Legislature(1999 - 2000)

03/10/1999 08:05 AM House URS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 62 - ALASKA PUBLIC UTILITIES COMMISSION                                                                                      
                                                                                                                                
CHAIRMAN HUDSON announced the next order of business is HB 62, "An                                                              
Act relating to the Alaska Public Utilities Commission; and                                                                     
providing for an effective date."                                                                                               
                                                                                                                                
CHAIRMAN HUDSON announced there are two amendments to be considered                                                             
(1-LS0327\A.2 and 1-LS0327\A.3).                                                                                                
                                                                                                                                
Number 1761                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON called for a brief at-ease at 8:35 a.m. and called                                                              
the meeting back to order at 8:38 a.m.                                                                                          
                                                                                                                                
CHAIRMAN HUDSON called on Wilda Rodman, staff to Representative                                                                 
Gene Therriault, sponsor of the bill.                                                                                           
                                                                                                                                
Number 1774                                                                                                                     
                                                                                                                                
WILDA RODMAN, Legislative Administrative Assistant to                                                                           
Representative Gene Therriault, Alaska State Legislature, stated in                                                             
reference to Amendment A.2, Representative Therriault would prefer                                                              
to amend HB 62 instead of separating it into two different bills.                                                               
                                                                                                                                
CHAIRMAN HUDSON asked Ms. Rodman for clarification whether                                                                      
Representative Therriault would like to see the amendment                                                                       
incorporated into HB 62.                                                                                                        
                                                                                                                                
MS. RODMAN said correct.                                                                                                        
                                                                                                                                
CHAIRMAN HUDSON asked Ms. Rodman to speak to Amendment A.2                                                                      
(1-LS0327\A.2, Cramer, 2/26/99).  It reads as follows:                                                                          
                                                                                                                                
Page 1, following line 3:                                                                                                       
                                                                                                                                
Insert new bill sections to read:                                                                                               
                                                                                                                                
"* Section 1.  AS 42.05.020(b) is amended to read:                                                                              
                                                                                                                                
     (b)  The governor shall designate one member of the                                                                        
     commission as chair [CHAIRMAN] of the commission.  This                                                                    
     member shall serve as chair [CHAIRMAN] for a term of four                                                                  
     years, but may be appointed for successive terms.  The                                                                     
     chair is responsible for the administration of the                                                                         
     commission and commission employees.                                                                                       
                                                                                                                                
* Sec. 2.  AS 42.05.101(a) is amended to read:                                                                                  
                                                                                                                                
     (a)  The chair of the commission shall establish for the                                                                   
     commission a principal office and branch offices                                                                           
     necessary to discharge its business efficiently.  For the                                                                  
     convenience of the public or of parties to a proceeding,                                                                   
     the commission may hold meeting, hearings, or other                                                                        
     proceedings at other locations.                                                                                            
                                                                                                                                
* Sec. 3.  AS 42.05.111(b) is amended to read:                                                                                  
     (b)  The chair of the commission may employ temporary                                                                      
     legal counsel for the commission from time to time in                                                                      
     proceedings before the commission in which the attorney                                                                    
     general is representing the public interest or a party                                                                     
     before the commission.                                                                                                     
                                                                                                                                
* Sec. 4.  AS 42.05.121 is amended to read:                                                                                     
                                                                                                                                
     Sec. 42.05.121.  Employment of commission personnel.  (a)                                                                  
     The chair of the commission may employ an executive                                                                        
     director of the commission.  The executive director [WHO]                                                                  
     shall have had at least five years of experience in                                                                        
     public utility management or regulation, law, accounting,                                                                  
     engineering, or an allied field.  The executive director                                                                   
     is responsible for directing the administrative functions                                                                  
     of the commission and carrying out the policies as set by                                                                  
     the commission.  The chair of the commission may employ                                                                    
     engineers, hearing officers, administrative judges to the                                                                  
     extent provided in AS 42.06.140(b), experts, clerks,                                                                       
     accountant, and other agents and assistants considered                                                                     
     [IT CONSIDERS] necessary.  Employees and agents of the                                                                     
     commission who are not partially exempt under AS                                                                           
     39.25.120, other than legal counsel, are in the                                                                            
     classified service under AS 39.25.100.                                                                                     
                                                                                                                                
     (b)  In addition to the [ITS] staff of regular employees,                                                                  
     the chair of the commission may contract for and engage                                                                    
     the services of consultants and experts the chair                                                                          
     [COMMISSION] considers necessary."                                                                                         
                                                                                                                                
Page 1, line 4:                                                                                                                 
                                                                                                                                
     Delete "Section 1"                                                                                                         
     Insert "Sec. 5"                                                                                                            
                                                                                                                                
Renumber the following bill section accordingly.                                                                                
                                                                                                                                
MS. RODMAN explained Amendment A.2, in response to testimony at the                                                             
last hearing, delineates the power and authority of the chair of                                                                
the commission.  The chair doesn't have the authority to hold                                                                   
someone accountable.                                                                                                            
                                                                                                                                
CHAIRMAN HUDSON stated there are constitutional problems with                                                                   
Amendment A.2.                                                                                                                  
                                                                                                                                
Number 1856                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER stated, in the general consideration that the                                                             
committee has had and the exposure that most of the members have                                                                
had over the last couple of years, this type of shoring up is                                                                   
necessary.  The greatest concern expressed about the commission is                                                              
delay and consequently he feels compelled not to be subject to the                                                              
same criticism.  He said, "If--if it is that making the individual                                                              
chair responsible for hiring is improper, then let's just not do                                                                
it.  But, if there is an alternative that is acceptable, let's                                                                  
consider it.  If not then, my feeling would be, let's get this                                                                  
thing moving."                                                                                                                  
                                                                                                                                
Number 1906                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY stated he thought the intent of the bill is                                                              
a sunset date.  It has a wide title, and that is a problem too.  He                                                             
would like to see the committee address the sunset date and address                                                             
the other things in another piece of legislation.  The wide title                                                               
calls for mischief.  He would like to tighten the title to pertain                                                              
to the sunset date only.                                                                                                        
                                                                                                                                
Number 1950                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES agreed with tightening the title to reflect                                                               
the sunset and the intent of the amendments.  If it looks like it                                                               
will be dragged on longer beyond these two amendments, then he                                                                  
agrees the bill should be separated in order to get one going.  He                                                              
supports Amendment A.2.  It is consistent with the material                                                                     
provided by the independent internal review.  It is essentially one                                                             
of the recommendations.                                                                                                         
                                                                                                                                
Number 1983                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON stated he would like to see Amendment A.2 be                                                                    
incorporated into the bill.  In reference to the concern of the                                                                 
open ended title, he read the following suggestion by                                                                           
Representative Therriault:                                                                                                      
                                                                                                                                
     "An Act relating to the extension of the termination date                                                                  
     and the organization structure of the APUC [Alaska Public                                                                  
     Utilities Commission]."                                                                                                    
                                                                                                                                
CHAIRMAN HUDSON indicated it would need to be in writing before                                                                 
taking it up.                                                                                                                   
                                                                                                                                
Number 2029                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG suggested taking up the amendments                                                                      
pertaining to the body of the bill then work on a title.                                                                        
                                                                                                                                
CHAIRMAN HUDSON asked for someone to address the constitutional                                                                 
problem in Amendment A.1.                                                                                                       
                                                                                                                                
MS. RODMAN replied the problem is with the language starting on                                                                 
line 18, "(a) The chair of the commission may employ an executive                                                               
director of the commission...".  It is unconstitutional because the                                                             
commission needs to vote on an executive director.  It can be fixed                                                             
by deleting that language so that it reads, "The commission may                                                                 
employ an executive director...".                                                                                               
                                                                                                                                
CHAIRMAN HUDSON called for a motion to amend Amendment A.2.                                                                     
                                                                                                                                
Number 2075                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER made a motion to adopt Amendment A.2 deleting                                                             
the language as indicated on lines 18-20 that would result in                                                                   
leaving the current statutory language.                                                                                         
                                                                                                                                
REPRESENTATIVE ROKEBERG objected.  He announced he has another                                                                  
amendment to Amendment A.2 and asked that the motion be restated to                                                             
incorporate his amendment.                                                                                                      
                                                                                                                                
CHAIRMAN HUDSON stated he assumed that the motion was an amendment                                                              
to Amendment A.2.                                                                                                               
                                                                                                                                
REPRESENTATIVE PORTER removed his motion.                                                                                       
                                                                                                                                
REPRESENTATIVE PORTER made a motion to delete lines 18-20 of                                                                    
Amendment A.2 that would result in leaving the current statutory                                                                
language.                                                                                                                       
                                                                                                                                
REPRESENTATIVE DAVIES called for a point of order.  Amendment A.2                                                               
is not before the committee.                                                                                                    
                                                                                                                                
CHAIRMAN HUDSON called for a motion to officially adopt Amendment                                                               
A.2.                                                                                                                            
                                                                                                                                
Number 2126                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER made a motion to adopt Amendment A.2.                                                                     
                                                                                                                                
CHAIRMAN HUDSON designated the amendment as Amendment 1, and asked                                                              
whether there is any objection.  There being no objection, it was                                                               
so adopted.                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON asked whether there is any objection to amending                                                                
Amendment 1 as already discussed.                                                                                               
                                                                                                                                
Number 2162                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY objected.  He asked Ms. Rodman how amending                                                              
Amendment 1 meets the constitutional standard.                                                                                  
                                                                                                                                
MS. RODMAN replied she can't answer that.  She only knows how to                                                                
fix it.  She deferred the question to Walt Wilcox, staff to                                                                     
Representative Bill Hudson.                                                                                                     
                                                                                                                                
Number 2191                                                                                                                     
                                                                                                                                
WALT WILCOX, Legislative Assistant to Representative Bill Hudson,                                                               
Alaska State Legislature, stated last evening it was brought to his                                                             
attention that Section 42.05.121 in the amendment is                                                                            
unconstitutional under the "Boards and Commissions" section of the                                                              
state constitution.  That section says the entire commission has to                                                             
hire an executive director, not one commissioner.                                                                               
                                                                                                                                
Number 2217                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked Mr. Wilcox whether the amendment to                                                                
Amendment 1 makes it constitutional.                                                                                            
                                                                                                                                
MR. WILCOX replied if that portion is taken out of the amendment it                                                             
goes back to the original language.  According to his                                                                           
understanding, the original language is constitutional.                                                                         
                                                                                                                                
Number 2227                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY removed his objection.                                                                                   
                                                                                                                                
CHAIRMAN HUDSON asked whether there is any further objection.                                                                   
There being none, it was so adopted.                                                                                            
                                                                                                                                
Number 2256                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Wilcox whether the language                                                                   
starting on line 23 of Amendment 1, as amended, giving the chair                                                                
not the executive director the authority to employ remains                                                                      
constitutional.                                                                                                                 
                                                                                                                                
MR. WILCOX replied the area just discussed was the only portion                                                                 
that Legislative Legal Counsel pointed out as being                                                                             
unconstitutional.                                                                                                               
                                                                                                                                
CHAIRMAN HUDSON noted that the new section would read, "The                                                                     
commission may employ an executive director."                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG stated the language starting on line 23                                                                 
reads, "The chair of the commission may employ engineers..."                                                                    
                                                                                                                                
MR. WILCOX explained that has nothing to do with the executive                                                                  
director or managerial slot for the whole organization.  It has to                                                              
do with the other employees.                                                                                                    
                                                                                                                                
Number 2280                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a conceptual motion to delete the word                                                             
"governor" and to add the word "commission" to page 1, line 4 of                                                                
Amendment 1, as amended.                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG stated the idea of the conceptual amendment                                                             
is to allow the members of the commission to appoint the chair                                                                  
rather than the governor.  He has discussed this issue with a                                                                   
number of people involved and he thinks it might help with the                                                                  
general morale, efficiency and operation of the agency according to                                                             
the study and other reorganization methods.  It may be                                                                          
controversial, but it deserves an airing.                                                                                       
                                                                                                                                
CHAIRMAN HUDSON called on Ginny Fay from the Department of Commerce                                                             
and Economic Development to discuss the conceptual motion.                                                                      
                                                                                                                                
Number 2339                                                                                                                     
                                                                                                                                
GINNY FAY, Legislative Liaison, Office of the Commissioner,                                                                     
Department of Commerce and Economic Development, stated the                                                                     
Administration strongly opposes the conceptual amendment.  The                                                                  
Governor would like to continue to appoint the chair and under the                                                              
current circumstances the situation would be worse if the                                                                       
commissioners appointed the chair.                                                                                              
                                                                                                                                
Number 2363                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES stated he is against the conceptual                                                                       
amendment.  The structure now achieves a certain balance.  The                                                                  
issue of whether a governor can replace all of the members of the                                                               
commission in order to be more responsive to the current                                                                        
Administration has been struck down in court.  He supports a                                                                    
staggered set of appointments so that the commission, hopefully, is                                                             
more depoliticized and that there is representation from a broad                                                                
set of views.  However, a commission like this needs to be a little                                                             
bit more responsive and having the governor appoint the chair is a                                                              
compromise between those two circumstances.                                                                                     
                                                                                                                                
Number 2406                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER stated he understands the idea of the                                                                     
conceptual amendment and he could argue for it, but at the same                                                                 
time he recognizes that there is a situation that needs to be                                                                   
worked through with this individual commission.  He said, "Until we                                                             
get through this, it seems to me making this amendment exasperates                                                              
that situation.  It would also put a difficult spin on a situation                                                              
where there would be one person missing, that having been the chair                                                             
for some reason.  And, then the four members are required, with an                                                              
inability to strike a majority, to appoint a chairman and the                                                                   
stalemate could go on forever.  I think that considering all of                                                                 
that, it's a close call, but I would speak against the amendment."                                                              
                                                                                                                                
Number 2451                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY stated it is important to remember that the                                                              
legislature has its voice in confirming the members.  He stated he                                                              
is against the conceptual amendment.                                                                                            
                                                                                                                                
Number 2470                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON asked Representative Rokeberg whether he still                                                                  
wants to offer the conceptual amendment after hearing the                                                                       
testimony.                                                                                                                      
                                                                                                                                
Number 2477                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated it appears that there might be a                                                                 
constitutional prohibition to...                                                                                                
                                                                                                                                
TAPE 99-7, SIDE B                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG continued.  The conceptual amendment is to                                                              
help overcome some of the internal problems of the commission by                                                                
having a more collegial type of selection of the chair.                                                                         
                                                                                                                                
Number 0012                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG withdrew his motion based on constitutional                                                             
grounds.                                                                                                                        
                                                                                                                                
CHAIRMAN HUDSON called for a motion to adopt Amendment 1, as                                                                    
amended.                                                                                                                        
                                                                                                                                
Number 0021                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES made a motion to adopt Amendment 1, as                                                                    
amended.  There being no objection, it was so adopted.                                                                          
                                                                                                                                
CHAIRMAN HUDSON called for a motion to adopt Amendment 2                                                                        
(1-LS00327\A.3, Cramer, 3/9/99).  It reads as follows:                                                                          
                                                                                                                                
     Page 1, following line 3:                                                                                                  
                                                                                                                                
          Insert a new bill section to read                                                                                     
                                                                                                                                
          * Section 1.  AS 42.05.035 is amended to read:                                                                        
               Sec. 42.05.035.  Removal of commissioners.                                                                       
               The governor may remove a commissioner from                                                                      
               office for cause [BY AND WITH THE CONSENT OF A                                                                   
               MAJORITY OF THE LEGISLATURE]."                                                                                   
                                                                                                                                
     Page 1, line 4:                                                                                                            
                                                                                                                                
          Delete "Section 1"                                                                                                    
          Insert "Sec. 2"                                                                                                       
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIRMAN HUDSON stated Amendment 2 means the governor can remove a                                                              
commissioner from office for cause and eliminates the requirement                                                               
of going back to the legislature for consent.                                                                                   
                                                                                                                                
Number 0063                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked whether Amendment 2 would be in the                                                                
statutes forever.                                                                                                               
                                                                                                                                
CHAIRMAN HUDSON replied it would be in the statutes until it is                                                                 
properly removed by some further action of the legislature.  It is                                                              
not a time-sequenced amendment.                                                                                                 
                                                                                                                                
Number 0085                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY stated there were lawsuits that cost a lot                                                               
of money and misery when there were efforts to do something similar                                                             
to this in the past.  He can see the reason for it, but on the same                                                             
token he doesn't want to have one Administration appoint a                                                                      
commission for a given length of time and a new Administration wipe                                                             
everybody out.                                                                                                                  
                                                                                                                                
Number 0110                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN stated in most legislation "cause" is pretty                                                               
well defined.  But, because of the contentious nature of this                                                                   
particular commission, he is concerned that cause could be                                                                      
stretched to say that disruption amongst the troops is a reason for                                                             
dismissal.  He wondered whether Pandora's box is being opened                                                                   
without a definition of the term "cause".                                                                                       
                                                                                                                                
CHAIRMAN HUDSON deferred the question to Ms. Fay from the                                                                       
Department of Commerce and Economic Development.                                                                                
                                                                                                                                
Number 0144                                                                                                                     
                                                                                                                                
MS. FAY replied the department is concerned about the limitation of                                                             
the amendment to address those concerns, especially extensive legal                                                             
battles.  She wondered whether or not changing the statute at this                                                              
time would be applicable to the current situation.  She announced                                                               
she has an amendment from the Department of Law.  It has not been                                                               
drafted by Legislative Legal Counsel.  It attempts to address the                                                               
issue of clarifying cause.  This type of amendment has been before                                                              
the committee in the past dealing with the Department of Fish and                                                               
Game and the Board of Game.  The proposed amendment reads as                                                                    
follows:                                                                                                                        
                                                                                                                                
* Sec. AS 42.05.035 is repealed and reenacted to read:                                                                          
                                                                                                                                
     Sec. 42.05.035.  Removal of commissioners.  The governor                                                                   
     may only remove a commissioner from office for                                                                             
     inefficiency, neglect of duty, or misconduct in office,                                                                    
     or because the member while serving on the commission is                                                                   
     convicted of a misdemeanor for violating a statute or                                                                      
     regulation related to public utilities or of a felony.                                                                     
     A copy of the charges shall be delivered to the                                                                            
     commissioner in writing.  The commissioner shall have an                                                                   
     opportunity to be heard in person or through counsel at                                                                    
     a public hearing before the governor or a designee upon                                                                    
     at least 10 days notice by registered mail.  The                                                                           
     commissioner may confront and cross-examine adverse                                                                        
     witnesses.  Upon removal, the governor or a designee                                                                       
     shall file in the proper state office the finds and a                                                                      
     complete statement of all charges made against the                                                                         
     commissioner.                                                                                                              
                                                                                                                                
     * Sec.  In accordance with AS 01.10.100(a), the repeal                                                                     
     and re-enactment of AS 42.05.035 enacted in sec. of this                                                                   
     Act applies to a commissioner of the Alaska Public                                                                         
     Utilities Commission appointed before the effective date                                                                   
     of this Act and is intended to extinguish any existing                                                                     
     right of a sitting commissioner to the removal procedure                                                                   
     specified informer AS 42.05.035.                                                                                           
                                                                                                                                
Number 0197                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON asked Ms. Fay whether the recommended language                                                                  
bears the scrutiny of the Department of Law.                                                                                    
                                                                                                                                
MS. FAY replied it was prepared by the Department of Law.                                                                       
                                                                                                                                
CHAIRMAN HUDSON asked Ms. Fay whether she is saying that this is                                                                
common in other applications.                                                                                                   
                                                                                                                                
MS. FAY replied she thinks the legislature recently enacted                                                                     
something similar with relationship to the Board of Fisheries or                                                                
Board of Game.  She doesn't recall which one.                                                                                   
                                                                                                                                
Number 0217                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY referred to the language, "...while serving                                                              
on the commission is convicted of a misdemeanor for violating a                                                                 
statute or regulation related to public utilities or of a felony.                                                               
A copy of the charges shall be...".  He noted that in this society                                                              
the key word is "conviction" and asked Ms. Fay to explain the                                                                   
language.                                                                                                                       
                                                                                                                                
Number 0243                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN stated the language reads "or".  He thinks it                                                              
refers to a sequence rather than having to be convicted of all of                                                               
them.                                                                                                                           
                                                                                                                                
Number 0259                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES noted the charges refer to the grounds for                                                                
removal, not the grounds for conviction.                                                                                        
                                                                                                                                
CHAIRMAN HUDSON stated that is his reading too.                                                                                 
                                                                                                                                
MS. FAY stated she thinks that is correct.                                                                                      
                                                                                                                                
CHAIRMAN HUDSON stated it is up to the committee members to                                                                     
determine which action to take on either amendments - Amendment 2                                                               
or the proposed amendment from the Department of Law.                                                                           
                                                                                                                                
REPRESENTATIVE DAVIES asked Chairman Hudson whether he intends to                                                               
hold the bill over for one more meeting.                                                                                        
                                                                                                                                
CHAIRMAN HUDSON replied, if the bill can get cleaned up and the                                                                 
committee members feel generally comfortable with it, he would like                                                             
to move it out.                                                                                                                 
                                                                                                                                
REPRESENTATIVE DAVIES asked Chairman Hudson where the bill goes                                                                 
next.                                                                                                                           
                                                                                                                                
CHAIRMAN HUDSON replied it goes next to the House Labor and                                                                     
Commerce Committee.                                                                                                             
                                                                                                                                
CHAIRMAN HUDSON labeled the proposed amendment as new Amendment 2                                                               
and called for a motion to adopt it.                                                                                            
                                                                                                                                
Number 0334                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES made a motion to adopt the new Amendment 2.                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG objected.  He is not sure where it is                                                                   
coming from.  He is reluctant to see the power of the legislature                                                               
when it comes to these constitutionally protected, quasi-judicial                                                               
agencies go to the governor.  It seems the amendment is skewed                                                                  
towards an instant fact pattern and not for the benefit of the                                                                  
state in the long run.                                                                                                          
                                                                                                                                
Number 0396                                                                                                                     
                                                                                                                                
MS. FAY stated, according to her understanding, the APUC statute is                                                             
the only place that the legislature votes to concur with the                                                                    
removal of a member and its constitutionality is questionable.  The                                                             
new Amendment 2 would make the APUC removal clause constitutional                                                               
and more consistent with other removals for boards and commissions.                                                             
                                                                                                                                
Number 0420                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated he has not had a chance to look over                                                             
the new Amendment 2 and its ramifications.  It is an interesting                                                                
point, but without seeing a legal opinion relating to its                                                                       
constitutionality and given the importance of this matter, he will                                                              
maintain his objection.                                                                                                         
                                                                                                                                
Number 0448                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ stated it seems, when the legislature                                                                  
takes on the position of a judicial function, it would create some                                                              
kind of problem.  That would probably be the constitutional concern                                                             
with the statute as it is currently configured.                                                                                 
                                                                                                                                
Number 0483                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER stated, in recognizing that an individual                                                                 
situation has been brought to the legislature's attention, he                                                                   
agrees with Representative Rokeberg.  It should be looked at in the                                                             
context of whether or not it is good public policy.  It is also his                                                             
understanding that this particular statute is the only one that                                                                 
provides this type of mechanism for the removal of a commissioner.                                                              
It is the only one whereby the legislature is required to confirm                                                               
a dismissal.  Again, looking at the general problems described for                                                              
this particular commission, a special session would be needed to                                                                
avoid an eight-month delay for the removal of a commissioner which                                                              
doesn't seem reasonable.  He is more comfortable with language                                                                  
addressing cause.  Well, here is the cause and its a high duty of                                                               
cause, and one that he is comfortable with.                                                                                     
                                                                                                                                
CHAIRMAN HUDSON asked Representative Porter whether he is speaking                                                              
in favor of the new Amendment 2.                                                                                                
                                                                                                                                
REPRESENTATIVE PORTER replied yes.                                                                                              
                                                                                                                                
Number 0555                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY stated he would like to speak against the                                                                
new Amendment 2.  It was just handed to the committee members.  He                                                              
would like to have some time to review it and explore it with                                                                   
Legislative Legal Counsel.  He might not object to it later, but he                                                             
still wants to hold it over.                                                                                                    
                                                                                                                                
Number 0579                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES stated it seems reasonable to address those                                                               
concerns in the next committee of referral, especially since                                                                    
Representative Rokeberg who objected to it is the chairman of the                                                               
next committee.  He suggested adopting the new Amendment 2.                                                                     
                                                                                                                                
Number 0599                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON stated, on the other hand, if it is taken care of                                                               
here, it is only a one week delay.  If it is sent to the next                                                                   
committee of referral...                                                                                                        
                                                                                                                                
Number 0613                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated it would be valuable to get a legal                                                              
opinion on it.  He would be appropriate, given the makeup of this                                                               
committee versus the makeup of the next committee of referral,                                                                  
making the decision in this committee.  He asked that the bill be                                                               
held over one more week to look at the legal aspects and other                                                                  
avenues of ameliorating the problems.  It is appropriate to hold it                                                             
over given the fact that the Administration brought it at the last                                                              
minute.                                                                                                                         
                                                                                                                                
CHAIRMAN HUDSON stated those are the right reasons to hold the bill                                                             
and new Amendment 2.  He will ask for a legal opinion from                                                                      
Legislative Legal Counsel which will be presented at the next                                                                   
committee meeting.  He also asked the committee members to                                                                      
contemplate the title.  He will send a copy of Representative                                                                   
Therriault's suggestion to each of the committee members.                                                                       
                                                                                                                                
Number 0720                                                                                                                     
                                                                                                                                
MS. FAY stated the Administration supports Representative                                                                       
Therriault's wish to include these changes into a sunset bill, as                                                               
opposed to separate legislation.  If the title is changed to the                                                                
suggested one, it won't capture the essence of the two amendments.                                                              
In addition, the language "organization and structure" in a title                                                               
opens it up to other potential changes.  She suggested the                                                                      
following language:                                                                                                             
                                                                                                                                
     "...the extension of the APUC, the power of the chair,                                                                     
     and the removal of commissioners..."                                                                                       
                                                                                                                                
Number 0785                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIES suggested asking Legislative Legal Counsel to                                                             
narrow the title in relation to the concerns.                                                                                   
                                                                                                                                
Number 0795                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY suggested appointing a subcommittee.                                                                     
                                                                                                                                
CHAIRMAN HUDSON said he has confidence that it can be done in a                                                                 
short order, especially with the help of Legislative Legal Counsel                                                              
and the committee members.                                                                                                      
                                                                                                                                
Number 0825                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT stated a title change will depend on what                                                                   
happens with Amendment 2 or new Amendment 2.  He is not comfortable                                                             
with this amendment process.  He was looking forward to a clean                                                                 
bill that would expedite itself through the system, rather than                                                                 
offering the opportunity for every committee that reviews it to                                                                 
make administrative changes.  While the Administration might                                                                    
support the inclusion of the administrative remedies in Amendment                                                               
1, as it moves through the process some of these things might                                                                   
become objectionable to the Governor and the tendency to support it                                                             
might change.                                                                                                                   
                                                                                                                                
Number 0881                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON opened the meeting up to public testimony.                                                                      
                                                                                                                                
BOB LOHR, Executive Director, Alaska Public Utilities Commission,                                                               
Department of Commerce and Economic Development, testified via                                                                  
teleconference from Anchorage.  He announced that Chairman Cotten                                                               
had to return to the APUC for a public meeting.  He was here for                                                                
most of the discussion, but he was not here for the discussion on                                                               
the new Amendment 2.                                                                                                            
                                                                                                                                
CHAIRMAN HUDSON asked Mr. Lohr to pass on to Chairman Cotten the                                                                
flavor of the comments of the committee members.  The committee may                                                             
want him to comment next week.                                                                                                  
                                                                                                                                
Number 0935                                                                                                                     
                                                                                                                                
TIM COOK, Commissioner, Alaska Public Utilities Commission,                                                                     
Department of Commerce and Economic Development, testified via                                                                  
teleconference from Wasilla.  He said: "Yes, sir this is Tim Cook                                                               
in Wasilla.  And, I'm sorry that I'm missing a public meeting of                                                                
the utilities commission, but after listening this morning, I                                                                   
thought, it was imperative that I stay and give you some of my                                                                  
thoughts on...I hope that I'm not too long winded in this, but                                                                  
sometimes I get paid by the nickel as well and I have to talk a                                                                 
long time to make any nickels.  Mr. Chairman, I came this morning                                                               
prepared to say one thing.  After listening to the proposed                                                                     
amendments, I guess it really furthers my resolve.  I came to                                                                   
advocate that the legislature either make fundamental structural                                                                
changes at the APUC or let the APUC sunset out of existence.  The                                                               
commission has formally adopted recommendations that we go from                                                                 
five commissioners to three and that we have an internally elected                                                              
chair rather then a chair appointed by the Governor.  The reasons                                                               
that I take this course--make these recommendations is--is at this                                                              
juncture the public utilities commission has become a springboard                                                               
for political aspirations by both the Governor and Chairman.  And,                                                              
after listening to the proposed amendments this morning, I believe                                                              
that--that the PUC would become an--an absolute puppet of the                                                                   
Governor.  Mr. Chairman and members of the committee, many of you                                                               
know me and supported me in my fight to keep the APUC an                                                                        
independent agency when the Governor tried to remove me from the                                                                
commission.  That fight was expensive to me personally.  It took a                                                              
year of my life and about $65,000 in attorney fees.  And we won                                                                 
that battle, but I believe we're losing the war.  Particularly with                                                             
the amendments that are talked about this morning, there is no                                                                  
doubt that the Governor would attack me again as well as other                                                                  
members of the commission.  And it puts the commission member in a                                                              
very difficult situation which is now you're fighting the entire                                                                
resources of the attorney general's office, the governor's office                                                               
and (indisc.--coughing) own nickel.  The legislature supported me.                                                              
Let me rephrase it, they didn't support me, they supported their                                                                
position.  I had to hire an independent counsel to represent my                                                                 
interests and that cost me $65,000 approximately out of my pocket.                                                              
By going to a cause-basis that becomes a very nebulous concept that                                                             
has no basis.  This I don't think is simply my opinion in terms of                                                              
where we need to go.  I've said that the Governor has a strangle                                                                
hold on this commission previously.  I'd like to read to you a                                                                  
letter that the Governor sent to the commission with regard to                                                                  
personnel."                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON asked Mr. Cook whether the letter is long.                                                                      
                                                                                                                                
MR. COOK said:  "No sir, I'm only going to read one sentence--two                                                               
sentences.  It says, 'Therefore, I am appointing Commissioner Clark                                                             
as commissions hearing officer--that's the Governor speaking--and                                                               
I do not recognize the validity of the discharge of Robert Lohr.                                                                
Further, any other appointments or removals from exempt or                                                                      
partially exempt provisions--positions at the commission will be                                                                
subject to approval by me or my chief of staff.'  In essence, the                                                               
Governor owns the executive director's office."                                                                                 
                                                                                                                                
MR. COOK further said:  "As far as the chairmanship of the                                                                      
commission, I'd just like to read a very short quote from                                                                       
Commissioner Hanley at our last public meeting.  She said that, 'I                                                              
think we have a situation right now where decisions are made by the                                                             
chairman and the executive director and board commissioners know                                                                
nothing about them.'  That's the position that Commissioner Hanley                                                              
has.  As far as the--the ability to remove commissioners, the                                                                   
entire trust of giving that to--a requirement has to (indisc.--door                                                             
closing and coughing) the legislature to remove the ability of the                                                              
Governor to manipulate politically the decisions of the commission.                                                             
At this point, we're in a situation where the Governor has                                                                      
completely eviscerated that provision as well.  The chairman of the                                                             
organization's term expired March the first.  He serves under                                                                   
provision of 42.05.030 that states, 'the commissioners term                                                                     
expiration of the term shall continue to hold office until a                                                                    
successor is appointed'.  In effect what's happened is Sam Cotten                                                               
is serving at the pleasure of the Governor.  And, I believe that                                                                
Commissioner Cotten will continue to serve in this state of                                                                     
suspended animation as long as he pleases the Governor.  And, at                                                                
the point that he displeases the Governor, the Governor will name                                                               
a successor and Sam Cotten will be removed immediately from the                                                                 
commission.  Mr. Chairman and members of the commission, make no                                                                
mistake, this Governor and this Chairman have high political                                                                    
aspirations and they also have the keen ability for retaliation.                                                                
This is not simply within the commission, but there is a fear, I                                                                
believe, of the utilities throughout the state to say anything                                                                  
critical of the public utilities commission for fear of                                                                         
retaliation.  In fact, we've already had a situation occur that put                                                             
a very chilling effect on communications from the public utilities                                                              
to the legislative auditor..."                                                                                                  
                                                                                                                                
CHAIRMAN HUDSON asked Mr. Cook to conclude his comments and to fax                                                              
any letters or anything else that he would like the committee to                                                                
consider.                                                                                                                       
                                                                                                                                
MR. COOK said:  "Yes, sir I was trying to wind up right there.  I                                                               
guess, the bottom line of my position is, at this point, I believe                                                              
the public utilities commission needs to either have fundamental                                                                
structural change or we need to sunset it and start over again."                                                                
                                                                                                                                
Number 1338                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Cook to provide the committee                                                                 
members with a list of recommendations on what needs to be done to                                                              
restructure the APUC and to refer to the National Regulatory                                                                    
Research Institute's (NRRI) report, if it is part of the                                                                        
recommendations.                                                                                                                
                                                                                                                                
Number 1383                                                                                                                     
                                                                                                                                
DAVID FAUSKE, General Manager, Arctic Slope Telephone Cooperative;                                                              
President, Alaska Telephone Association (ATA), testified in Juneau.                                                             
The committee members have two letters from the ATA in their                                                                    
packets.  The ATA certainly advocates the reinstatement of the                                                                  
APUC, and is very concerned with a wind down, lame duck or holding                                                              
situation.  The last time that happened, the consumer, the industry                                                             
and the general public interest suffered.  At that time, there were                                                             
numerous issues and dockets before the commission.  At this point,                                                              
there has been a five-fold increase in the issues heard and                                                                     
considered before the APUC.  The types and kinds of issues have                                                                 
broadened due to the fallout of the Federal Communications Act of                                                               
1996.  Therefore, a wind down situation would be even more                                                                      
exacerbated by the public and very costly.  Those costs eventually                                                              
wind up hitting the pocketbooks of the consumers in one way or                                                                  
another.  The ATA urges the reinstatement of the APUC under the                                                                 
sunset provisions as a specific Act, and the restructuring or                                                                   
redefining of the APUC as another piece of legislation.                                                                         
                                                                                                                                
CHAIRMAN HUDSON called on Ms. Rodman to address any of the concerns                                                             
heard today.                                                                                                                    
                                                                                                                                
MS. RODMAN asked Chairman Hudson for a brief at-ease.                                                                           
                                                                                                                                
Number 1648                                                                                                                     
                                                                                                                                
CHAIRMAN HUDSON called for an at-ease at 9:30 a.m. and called the                                                               
meeting back to order at 9:32 a.m.                                                                                              
                                                                                                                                
CHAIRMAN HUDSON asked staff of the prime sponsor to prepare final                                                               
comments for the committee to consider next week.  He doesn't want                                                              
the bill to become a Christmas tree and he doesn't want it to dally                                                             
around too much longer.  He knows how much it takes to get a bill                                                               
through both bodies.  It is important not to let it sunset because                                                              
there isn't anything to substitute its place.                                                                                   
                                                                                                                                
CHAIRMAN HUDSON indicated that the bill will be held over for                                                                   
further consideration.                                                                                                          

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