04/13/1999 09:06 AM Senate FIN

                                                                                                                                
 SENATE BILL NO. 52                                                                                                             
                                                                                                                                
"An Act relating to competition in the provision of                                                                             
local exchange telephone service; and providing for an                                                                          
effective date."                                                                                                                
                                                                                                                                
 CS FOR SENATE BILL NO. 52(L&C)                                                                                                 
                                                                                                                                
"An Act relating to competition in the provision of                                                                             
local exchange telephone service; and providing for an                                                                          
effective date."                                                                                                                
                                                                                                                                
                                                                                                                                
Senator Green MOVED Amendment #1.  There was objection.                                                                         
Senator Green explained her amendment.  She said there was                                                                      
concern regarding the quantity and quality of service.                                                                          
Senator P. Kelly indicated that his proposed amendment may                                                                      
address some of Senator Green's concerns.  They are not                                                                         
deregulating.                                                                                                                   
                                                                                                                                
Senator Adams asked to hear the difference between the two                                                                      
amendments.  Co-chair Torgerson said page two, line twenty-                                                                     
six was the only difference.  Senator Adams said it was                                                                         
important that the difference be clarified.  Senator P.                                                                         
Kelly referred the committee to page two, line nine.                                                                            
                                                                                                                                
Senator Green and Senator Kelly had a brief discussion.                                                                         
"One cannot come in and cherry-pick under this bill," said                                                                      
Senator P. Kelly.  "The entire area must be provided                                                                            
service."                                                                                                                       
                                                                                                                                
Senator Leman asked if an amendment to amendment #1 could                                                                       
be made on line 10 of deleting "shall" and inserting "may"?                                                                     
Senator Green advised the committee of this suggested                                                                           
change by Senator Leman.  Senator Phillips briefly                                                                              
commented.  He said that areas were different around the                                                                        
State.                                                                                                                          
                                                                                                                                
Senator Adams commented re the suggested language change by                                                                     
Senator Leman.  Senator Leman clarified his suggested                                                                           
change.                                                                                                                         
                                                                                                                                
Senator Green requested a brief at ease.  Co-chair                                                                              
Torgerson granted the request at approximately 10:45 a.m.                                                                       
                                                                                                                                
Co-chair Torgerson reconvened the meeting.                                                                                      
                                                                                                                                
Senator Kelly retained his objection.                                                                                           
                                                                                                                                
Senator Green MOVED amendment to amendment #1 which would                                                                       
delete "shall" and insert "may" on line ten.  WITHOUT                                                                           
OBJECTION it was ADOPTED.                                                                                                       
                                                                                                                                
Senator Kelly advised however, that he still maintained his                                                                     
objection to amendment #1.  By a roll call vote of 4 yeas                                                                       
(Torgerson, Adams, Green, Phillips) and 5 nays (Parnell,                                                                        
Donley, Leman, Wilken, P. Kelly) amendment #1 FAILED.                                                                           
                                                                                                                                
Senator Kelly MOVED amendment #2.  Co-chair Torgerson                                                                           
OJBECTED.  Senator Kelly explained his amendment.  Senator                                                                      
Adams asked for an explanation of line eight, page one of                                                                       
amendment #2.  Senator Kelly responded.  Senator Wilken                                                                         
questioned the two year date and why people would be more                                                                       
comfortable with this rather than four or six years.                                                                            
Senator Kelly commented.  In actuality, the level of                                                                            
comfort will be for the utilities and perhaps not much of a                                                                     
comfort for the public.                                                                                                         
                                                                                                                                
By a roll call vote of 6 yeas (Torgerson, Parnell, Donley,                                                                      
Leman, Wilken, P. Kelly) and 3 nays (Adams, Green,                                                                              
Phillips) amendment #2 was ADOPTED.                                                                                             
                                                                                                                                
(Tape #88, Side B was switched to Tape #89, Side A.)                                                                            
                                                                                                                                
Senator P. Kelly commented again briefly on the bill.                                                                           
Senator Adams asked if APUC was on teleconference as there                                                                      
were some questions he wanted to ask.  Co-chair Torgerson                                                                       
said they were not.  Senator Adams said he opposed the bill                                                                     
but needed the answers as to what the position of APUC was                                                                      
regarding this bill.  Specifically, he wanted to know what                                                                      
APUC felt about the telephone rates, and what was the                                                                           
effect of the bill regardless of where one lived in Alaska.                                                                     
                                                                                                                                
Senator P. Kelly said APUC has been neutral on this bill.                                                                       
It is believed the competition will provide better service                                                                      
and lower rates.  Senator Adams said it should not matter                                                                       
where one lived.  The same rates and services should be                                                                         
provided for all.  Co-chair Torgerson concurred.                                                                                
                                                                                                                                
Senator Kelly MOVED CSSB 52(FIN).  Senator Adams objected.                                                                      
Senator Green also voiced her frustrations and reliance on                                                                      
APUC.                                                                                                                           
                                                                                                                                
By a roll call vote of 6 yeas (Torgerson, Parnell, Donley,                                                                      
Leman, Wilken, P. Kelly) and 3 nays (Adams, Green,                                                                              
Phillips) CSSB 52(FIN) was REPORTED OUT with individual                                                                         
recommendations.  New fiscal notes will be forthcoming from                                                                     
the Department of Commerce.                                                                                                     
                                                                                                                                
Co-chair Torgerson reviewed the agenda for tomorrow                                                                             
regarding the Operating Budget.  Senator Adams asked for                                                                        
the schedule for amendments.  Senator Parnell said he hoped                                                                     
to have all amendments in his office by 5:00 p.m. on                                                                            
Friday.                                                                                                                         
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Co-chair Torgerson adjourned the meeting at approximately                                                                       
11:05 A.M.                                                                                                                      
SFC-99 (1) 04/13/99