERING offered  his understanding  that  as it's  currently                                                               
drafted,  there appears  to be  a single  penalty per  failure to                                                               
implement  repairs;  therefore,  for each  failure  to  implement                                                               
repairs,  regardless of  how long  it lasts,  there could  be one                                                               
penalty of up to $10,000.                                                                                                       
                                                                                                                                
CHAIR WOOL reasoned  that the provider in Kodiak  could have been                                                               
fined $100 for 47 days of no service.                                                                                           
                                                                                                                                
MR. GOERING  clarified that  in current  statute it  does specify                                                               
"per day."  He reiterated  that each customer could be considered                                                               
a separate  act, making it  a proposed  civil penalty of  47 days                                                               
multiplied  by the  number of  people  that were  out of  service                                                               
multiplied by up to $100; which  would be $4700 multiplied by the                                                               
number of people who did not have service.                                                                                      
                                                                                                                                
CHAIR WOOL suggested that they were amending the wrong statute.                                                                 
                                                                                                                                
5:07:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS withdrew Amendment 1.                                                                                     
                                                                                                                                
5:08:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  moved to  adopt Amendment 2,  [labeled 31-                                                               
LS0563\M.8, Fisher, 5/10/19], which read:                                                                                       
                                                                                                                                
     Page 2, following line 7:                                                                                                  
     Insert a new subsection to read:                                                                                           
          "(g)  The commission shall adopt regulations                                                                          
     requiring a  telecommunications utility that  is exempt                                                                    
     from   certain  provisions   of   this  chapter   under                                                                    
     AS 42.05.711  to keep  records of  savings realized  by                                                                    
     the  telecommunications  utility  as a  result  of  the                                                                    
     exemption   and  to   invest  those   savings  in   the                                                                    
     maintenance and construction  of infrastructure serving                                                                    
     a public purpose."                                                                                                         
                                                                                                                                
     Page 3, line 31:                                                                                                           
          Delete "AS 42.05.141(e) and (f)"                                                                                      
          Insert "AS 42.05.141(e) - (g)"                                                                                        
                                                                                                                                
REPRESENTATIVE HANNAN objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE FIELDS  said there was  a discussion about  a lack                                                               
of  transparency with  respect to  subsidies that  are reinvested                                                               
into  infrastructure.    He  explained that  Amendment  2  is  an                                                               
insurance amendment  to guarantee  that any savings  or increases                                                               
in telecom  companies' profitability  related to passage  of this                                                               
bill is reinvested into infrastructure.                                                                                         
                                                                                                                                
5:09:12 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR  clarified that  the RCA  has complete  authority to                                                               
require  reporting around  the  AUSF.   She  added  that the  ATA                                                               
members follow  every compliance instituted  by the RCA  and must                                                               
be  in  compliance  to  continue to  receive  funds.    Regarding                                                               
Amendment 2,  she said it  would be a cumbersome  attempt, adding                                                               
that  telecom companies  have not  been cost-regulated  for 10-15                                                               
years.   She said the  processes are  not in place  and expressed                                                               
concern  that  this amendment  would  divert  resources from  ATA                                                               
members and the commission -  resources that would be much better                                                               
used looking at the AUSF or other issues.                                                                                       
                                                                                                                                
5:10:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES maintained her objection.                                                                                 
                                                                                                                                
A  roll call  vote was  taken.   Representative  Fields voted  in                                                               
favor  of Amendment  2.   Representatives Revak,  Hannan, Stutes,                                                               
Talerico,  Story,   and  Wool  voted  against   it.    Therefore,                                                               
Amendment 2 failed by a vote of 1-6.                                                                                            
                                                                                                                                
5:11:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS said he would not be offering Amendment 3.                                                                
                                                                                                                                
REPRESENTATIVE FIELDS moved to adopt Amendment 4, [labeled 31-                                                                  
LS0563\M.5, Fisher, 5/8/19], which read:                                                                                        
                                                                                                                                
     Page 4, lines 6 - 10:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR WOOL objected for purposes of discussion.                                                                                 
                                                                                                                                
REPRESENTATIVE  FIELDS explained  that  Amendment  4 removes  the                                                               
elimination  of   municipal  authority.     He  said  he   has  a                                                               
fundamental problem with the state  legislature taking away local                                                               
authority  that  currently  exists.   He  stated  that  there  is                                                               
already  strong  language  in Alaska's  constitution  related  to                                                               
local authority.                                                                                                                
                                                                                                                                
REPRESENTATIVE HANNAN objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE HANNAN  inquired as  to the  current circumstances                                                               
wherein  there   are  municipals   who  regulate   long  distance                                                               
telephone  companies within  their  municipality.   She asked  if                                                               
there could  be any  foreseen problems  if long  distance service                                                               
was  provided across  5  to  6 municipalities  and  one chose  to                                                               
participate   in  internal   regulations  within   its  municipal                                                               
boundaries but not in the entire service area.                                                                                  
                                                                                                                                
5:13:14 PM                                                                                                                    
                                                                                                                                
MR.  PICKETT said  that would  be  a problematic  situation.   He                                                               
added that  Ketchikan is the  only known local  municipally owned                                                               
telephone utilities.                                                                                                            
                                                                                                                                
MS. O'CONNOR confirmed that there  is one municipally owned local                                                               
exchange carrier,  Ketchikan Public Utilities, which  is overseen                                                               
by their city council.   She noted that currently, municipalities                                                               
do  not  regulate  long  distance   carriers  or  local  exchange                                                               
carriers  -  except in  the  case  where  the municipality  is  a                                                               
telephone company.                                                                                                              
                                                                                                                                
REPRESENTATIVE FIELDS  said Amendment 4  was not drafted  the way                                                               
he  envisioned.   He said  he intended  to strike  the additional                                                               
language on  page 4, line  8, "or  a local exchange  carrier," to                                                               
preserve current statute with respect to municipal preemption.                                                                  
                                                                                                                                
5:14:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked what kind of impact that would have.                                                                
                                                                                                                                
MS.   O'CONNOR  said   it   would  be   a   similar  problem   if                                                               
municipalities  began  regulating  the  local  landline  carriers                                                               
because several are  very large - United  Utilities, for example,                                                               
has 76 communities  across the state.  She said  a "patchwork" of                                                               
regulations  could  develop if  a  local  municipality wanted  to                                                               
regulate telecom.   She  offered her  understanding that  that is                                                               
preemptive because the RCA has  authority through the certificate                                                               
of public convenience and necessity.                                                                                            
                                                                                                                                
5:15:54 PM                                                                                                                    
                                                                                                                                
MR. JACKSON  acknowledged that there  is no  municipal regulation                                                               
of telecommunication at  this time.  He agreed  with Ms. O'Connor                                                               
that United  Utilities, owned  by GCI, serves  a large  number of                                                               
municipalities and  said it  would be a  "nightmare" if  each one                                                               
independently tried to regulate within their own area.                                                                          
                                                                                                                                
5:16:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS asked  why the  industry is  attempting to                                                               
add this  language if  they are already  preempted.   He asserted                                                               
that this  substantial deregulation of a  regulated industry that                                                               
is subsidized.   He said  he hopes  that it's the  right decision                                                               
and if it's not, local governments  should have the right to step                                                               
in  and   preserve  local  coverage   that  might   otherwise  be                                                               
eliminated  through  deregulation.   He  reiterated  the need  to                                                               
maintain local  authority, "at least  to the limited  extent that                                                               
it exists now."                                                                                                                 
                                                                                                                                
REPRESENTATIVE TALERICO  said appreciates  the intent  because he                                                               
supports local  government control.  He  addressed cross boundary                                                               
issues,  adding  that the  carrier  in  his area  stretches  into                                                               
another bureau.   He opined that from a  municipal standpoint, it                                                               
would  be much  easier to  be exempt  because Alaska's  geography                                                               
presents an obstacle.                                                                                                           
                                                                                                                                
REPRESENTATIVE HANNAN maintained her objection.                                                                                 
                                                                                                                                
5:19:19 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representative  Fields voted  in                                                               
favor  of Amendment  4.   Representatives Revak,  Hannan, Stutes,                                                               
Talerico,  Story,   and  Wool  voted  against   it.    Therefore,                                                               
Amendment 4 failed by a vote of 1-6.                                                                                            
                                                                                                                                
5:19:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS said  would not be offering  Amendment 5 or                                                               
Amendment 6 at this time.                                                                                                       
                                                                                                                                
5:20:25 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 5:20 to 5:27 p.m.                                                                            
                                                                                                                                
5:27:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  moved to  adopt Amendment 7,  [labeled 31-                                                               
LS0563\M.9, Fisher, 5/10/19], which read:                                                                                       
                                                                                                                                
     Page 4, line 1:                                                                                                            
          Following "42.05.306,":                                                                                               
          Insert "42.05.361,"                                                                                                   
          Following "42.05.381 (l) - (n),":                                                                                     
          Insert "42.05.391, 42.05.411,"                                                                                        
                                                                                                                                
REPRESENTATIVE STUTES objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE FIELDS  explained that Amendment 7  would preserve                                                               
the   filing  of   tariffs  and   preserve  the   prohibition  on                                                               
discrimination amongst  rate payers.   He said it's  difficult to                                                               
identify appropriate  language to  outline respective  classes of                                                               
service  without precluding  the  ability of  a  rural school  to                                                               
negotiate a  better rate than  the uniform rates.   Consequently,                                                               
this amendment ensures some protection for consumers.                                                                           
                                                                                                                                
CHAIR WOOL said he is still unsure what the language does.                                                                      
                                                                                                                                
REPRESENTATIVE  FIELDS  explained  that in  lieu  of  eliminating                                                               
COLR,  the  insertion of  Section  7  provides adequate  consumer                                                               
protection  for residential  telephone service;  however, concern                                                               
remains  regarding consumer  protection for  commercial carriers.                                                               
He said if  there was a way  to tweak Section 7  to provide those                                                               
consumer  protections   for  commercial  carriers  it   would  be                                                               
preferable  to Amendment  7.   Nonetheless,  he said  in his  own                                                               
inability  to do  adequately do  so,  he drafted  Amendment 7  to                                                               
provide   those  protections   for  commercial   carriers,  which                                                               
includes school districts.                                                                                                      
                                                                                                                                
5:30:25 PM                                                                                                                    
                                                                                                                                
MR.  GOERING  explained that  lines  2-3  of Amendment  7,  would                                                               
insert AS 42.05.361 which is  titled "Tariffs, contracts, filing,                                                               
and public inspection."  This  statute requires utilities to have                                                               
a complete tariff  on file, which means everything  they offer to                                                               
their customers,  as well as  the rates and terms  and conditions                                                               
of service for  those service offerings are in  a public document                                                               
that's on file  with the RCA.   He added that in  order to change                                                               
that there  must be  a filing.   This  amendment, he  said, would                                                               
maintain that  existing requirement.   He suggested  including AS                                                               
42.05.371 in addition to AS 42.05.361  on line 3 of the amendment                                                               
as a way to make the  consumer protection "truly meaningful."  He                                                               
said that  would ensure  the tariff  that is on  file at  the RCA                                                               
would be actually binding on the utility.                                                                                       
                                                                                                                                
MR.  GOERING  turned  attention  to lines  4-5  of  Amendment  7,                                                               
explaining  that  AS  42.05.391  is  titled  "discrimination  and                                                               
rates" and  prohibits utilities from charging  rates and requires                                                               
that all  similarly situated  customers be  treated substantially                                                               
alike.    AS  42.05.411,  he said,  is  procedural  section  that                                                               
describes  how a  utility provides  updates or  revisions to  its                                                               
tariffs.   However, he suggested  leaving out  subsection 411(c),                                                               
as  it is  at odds  with deregulation  of the  telecommunications                                                               
industry, which is seemingly the purpose of SB 83.                                                                              
                                                                                                                                
5:34:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS,  regarding Section  7, asked  Ms. O'Connor                                                               
if it's  possible to include  respective classes of service  in a                                                               
way that doesn't make all classes of service the same rate.                                                                     
                                                                                                                                
5:35:17 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR said no.  She  noted that in the business segment of                                                               
the  market, services  are migrating  to  voice-over IP  service,                                                               
which  is completely  unregulated.   She shared  her belief  that                                                               
trying to preserve any uniform  or regulatory construct over them                                                               
would  be burdensome  and inhibit  companies'  ability to  pursue                                                               
those contracts and respond to customer needs.                                                                                  
                                                                                                                                
CHAIR WOOL pondered the proposal to  require a tariff filing.  He                                                               
wondered how  that coincides  with SB  83 if  the purpose  of the                                                               
bill is  to remove tariffs.   He said  if there's no  tariff then                                                               
there's  no distinction  between residential  and other  kinds of                                                               
service.   He  questioned how  to reconcile  that.   He expressed                                                               
concern about protecting both  businesses and non-residential and                                                               
asked if there's a way to do that without requiring a tariff.                                                                   
                                                                                                                                
MS.  O'CONNOR  gave context  to  a  situation regarding  business                                                               
rates.   She said that currently  90 percent of Alaskans  live in                                                               
places  where companies  have  been able  to  change these  rates                                                               
without  permission, which  is why  there haven't  been any  rate                                                               
case filings to review because  the regulations have been changed                                                               
in response to  the industry.  She said,  "it's already happened,                                                               
were doing  a paper  shuffle to record  it with  the commission."                                                               
She  noted that  there  are  thousands of  pages  of tariffs  per                                                               
company, and  a web  services survey found  that .005  percent of                                                               
people looked  at the  tariffs posted  on one  company's website.                                                               
She said  she recognize  the concern, but  the ability  to change                                                               
rates and  services by notification is  already happening without                                                               
problem.    She asked  for  the  continuance of  this  successful                                                               
market practice  without the paper  shuffle.  She added  that co-                                                               
ops, which  make up  half the  providers in  this state,  are not                                                               
required to  file the  paperwork back and  forth.   Instead, they                                                               
just make changes in response to their customers.                                                                               
                                                                                                                                
CHAIR   WOOL  sought   clarification   on  "voice-over   internet                                                               
protocol" and what constitutes being a landline customer.                                                                       
                                                                                                                                
MS.  O'CONNOR explained  that landline  is  largely a  regulatory                                                               
construct.   She noted that  the technology underneath  could be,                                                               
for example,  internet or copper  wire; however, that  alone does                                                               
not make it a landline.                                                                                                         
                                                                                                                                
REPRESENTATIVE FIELDS  said he  shares the  concern over  lack of                                                               
protections  for  businesses,  and therefore,  will  continue  to                                                               
offer Amendment 7.                                                                                                              
                                                                                                                                
REPRESENTATIVE STUTES maintained her objection.                                                                                 
                                                                                                                                
5:42:49 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representative  Fields voted  in                                                               
favor  of Amendment  7.   Representatives  Story, Revak,  Hannan,                                                               
Stutes,  Talerico,  and  Wool  voted   against  it.    Therefore,                                                               
Amendment 7 failed by a vote of 1-6.                                                                                            
                                                                                                                                
5:44:05 PM                                                                                                                    
                                                                                                                                
SENATOR BIRCH thanked the committee  for taking time out of their                                                               
weekend this late  in the legislative session to  hear this bill.                                                               
He said he appreciated the dialogue and discussion.                                                                             
                                                                                                                                
[SB 83 was held over.]                                                                                                          
                                                                                                                                
5:44:42 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The House Labor and Commerce Standing Committee meeting was                                                                     
recessed at 5:44 p.m. to a call of the chair.  [The meeting was                                                                 
reconvened on May 12, 2019.]                                                                                                    
| Document Name | Date/Time | Subjects | 
|---|---|---|
| SB 16.Bill Version O.pdf | 
                    
HL&C       5/11/2019 11:00:00 AM | 
                
                    
SB  16 | 
            
| SB 16.Amendments 1-2.pdf | 
                    
HL&C       5/11/2019 11:00:00 AM | 
                
                    
SB  16 | 
            
| SB 16.Amendment 3.pdf | 
                    
HL&C       5/11/2019 11:00:00 AM | 
                
                    
SB  16 | 
            
| SB 83.Bill Version M.pdf | 
                    
HL&C       5/11/2019 11:00:00 AM | 
                
                    
SB  83 | 
            
| SB 83.Amendments 1-7.pdf | 
                    
HL&C       5/11/2019 11:00:00 AM | 
                
                    
SB  83 |