Legislature(2023 - 2024)BARNES 124

04/17/2024 03:15 PM House LABOR & COMMERCE

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Audio Topic
03:18:26 PM Start
03:18:54 PM Department of Labor and Workforce Development Commissioner
03:50:35 PM HB187
04:14:16 PM HB313
04:31:04 PM HB394
05:04:14 PM HB325
05:17:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 325 BUSINESS LICENSE FEES TELECONFERENCED
Heard & Held
*+ HB 375 ENERGY SOURCES OF MOTOR VEHICLES TELECONFERENCED
<Bill Hearing Rescheduled to 04/22/24>
+ Consideration of Governor’s Appointees: TELECONFERENCED
Department of Labor and Workforce Development
Commissioner - Cathy Munoz
+ HB 187 PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ HJR 27 SUPPORTING CERTAIN US TRADE POLICIES TELECONFERENCED
<Bill Hearing Rescheduled to 04/22/24>
+= HB 313 PUBLIC UTILITY REGULATORY COST CHARGE TELECONFERENCED
Moved CSHB 313(L&C) Out of Committee
+= HB 394 RCA REGULATE NATURAL GAS STORAGE FACILITY TELECONFERENCED
Moved CSHB 394(L&C) Out of Committee
        HB 394-RCA REGULATE NATURAL GAS STORAGE FACILITY                                                                    
                                                                                                                                
4:31:04 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE  BILL  NO.   394,  "An  Act  relating   to  the  Regulatory                                                               
Commission of  Alaska and  regulation of  the service  of natural                                                               
gas  storage   and  liquefied  natural  gas   import  facilities;                                                               
relating  to  records of  the  Regulatory  Commission of  Alaska;                                                               
relating  to rates  established by  the Regulatory  Commission of                                                               
Alaska; and providing for an effective date."                                                                                   
                                                                                                                                
4:31:22 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:31 p.m. to 4:32 p.m.                                                                       
                                                                                                                                
4:32:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK moved  to adopt  Amendment 1  to HB  394,                                                               
labeled 33-LS1441\U.1, Nauman, 4/4/24, which read as follows:                                                                   
                                                                                                                                
     Page 1, lines 2 - 3:                                                                                                       
          Delete "relating to records of the Regulatory                                                                       
     Commission of Alaska;"                                                                                                   
                                                                                                                                
     Page 2, line 27, through page 3, line 4:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, lines 17 - 27:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
4:32:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT objected.                                                                                                 
                                                                                                                                
4:32:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  explained that  Amendment 1  would remove                                                               
the  confidentiality   requirement  of  HB  394   and  cited  her                                                               
questions to the  RCA during the previous bill  hearing as reason                                                               
for the proposed amendment.                                                                                                     
                                                                                                                                
4:34:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT asked for the opinion of the bill sponsor.                                                                
                                                                                                                                
4:34:24 PM                                                                                                                    
                                                                                                                                
REPRESENTAIVE TOM  MCKAY, Alaska State Legislature,  on behalf of                                                               
the  bill sponsor,  the House  Resources  Standing Committee,  on                                                               
which he  serves as chair,  deferred the answer regarding  HB 394                                                               
to Trevor Jepson.                                                                                                               
                                                                                                                                
4:34:43 PM                                                                                                                    
                                                                                                                                
TREVOR  JEPSON, Staff,  Representative  Tom  McKay, Alaska  State                                                               
Legislature, on behalf  of the bill sponsor,  the House Resources                                                               
Standing  Committee,  on  which Representative  McKay  serves  as                                                               
chair, explained that there is  currently a petition process that                                                               
a  company  has  to  apply  for  to  receive  confidentiality  of                                                               
financial  records.   He  said  that  the bill  sponsor  strongly                                                               
opposes  Amendment 1  and warned  that  the proposed  legislation                                                               
would be "moot, null, and void" if Amendment 1 were to pass.                                                                    
                                                                                                                                
4:35:28 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Carrick and Fields                                                               
voted  in  favor of  Amendment  1  to  HB 394.    Representatives                                                               
Saddler, Wright,  Prax, Ruffridge,  and Sumner voted  against it.                                                               
Therefore, Amendment 1 failed to be adopted by a vote of 2-5.                                                                   
                                                                                                                                
4:35:57 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER moved to adopt Amendment 2 to HB 394, labeled 33-                                                                  
LS1441\U.2, Nauman, 4/4/24, which read as follows:                                                                              
                                                                                                                                
     Page 1, line 2:                                                                                                            
          Delete   "and   liquefied   natural   gas   import                                                                  
     facilities"                                                                                                              
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete "AS 42.05.711(q), (s), and (w)"                                                                                
          Insert "AS 42.05.711(q) and (s)"                                                                                      
                                                                                                                                
     Page 3, lines 16 - 18:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE SADDLER objected for the purpose of discussion.                                                                  
                                                                                                                                
4:36:11 PM                                                                                                                    
                                                                                                                                
TREVOR JEPSON said that Amendment  2 would allow for certain dual                                                               
jurisdiction liquified  natural gas (LNG) import  facilities.  In                                                               
response to a question from  Representative Saddler, he indicated                                                               
that  [Representative McKay's  staff] had  not found  any further                                                               
information regarding dual regulatory authority.                                                                                
                                                                                                                                
4:37:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS observed that Amendment 2 was "better                                                                     
written" and "more concise."                                                                                                    
                                                                                                                                
CHAIR SUMNER stated that he would withdraw Amendment 2, then                                                                    
announced that without objection, it was so ordered.                                                                            
                                                                                                                                
4:38:11 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 4:38 p.m.                                                                                 
                                                                                                                                
4:38:40 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER moved to adopt Amendment 3 to HB 394, labeled 33-                                                                  
LS1441\U.3, Nauman, 4/4/24, which read as follows:                                                                              
                                                                                                                                
     Page 1, lines 2 - 4:                                                                                                       
          Delete   "and   liquefied   natural   gas   import                                                                  
     facilities;  relating  to  records  of  the  Regulatory                                                                  
     Commission of Alaska; relating  to rates established by                                                                  
     the Regulatory Commission of  Alaska; and providing for                                                                  
     an effective date"                                                                                                       
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete ", (s), and (w)"                                                                                               
          Insert "and (s)"                                                                                                      
                                                                                                                                
     Page 2, line 3, through page 3, line 4:                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 3, lines 16 - 18:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, lines 9 - 27:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, line 29:                                                                                                           
     Delete all material.                                                                                                       
                                                                                                                                
REPRESENTATIVE WRIGHT objected for the purpose of discussion.                                                                   
                                                                                                                                
4:39:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY stated support for Amendment 3.                                                                            
                                                                                                                                
MR. JEPSON said that Amendment 3 would clarify language that                                                                    
should've already be considered.                                                                                                
                                                                                                                                
4:39:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT removed his objection.                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER objected for the purpose of discussion.                                                                  
                                                                                                                                
4:40:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  inquired as  to  how  any given  federal                                                               
authority might play a  role in the cost of LNG  and asked for an                                                               
example of a facility where  federal authority is included in the                                                               
facilities cost calculations.                                                                                                   
                                                                                                                                
MR. JEPSON responded that he did not currently have an answer to                                                                
those questions.                                                                                                                
                                                                                                                                
4:41:16 PM                                                                                                                    
                                                                                                                                
ROBERT  DOYLE, Chair,  Regulatory Commission  of Alaska,  said he                                                               
would  need  to  research   to  answer  Representative  Saddler's                                                               
question.                                                                                                                       
                                                                                                                                
REPRESENTATIVE SADDLER clarified  that he would like  to know the                                                               
downstream effects of  Amendment 3 but added that  he was "fairly                                                               
satisfied."                                                                                                                     
                                                                                                                                
4:42:21 PM                                                                                                                    
                                                                                                                                
JOHN SIMS,  President, Enstar  National Gas,  told Representative                                                               
Saddler  that he  couldn't answer  his question  at the  time and                                                               
made  clear that  ENSTAR Natural  Gas  Company is  in support  of                                                               
Amendment 3.                                                                                                                    
                                                                                                                                
4:43:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER removed  his objection.   There  being no                                                               
further objection, Amendment 3 was adopted.                                                                                     
                                                                                                                                
4:43:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  moved to adopt  Amendment 4 to HB  394, as                                                               
amended,  labeled 33-LS1441\U.4,  Nauman, 4/4/24,  which read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 1, lines 3 - 4:                                                                                                       
          Delete "relating to rates established by the                                                                        
     Regulatory Commission of Alaska;"                                                                                        
                                                                                                                                
     Page 2, lines 3 - 26:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, lines 9 - 16:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE WRIGHT objected.                                                                                                 
                                                                                                                                
4:44:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  explained that  Amendment 4 would  help to                                                               
keep the  costs of stored gas  low for a utility  by changing the                                                               
fair market value language in HB 394.                                                                                           
                                                                                                                                
REPRESENTATIVE MCKAY pointed out that  HB 394 would cover all gas                                                               
and  emphasized that  the price  of gas  is too  unpredictable to                                                               
justify the  "fair market value" language  in HB 394.   He stated                                                               
opposition to Amendment 4.                                                                                                      
                                                                                                                                
REPRESENTATIVE FIELDS  explained the  proposed amendment  using a                                                               
hypothetical example.                                                                                                           
                                                                                                                                
REPRESENTATIVE  MCKAY  deferred the  question  to  Mr. Doyle  and                                                               
commented that  it is  not his intention  to oversell  stored gas                                                               
under HB 394.                                                                                                                   
                                                                                                                                
4:47:44 PM                                                                                                                    
                                                                                                                                
CHAIR  SUMNER summarized  Amendment 4  and invited  Mr. Doyle  to                                                               
speak to it.                                                                                                                    
                                                                                                                                
4:48:28 PM                                                                                                                    
                                                                                                                                
MR. DOYLE  said that  he agrees  with the  bill sponsor  that gas                                                               
prices are established through long  term contracts which are not                                                               
influenced by exogenous events.                                                                                                 
                                                                                                                                
4:49:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked  Mr. Doyle what the  RCA includes in                                                               
its definition  of costs  associated with the  term "oil  and gas                                                               
fields."                                                                                                                        
                                                                                                                                
MR. DOYLE  answered by using  an example  of how a  long-term gas                                                               
storage contract might  be conducted and further  gave context to                                                               
his  answer  by  explaining  the process  that  a  contract  goes                                                               
through to come to fruition.                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  if the  value of  the oil  and gas                                                               
itself in the field is not worth more than the acquisition cost.                                                                
                                                                                                                                
CHAIR SUMNER explained that the  combined cost of the cushion gas                                                               
and the  working gas would be  comparable to the other  rates and                                                               
shared  his belief  that  the price  would  fluctuate by  "market                                                               
magicians."                                                                                                                     
                                                                                                                                
4:52:48 PM                                                                                                                    
                                                                                                                                
MR. JEPSON said that the fair market value language relates only                                                                
to assets of oil and gas companies, not the gas itself.                                                                         
                                                                                                                                
4:53:52 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Fields and Carrick                                                               
voted  in  favor of  Amendment  4  to  HB 394.    Representatives                                                               
Saddler, Prax,  Wright, Ruffridge,  and Sumner voted  against it.                                                               
Therefore, Amendment 4 failed to be adopted by a vote of 2-5.                                                                   
                                                                                                                                
4:54:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS moved Amendment 5 to HB 394, as amended,                                                                  
labeled 33-LS1441\U.8, Nauman, 4/17/24, which read as follows:                                                                  
                                                                                                                                
     Page 1, lines 3 - 4:                                                                                                       
          Delete "relating to rates established by the                                                                        
     Regulatory Commission of Alaska;"                                                                                        
                                                                                                                                
     Page 2, lines 3 - 26:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, lines 9 - 16:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE SADDLER objected.                                                                                                
                                                                                                                                
4:54:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS explained that Amendment 5 would give the                                                                 
RCA the authority to review data and records related to                                                                         
confidentiality of gas prices and sales.                                                                                        
                                                                                                                                
4:55:09 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:55 p.m. to 5:00 p.m.                                                                       
                                                                                                                                
5:00:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY stated that Amendment 5 is not necessary.                                                                  
                                                                                                                                
REPRESENTATIVE   FIELDS  asked   Mr.   Doyle   if  the   proposed                                                               
legislation would need Amendment 5.                                                                                             
                                                                                                                                
5:01:02 PM                                                                                                                    
                                                                                                                                
MR. DOYLE responded  that the way HB 394 is  currently written is                                                               
sufficient  to give  the RCA  the authority  to review  financial                                                               
records as necessary.                                                                                                           
                                                                                                                                
5:01:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  [moved to]  withdraw Amendment 5.   [There                                                               
being no objection, Amendment 5 was withdrawn.]                                                                                 
                                                                                                                                
5:02:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved to report  HB 394, as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
REPRESENTATIVE CARRICK objected.                                                                                                
                                                                                                                                
5:02:30 PM                                                                                                                    
                                                                                                                                
A roll call vote was begun and subsequently voided.                                                                             
                                                                                                                                
5:02:57 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 5:02 p.m. to 5:03 p.m.                                                                       
                                                                                                                                
5:03:05 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Wright, Saddler,                                                               
Prax, Ruffridge, and  Sumner voted in favor of  reporting HB 394,                                                               
as amended, out of committee  with individual recommendations and                                                               
the  accompanying  fiscal  notes.   Representatives  Carrick  and                                                               
Fields voted against  it.  Therefore, CSHB  394(L&C) was reported                                                               
out of the House Labor and  Commerce Standing Committee by a vote                                                               
of 5-2.                                                                                                                         

Document Name Date/Time Subjects
Cathy Munoz Resume DOLWD_Redacted.pdf HL&C 4/17/2024 3:15:00 PM
HB 375 Sponsor Statement 4.15.24.pdf HL&C 4/17/2024 3:15:00 PM
STRA 5/7/2024 1:30:00 PM
STRA 5/9/2024 9:00:00 AM
HB 375
HB 375 Sectional Analysis 4.15.24.pdf HL&C 4/17/2024 3:15:00 PM
STRA 5/7/2024 1:30:00 PM
STRA 5/9/2024 9:00:00 AM
HB 375
HB 375 Fiscal Note 4.15.24.pdf HL&C 4/17/2024 3:15:00 PM
STRA 5/7/2024 1:30:00 PM
STRA 5/9/2024 9:00:00 AM
HB 375
Letter to HHSS in follow up to 3.26.2024 hearing.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
A.4.pdf HL&C 4/17/2024 3:15:00 PM
HB 313
HB 187 Premera Letter.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB 187 AK Medical Association Testimony.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB 187 AHIP Comments AK.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB 187 Fiscal Note DCCED.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB 187 Letter from AETNA.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB 187 ANTHC Support.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
Letter to House HSS regarding IRO 021624.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB187 Sectional Analysis Version A.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB187 Letter of Support - AHHA.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB187 Sponsor Statement.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB187 State Law Chart.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB187 Version A.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB187 Survey Data.pdf HL&C 4/17/2024 3:15:00 PM
HB 187
HB 375 Fiscal Note 4.15.24.pdf HL&C 4/17/2024 3:15:00 PM
HB 375
HB 375 Sponsor Statement 4.15.24.pdf HL&C 4/17/2024 3:15:00 PM
HB 375
HB 375 Sectional Analysis 4.15.24.pdf HL&C 4/17/2024 3:15:00 PM
HB 375
HB394 Amendments.pdf HL&C 4/17/2024 3:15:00 PM
HB 394
U.8.pdf HL&C 4/17/2024 3:15:00 PM
HB 394
U.9.pdf HL&C 4/17/2024 3:15:00 PM
HB 394