03/08/2011 09:00 AM Senate STATE AFFAIRS

            SB  36-OPT-OUT CHARITABLE GIVING PROGRAM                                                                        
                                                                                                                                
9:02:05 AM                                                                                                                    
CHAIR WIELECHOWSKI  announced the  first order of  business would                                                               
be SB 36.                                                                                                                       
                                                                                                                                
SENATOR  PASKVAN moved  to adopt  CS for  SB 36(  ), labeled  27-                                                               
LS0342\B, as the working document.                                                                                              
                                                                                                                                
CHAIR WIELECHOWSKI objected for discussion purposes.                                                                            
                                                                                                                                
GRIER HOPKINS,  staff to  Senator Joe Thomas,  sponsor of  SB 36,                                                               
said the changes in version B  add a sentence to the title, which                                                               
now includes  the provision allowing  an electric  cooperative to                                                               
assist  persons in  acquiring and  installing weatherization  and                                                               
energy efficiency  products and  services. This change  occurs in                                                               
section 2, page 2, and line 29.                                                                                                 
                                                                                                                                
9:04:23 AM                                                                                                                    
SENATOR KOOKESH joined the meeting.                                                                                             
                                                                                                                                
Currently,  utilities can  only  provide  financing programs  for                                                               
electrical  appliances  and  plumbing  upgrades.  Homer  Electric                                                               
Association runs a line of credit  program for its members, and a                                                               
number of  them have  asked for help  with energy  efficiency and                                                               
weatherization  programs.  On page  4,  lines  13  - 17,  the  CS                                                               
defines "charitable program" for purposes of the bill.                                                                          
                                                                                                                                
                                                                                                                                
SENATOR KOOKESH asked how it works  if a customer asks for a full                                                               
three-year refund.                                                                                                              
                                                                                                                                
MR. HOPKINS answered  that the cooperatives are  required to keep                                                               
a reserve fund for this purpose.  The donation is a maximum of 99                                                               
cents per bill or $36 per customer over a three year period.                                                                    
                                                                                                                                
CHAIR  WIELECHOWSKI  asked  Mr.  Sniffen  to  define  "charitable                                                               
purpose."                                                                                                                       
                                                                                                                                
ED SNIFFEN,  Assistant Attorney General, Consumer  Protection and                                                               
Antitrust Enforcement,  Civil Division, Department of  Law (DOL),                                                               
Anchorage,  said   there  were   some  questions   regarding  the                                                               
definition  of "charitable  purpose," and  limiting language  was                                                               
discussed  at  the  last  meeting. The  CS  language  tracks  the                                                               
language  currently in  the bill  under section  01.013 to  allow                                                               
donations to  a charitable,  scientific, or  educational purpose,                                                               
but specifically  restricts the  use of  money for  any pecuniary                                                               
profit  or for  a  labor organization.  A  charitable purpose  is                                                               
further  defined as  relief of  poverty, distress,  or any  other                                                               
condition of concern to the state.                                                                                              
                                                                                                                                
9:10:19 AM                                                                                                                    
JOE GALLAGHER,  Homer Electric Association,  spoke in  support of                                                               
CSSB  36(  ),  version  B.  He said  the  bill  would  allow  the                                                               
association  to assist  people in  installing weatherization  and                                                               
energy efficiency products and  services. The association already                                                               
has a  financing program  for appliances,  which has  worked very                                                               
well.  Members  would  like  to  add  weatherization  and  energy                                                               
efficiency products. Because of  restrictions in the current law,                                                               
the association is  unable to do this.  The goal of the  CS is to                                                               
add language that  allows them to help  finance energy efficiency                                                               
projects.                                                                                                                       
                                                                                                                                
9:11:11 AM                                                                                                                    
CHAIR  WIELECHOWSKI  closed  public testimony,  and  removed  his                                                               
objection.                                                                                                                      
                                                                                                                                
SENATOR PASKVAN moved to report CS  for SB 36( ), version B, from                                                               
committee  with   individual  recommendations   and  accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
CHAIR  WIELECHOWSKI   announced  that  without   objection,  CSSB
(STA) passed from the Senate State Affairs Standing Committee.