Legislature(2017 - 2018)SENATE FINANCE 532

04/15/2017 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 1:00 p.m. --
+ SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING TELECONFERENCED
<Bill Hearing Canceled>
Uniform Rule 23 Waived
+ HB 56 COMMERCIAL FISHING LOANS TELECONFERENCED
<Bill Hearing Canceled>
Uniform Rule 23 Waived
+ SB 37 PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC TELECONFERENCED
<Bill Hearing Canceled>
Uniform Rule 23 Waived
+ SB 80 TELECOMMUNICATIONS: DISABLED SUBSCRIBERS TELECONFERENCED
Moved CSSB 80(L&C) Out of Committee
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 23 INS. FOR DEPENDS. OF DECEASED FIRE/POLICE TELECONFERENCED
Moved SCS CSHB 23(FIN) Out of Committee
+= HB 141 AK WORKFORCE INVESTMENT BOARD;FUNDS TELECONFERENCED
Moved SCS HB 141(FIN) Out of Committee
SENATE BILL NO. 80                                                                                                            
                                                                                                                                
     "An  Act relating  to  telecommunications services  for                                                                    
     certain  disabled  subscribers;  and providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
1:35:39 PM                                                                                                                    
                                                                                                                                
SENATOR  MIA COSTELLO,  SPONSOR, explained  the legislation.                                                                    
She stated  that the bill allowed  the Regulatory Commission                                                                    
of Alaska to  assess a surcharge to  provide technology that                                                                    
met 21st  century needs  of the deaf,  hard of  hearing, and                                                                    
speech disabled communities.                                                                                                    
                                                                                                                                
1:36:27 PM                                                                                                                    
                                                                                                                                
SORCHA HAZELTON, STAFF, SENATOR  MIA COSTELLO, explained the                                                                    
Sectional Analysis.  She stated that the  first section made                                                                    
the  changes  that  allowed the  commission  to  expand  its                                                                    
surcharge  allowance.  She stated  that  Section  2 was  the                                                                    
effective date.                                                                                                                 
                                                                                                                                
Ms. Hazelton explained the bill:                                                                                                
                                                                                                                                
     Senate  Bill  80  updates   state  statute  to  improve                                                                    
     technology service for Alaska's  deaf, hard of hearing,                                                                    
     and   speech   impaired    community.   The   Committee                                                                    
     Substitute  incorporates  "person  first"  language  to                                                                    
     respectfully   acknowledge   those   individuals   with                                                                    
     disabilities.                                                                                                              
                                                                                                                                
     In  the  early  1990s,   the  Legislature  granted  the                                                                    
     Regulatory Commission of Alaska  (RCA) the authority to                                                                    
     require telephone utilities to  serve the deaf, hard of                                                                    
     hearing, and speech impaired  citizens of Alaska. These                                                                    
     policies   allowed  telephonic   communication  between                                                                    
     impacted  Alaskans and  those without  impairment. This                                                                    
     is  accomplished  through  a  telecommunications  relay                                                                    
     service  (TRS)   that  provides   interpretive  service                                                                    
     operators  to   relay  tele-typed,  voice,   or  signed                                                                    
     messages from  one party to another.  The provider also                                                                    
     runs  an equipment  distribution  and outreach  program                                                                    
     allowing access  to public  telephone service  for this                                                                    
     subscriber group.                                                                                                          
                                                                                                                                
     Currently,  the  program's  scope  and  the  surcharges                                                                    
     which fund it  are limited in statute  to wired devices                                                                    
     like tele-type units (TTY)  and CapTel telephones. This                                                                    
     limitation  is antiquated  given  the  expanded use  of                                                                    
     cell phones and other technology.                                                                                          
                                                                                                                                
     RCA  regulations provide  for cost  recovery through  a                                                                    
     surcharge  which  is  currently  only  applied  to  the                                                                    
     dwindling  number   of  landline  telephones.   With  a                                                                    
     statewide   move   toward  wireless   (mobile/cellular)                                                                    
     phones   and  Voice   over  Internet   Protocol  (VoIP)                                                                    
     technology,  the most  efficient and  effective service                                                                    
     to this subscriber group is  lacking resources from the                                                                    
     diminished wirelines  to which a surcharge  applies. SB
     80  allows the  RCA to  provide equipment  and services                                                                    
     that best serve the communities' needs.                                                                                    
                                                                                                                                
     This bill allows  the RCA to more  equitably assess the                                                                    
     TRS surcharge  to a  growing number  of cell  phone and                                                                    
     VoIP  users,  expand   the  type  of  telecommunication                                                                    
     devices    and   software    available   to    disabled                                                                    
     subscribers,  and   provides  for   a  July   1,  2017,                                                                    
     effective  date  which  correlates with  the  operating                                                                    
     agreement cycle with the current TRS provider.                                                                             
                                                                                                                                
     SB  80 modernizes  and  enhances  services provided  to                                                                    
     Alaskans  with  disabilities  and  allows  for  greater                                                                    
     independence and an improved quality of life.                                                                              
                                                                                                                                
Senator Micciche wondered  if there would be  an increase in                                                                    
consumer's bills.  Ms. Hazelton deferred to  the commission.                                                                    
She stated that the surcharge  would be lowered, because the                                                                    
base would expand.                                                                                                              
                                                                                                                                
Senator Olson  queried the  effect on  the rural  and remote                                                                    
sites. Senator Costello deferred to Mr. Rokeberg.                                                                               
                                                                                                                                
1:43:28 PM                                                                                                                    
                                                                                                                                
NORMAN  ROKEBERG,  COMMISSIONER,  REGULATORY  COMMISSION  OF                                                                    
ALASKA (via  teleconference), spoke in support  of the bill.                                                                    
He  pointed  out that  the  surcharge  was not  a  universal                                                                    
access  charge,   but  rather  a   telecommunications  relay                                                                    
service surcharge. He stated that  the bill would enable the                                                                    
commission  to   lower  the  surcharge  by   two-thirds.  He                                                                    
announced that  there were currently  over 900,000  lines in                                                                    
Alaska, and only 258,000 were  paying a surcharge. He stated                                                                    
that the  concept was to  more equitably spread  the charge,                                                                    
and lower the cost overall.                                                                                                     
                                                                                                                                
Senator  Olson queried  the  expected  average surcharge  as                                                                    
compared to the current  surcharge, especially for those who                                                                    
were  not currently  paying. Mr.  Rokeberg  stated that  the                                                                    
current  level was  nine cents  per wire  line and  eighteen                                                                    
cents per business  multi-line. He felt that  the rate could                                                                    
be  lowered  to  four  to  five  cents  per  line  for  both                                                                    
residential  and  business.  He  explained  that  there  was                                                                    
currently a  two-tiered system,  with residents  paying less                                                                    
than business lines.  He stated that there  was a discussion                                                                    
with the industry,  and it appeared that the  rates could be                                                                    
lowered  by up  to  57 percent.  He  stressed that  cellular                                                                    
customers  would  be  charged  a  fee  that  they  were  not                                                                    
currently paying.                                                                                                               
                                                                                                                                
1:47:37 PM                                                                                                                    
                                                                                                                                
Senator  Olson surmised  that  the  600,000 individuals  who                                                                    
were  not  currently  paying  the  surcharge  would  see  an                                                                    
increase.  Mr.  Rokeberg  replied  in  the  affirmative.  He                                                                    
stressed that  the mobile  and cellular  users would  see an                                                                    
increase four to five cents per month.                                                                                          
                                                                                                                                
Senator Olson queried  the number of users  in rural Alaska.                                                                    
Mr. Rokeberg  responded that he  did not know the  number as                                                                    
related  to  geographic   dispersion  between  cellular  and                                                                    
landlines.                                                                                                                      
                                                                                                                                
Senator  Olson  assumed that  some  people  in rural  Alaska                                                                    
would see an increase on their bills. Mr. Rokeberg agreed.                                                                      
                                                                                                                                
Senator  Micciche surmised  that the  user currently  paid 9                                                                    
cents  per  line per  month  at  $1.08  per line  for  wired                                                                    
communications. Mr.  Rokeberg replied that wired  lines were                                                                    
paying 9  cents for residential  and 18 cents  for multiline                                                                    
businesses. The objective  was to lower the  overall cost to                                                                    
4   cents  for   both  residential.   He  stated   that  the                                                                    
approximately 600,000  mobile phone  users would see  a very                                                                    
small increase of 50 cents per year.                                                                                            
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
1:50:58 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:51:21 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Bishop addressed the fiscal note.                                                                                    
                                                                                                                                
Vice-Chair Bishop MOVED to REPORT CSSB 80 (L&C) from                                                                            
committee with individual recommendations and attached                                                                          
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
CSSB 80(L&C) was REPORTED out of committee with "no                                                                             
recommendation" and with previously published zero fiscal                                                                       
note: FN 1(CED).                                                                                                                
                                                                                                                                
1:53:25 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:53:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   MacKinnon   discussed   the   committee   meeting                                                                    
schedule.                                                                                                                       
                                                                                                                                

Document Name Date/Time Subjects
HB 23 SCS HB 23 FIN v. N.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 SCS HB23 FIN Overview.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 141 - DOLWD Response 2017.04.14.pdf SFIN 4/15/2017 9:00:00 AM
HB 141
HB 23 Amendment 2 MacKinnon.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Amendment 1 MacKinnon.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Support Letter Olsen.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Support for Municipals Hallett.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB 23 Public Testimony Dupee.pdf SFIN 4/15/2017 9:00:00 AM
HB 23
HB141 - Amendment 1 Bishop, Hoffman, Olson, Micciche, MacKinnon.pdf SFIN 4/15/2017 9:00:00 AM
HB 141
SB 80 Support Letter - Statewide Independent Living Council of Alaska.pdf SFIN 4/15/2017 9:00:00 AM
SB 80
HB 23 Major Policy Differences.pdf SFIN 4/15/2017 9:00:00 AM
HB 23