02/11/2013 03:15 PM House LABOR & COMMERCE

          SB 14-ELECTRIC/TELEPHONE COOPS: BOARD TERMS                                                                       
                                                                                                                                
3:38:17 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
SENATE BILL  NO. 14, "An  Act relating to  the term of  office of                                                               
directors of telephone or electric cooperatives."                                                                               
                                                                                                                                
CHAIR OLSON stated  SB 14 is identical to the  companion bill the                                                               
committee heard last week.                                                                                                      
                                                                                                                                
3:38:36 PM                                                                                                                    
                                                                                                                                
SENATOR FRED  DYSON, Alaska State  Legislature, prime  sponsor of                                                               
SB 14, stated SB 14 does not  have any known opposition.  He said                                                               
that several  utilities asked  for an  extension in  board member                                                               
terms from  three to four years.   He concluded that  this change                                                               
would be permissive and not mandatory.                                                                                          
                                                                                                                                
3:39:21 PM                                                                                                                    
                                                                                                                                
JOSHUA   BANKS,  Staff,   Senator   Fred   Dyson,  Alaska   State                                                               
Legislature, reiterated the bill is  permissive and will not make                                                               
any  mandatory changes  to  telephone  or electric  cooperatives.                                                               
However,  the proposed  changes would  be beneficial  to electric                                                               
and  telephone  cooperatives since  new  directors  have a  steep                                                               
learning curve.   This  bill would also  assist new  directors in                                                               
being   more  productive   for  members   of  the   cooperatives.                                                               
Additionally, this bill would  give cooperatives more flexibility                                                               
for elections.  Currently, AS  10.25.160 requires cooperatives to                                                               
hold elections  each year  with one-third of  the board  terms up                                                               
for elections.  Under SB  14, telephone and electric cooperatives                                                               
can  choose  to  hold  biennial   elections  rather  than  annual                                                               
elections.  The terms of directors  would be staggered terms.  He                                                               
reiterated  the  bill is  permissive  and  not mandatory.    Most                                                               
cooperatives have  bylaws that  will also need  to be  changed to                                                               
allow them  to lengthen  the terms of  their board  of directors.                                                               
He  reported that  Chugach Electric  Association, Inc.  (CEA) and                                                               
the  Alaska Power  Association (APA)  have  submitted letters  of                                                               
support.    He  also  reported the  APA  represents  15  electric                                                               
cooperatives   throughout   the   state.      Additionally,   the                                                               
International  Brotherhood  of  Electrical  Workers  (IBEW)  also                                                               
supports SB  14, and the sponsor  is not aware of  any opposition                                                               
to the bill.                                                                                                                    
                                                                                                                                
3:42:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether utilities  other than  CEA                                                               
have expressed interest in these changes.                                                                                       
                                                                                                                                
MR.  BANKS answered  that the  APA  also passed  a resolution  in                                                               
support of SB 14.  He said he  was not aware of other electric or                                                               
telephone cooperatives who were  anxious to implement the changes                                                               
offered by the bill.                                                                                                            
                                                                                                                                
CHAIR  OLSON suggested  perhaps service  areas may  be interested                                                               
next  year,   especially  from  smaller  communities   that  have                                                               
difficulty in obtaining a full list of candidates.                                                                              
                                                                                                                                
3:43:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether this  bill would  have any                                                               
effect on recruitment abilities.                                                                                                
                                                                                                                                
MR.  BANKS said  he  imagined  it would  help  in recruiting  new                                                               
directors since  it would  allow new directors  more time  to get                                                               
caught  up on  the technical  aspects  of the  industries and  it                                                               
would not be quite  as daunting a task to step  in for those with                                                               
little experience in electric or telephone cooperatives.                                                                        
                                                                                                                                
3:44:32 PM                                                                                                                    
                                                                                                                                
PHIL   STEYER,  Director,   Government   Relations  &   Corporate                                                               
Communications,  Chugach Electric  Association, Inc.  (CEA), said                                                               
that  CEA is  supportive of  the bill.   He  stated his  comments                                                               
would be akin  to his testimony on the house  version of the bill                                                               
last week.  He reiterated his support  for SB 14 on behalf of the                                                               
industry.                                                                                                                       
                                                                                                                                
3:45:19 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on SB 14.                                                                                      
                                                                                                                                
3:45:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  moved to  report SB  14 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.   There being  no objection,  SB 14  was reported  from the                                                               
House Labor and Commerce Standing Committee.