Legislature(2005 - 2006)
04/22/2005 04:29 PM House L&C
| Audio | Topic |
|---|---|
| Start | |
| HB157 | |
| HB249 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 22, 2005
4:29 p.m.
MEMBERS PRESENT
Representative Tom Anderson, Chair
Representative Pete Kott
Representative Gabrielle LeDoux
Representative Bob Lynn
Representative Norman Rokeberg
Representative David Guttenberg
MEMBERS ABSENT
Representative Harry Crawford
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 157
"An Act clarifying the powers of electric or telephone
cooperatives to become members of or own stock in other
entities."
- MOVED CSSSHB 157(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 249
"An Act relating to enhanced 911 surcharges imposed by a
municipality."
- HEARD AND HELD
SENATE BILL NO. 137
"An Act providing that an institution providing accommodations
exempt from the provisions of the Uniform Residential Landlord
and Tenant Act may evict tenants without resorting to court
proceedings under AS 09.45.060 - 09.45.160."
- BILL HEARING POSTPONED to 4/25
CS FOR SENATE BILL NO. 100(RLS)
"An Act relating to enhanced 911 systems and enhanced 911
surcharges imposed by a municipality, public municipal
corporation, or village."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 157
SHORT TITLE: ELEC/PHONE COOP & OTHER ENTITIES
SPONSOR(S): REPRESENTATIVE(S) ANDERSON
02/18/05 (H) READ THE FIRST TIME - REFERRALS
02/18/05 (H) CRA, L&C
02/28/05 (H) SPONSOR SUBSTITUTE INTRODUCED
02/28/05 (H) READ THE FIRST TIME - REFERRALS
02/28/05 (H) CRA, L&C
03/22/05 (H) CRA AT 8:00 AM CAPITOL 124
03/22/05 (H) <Bill Hearing Canceled>
03/31/05 (H) CRA AT 8:00 AM CAPITOL 124
03/31/05 (H) Moved CSSSHB 157(CRA) Out of Committee
03/31/05 (H) MINUTE(CRA)
04/05/05 (H) CRA RPT CS(CRA) NT 3DP 1NR
04/05/05 (H) DP: SALMON, THOMAS, OLSON;
04/05/05 (H) NR: LEDOUX
04/11/05 (H) L&C AT 3:15 PM CAPITOL 17
04/11/05 (H) Heard & Held
04/11/05 (H) MINUTE(L&C)
04/14/05 (H) FIN REFERRAL ADDED AFTER L&C
04/22/05 (H) L&C AT 3:15 PM CAPITOL 17
BILL: HB 249
SHORT TITLE: ENHANCED 911 SURCHARGES & SYSTEMS
SPONSOR(S): REPRESENTATIVE(S) HAWKER
04/04/05 (H) READ THE FIRST TIME - REFERRALS
04/04/05 (H) CRA, L&C
04/12/05 (H) CRA RPT CS(CRA) 3DP 2NR 1AM
04/12/05 (H) DP: CISSNA, OLSON, THOMAS;
04/12/05 (H) NR: LEDOUX, SALMON;
04/12/05 (H) AM: NEUMAN
04/12/05 (H) CRA AT 8:00 AM CAPITOL 124
04/12/05 (H) Moved CSHB 249(CRA) Out of Committee
04/12/05 (H) MINUTE(CRA)
04/22/05 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
REPRESENTATIVE MIKE HAWKER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor, presented HB 249.
WALT MONEGAN, Chief
Anchorage Police Department
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 249.
TIM ROGERS
Alaska Municipal League
(No address provided)
POSITION STATEMENT: Testified in support of HB 249.
BILL DOOLITTLE, Project Manager
Enhanced 911 Program
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: During hearing of HB 249, highlighted a
possible conflict between the language of the legislation and
current statute.
CHUCK KOPP, Chief
Kenai Police Department
City of Kenai;
Chair
National Emergency Number Association (NENA) - Alaska Chapter
Kenai, Alaska
POSITION STATEMENT: Testified that HB 249 addresses the
flexibility necessary for municipalities to address increased
enhanced 911 system demands.
ED OBERTS, Mayor's Assistant
Office of the Mayor
Kenai Peninsula Borough
Soldotna, Alaska
POSITION STATEMENT: Expressed appreciation for HB 249, but
noted concerns with Section 3(j).
DAVID GIBBS, Emergency Manager/911 Administrator
Kenai Peninsula Borough
Soldotna, Alaska
POSITION STATEMENT: During hearing of HB 249, expressed concern
with regard to the inclusion of the Division of Public Safety in
enhanced 911 service agreements
LINDA FREED, City Manager
City of Kodiak
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 249, but
expressed some concerns.
JIM ROWE, Director
Alaska Telephone Association
Anchorage, Alaska
POSITION STATEMENT: Expressed hope that HB 249, which he
characterized as good legislation, could be passed.
ACTION NARRATIVE
CHAIR TOM ANDERSON called the House Labor and Commerce Standing
Committee meeting to order at 4:29:50 PM. Representatives
Anderson, Kott, LeDoux, Lynn, Rokeberg, and Guttenberg were
present at the call to order.
HB 157-ELEC/PHONE COOP & OTHER ENTITIES
CHAIR ANDERSON announced that the first order of business would
be SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 157, "An Act clarifying
the powers of electric or telephone cooperatives to become
members of or own stock in other entities."
CHAIR ANDERSON reminded the committee that there have been
negotiations on this legislation over the past few weeks, but it
seems to no avail. In fact, there is now a House Finance
Committee referral, with which he expressed frustration. Chair
Anderson expressed his desire to forward HB 157 to the House
Finance Committee and opined that there is merit in what the
field distributors have discussed.
4:30:37 PM
CHAIR ANDERSON, upon determining there were no amendments,
closed public testimony.
4:31:02 PM
REPRESENTATIVE LEDOUX moved to report CSSSHB 157, Version 24-
LS0562\X, out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, CSSSHB
157(L&C) was reported from the House Labor and Commerce Standing
Committee.
HB 249-ENHANCED 911 SURCHARGES & SYSTEMS
CHAIR ANDERSON announced that the final order of business would
be HOUSE BILL NO. 249, "An Act relating to enhanced 911
surcharges imposed by a municipality." [Before the committee is
CSHB 249(CRA).]
4:31:49 PM
REPRESENTATIVE MIKE HAWKER, Alaska State Legislature, sponsor,
reminded the committee that legislation similar to HB 249 was
considered in the last legislature. Due to its importance it is
before the legislature again this year. Representative Hawker
said that HB 249 is the "911 bill"; it would allow
municipalities the ability to add a surcharge to telephone bills
in order to pay for enhanced 911 systems. He encouraged the
committee to remember that HB 249, is first and foremost about
saving lives. When someone dials 911 they do so with the
expectation that someone will be there to answer during a time
of crisis. Access to a modern 911 system can be the difference
between life and death, he emphasized.
4:33:51 PM
REPRESENTATIVE HAWKER specified that HB 249 would authorize a
funding mechanism for enhanced 911 services, which are the
additional system features and capabilities. Those additional
features and capabilities allow the dispatcher to know from
where the call originated and the number from which the call was
made, which allows the dispatcher to call back.
4:34:40 PM
REPRESENTATIVE HAWKER requested that the committee adopt a
committee substitute (CS) that is essentially equal to similar
legislation [SB 100] moving through the Senate.
4:35:03 PM
REPRESENTATIVE KOTT moved to adopt CSHB 249, Version 24-
LS0853\F, Cook, 4/21/05, as the working document. There being
no objection, Version F was before the committee.
4:35:19 PM
REPRESENTATIVE HAWKER explained that Section 1 merely
accommodates the sections of HB 249 that are added to other
statutes. The legislation then provides changes in the amounts
that a municipality may authorize for the charges. This
legislation is different from past legislation in that it
establishes a limit on the charge the municipality can request
the phone company to bill on the municipality's behalf. Version
F provides a $2 a month limit for each telephone line. If a
city wants to go beyond that, it must be put before the voters.
Furthermore, when a municipality imposes a 911 surcharge the
customers must be notified and provided an explanation as to
why. There is also language that provides restrictions with
regard to what the [surcharge funds] can be used for. Section 4
provides restrictions on multi-line systems. He opined that
this legislation provides reasonable protections for consumers
and taxpayers while still providing an adequate 911 system.
This legislation would apply to all home rule and general law
municipalities.
4:37:37 PM
REPRESENTATIVE GUTTENBERG referred to Section 4 regarding the
multi-line communications systems and inquired as to how it will
work.
REPRESENTATIVE HAWKER deferred to Mr. Doolittle, the technical
expert on the systems with the Municipality of Anchorage.
4:39:02 PM
REPRESENTATIVE ROKEBERG asked if Representative Hawker is
familiar with the March 10, 2005, Federal Communications
Commission (FCC) document 8098170 regarding the truth in billing
format matter. He clarified that it's about mandated or
nonmandated service charges.
REPRESENTATIVE HAWKER said that he is not aware of it.
4:39:41 PM
REPRESENTATIVE KOTT highlighted the following language on page
3, lines 3-4, which read: "The surcharge revenue may not be
used for any capital or operational costs for emergency
responses that occur after the call is dispatched to the
emergency responder."
REPRESENTATIVE HAWKER addressed the general question regarding
the allowable costs. He said although this language may not be
the choice of the emergency responders, they believe it provides
a strong restriction that would allow the core of the service to
be put in place to operate the response system.
4:41:08 PM
WALT MONEGAN, Chief, Anchorage Police Department, related that
he likes HB 249 because it parallels SB 100, which the Anchorage
Police Department supports. He further related that he concurs
with all of Representative Hawker's comments and concerns.
Chief Monegan said that HB 249 will allow [the Anchorage Police
Department] to operate and maintain a system that basically
helps everyone. The present surcharge of $.50 has to be
subsidized from other portions of the budget in order [have the
911 system]. This legislation will enhance the ability to
operate and maintain the 911 system while freeing money to be
used elsewhere. Chief Monegan concluded by urging the committee
to pass HB 249.
TIM ROGERS, Alaska Municipal League (AML), informed the
committee that AML strongly supports HB 249. Although it isn't
everything AML had hoped for, the legislation does strike a
balance between the needs of local government and the concerns
of the legislature and the telecommunications industry. Mr.
Rogers highlighted that this legislation doesn't make local
governments whole in regard to the cost of operating a 911
system, and therefore other general government revenues will be
required to operate the system. However, HB 249 does offset the
loss of revenues previously provided by the state in the form of
the revenue sharing safe communities programs and the community
matching grant program. He then pointed out that HB 249 doesn't
assess a fee on those who don't receive enhanced 911 services in
rural areas. He further pointed out that HB 249 will help
prevent delays in the implementation of important upgrades to
the enhanced 911 system that will allow the identification of
the location of enhanced 911 cell phone users. Mr. Rogers
explained that the new systems are very much like a more
sophisticated caller identification program than what's
available on telephones. Depending upon one's service provider,
the cost for a caller identification (ID) program on a home
telephone is $5.00-$6.00 a month. "What we're asking for is the
ability to provide a vital lifesaving service and be able to
charge an amount significantly less than what telephone users
are paying for their home caller ID service," he stated.
4:45:28 PM
MR. ROGERS then turned to the FCC docket that was referred to
earlier. That document specifically addresses cellular
telephones. Although that document doesn't prevent state and
local governments from assessing fees and taxes on the telephone
bill, it specifies that state and local governments may not
dictate to a cellular telephone company what items appear on a
billing statement. Therefore, that FCC document doesn't have
any impact on HB 249 beyond preventing the state from requiring
the telephone company to have a line item on the bill specifying
the 911 surcharge.
4:46:14 PM
BILL DOOLITTLE, Project Manager, Enhanced 911 Program,
Municipality of Anchorage, noted that there may be a conflict
between language on page 4, line 24, which specifies that the
Regulatory Commission of Alaska (RCA) identifies generally
accepted industry standards. However, in the current statute,
AS 29.35.131(c), the RCA is precluded from having any
involvement with a 911 system. Therefore, in the last few years
that language has been interpreted very strictly and the RCA
hasn't been involved with 911 systems.
4:48:14 PM
CHAIR ANDERSON inquired as to how Mr. Doolittle would want to
change that language.
MR. DOOLITTLE explained that the preference would be to allow
the RCA to have some involvement with the technology being
provided by the carriers. Current statutes, he highlighted,
include the following language: "The Regulatory Commission of
Alaska may not consider the enhanced 911 surcharge as revenue of
the telephone company and has no jurisdiction over an enhanced
911 system." The aforementioned has been interpreted very
strictly and thus the RCA has stayed out of the 911 system
statewide. However, Mr. Doolittle opined that there would be a
contribution from the RCA in the deployment of technology, which
the language in HB 249 opens up.
4:49:03 PM
REPRESENTATIVE GUTTENBERG inquired as to whether the generally
accepted industry standards, if not defined by the RCA, are
defined elsewhere.
MR. DOOLITTLE answered that the alternative would be for the
generally accepted industry standards to be defined at the local
level. He noted that there are national standards for the
provision of private switch ALI [automatic location
identification]. He related his preference for there to be
language that would make that statewide.
REPRESENTATIVE HAWKER commented that the language had received
much scrutiny. He related his understanding that the intent of
the language was to create a requirement for a standardized
system.
4:51:15 PM
CHUCK KOPP, Chief, Kenai Police Department, City of Kenai;
Chair, National Emergency Number Association (NENA) - Alaska
Chapter, began by thanking Representative Hawker for bringing
forward HB 249, which NENA believes addresses the flexibility
necessary for municipalities to address increased enhanced 911
system demands. The rapid rate of technology being introduced
to the public has outpaced public safety's ability to keep up
with providing emergency service communications. Therefore, HB
249 provides municipalities the flexibility and funding
mechanism to address the rising expectation of the public.
Moreover, the language structuring what enhanced 911 surcharge
revenues may be used for is "right on the money." Chief Kopp
noted that he also supports the requirement for municipalities
and boroughs to establish agreements regarding enhanced 911
expenditures when they share those systems.
4:52:51 PM
ED OBERTS, Mayor's Assistant, Office of the Mayor, Kenai
Peninsula Borough, related his appreciation for HB 249.
However, he expressed concern with the language of subsection
(j) on page 3, line 29, which specifies that the [borough] won't
be able to use enhanced 911 surcharge revenue until the borough
enters into agreements with the city, and probably the Alaska
State Troopers as well. From practical experience, Mr. Oberts
relayed the difficulty in working with various legal departments
to reach agreements and approval by all the governing bodies.
Ideally, statutes help clarify not create more confusion or
workload. Therefore, he encouraged the committee to review that
language in an attempt to provide more clarity.
4:54:20 PM
DAVID GIBBS, Emergency Manager/911 Administrator, Kenai
Peninsula Borough, suggested, with regard to Section 3(j), that
on page 3, line 30, the language "before the borough may use
revenue from an enhanced 911 surcharge" be deleted. Although
the [borough] fully supports sharing the enhanced 911 revenues
with the cities, [the borough] has been involved in a fairly
lengthy process trying to negotiate cost sharing agreements with
them. He also suggested that on page 4, line 3:
We would like to see the language read basically: "If
the Department of Public Safety also provides services
as part of the enhanced 911 service" and add the
phrase "and incurs cost" deleting the rest of that
sentence: "the department must be a party to the
agreement".
MR. GIBBS opined that the Department of Public Safety (DPS)
provides law enforcement services, not necessarily 911 services.
He then expressed the need to be sure that the Kenai Peninsula
Borough's 911 program continues pending agreements because "the
effect of ... inclusion of this language actually may have the
net effect of causing us to basically shut down our system" He
informed the committee that the [borough] is incurring 911-
related costs now and this language may potentially preclude the
borough from using any of its surcharge revenue for providing
those services.
4:56:38 PM
LINDA FREED, City Manager, City of Kodiak, began by informing
the committee that the City of Kodiak is the public safety
answering point (PSAP) for those portions of the region that
receive enhanced 911 service. Although the Kodiak Island
Borough is the entity that levies the enhanced 911 surcharge,
the City of Kodiak is the direct service provider. Ms. Freed
related that the City of Kodiak supports HB 249, as it is a good
compromise that meets the current needs of that portion of the
Kodiak region receiving enhanced 911 service. However, Ms.
Freed expressed concern with regard to DPS and what the
definition would be for "uses the enhanced 911 system" [as
specified on page 4, line 4]. Ms. Freed explained that all of
the Kodiak region's enhanced 911 calls come into the City of
Kodiak dispatch center and DPS troopers are dispatched for calls
outside the [city's] jurisdiction. However, DPS doesn't incur
any cost directly related to the enhanced 911 system. Ms. Freed
informed the committee that the City of Kodiak and the borough
have a good agreement that meets the current needs of the area,
and therefore she wasn't sure of the necessity of DPS signing on
to that because the City of Kodiak has operational agreements
with DPS that are separate from the enhanced 911 system. In
conclusion, Ms. Freed announced support for HB 249 and expressed
the hope for it to pass this year as it provides a great
framework for local governments to provide this important public
safety service.
4:59:07 PM
JIM ROWE, Director, Alaska Telephone Association, began by
informing the committee that the association represents 14 rural
local exchange telephone companies in the state. Most of these
areas are already assessing surcharges. Currently, the
surcharge in communities with 100,000 residents is capped at
$.50 while in those areas with higher populations, it's capped
at $.75. Version F would propose an increase for the
Municipality of Anchorage four-fold. Mr. Rowe emphasized: "We
have an aversion to any taxing, which is what we're doing as
telephone companies - it's perceived by customers that we're
collecting this, that we're raising rates. Also, we're
interested in the state of increasing the penetration, not
having people feeling like they can't afford it. Emergency
services are something we're very interested in. We also would
like to see legislation pass this year." Mr. Rowe then noted
agreement with the sponsor's comments regarding the compromise
that has occurred with HB 249. However, he highlighted that
there are locales in Alaska that don't have a PSAP to which a
911 call can be sent, which remains to be addressed.
5:01:57 PM
MR. ROWE turned to the discussion of the amount of the rate and
highlighted that the cap in HB 249 can be increased upon a vote
of the people in the area impacted. Mr. Rowe reminded the
committee of Abraham Lincoln's comments at his first inaugural
address in 1861, specifically the following: "This country,
with its institutions, belongs to the people who inhabit it.
Whenever they shall grow weary of the existing government, they
can exercise their constitutional right of amending it or their
revolutionary right to dismember or overthrow it."
5:04:23 PM
MR. ROWE, in response to Chair Anderson, informed the committee
that $1.50 will double to triple the amount some of the members
of the Alaska Telephone Association will be billed. He noted
that the association would support an increase of $1.50.
5:05:13 PM
CHAIR ANDERSON noted a conversation he had with Senator Bunde,
sponsor of SB 100, in which Senator Bunde agreed to HB 249 being
the vehicle for the enhanced 911 surcharge. He recalled that
Senator Bunde, when asked, said that he didn't have "any
druthers" regarding whether the surcharge should be $1.50 or
$2.00. However, Senator Bunde noted that his legislation had a
$1.50 surcharge.
MR. ROWE interjected his thanks to those who have worked on this
issue in the House and the Senate. He expressed his hope that
this legislation, which he characterized as good legislation,
could be passed.
5:05:58 PM
REPRESENTATIVE ROKEBERG asked if current statute requires the
members of the Alaska Telephone Association to charge a
surcharge at all. He also asked if [Version F] includes the
[population] differential.
MR. ROWE answered that when a municipality has an enhanced 911
system, the [surcharge] is mandated. In further response to
Representative Rokeberg, Mr. Rowe explained that federal rules
require that 911 be available everywhere in the country. He
clarified that 911 dialing can be done everywhere, but [in
Alaska] there are some communities for which there is no
location to send the call. Mr. Rowe reminded the committee that
last year he attempted to have the state establish a default
PSAP so that an emergency call could at least be recorded.
However, that was found to be unacceptable. Mr. Rowe clarified
that surcharges can only be assessed where there is enhanced 911
service. In response to Representative LeDoux, Mr. Rowe
confirmed that some of the areas in her district don't have 911
service. He offered to provide the committee with a list. He
recalled that last year Aniak had a group that answered
emergency calls during the hours of 8:00 a.m. to 5:00 p.m. while
emergency calls at any other time would be routed to Bethel.
5:09:21 PM
MR. ROWE agreed with Representative LeDoux that in some areas in
her district a 911 call is routed nowhere even though there is a
village public safety officer (VPSO) in the community. However,
he pointed out that the VPSO are sometimes out in the community
and aren't sitting by the telephone waiting for a call.
Furthermore, a VPSO is a single individual, which isn't a
permanent place.
5:10:02 PM
REPRESENTATIVE KOTT referred to the language on page 2 requiring
the telephone company to notify its customers in writing when a
surcharge is changed or imposed. The language further specifies
that the notification will go through the telephone company
servicing the area.
MR. ROWE opined that the aforementioned is a challenge. He
appreciated the concept that the notification should be left up
to the municipality when it makes a change in the surcharge.
However, again it will be a challenge.
5:11:00 PM
REPRESENTATIVE HAWKER reminded the committee that HB 249 is
permissive legislation that provides for a surcharge up to $2.00
per line. Furthermore, a surcharge above $2.00 would require a
vote of the impacted community. He reiterated that the $2.00
surcharge is a compromise, which he opined is fair. He
appreciated that the telephone companies don't want to be a
taxing entity for the government. Representative Hawker then
referred to statements from various telephone providers in the
state that recognized this legislation as a compromise.
Representative Hawker then turned to the statewide need for 911
services as is the case for all of the state's statewide
infrastructure needs. With regard to the legislation requiring
consumer notification of a surcharge, the language requires the
telephone company to distribute the notification because the
municipality isn't privy to the telephone company's consumer
database. However, the language further specifies that the
municipality has to pay any reasonable incremental costs
associated with the notification.
CHAIR ANDERSON announced that HB 249 would be held over.
REPRESENTATIVE KOTT questioned whether there have been any
letters from constituents saying they have bought into the
compromise [as presented in HB 249].
REPRESENTATIVE HAWKER indicated that his constituents [in Eagle
River] do support this legislation.
REPRESENTATIVE GUTTENBERG turned attention to the issue of
multiple lines within a household versus within large commercial
enterprises.
REPRESENTATIVE HAWKER pointed out that Section 4 addresses that
issue. He highlighted that it allows local control and self-
determination on that issue. Representative Hawker acknowledged
that deciding that each individual line would be the base for
the surcharge was a policy call, but he highlighted the desire
for the responder to know the location from which one calls 911.
5:19:11 PM
REPRESENTATIVE ROKEBERG turned the committee's attention to page
4, line 24, and pointed out that "E911" should actually be
"enhanced 911". He then requested that a letter be obtained
regarding whether there are any generally accepted industry
standards as defined by the RCA. He noted a conflict of law
issue with the ".131(c)" provisions.
REPRESENTATIVE KOTT asked whether any consideration was given to
excluding the current statute that exempts those larger
companies with 100 or more lines.
REPRESENTATIVE HAWKER said it was his personal preference to
follow Representative Kott's counsel on the matter, but the
compromise has left the 100-line limit in place.
CHAIR ANDERSON reminded the committee that HB 249 would be held
over.
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:22:23 PM.
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