Legislature(2017 - 2018)BELTZ 105 (TSBldg)

04/04/2017 01:30 PM Senate LABOR & COMMERCE

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01:32:40 PM Start
01:33:40 PM Confirmation Hearings
01:48:52 PM SB80
02:39:16 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Governor's Appointees to State Boards and TELECONFERENCED
Commissions
Alaska Labor Relations Agency
Board of Examiners in Optometry
Board of Professional Counselors
-- Public Testimony --
*+ SB 80 TELECOMMUNICATIONS: DISABLED SUBSCRIBERS TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ SB 85 AK WORKFORCE INVESTMENT BOARD;FUNDS TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 4, 2017                                                                                          
                           1:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Shelley Hughes, Vice Chair                                                                                              
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Berta Gardner                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                           
                                                                                                                                
Board of Professional Counselors                                                                                                
     Debra Hamilton Appointee - Soldotna                                                                                        
                                                                                                                                
     - CONFIRMATION HEARD AND HELD                                                                                              
                                                                                                                                
Alaska Labor Relations Agency                                                                                                   
     Lee Holen - Anchorage                                                                                                      
                                                                                                                                
     - CONFIRMATION HEARD AND HELD                                                                                              
                                                                                                                                
Board of Examiners in Optometry                                                                                                 
     Erik Christianson - Ketchikan                                                                                              
                                                                                                                                
     - CONFIRMATION HEARD AND HELD                                                                                              
                                                                                                                                
SENATE BILL NO. 80                                                                                                              
"An Act relating to telecommunications services for certain                                                                     
disabled subscribers; and providing for an effective date."                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 85                                                                                                              
"An Act relating to allocations of funding for the Alaska                                                                       
Workforce Investment Board; and providing for an effective                                                                      
date."                                                                                                                          
                                                                                                                                
     -BILL HEARING CANCELED                                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  80                                                                                                                  
SHORT TITLE: TELECOMMUNICATIONS: DISABLED SUBSCRIBERS                                                                           
SPONSOR(s): SENATOR(s) COSTELLO                                                                                                 
                                                                                                                                
03/08/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/17       (S)       L&C, FIN                                                                                               
03/23/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/23/17       (S)       -- MEETING CANCELED --                                                                                 
04/04/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DEBRA HAMILTON, Appointee                                                                                                       
Board of Professional Counselors                                                                                                
Soldotna, Alaska                                                                                                                
POSITION STATEMENT: Testified as appointee to the Board of                                                                    
Professional Counselors.                                                                                                        
                                                                                                                                
LEE HOLEN, Appointee                                                                                                            
Alaska Labor Relations Agency                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Alaska Labor                                                                
Relations Agency.                                                                                                               
                                                                                                                                
ERIK CHRISTIANSON, Appointee                                                                                                    
Board of Examiners in Optometry                                                                                                 
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Board of                                                                    
Examiners in Optometry.                                                                                                         
                                                                                                                                
SORCHA HAZELTON, Staff                                                                                                          
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 80 on behalf of the sponsor.                                                                
                                                                                                                                
NORMAN ROKEBERG, Commissioner                                                                                                   
Regulatory Commission of Alaska                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided information related to SB 80.                                                                    
                                                                                                                                
DEAN GATES, representing himself                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 80.                                                                            
                                                                                                                                
PATRICK REINHART, Executive Director                                                                                            
Council on Disabilities                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 80.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
1:32:40 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:32  p.m. Present at the  call to                                                               
order were Senators Gardner, Hughes  and Chair Costello. Senators                                                               
Stevens and Meyer arrived soon thereafter.                                                                                      
                                                                                                                                
                                                                                                                                
^Confirmation Hearings                                                                                                          
                     CONFIRMATION HEARINGS                                                                                  
                                                                                                                              
                Board of Professional Counselors                                                                              
                 Alaska Labor Relations Agency                                                                                
                Board of Examiners in Optometry                                                                               
                                                                                                                                
1:33:40 PM                                                                                                                    
CHAIR COSTELLO stated  that the first order of  business would be                                                               
confirmation  hearings  of  governor  appointees  to  boards  and                                                               
commissions.                                                                                                                    
                                                                                                                                
She asked Debra Hamilton of  Soldotna to tell the committee about                                                               
her relevant background  and interest in serving on  the Board of                                                               
Professional  Counselors in  the licensed  professional counselor                                                               
seat.                                                                                                                           
                                                                                                                                
1:33:56 PM                                                                                                                    
DEBRA  HAMILTON,  Appointee,  Board of  Professional  Counselors,                                                               
Soldotna,  Alaska, said  she  has been  a  licensed counselor  in                                                               
Alaska  since 2003  and, if  confirmed, this  will be  her second                                                               
term on the  board. She said it has been  a good professional and                                                               
personal  experience and  she  would like  to  continue. She  has                                                               
enjoyed  working   with  the  board  members   as  they  evaluate                                                               
regulations  and  discuss  what  can  help  the  profession  move                                                               
forward.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO asked if Alaska needs more counselors.                                                                           
                                                                                                                                
MS. HAMILTON  said yes. She  cited the  clinic in Soldotna  as an                                                               
example. They  have five  clinicians and  a patient  waiting list                                                               
that  waxes  and  wanes  depending  on  the  time  of  year.  She                                                               
mentioned  tele-behavioral health  opportunities  and noted  that                                                               
access to  professional counseling services in  rural communities                                                               
is an area  the board is working  on. It is a  growing and needed                                                               
profession.                                                                                                                     
                                                                                                                                
CHAIR  COSTELLO asked  her  to comment  on  the board's  $264,000                                                               
surplus.                                                                                                                        
                                                                                                                                
MS. HAMILTON  said the  budget has  fluctuated widely  during the                                                               
time  she has  been  on  the board  and  license  fees have  been                                                               
increased and  decreased in response.  She opined that  the board                                                               
is probably operating closer to  breakeven than at a surplus. The                                                               
hope is  to adjust  the licensing fees  to cover  annual expenses                                                               
and not need make up for past years.                                                                                            
                                                                                                                                
CHAIR  COSTELLO said  it's always  interesting to  see where  the                                                               
boards  sit financially,  although a  lot is  beyond the  board's                                                               
control  because of  investigations that  boards are  required to                                                               
pay for.                                                                                                                        
                                                                                                                                
1:39:04 PM                                                                                                                    
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
SENATOR  GARDNER asked  if she  has  personal experience  working                                                               
with tele-behavioral health services.                                                                                           
                                                                                                                                
1:39:35 PM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
MS. HAMILTON said she has  clients in western Alaska and Wrangell                                                               
that she sees through tele-behavioral health.                                                                                   
                                                                                                                                
SENATOR  GARDNER  asked  her  to comment  on  the  difference  in                                                               
effectiveness   between   seeing  clients   face-to-face   versus                                                               
telephonically.                                                                                                                 
                                                                                                                                
MS. HAMILTON  said there have  been connection  difficulties with                                                               
her client from Wrangell and,  with the client's permission, they                                                               
have  resorted to  Facetime when  with the  secure link  is down.                                                               
They  generally communicate  using a  computer and  iPad and  the                                                               
clarity is  usually very good.  She has  never met the  client in                                                               
person, but  they have a positive  therapeutic relationship. Each                                                               
case is  evaluated separately  to determine  whether teleservices                                                               
are  appropriate  for  a  client.   Video  conferences  are  much                                                               
superior to the telephone. "There's  a lot of potential for doing                                                               
tele-behavioral health."                                                                                                        
                                                                                                                                
CHAIR COSTELLO thanked Ms. Hamilton for being willing to serve.                                                                 
                                                                                                                                
1:42:13 PM                                                                                                                    
CHAIR  COSTELLO  asked  Lee  Holen   of  Anchorage  to  tell  the                                                               
committee about  her experience  and interest  in serving  on the                                                               
Alaska  Labor Relations  Agency  as well  as  any challenges  she                                                               
foresees.                                                                                                                       
                                                                                                                                
1:42:41 PM                                                                                                                    
LEE HOLEN,  Appointee, Alaska Labor Relations  Agency, Anchorage,                                                               
Alaska, said she  has been an attorney in Anchorage  for about 40                                                               
years  and most  of that  time she  has practiced  employment and                                                               
labor law. Recently  she has worked in  mediation and arbitration                                                               
and has  found it interesting.  She is reducing her  practice and                                                               
decided this  would be a good  time to serve on  a committee like                                                               
this. She said  she isn't sure where the board  is headed because                                                               
she hasn't attended any meetings.                                                                                               
                                                                                                                                
CHAIR COSTELLO asked what the six-member board does.                                                                            
                                                                                                                                
MS. HOLEN  said her  understanding is  that the  board emphasizes                                                               
the  resolution  of  contractual   disputes  between  unions  and                                                               
government  entities  through  mediation which  has  resulted  in                                                               
lesser consequences and lesser expense.                                                                                         
                                                                                                                                
CHAIR COSTELLO found  no further questions and  thanked Ms. Holen                                                               
for being willing to serve.                                                                                                     
                                                                                                                                
1:44:27 PM                                                                                                                    
CHAIR COSTELLO asked  Eric Christianson of Ketchikan  to tell the                                                               
committee  about  his  professional background  and  interest  in                                                               
serving on the Board of  Examiners in Optometry in an optometrist                                                               
seat.                                                                                                                           
                                                                                                                                
1:44:45 PM                                                                                                                    
ERIK  CHRISTIANSON, Appointee,  Board of  Examiners in  Optometry                                                               
Ketchikan,  Alaska, said  he graduated  from optometry  school in                                                               
1986  and  immediately moved  to  Alaska.  He worked  in  various                                                               
locations throughout  the state before moving  to Ketchikan where                                                               
he has  practiced for 27  years. He served  on the board  for two                                                               
terms in the  late 1990s and now  that his sons are  grown he has                                                               
time to  devote to  public service. He  enjoyed working  with the                                                               
board in  the past and is  eager to help put  regulations forward                                                               
to advance the field of optometry.                                                                                              
                                                                                                                                
CHAIR COSTELLO reviewed Mr. Christianson's  resume and noted that                                                               
it  reflects his  desire  to improve  his  community. Finding  no                                                               
questions,  she thanked  Mr. Christianson  for  being willing  to                                                               
serve.                                                                                                                          
                                                                                                                                
She stated  that the  names of all  appointees the  committee has                                                               
heard from would be advanced in one batch.                                                                                      
                                                                                                                                
1:47:21 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        SB  80-TELECOMMUNICATIONS: DISABLED SUBSCRIBERS                                                                     
                                                                                                                                
1:48:52 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of SB 80.                                                                                                         
                                                                                                                                
1:49:19 PM                                                                                                                    
SORCHA  HAZELTON,  Staff,  Senator  Mia  Costello,  Alaska  State                                                               
Legislature, introduced  SB 80 on  behalf of the  sponsor reading                                                               
from the following prepared statement:                                                                                          
                                                                                                                                
     The bill before  you, Senate Bill 80,  seeks to improve                                                                    
     technology  and services  available  to deaf,  hard-of-                                                                    
     hearing,  and  speech  impaired  Alaskans.  This  is  a                                                                    
     provision  to  expand   the  Regulatory  Commission  of                                                                    
     Alaska's  authority to  collect  surcharges to  support                                                                    
     these  programs  beyond  current  limitations.  As  the                                                                    
     world moves  toward more mobile devices,  the expansion                                                                    
     of services  offered and of the  surcharge is necessary                                                                    
     to reflect  the development of wireless  and voice over                                                                    
     internet protocol  (VoIP) services. Page 1,  Lines 13 &                                                                    
     14  illustrate this  portion of  the bill,  and include                                                                    
     these additional telecommunication  services beyond the                                                                    
     traditional  wireline telephone.  Currently, technology                                                                    
     offered by  the Regulatory  Commission of  Alaska (RCA)                                                                    
     is  outdated and  doesn't reflect  the capabilities  of                                                                    
     the digital world.  Through this bill, the  RCA will be                                                                    
                                        st                                                                                      
     better able  to provide  for the 21   century  needs of                                                                    
     the   deaf,    hard-of-hearing,   and   speech-impaired                                                                    
     communities. In  members' packets,  you'll also  find a                                                                    
     support   letter  from   the   Governor's  Council   on                                                                    
     Disabilities and Special Education.                                                                                        
                                                                                                                                
     To  provide   some  background,   in  the   1990s,  the                                                                    
     Legislature  tasked the  RCA with  adopting regulations                                                                    
     to  require telephone  companies to  provide access  to                                                                    
     public  telecommunication services  to these  groups of                                                                    
     Alaskans, in  the form of the  telecommunications relay                                                                    
     service or TRS. (3AAC  51) TRS system includes services                                                                    
     like   teletype  units   (TTY),  captioned   telephones                                                                    
     (CapTel),  and  video  relay.   In  addition,  the  RCA                                                                    
     provides assistance devices  like amplified phones that                                                                    
     also give  hard of hearing Alaskans  more independence.                                                                    
     During  the establishment  of initial  regulations, the                                                                    
     Commission  found the  most appropriate  funding source                                                                    
     for this equipment and service  was through a Universal                                                                    
     Access  surcharge  added  to   local  phone  rates  and                                                                    
     appearing as  a line item  on customers' bills.  At the                                                                    
     onset of  this program,  wired technology was  the most                                                                    
     prevalent, the  Alaska Relay  system is  wirelined, and                                                                    
     so  only wired  technology  was permitted  to have  the                                                                    
     surcharge added.  Today, the  program is  still limited                                                                    
     to services  like TTY and CapTel  telephones which send                                                                    
     text  over landlines.  Because of  the limitation,  not                                                                    
     only  can  the  RCA  not  add  a  surcharge  to  mobile                                                                    
     devices, but  they cannot provide mobile  technology to                                                                    
     the  disabled  communities.  Just as  hearing  Alaskans                                                                    
     have shifted from landlines to  cell phones, deaf, hard                                                                    
     of hearing,  and speech impaired subscribers  have also                                                                    
     shifted   to  mobile   technology.  Statute   currently                                                                    
     prevents the RCA from providing  these modern pieces of                                                                    
     technology. Despite  this, wirelined  equipment remains                                                                    
     more  valuable  in  Alaska than  elsewhere  because  of                                                                    
     lower internet speeds in certain parts of the state.                                                                       
                                                                                                                                
     Passage  of SB  80  could expand  the  number of  lines                                                                    
     surcharged by  more than 990,000.  The mobile  and VoIP                                                                    
     services included in this expansion  mirror the FCC and                                                                    
     other  states  which  already  have  these  subscribers                                                                    
     contribute  to their  respective  TRS  funds. Over  the                                                                    
     last seven years  the number of landlines  in the state                                                                    
     has dropped  roughly 47%, with  a 5.7% decrease  in the                                                                    
     last year  alone. It is  because of this that  in March                                                                    
     2016,  the  surcharge  was increased  nine-fold.  There                                                                    
     were more  landlines in 1991, when  this obligation was                                                                    
     given to the RCA. At  that point, the surcharge was the                                                                    
     equivalent of $0.52/$1.04 per line.  At the moment, the                                                                    
     surcharge  is 9¢/18¢.  The amount  of the  surcharge is                                                                    
     decided on through a  public hearing process. Expanding                                                                    
     the base  of surcharge would  lower the cost  per user,                                                                    
     and still maintain the needed funding for the program.                                                                     
                                                                                                                                
     The latest  numbers available  for TRS  technology uses                                                                    
     is for December  2016. There were roughly  4000 TTY and                                                                    
     CapTel  calls made  in  December  by the  approximately                                                                    
     1300  individuals  served  by   the  RCA.  More  modern                                                                    
     technology is  the Video Relay Service,  but only about                                                                    
     a third of Alaska's  deaf population have video phones.                                                                    
     While   this    system   was   established    to   ease                                                                    
     communication between  the deaf,  hard of  hearing, and                                                                    
     speech  impaired  communities  and the  hearing  world,                                                                    
     there are  eight times as  many calls  between impacted                                                                    
     Alaskans  as  there are  to  those  of normal  hearing,                                                                    
     making the  use of  technologies designed for  the deaf                                                                    
     and  hard of  hearing crucial  to these  communities in                                                                    
     our state.                                                                                                                 
                                                                                                                                
     This  bill  expands  access to  modern  technology  for                                                                    
     Alaska's  deaf, hard  of hearing,  and speech  impaired                                                                    
     communities  by  expanding  the  devices  that  can  be                                                                    
     surcharged by  the Regulatory Commission of  Alaska. SB
     80 reflects  advances in technology,  updating statutes                                                                    
     formed in the 1990s to  encompass the mobile devices of                                                                    
     the 21st century.                                                                                                          
                                                                                                                                
1:54:00 PM                                                                                                                    
SENATOR STEVENS asked  the amount that must be  collected and the                                                               
expected cost to cell phone users.                                                                                              
                                                                                                                                
MS. HAZELTON deferred the question to the RCA commissioner.                                                                     
                                                                                                                                
1:55:02 PM                                                                                                                    
NORMAN ROKEBERG,  Commissioner, Regulatory Commission  of Alaska,                                                               
Anchorage, Alaska, stated that he  had been working on this issue                                                               
since he joined  the commission and realized how out  of date the                                                               
existing  statute is.  The primary  intention of  the bill  is to                                                               
untie the  commission's hands, starting  with replacing  the term                                                               
"telephone"  with  "telecommunications."  This  will  expand  the                                                               
number  and types  of devices  that can  provide services  to the                                                               
disabled community.  Second, the  bill replaces the  term "speech                                                               
impaired" with the term "speech disabled."                                                                                      
                                                                                                                                
He  referred to  page  1, line  14, and  explained  that the  new                                                               
language "for each telecommunications  service" expands where the                                                               
surcharge  may be  applied  to include  wireless  and voice  over                                                               
internet (VoIP).  It will significantly  increase the  ability to                                                               
collect  as  well  as  reduce   and  more  equitably  spread  the                                                               
surcharge. The bill is not intended to increase revenue per se.                                                                 
                                                                                                                                
Responding to an earlier question,  he said the current budget is                                                               
about $288,000 per year and the  goal is to amass working capital                                                               
of about  $300,000. The idea is  to have a consistent  and stable                                                               
source of  income to  expand the  number of  devices that  can be                                                               
provided.  He  explained  that the  program  started  with  about                                                               
297,000  landlines in  1992 and  peaked  at 560,000  in 2009.  In                                                               
December 2016,  the number  had fallen to  256,000 and  the trend                                                               
continues downward. He  noted the bill packet includes  a copy of                                                               
form  477  that  provides  a picture  from  December  2015  where                                                               
wireless amounted  to 678,000, whereas a  combination of wireline                                                               
and VoIP subscription was about 300,000.                                                                                        
                                                                                                                                
He offered to answer questions.                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  said  she  became   aware  of  this  issue  when                                                               
Commissioner Rokeberg invited her to attend an RCA meeting.                                                                     
                                                                                                                                
SENATOR MEYER asked  if he has suggestions for  amendments to the                                                               
bill.                                                                                                                           
                                                                                                                                
MR. ROKEBERG said  he believes the bill is close  to perfect, but                                                               
he is aware that one person has a suggestion for the bill.                                                                      
                                                                                                                                
SENATOR  MEYER   asked  if  telecommunications   includes  cable,                                                               
computers and phones.                                                                                                           
                                                                                                                                
MR.  ROKEBERG said  that's correct.  The statutory  definition of                                                               
"telecommunications" is found in AS 42.05.990(13).                                                                              
                                                                                                                                
SENATOR  MEYER   asked  if  all  subscribers   are  assessed  the                                                               
surcharge or just disabled subscribers.                                                                                         
                                                                                                                                
MR. ROKEBERG  said every landline  subscriber pays  the surcharge                                                               
and  the  services  are  provided  by  Sprint  by  order  of  the                                                               
commission.  A request  for proposal  (RFP) goes  out every  five                                                               
years  and  Sprint has  been  the  provider  for four  years.  He                                                               
reiterated  that the  problem is  that just  landline subscribers                                                               
pay  the  surcharge  and  the  number  of  those  subscribers  is                                                               
diminishing. Last year the rate had  to be increased to 9¢/18¢ to                                                               
maintain cashflow to  provide the service. Expanding  the base of                                                               
the surcharge  would lower  the cost per  user to  perhaps 4¢/5¢,                                                               
maintain cashflow, and  have a slightly larger  surplus to expand                                                               
equipment   services.  Just   this  month   they  authorized   an                                                               
iPad/tablet  pilot program  starting  in July  to expand  digital                                                               
equipment to those who need it.                                                                                                 
                                                                                                                                
2:06:43 PM                                                                                                                    
SENATOR MEYER asked if this could include vision impaired.                                                                      
                                                                                                                                
MR. ROKEBERG  said the statute  is limited  to the deaf,  hard of                                                               
hearing, and speech disabled community.                                                                                         
                                                                                                                                
SENATOR  MEYER said  he  would think  it would  impact  a lot  of                                                               
disabled people if this pertains  to internet service, cable, and                                                               
cell phones.                                                                                                                    
                                                                                                                                
MR. ROKEBERG agreed  adding that the surcharge  would be confined                                                               
to   current  landlines,   wireless  and   voice  over   internet                                                               
providers. That may be too broad,  but the current statute is too                                                               
narrow.  Adopting the  definition  of  telecommunications in  the                                                               
statute  would avoid  the  problem  of having  to  return to  the                                                               
legislature for any new telecommunications  technology. He drew a                                                               
parallel to changing the chemical  composition of designer street                                                               
drugs.                                                                                                                          
                                                                                                                                
SENATOR MEYER asked if the  surcharge is on the subscriber's plan                                                               
or each phone.                                                                                                                  
                                                                                                                                
MR. ROKEBERG said each phone.                                                                                                   
                                                                                                                                
SENATOR STEVENS  summarized his understanding that  the surcharge                                                               
for every landline and wireless phone is expected to be 4¢/5¢.                                                                  
                                                                                                                                
MR. ROKEBERG  said reducing the  surcharge to that amount  is his                                                               
current estimate  and the goal.  Including wireless  would spread                                                               
the cost more equitably.                                                                                                        
                                                                                                                                
2:12:24 PM                                                                                                                    
SENATOR HUGHES  commented that the background  information in the                                                               
packet includes information  from Matanuska Telephone Association                                                               
that shows  that the  population of MatSu  has more  than doubled                                                               
since 1992 yet the number  of landlines has decreased. "It really                                                               
demonstrates how much cellphones are in use."                                                                                   
                                                                                                                                
She  asked  him to  reiterate  how  many  cellphones are  in  use                                                               
compared to the number of landlines.                                                                                            
                                                                                                                                
MR. ROKEBERG  said the  FCC form 477  indicates that  in December                                                               
2015, there  were 678,000 wireless  phones as opposed  to 300,000                                                               
VoIP and landlines.  He noted the letter in the  packets where he                                                               
did  a "back  of  the napkin"  calculation  showing that  900,000                                                               
lines  would generate  $432,000  per year  in  revenue, which  is                                                               
about  $32,000 more  than  is collected  now.  That is  hopefully                                                               
enough  to  implement the  tablet  program  and restart  offering                                                               
amplified phones. The goal is to reduce costs to consumers.                                                                     
                                                                                                                                
SENATOR HUGHES asked him to clarify the numbers in the budget.                                                                  
                                                                                                                                
MR. ROKEBERG  said the  current budget is  $288,000 per  year and                                                               
they're  collecting  about  $400,000. The  current  surcharge  is                                                               
9¢/18¢ for  residential or a  business multiline.  The two-tiered                                                               
system makes  projected calculations  a little difficult  and the                                                               
commission is discussing whether to do away with it.                                                                            
                                                                                                                                
SENATOR  HUGHES asked  if any  telecommunication utilities  offer                                                               
just internet and  television, not phone service.  She also asked                                                               
if  the utilities  that provide  phone, television,  and internet                                                               
are required to  provide new services that support the  use of an                                                               
iPad or laptop or television.                                                                                                   
                                                                                                                                
MR.  ROKEBERG clarified  that  the  RCA is  very  limited in  the                                                               
regulation it provides to the  telecommunication industry. "We do                                                               
not regulate  the internet; we do  not regulate cable; we  do not                                                               
regulate a number  of things." The RCA's  regulatory authority is                                                               
limited  to  phone  lines  in  rural areas  and  issues  such  as                                                               
"carrier  of  last  resort." The  commission  also  collects  the                                                               
Alaska  Universal  Services  Fund   and  distributes  it  to  the                                                               
carriers that meet the criteria.  Another small area of authority                                                               
is the  annualized review that  is done  in concert with  the FCC                                                               
for wireline  certification. "By  and large, generally,  it would                                                               
not  be unfair  to  say the  telecommunications  industry is  not                                                               
largely regulated by the state."                                                                                                
                                                                                                                                
SENATOR   HUGHES  summarized   that  this   legislation  requires                                                               
telecommunication    utilities    to    provide    services    on                                                               
telecommunication  devices  so it's  more  than  just a  wireline                                                               
telephone or  cellphone. It would  include a laptop and  iPad and                                                               
television.  She asked  if the  utilities  are going  to need  to                                                               
provide services  that they aren't  currently providing  on these                                                               
other kinds of devices that are not phones.                                                                                     
                                                                                                                                
MR. ROKEBERG  clarified that the  RCA regulates the  signal going                                                               
through the  device and the  consumer selects the  device "unless                                                               
they're disabled and we're providing it for them."                                                                              
                                                                                                                                
2:24:12 PM                                                                                                                    
DEAN GATES,  representing himself, Anchorage, Alaska,  said he is                                                               
president  of the  Alaska Deaf  Council  and he  hopes the  board                                                               
discusses and  votes to support SB  80 when it meets  this coming                                                               
Thursday. Until  then, he is  speaking for himself in  support of                                                               
SB 80. He forwarded  the bill to the 10 members  on the board and                                                               
shared  some correspondence  and received  positive feedback  but                                                               
that's anecdotal. He  agreed with the earlier  statement that the                                                               
bill is  "nearly perfect."  He emphasized  that the  Alaska Relay                                                               
system is very important for  accessibility for the deaf and hard                                                               
of  hearing community  to be  able to  call a  business, order  a                                                               
pizza or find  out flight information. "So, it  is very important                                                               
to bring the TRS system into  the digital age, which this bill is                                                               
intended to do."                                                                                                                
                                                                                                                                
MR. GATES  said he forwarded  the bill to the  executive director                                                               
of the watchdog group, Telecommunications  for the Deaf, Inc. and                                                               
the director  sent an email saying  that the bold changes  to the                                                               
TRS  language by  the State  of Alaska  "are good."  It clarifies                                                               
three  things. One,  that it  is  telecommunication service,  not                                                               
telephone  service.   Two,  changing   the  label   from  "speech                                                               
impaired"  to "speech  disabled"  is a  better  way to  recognize                                                               
people who are  speech disabled. Three, it recognizes  the use of                                                               
devices  beyond just  the landline  telephone. He  also cautioned                                                               
Mr. Gates  to ensure  that the regulatory  body and  provider for                                                               
TRS agree that this  is what the bill is intended  to do and what                                                               
its effect will be.                                                                                                             
                                                                                                                                
He said he believes  it is wise to spread the  burden for the TRS                                                               
program among all users of telecommunication services.                                                                          
                                                                                                                                
2:29:51 PM                                                                                                                    
MR. GATES said despite thinking  that the bill is nearly perfect,                                                               
he has a few suggestions for  changes. Page 2, line 7, change the                                                               
language to  say, "or if  the subscriber is an  organization that                                                               
represents  or has  a principle  purpose to  provide services  to                                                               
persons  who are  deaf, hard  of hearing,  or speech  disabled as                                                               
determined  by the  commission." This  would allow  organizations                                                               
such  as Access  Alaska,  Hope Community  Services,  and SAIL  to                                                               
qualify  for  an  equipment   distribution  program.  The  second                                                               
suggestion is  to amend  the language in  the current  statute to                                                               
"people   first"   language.   For  example,   "an   organization                                                               
representing persons  who are deaf"  instead of  "an organization                                                               
representing  the deaf."  He said  he isn't  opposed to  the bill                                                               
moving  forward  as  is  and   he  appreciates  Senator  Costello                                                               
bringing it forward. He hopes to  submit a letter of support from                                                               
the Alaska Deaf Council after its next meeting.                                                                                 
                                                                                                                                
CHAIR COSTELLO  said her staff,  Ms. Hazelton, will get  in touch                                                               
for the exact language.                                                                                                         
                                                                                                                                
SENATOR GARDNER  recalled that the statutes  were changed several                                                               
years  ago to  replace the  term "disabled  people" with  "person                                                               
with  a  disability."  She  observed that  this  bill  uses  that                                                               
terminology,  but  it seems  a  bit  archaic.  She asked  him  to                                                               
comment on the issue.                                                                                                           
                                                                                                                                
MR.  GATES  said  he  recalls  that  the  Governor's  Council  on                                                               
Disabilities  supported  replacing  throughout the  statutes  the                                                               
term  "mental  retardation" to  "a  person  with an  intellectual                                                               
developmental disability." His suggestions  today follow what was                                                               
done several years ago to use person first language.                                                                            
                                                                                                                                
2:35:48 PM                                                                                                                    
PATRICK  REINHART,  Executive  Director,  Governor's  Council  on                                                               
Disabilities, responded to Senator  Gardner's question saying the                                                               
term "mentally retarded"  was removed from state  lexicon, but it                                                               
wasn't a comprehensive change to  people first language. The term                                                               
"handicapped" was  also removed from state  lexicon several years                                                               
ago.   He  highlighted   that  the   council  has   an  excellent                                                               
publication on its website that  explains what constitutes people                                                               
first language for different disability groups.                                                                                 
                                                                                                                                
Mr. Reinhart  stated that the Governor's  Council on Disabilities                                                               
reviewed  SB  80 and  discussed  it  with Commissioner  Rokeberg.                                                               
Overall, they  agree with  the purpose  of spreading  the funding                                                               
mechanism  to support  the type  of services  that are  provided,                                                               
including  telecommunication  relay  service  and  the  equipment                                                               
support program  for people  who need  that support.  The council                                                               
supports the  bill and  believes that  Mr. Gates  suggestions are                                                               
reasonable.                                                                                                                     
                                                                                                                                
2:38:44 PM                                                                                                                    
CHAIR  COSTELLO closed  public testimony  on SB  80 and  held the                                                               
bill in committee for further consideration.                                                                                    
                                                                                                                                
2:39:16 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:39 p.m.                                                                                                  
                                                                                                                                

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