Legislature(1993 - 1994)
04/07/1994 03:00 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
The first order of business was HB 539 - APUC EXTENSION AND REGULATORY COST CHARGE. Number 040 BOB LOHR, Executive Director, Alaska Public Utilities Commission (APUC), testified on HB 539 and proposed a conceptual amendment. The amendment would provide an exemption to the procurement act to allow the commission to procure expert witnesses directly. He said the amendment would alleviate the time crunch the commission often experiences when attempting to hire expert witnesses for a hearing. Number 122 REPRESENTATIVE GREEN asked if the amendment were adopted, would a title change be necessary since it affects another statute not listed in the title. Number 142 REPRESENTATIVE MULDER stated that he believes the committee could adopt the conceptual amendment with the intent that the bill drafters include a title change if necessary. Number 165 REPRESENTATIVE MACKIE moved the conceptual amendment. There being no objection, it was so ordered. Number 180 REPRESENTATIVE MACKIE noted that the Alaska Rural Electric Cooperative Association (ARECA) has provided the committee with an amendment regarding the language in the bill being "liberally construed". Number 195 CHAIRMAN HUDSON informed the committee that if the amendment from ARECA is adopted, the Department of Commerce will provide a new fiscal note which will reflect an increase of $121.4 thousand. If the amendment isn't adopted the fiscal note would be zero. Number 205 REPRESENTATIVE MACKIE moved the ARECA amendment. CHAIRMAN HUDSON objected. Number 213 DAVE HUTCHENS, Executive Director, Alaska Rural Cooperative Association testified in favor of the amendment. He stated the reason the amendment was proposed was to, "Require the APUC to follow the law instead of making the law". MR. HUTCHENS noted that there was an example of the use of the language "liberally construed" by APUC in the letter he provided the committee. He stated he felt the present commission not likely to do anything wild and crazy but considers this amendment preventive maintenance. Number 241 DON SCHROER, Executive Director, APUC, testified in opposition to the ARECA amendment. He said he believes the deletion of the language "liberally construed" would restrict the commission's ability to make "decent level headed decisions" without having to go to the courts or the legislature. MR. SCHROER explained that the reason the legislature set up the APUC in the first place was so that the legislature wouldn't have to deal with the regulation of utilities. Number 276 REPRESENTATIVE MULDER asked if there was any way to fashion language to address the concerns and to tighten up the language "liberally construed". Number 286 MR. SCHROER stated that it wasn't necessarily that the commission needed flexibility but that the term "liberally construed" allows the commission to better administer the statute they work under. Number 305 CHAIRMAN HUDSON stated that the committee had a heavy agenda today and because he felt everyone knew both sides of the issue he suggested a roll call vote be taken. Number 310 REPRESENTATIVE GREEN asked if this was a problem in other states and how they handled it. Number 320 MR. LOHR responded that it was his understanding that this language was common. Number 330 MR. HUTCHENS stated that he had provided a letter to the committee, from their attorney, that addressed what other regulatory agencies within Alaska do. The letter states in part that they could not find any other regulatory agencies within Alaska that use the liberally construed language. MR. HUTCHENS added that the amendment included an effective date more than a year away to allow the commission a transmission period to wrap up its current work under the present rules. Number 348 MR. SCHROER stated that the courts have used the language "liberally construed" in a number of cases. REPRESENTATIVE MACKIE offered a amendment to the ARECA amendment to add the effective date of July 1, 1995, as the date and to delete the term "liberally construed" from the statute. Hearing no objection, it was so ordered. REPRESENTATIVE MACKIE stated that the fiscal note seemed high and that it was probably so to discourage the adoption of the amendment. He further stated that he felt there would probably be a savings if the amendment passed as there would most likely be less litigation not more. Number 390 REPRESENTATIVE PORTER stated he would be supporting the amendment. He said he believes the current commission would have no problem implementing this phrase but future commissions may not. Number 400 REED STOOPS, Lobbyist, GCI, testified against the amendment and supports the commission's view on it. He stated that there would be an increase in litigation if the amendment passed as the area of telecommunications is changing rapidly and the commission needs some flexibility to carry out its mission. Number 417 CHAIRMAN HUDSON declared a conflict of interest because his son is involved in a cellular telephone company and recently benefitted from the liberally construed language. Number 425 The committee members objected. Number 448 Roll call vote was taken on ARECA amendment as amended. Representatives Mulder, Green, Mackie, Sitton and Porter voted in favor of the amendment. Representatives Williams and Hudson voted against the amendment. So the amendment to HB 539 passed. Number 463 STEVE CONN, Executive Director, Alaska Public Interest Research Group, testified in opposition to HB 539. He pointed out that the committee has received a transcript of a hearing before the APUC which points out that the APUC has lost contact with their duties. The transcript summarizes how few consumers make complaints, how limited the resources are for them to make complaints, and how limited the staff is to take formal complaints. MR. CONN concluded by saying there is a problem with the fundamental principal that rate payers should underwrite APUC which, in turn, is indifferent to the needs to the consumer. Number 500 JIM ROWE, Alaska Telephone Association, testified in support of the amendment and HB 539. He stated he considers the amendment preventive and not something aimed at the present commission. Number 516 REPRESENTATIVE MULDER moved CSHB 539 (L&C), with the accompanying fiscal note, be passed out of committee with individual recommendations. There being no objection, the motion carried.
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