Legislature(2021 - 2022)SENATE FINANCE 532

03/21/2022 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 186 EXTEND BOARD OF EXAMINERS IN OPTOMETRY TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
+ SB 190 EXTEND REGULATORY COMMISSION OF ALASKA TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
+ SB 222 EXTEND PT & OCCUPATIONAL THERAPY BOARD TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
SENATE BILL NO. 190                                                                                                           
                                                                                                                                
      "An   Act   extending   the   termination    date   of   the                                                              
      Regulatory  Commission   of Alaska;  and  providing   for an                                                              
      effective date."                                                                                                          
                                                                                                                                
9:27:23 AM                                                                                                                    
                                                                                                                                
SENATOR   ROBERT   MYERS,    SPONSOR,   spoke   to   the   Sponsor                                                              
Statement (copy on file):                                                                                                       
                                                                                                                                
      The  Senate  Bill  190  extends  the  termination   date  of                                                              
      the Regulatory   Commission   of  Alaska  (RCA)  until  June                                                              
      30, 2027.                                                                                                                 
                                                                                                                                
      The Regulatory  Commission   of Alaska  is  an independent,                                                               
      quasi-judicial  regulatory   body  that  was formed   by the                                                              
      legislature   in  1999   to  replace   the   Alaska   Public                                                              
      Utilities   Commission.     The   RCA   is   charged    with                                                              
      regulating   public   utilities   and  pipeline    services.                                                              
      Regulation   is  accomplished    by  certifying    qualified                                                              
      providers  and  ensuring  they  provide  safe  and  adequate                                                              
      services  and  facilities  at  just  and reasonable   rates,                                                              
      terms, and conditions.                                                                                                    
                                                                                                                                
9:28:25 AM                                                                                                                    
                                                                                                                                
DAWSON MANN, STAFF, ROBERT SENATOR MYERS, discussed the                                                                         
Explanation of Changes (copy on file):                                                                                          
                                                                                                                                
      Sec. 1  Page 1, Lines 4-9                                                                                                 
      Adds  legislative   intent   language   to  uncodified   law                                                              
      which  states   that  it  is  the   intent  to   extend  the                                                              
      Regulatory  Commission   of  Alaska   every  five  years  to                                                              
      take  into   account  the   term  length   of  legislators,                                                               
      providing   for  awareness   of  the   commission   and  its                                                              
      purpose through legislative review and debate.                                                                            
                                                                                                                                
      Sec. 2  AS 44.66.010(a)(3) Page 1, Lines 10-13                                                                            
      Changes  the  expiration   date  for  the  commission   from                                                              
      2030 to 2027.                                                                                                             
                                                                                                                                
Mr. Mann looked at the Sectional Analysis (copy on file):                                                                       
                                                                                                                                
      Section 1: Page 1, Lines 4-9                                                                                              
      This  section    adds  legislative    intent   language   to                                                              
      uncodified  law  which  states  that  it  is the  intent  to                                                              
      extend the  Regulatory  Commission   of Alaska  (RCA)  every                                                              
      five  years  to  take  into  account   the  term  length  of                                                              
      legislators,  providing  for  awareness  of  the commission                                                               
      and its purpose through legislative review and debate.                                                                    
                                                                                                                                
     Section 2: AS 44.66.010(a)(3) Page 1, Lines 10-12                                                                          
      This  section   extends   the  termination   date   for  the                                                              
      Regulatory Commission of Alaska until June 30, 2027.                                                                      
                                                                                                                                
      Section 3: Page 1, Line 13                                                                                                
      This section establishes an immediate effective date.                                                                     
                                                                                                                                
9:29:55 AM                                                                                                                    
                                                                                                                                
Senator Olson asked whether the sponsor supported the                                                                           
committee substitute.                                                                                                           
                                                                                                                                
Senator Myers deferred to the Division of Legislative                                                                           
Audit.                                                                                                                          
                                                                                                                                
Senator   von  Imhof  queried   the  date  change   from  2030  to                                                              
2027.                                                                                                                           
                                                                                                                                
Senator  Myers  replied  that  the change  had  been  made  in the                                                              
previous  committee   out  of concern  for  the  size  of the  RCA                                                              
and   that  future   legislators    might   not   know  what   the                                                              
commission   was;  the  idea  was  that  a  more  frequent   audit                                                              
would familiarize new legislators with the RCA.                                                                                 
                                                                                                                                
Senator    von    Imhof    recalled    that    legislators    were                                                              
responsible   for educating   themselves  on  various  boards  and                                                              
commissions.    She   though   that   if  the   auditor    made  a                                                              
recommendation,   they   had  good  reason  to  do  so.  She  felt                                                              
that  the  auditor  recommending   a 2030  sunset  made  sense  as                                                              
long   as  legislators   were   keeping   up  to  date   on  audit                                                              
findings.                                                                                                                       
                                                                                                                                
Senator  Wilson   probed  the  reason  for  the  change.  He  felt                                                              
that  if  there  were   no findings   in  the  audit,  repetitive                                                               
steps were being taken that drained time and resources.                                                                         
                                                                                                                                
Co-Chair  Stedman   agreed.  He  did  not believe   in increasing                                                               
the cost to the state by truncating the board reviews.                                                                          
                                                                                                                                
Co-Chair Bishop agreed.                                                                                                         
                                                                                                                                
9:33:45 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   AUDITOR,   LEGISLATIVE    AUDIT,  looked   at  the                                                              
"Sunset  Review  of the  Department  of  Commerce,  Community  and                                                              
Economic    Development,    Regulatory   Commission    of   Alaska                                                              
(RCA)" (copy on file). She read the report findings:                                                                            
                                                                                                                                
      REPORT CONCLUSIONS                                                                                                        
      Overall, the audit concluded RCA operated in an                                                                           
      effective manner and served the public's interest by:                                                                     
      .notdefassessing the capabilities of utility and pipeline                                                               
      companies to safely serve the public;                                                                                     
      .notdef evaluating tariffs and charges made by regulated                                                                
      entities;                                                                                                                 
      .notdef verifying the pass-through charges to consumers from                                                            
      electric and natural gas utilities;                                                                                       
      .notdef adjudicating disputes between ratepayers and                                                                    
      regulated entities;                                                                                                       
      .notdef providing consumer protection services; and                                                                     
      .notdef performing financial reviews of utilities for the                                                               
      State's power cost equalization program.                                                                                  
                                                                                                                                
Ms.  Curtis stated  that  the  recommendation  was  to extend  the                                                              
sunset  8  years.  She  shared   that  that  a  survey,  found  on                                                              
Page  19 of  the audit,  showed  that the  positive  responses  to                                                              
survey   questions   outweighed    negative   responses    in  the                                                              
surveyed   areas.  She  spoke  to  Page  4  of  the  audit,  which                                                              
showed  that  Regulatory   Commission   of Alaska   resolved  most                                                              
of  their  consumer   complaints  within   a 30-day   period.  She                                                              
said   that  Page   5  provided   a  listing   of  the   types  of                                                              
complaints   received  from  July  2020  through   February  2021.                                                              
She   said  that   Page   4  showed   the  conclusion    that  RCA                                                              
processed   tariff  filing   and  dockets  within  the   statutory                                                              
regulatory  timelines,   which  was  the area  that  received  the                                                              
most    review.     The    audit     had    one    administrative                                                               
recommendation:                                                                                                                 
                                                                                                                                
      Recommendation No. 1:                                                                                                     
      The RCA chair should clarify regulations concerning                                                                       
      the cancelation of scheduled public meetings.                                                                             
                                                                                                                                
Ms.  Curtis   shared   that  Regulatory   Commission    of  Alaska                                                              
regulations   required  two meetings   a month  and  if there  was                                                              
nothing  on  the agenda   meetings  were  cancelled.  She  relayed                                                              
that  during   the  audit  timeframe,   25  of  88 meetings   were                                                              
cancelled,   6 consecutively.   She  related   that  according  to                                                              
RCA  management  regulations  allowed  the  commission  to  modify                                                              
a  requirement  by  their  own  motion,  but  no  official  motion                                                              
had  been  recognized  but  the  auditors.  She  offered  that  it                                                              
was  reasonable   for  the RCA  to  cancel  meetings   when  there                                                              
were  no  agenda   items,  but   that  action  did  not   strictly                                                              
adhere  to  their  regulations.   She did  not  believe  that  the                                                              
issue  should  affect  the extension  timeline.   She shared  that                                                              
the  response  on Page  23 revealed  that  both  the commissioner                                                               
of DCCED and the RCA chairman supported the extension.                                                                          
                                                                                                                                
9:37:57 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof  recalled   that  there  were  some  questions                                                              
about   the  time  the   RCA  took  to   review  rates   and  make                                                              
recommendations. She queried the average timeline.                                                                              
                                                                                                                                
Ms.  Curtis  replied   that  the  audit   background  information                                                               
provided  all  statutory   timelines,   which  differed  for  each                                                              
type  of business.  She  added  that the  statutory  requirements                                                               
were  approved  by the  legislature  and  the regulatory   through                                                              
the  public  comment  process  She said  that  it  had been  found                                                              
that                                                                                                                            
                                                                                                                                
9:39:31 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof   thought  that  it  could  be  time  for  the                                                              
legislature   to   review  the   regulatory   timelines   for  the                                                              
Regulatory Commission of Alaska to complete its work.                                                                           
                                                                                                                                
Co-Chair Bishop agreed.                                                                                                         
                                                                                                                                
KEITH   KURBER,    COMMISSIONER,    REGULATORY    COMMISSION    OF                                                              
ALASKA,   FAIRBANKS   (via  teleconference),    noted  that  in  a                                                              
previous   hearing   in  another  committee   there   had  been  a                                                              
question  as  to whether  changing   the sunset  from  8 years  to                                                              
5 years would affect the work of legislative auditors.                                                                          
                                                                                                                                
BOB  PICKETT,   CHAIRMAN,   REGULATORY   COMMISSION    OF  ALASKA,                                                              
ANCHORAGE   (via   teleconference),    supported    the   original                                                              
recommendation of an 8-year sunset date.                                                                                        
                                                                                                                                
9:42:04 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop OPENED and CLOSED public testimony.                                                                             
                                                                                                                                
Co-Chair   Bishop  set   an  amendment   deadline   of  March  28,                                                              
2022.                                                                                                                           
                                                                                                                                
SB   190  was   HEARD   and  HELD   in   committee   for   further                                                              
consideration.                                                                                                                  

Document Name Date/Time Subjects
SB 186 Optometry Sponsor Statement 2.22.2022.pdf SFIN 3/21/2022 9:00:00 AM
SB 186
SB 186 Optometry Audit June 2021.pdf HL&C 4/25/2022 3:15:00 PM
SFIN 3/21/2022 9:00:00 AM
SB 186
SB 186 Optometry Letters of Support _bundled as of 3.4.2022.pdf SFIN 3/21/2022 9:00:00 AM
SB 186
SB 190 v. I Sectional Analysis.pdf SFIN 3/21/2022 9:00:00 AM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 Explanation of Changes version A to I.pdf SFIN 3/21/2022 9:00:00 AM
SB 190
SB 190 Support Document- Legislative Audit RCA Sunset Review 9.21.21.pdf SFIN 3/21/2022 9:00:00 AM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 190 v. I Sponsor Statement.pdf SFIN 3/21/2022 9:00:00 AM
SFIN 3/30/2022 9:00:00 AM
SB 190
SB 222 Sponsor Statement for Senate Bill 222.pdf SFIN 3/21/2022 9:00:00 AM
SB 222
SB 222 Audit Report 02.17.2022.pdf SFIN 3/21/2022 9:00:00 AM
SB 222
SB 222 Sectional Analysis.pdf SFIN 3/21/2022 9:00:00 AM
SB 222