Legislature(1995 - 1996)

04/12/1995 09:40 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 12, 1995                                        
                            9:40 a.m.                                          
  TAPES                                                                        
                                                                               
  SFC-95, #30, Side 1, (000-575)                                               
  SFC-95, #30, Side 2, (575-end)                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Rick Halford,  Co-chair,  convened  the meeting  at                 
  approximately 9:40 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  Co-chair Halford  and Senators  Phillips, Sharp,  Donley and                 
  Rieger were present.   Co-chair Frank arrived  shortly after                 
  the meeting began.  Senator Zharoff was not in attendance.                   
                                                                               
  Also Attending:  Stan Ridgeway, Deputy  Director, Vocational                 
  Rehabilitation, Dept. of  Education; Dean Guaneli,  Criminal                 
  Division, Dept. of Law; Kathy Tibble, Division of Family and                 
  Youth  Services,  Dept. of  Health  & Social  Services; Dave                 
  Hutchens, Executive  Director of the  Alaska Rural  Electric                 
  Cooperative Association; and  Willie Anderson,  Representing                 
  the National Education Assoc.                                                
                                                                               
  Teleconference:  Victor Gunn, Deputy  Chief of Police, Dept.                 
  of Public  Safety,  Fairbanks; Don  Schroer,  Alaska  Public                 
  Utilities   Commission,   Anchorage;  Bob   Lohr,  Executive                 
  Director, Alaska Public Utilities Commission, Anchorage, and                 
  Janey Winnegar, Representing the National Rifle Association,                 
  Palmer.                                                                      
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
       SB 117 STATEWIDE INDEPENDENT LIVING COUNCIL                             
                                                                               
       Stan Ridgeway gave testimony in support  of SB 117.  SB
  117  (HES)  was REPORTED  OUT of committee  recommending "do                 
  pass"        with a fiscal note from    the     Dept.     of                 
  Education of $142.6.                                                         
                                                                               
       SB  64 CONVERT AK RR TO PRIVATE CORPORATION                             
                                                                               
       Senator Rieger moved Amendment #1,  and it was ADOPTED.                 
  The                                                                          
       bill is being held pending further discussion.                          
                                                                               
       SB  26 OFFENSES BY JUVENILE USING FIREARMS                              
                                                                               
       Discussion was had by Victor Gunn of Fairbanks; Dave                    
       Hutcheson and Willie Anderson of the National Education                 
                                                                               
                                                                               
       Association;  and  Dean  Guaneli,   Dept.  of  Law.   A                 
  Conceptual                                                                   
       Amendment  changing  "criminal   offense"  to   "crimes                 
  against                                                                      
       a  person"  and  "firearms"   to  "deadly  weapon"  was                 
  ADOPTED.                                                                     
       CSSB 26 (FIN) was REPORTED OUT of committee with 6 zero                 
       fiscal notes (see page 7 in minutes for details), and                   
       a "do pass" recommendation.                                             
                                                                               
       SB  54 ELECTRIC UTIL & SOLID WASTE REMOVAL                              
                                                                               
       Don Schroer and Bob Lohr of the APUC testified  against                 
  the                                                                          
       bill,  but  endorsed  the two  amendments  presented by                 
  Senator                                                                      
       Sharp.  Amendment #1 and #2 was ADOPTED.  CSSB 54 (L&C)                 
  is                                                                           
       being held for further discussion.                                      
                                                                               
       SENATE BILL NO. 117                                                     
       "An  Act  establishing a  statewide  independent living                 
  council       and clarifying its relationship  with existing                 
  agencies; and      providing for an effective date."                         
                                                                               
  Stan  Ridgeway,  Deputy Director,  Vocational Rehabilitation                 
  testified  that  SB 117,  the  establishment of  a Statewide                 
  Independent  Living  Council,  was   introduced  by  Senator                 
  Halford  at  the request  of the  Dept.  of Health  & Social                 
  Services.  In order for Alaska to continue receiving federal                 
  funds  for  independent  living  services,  the  state  must                 
  establish in statute a Statewide Independent Living Council.                 
  At the present time, the state receives approximately $900.0                 
  in federal money,  along with  $602.0 in state  money for  a                 
  total  of  $1.5  million  used  to fund  independent  living                 
  centers throughout the state.  As part of the rehabilitation                 
  act of  1992,  there  was a  requirement  that  a  Statewide                 
  Independent Living Council be appointed by the governor.  In                 
  order to receive those funds, the Independent Living Council                 
  and the Division of Vocational Rehabilitation had to jointly                 
  develop a  state plan for independent living services.  That                 
  was accomplished in 1993 when  Governor Hickel appointed the                 
  first council in  October of 1993.  Because it was a federal                 
  law, there was an assumption that it would not need to be in                 
  state  statute.   However,  that  was challenged  later that                 
  year, and in  1994 Governor Hickel reappointed  the council.                 
  It  is our  understanding  that it  must  be established  in                 
  statute by  the  end of  this  legislative session  for  the                 
  Independent Living Council to continue operation.                            
                                                                               
  Senator  Sharp  MOVED to  adopt  CSSB 117  with accompanying                 
  fiscal note  and individual  recommendations.   No objection                 
  being heard, CSSB 117  was REPORTED OUT of committee  with a                 
  $142.6 fiscal  note from  the Dept  of Education  and a  "do                 
                                                                               
                                                                               
  pass" recommendation from the Committee.                                     
                                                                               
       SENATE BILL NO. 64                                                      
       "An  Act  relating  to the  dissolution  of  the Alaska                 
  Railroad         Corporation  and providing for a  successor                 
  corporation; and        providing for an effective date."                    
                                                                               
  Senator Rieger  testified that  this legislation  is a  step                 
  towards the privatization of the Alaska Railroad.  This will                 
  reshape the corporation into a form, the ownership of which,                 
  is represented by  shares of  stock.  This  will enable  the                 
  transfer to private  ownership, either through: the  sale of                 
  the entire  corporation,  through  the  sale  of  individual                 
  shares,  or  appropriations of  individual shares  of stock.                 
  This  bill  directs   the  railroad  to  form   a  successor                 
  corporation represented by shares of  stock.  Senator Rieger                 
  testified that the Board of Directors have been paralyzed by                 
  the  actions of the legislation imposed over the past years.                 
  He  feels this has been  a detriment to economic development                 
  in the state.   The Alaska  State Library has contacted  the                 
  legislature  asking if there  could be help  in securing the                 
  railroad historical records.  He  offered an amendment which                 
  would transfer the historical records of the Alaska Railroad                 
  to  the  Library, except  those  records which  the railroad                 
  should  appropriately  keep  in  their  own archives.    The                 
  railroad has recommended an amendment to the amendment which                 
  is  technical.    Senator  Rieger  MOVED  amendment  #1  for                 
  adoption.    No  objection  being  heard, amendment  #1  was                 
  ADOPTED.                                                                     
                                                                               
  Senator Phillips made reference to a position paper from the                 
  railroad, dated March  10, 1995.   He asked  for the  formal                 
  position by the  Alaska Railroad.  Senator  Rieger responded                 
  that they did not have a formal  position.  The Railroad had                 
  concerns in some areas of the  original bill. Those areas of                 
  concern have  been addressed.   One  of the  ideas that  the                 
  railroad offered  for the  legislature's consideration,  was                 
  putting the  shares into  a trust  to be  administered by  a                 
  trustee, rather than voted  by the governor as the  owner of                 
  the shares.  This  bill is crafted to allow  the legislature                 
  to appropriate the shares to a trust.                                        
                                                                               
  Co-chair Halford  supports moving  the railroad towards  the                 
  private sector.   As  long as  it is  in the  public sector,                 
  there is not much control,  and expanding their independence                 
  should only be towards privatization. Senator Rieger  stated                 
  that the legislation  should be accepted only  as an interim                 
  measure.   The legislature  is going to  have to appropriate                 
  the shares subsequently, or force the  sale of the shares to                 
  consummate the transaction.   The only thing that is  gained                 
  is avoiding  a mandated  distress sale,  which is  the other                 
  alternative that has  been offered  from time to  time.   He                 
  feels that this will  help to get the maximum  proceeds when                 
  the railroad is  sold.  Co-chair  Halford wanted to know  if                 
                                                                               
                                                                               
  this legislation weakens  the ability  to interact with  the                 
  railroad on  various issues?   Senator  Rieger said  that it                 
  does reduce the legislature's strength.                                      
  There   was   considerable  discussion   regarding  language                 
  cleanup.  It was agreed to hold the bill for a later date.                   
                                                                               
       SENATE BILL NO. 26                                                      
       "An Act providing for automatic waiver of juvenile                      
       jurisdiction  and prosecution of  minors as  adults for                 
  certain        violations of laws by minors who use firearms                 
  to commit             criminal offenses and  relating to the                 
  sealing of the records       of those minors."                               
                                                                               
  Senator Donley explained  that SB 26 would  waive juvenile's                 
  over the  age of 14 who  commit a second  crime, utilizing a                 
  firearm, to adult court.  The legislation has the support of                 
  police  associations, national  rifle  association, and  the                 
  organization  representing  pubic  safety employees  of  the                 
  state.  At the current time, there is no mandatory waiver of                 
  juveniles.    His intent  to send  a  message that  abuse of                 
  firearms is  not condoned  by society  and to  take it  very                 
  seriously.   This  has  been  brought  to his  attention  by                 
  educators in  his community who have said that after passage                 
  of  the laws  that  forbid firearms  from  being brought  to                 
  schools, the police  were frustrated, because when  they did                 
  apprehend individuals  who carried firearms to  school there                 
  was no consequence.                                                          
                                                                               
  Co-chair  Halford supports  the legislation  and  asked that                 
  there  be  an  amendment  to   include  deadly  weapons  and                 
  defensive weapons.                                                           
                                                                               
  Senator Rieger  asked if the  waiver into adult  court would                 
  mean the individual  is subject  to the laws  of the  adult?                 
  Senator  Donley  responded that  it  was correct,  except if                 
  incarcerated, then different  rules apply.  He asked if  the                 
  results  of being waived  include juvenile  consequences, as                 
  well as  adult consequences  to the  crime?   Senator Donley                 
  responded that both consequences apply.                                      
                                                                               
  There was  a discussion  regarding other  forms of  weapons.                 
  Firearms are deadly.  The purpose  of this legislation is to                 
  stop   the  firearm   abuse   before   there   are   serious                 
  consequences.                                                                
                                                                               
  Kathy Tibble, Division of Family and Youth Services, Dept of                 
  Health & Social  Services testified  that the department  is                 
  opposed  to this legislation  with the age  being lowered to                 
  14, and because of  the broadening of the type  of offenses.                 
  There is a concern that a  juvenile could be adjudicated for                 
  a misdemeanor offense  with use  of a firearm,  and then  if                 
  involved  in  a more  serious  offense, be  waived  to adult                 
  jails.  At  this point, a waiver  to an adult court  means a                 
  waiver  to adult prisons.  The department believes that most                 
                                                                               
                                                                               
  14 year olds still are amenable to treatment, therefore they                 
  support continuing with the statute that allows for a waiver                 
  to adult court for heinous crimes  rather than to mandate an                 
  automatic waiver on all 14 year olds for this broad category                 
  of  offense.  Senator  Phillips  asked  if the  governor  is                 
  opposed to this bill.  Ms.  Tibble responded that it was her                 
  understanding.                                                               
                                                                               
  Co-chair Halford asked  if the governor would be  opposed to                 
  the bill if it dealt with  felony offenses instead of felony                 
  and misdemeanor offenses?  Ms. Tibble referred the question.                 
  He asked if the language read, "offense against the person"?                 
  There  was  considerable  discussion  regarding  deadly  and                 
  defensive  weapons.  Senator Donley  read the  definition of                 
  deadly and  defensive from  the statute.   Co-chair  Halford                 
  wants an amendment that puts into adds language referring to                 
  deadly weapons.                                                              
                                                                               
  Senator Donley pointed  out that the argument that the minor                 
  would go  to adult prison  presumes that the  second offense                 
  that  the  minor  commits is  somehow  subject  to mandatory                 
  sentencing.  It would have to  be a major offense, to commit                 
  the minor to prison if convicted.                                            
                                                                               
  Willie  Anderson,  National Education  Association testified                 
  that NEA  supports the legislation  because of the  crime in                 
  the public school system.  There is an increase of harm as a                 
  result of firearms.                                                          
                                                                               
  Victor Gunn, Deputy Chief of  Police, Dept of Public  Safety                 
  in Fairbanks spoke  to supporting  the bill.   He felt  that                 
  adding the words "deadly weapons" to the bill, it would make                 
  it more  of a deterrent  to crimes, versus  just "firearms".                 
  The message to  students regarding the  use of firearms  has                 
  been conveyed  through other laws.   The  message of  adding                 
  deadly  weapons would make it much stronger, and limiting it                 
  to felonies would make  the bill more palatable.   He stated                 
  that there are already penalties  attached to the possession                 
  of  and  the threatened  use of  a  firearm.   He emphasized                 
  sending an overall message of deterrents to the youth, which                 
  he is  in favor  of.   The  addition of  deadly weapons  and                 
  limiting it  to felonies  would be  highly supported  by the                 
  department.                                                                  
                                                                               
  Co-chair Halford suggested  that instead  of applying it  to                 
  felonies only, it  could be applied  to "crimes against  the                 
  person," which  would eliminate  some misdemeanors,  but not                 
  all,  such as the  highest class  of misdemeanors,  which is                 
  assault.                                                                     
                                                                               
  Mr. Gunn suggested that it would not be restrictive to limit                 
  the legislation to felonies.                                                 
                                                                               
  Co-chair   Halford   reminded   the  committee   that   this                 
                                                                               
                                                                               
  legislation is  not applying  the penalty,  but rather  that                 
  they  will be  tried  as adults.    Only  after there  is  a                 
  confirmation of  guilt do  the penalties  go forward,  which                 
  rests with the  judge.  Senator  Donley suggested moving  to                 
  the  format of the second offense with  a deadly weapon or a                 
  crime against  the person.   The  distinction should  not be                 
  between a felony and a misdemeanor,  as whether there was an                 
  injury, or a threat of an injury to an other person.                         
                                                                               
  End    Tape #30, Side 1                                                      
  Begin  Tape #30, Side 2                                                      
                                                                               
  Dean Guaneli, Criminal Division, Dept of Law, stated that he                 
  understood  that  the committee  was  interested  in hearing                 
  testimony when, and  under what circumstances, force  can be                 
  used in self  defense.   If the question  is expanding  this                 
  bill   to  have   additional  juveniles   waived  to   adult                 
  jurisdiction, these are policy questions to be determined by                 
  the  department.    In responding  to  Co-chair  Halford, he                 
  stated  that  from   a  prosecution  standpoint,   the  more                 
  flexibility that the prosecution has to resolve  a case, the                 
  better. If additional penalties  or options available  under                 
  the law, send  a particular juvenile  one way or the  other,                 
  the preference is to have that discretion.  However, it then                 
  becomes necessary to decide what is best for that particular                 
  juvenile for that case, and that becomes largely  a question                 
  of what sorts of resources does the Dept. of Health & Social                 
  Services have to treat any particular individual, what sorts                 
  of resources  would the Dept.  of Corrections have  to treat                 
  that individual  if they  are handled  as an  adult.   Those                 
  kinds of allocations resource questions need to be discussed                 
  with those  departments.  There  is a difficulty  in dealing                 
  with  young offenders.    The departments  do  not have  the                 
  flexibility within the  system to create separate  units for                 
  young offenders.   It is one thing  to deal with a 16  of 17                 
  year old  who has  committed a  murder, they  have over  the                 
  years  dealt  with a  number of  those  individuals.   It is                 
  another matter to deal  with a 15 year old, whose only crime                 
  is having a firearm or  handling firearms.  Senator  Halford                 
  asked  if  there  is  a  status  offense that  is  minor  in                 
  possession of a firearm?  Mr. Guaneli stated that there  is,                 
  under  16  without  parental  permission  is  a  misdemeanor                 
  offense.  There was discussion regarding various scenarios.                  
                                                                               
  Co-chair  Halford asked if the waivers in this proposed bill                 
  mandatory, or  can the  Dept of  Law within the  prosecutors                 
  office,   really  determine   whether   there   will  be   a                 
  consideration  for the waiver?   Mr. Guaneli  stated that if                 
  someone is charged  with an offense,  then the statute  will                 
  dictate whether  that person goes to juvenile court or adult                 
  court.  Prosecutors  always have the discretion  to charge a                 
  lower level of  offense.  That  power exists currently  with                 
  the juvenile law.  Co-chair Halford noted the  opposition of                 
  the administration.   If  the bill were  amended to  include                 
                                                                               
                                                                               
  only felonies would the administration's position change?                    
  Mr. Guaneli responded that there  would be a greater comfort                 
  level,  but  without   consulting  the  various  departments                 
  involved, he would not commit.  Co-chair Halford again asked                 
  about "crimes  against the person".  Mr. Guaneli stated that                 
  decisions from  the  executive  branch  come  from  resource                 
  considerations as much  as what is  best for the public  and                 
  the individual.                                                              
                                                                               
  Senator Sharp recommended a  conceptual amendment to broaden                 
  the definition to deadly weapon, make it a crime against the                 
  person only, and apply to the second offense.                                
                                                                               
  Janey Winnegar, Representing the National Rifle  Association                 
  in Palmer  testified that their  concern is that  all crimes                 
  against a person should be covered  in this legislation.  It                 
  is felt that any  weapon should be considered a  felony. She                 
  stated that in  talking with  the law enforcement  agencies,                 
  they support crime strike recommendations.                                   
                                                                               
  Senator Donley offered  the conceptual  amendment to  change                 
  the terminology to  "crimes against the person";  change the                 
  word  "firearms"  to "deadly  weapon".   No  objection being                 
  heard the conceptual amendment was ADOPTED.                                  
                                                                               
  Senator Donley MOVED to adopt SB 26 (FIN)  with accompanying                 
  zero  fiscal  notes, with  individual  recommendations.   No                 
  objection  being heard  CSSB 26  (FIN) was  REPORTED  OUT of                 
  committee with 6  zero fiscal  notes from Dept  of Health  &                 
  Social Services,  Dept  of Administration,  Dept  of  Public                 
  Safety, and Dept of Law, with  a "do pass" recommendation by                 
  the committee.                                                               
                                                                               
       SENATE BILL NO. 54                                                      
       "An  Act  relating  to  exclusive   service  areas  for                 
  utilities          certificated to  provide electric utility                 
  service and  to the       definition of 'general public' for                 
  utilities furnishing           electric service."                            
                                                                               
  Senator Sharp offered  amendment #1 which changes  the title                 
  to, "relating to  employees of  the Alaska Public  Utilities                 
  Commission;", he  explained the  rest of  the change  of the                 
  amendment which would allow  two special assistants,  though                 
  there are no funds available until next year.  Senator Sharp                 
  MOVED  amendment  #1.   No  objections  being  heard it  was                 
  ADOPTED.    Amendment #2  was  offered which  is  a language                 
  change to coincide with the title change.  Also there was  a                 
  new expiration  of Feb.  1 put  into place.   Senator  Sharp                 
  MOVED to adopt amendment  #2.  No objections being  heard it                 
  was ADOPTED.                                                                 
                                                                               
  Co-chair Halford explained that the remaining portion of the                 
  bill is  the exclusive  areas for  electric utilities  only.                 
  The exemption provision except for refuse collection is what                 
                                                                               
                                                                               
  needs to be addressed, along with a change to the definition                 
  section.                                                                     
                                                                               
  Dave  Hutchens,  Executive  Director  of  the  Alaska  Rural                 
  Electric Coop Assoc. stated that he was in strong support of                 
  the bill. Section 4 is a conforming amendment in the statute                 
  conforming  to  Section  2  which  is the  operative  policy                 
  statement.  The  background is that  a number of years  ago,                 
  there was retail competition among the utilities.  Utilities                 
  were running lines  up and down the same streets, and it was                 
  a misallocation of resources.   In order to stop  the border                 
  wars, a  Board was created.  In Section  2, the PUC gave the                 
  commission  the directive  and instructions to  separate the                 
  electric utilities services.  The job  is now complete.  The                 
  purpose of this  legislation is to enable  the commission to                 
  keep the utilities services separate.  He explained that the                 
  attached fiscal note  of $100.0 a  year to keep from  making                 
  changes and asked that there be in its  place, a zero fiscal                 
  note.                                                                        
                                                                               
  Mr. Hutchens explained  Section 4 changes which  strikes out                 
  lines 6  and 7,  on page  2.   The change is  proposed as  a                 
  compromise  to  legislation  previously  introduced  in  the                 
  1980's that  concerned gas  and oil  companies.   Since that                 
  situation is long gone,  the language suggests that  any new                 
  customer coming into a service  area was up for grabs.   The                 
  second change on line 7 is a language change.                                
                                                                               
  Co-chair  Frank asked  if  the bill  was  introduced at  his                 
  request.  Mr. Hutchens explained  that it had originally  be                 
  requested to be included in the APUC sunset extension  bill.                 
  Senator Kelly has introduced  this as a new bill.   Co-chair                 
  Frank inquired about  the refuse portion  of the bill.   Mr.                 
  Hutchens stated that was not at  his request, that was added                 
  in Labor and Commerce  Committee, and he has no  interest in                 
  that area. The exemption does apply to electrical utilities.                 
                                                                               
                                                                               
  Co-chair  Halford inquired  if  a municipal  government  can                 
  regulate an electric  or telephone utility that  is exempted                 
  under the  APUC? Mr. Hutchens  indicated that they  can not.                 
  He inquired about refuse, stating that if it is deregulated,                 
  then  it needs  to be  backed up  with a exemption  from the                 
  municipal regulation as well.  Otherwise, it ends up being a                 
  battle at the municipal level, leading to the take over of a                 
  company, because the  municipality may  want to provide  the                 
  service on a government level.                                               
                                                                               
  Co-chair   Frank   feels   the   garbage   deregulation   is                 
  inappropriate in this  section and  offered an amendment  to                 
  remove it.                                                                   
                                                                               
  Senator Rieger spoke  to the provisions of  electric service                 
  from  the  refinery in  Valdez and  how  that might  have an                 
                                                                               
                                                                               
  effect on the  Intertie.  Would  this prohibit the  refinery                 
  from providing surplus  electric power  to the CVEA  region.                 
  Mr. Hutchens assured Senator Rieger that it would not.  This                 
  deals only with the retail sales of the electricity, and the                 
  provision  of  the  wholesale  service  is  protected  under                 
  federal law.  Competition is  encouraged and protected under                 
  federal law.   Under  Alaska law,  anyone has  the right  to                 
  serve themselves, to  provide their  own generation.   Under                 
  federal law, they  have the right  to sell their surplus  to                 
  the utility in that area.                                                    
                                                                               
  Don Schroer, Alaska Public Utilities Commission in Anchorage                 
  offered testimony  against this  legislation  because it  is                 
  contrary  to the  public interest  and would take  the state                 
  backwards.    The Alaska  Supreme  Court has  concluded that                 
  under current law, a certificate issued by the Alaska Public                 
  Utilities Commission  does not  confer in  exclusive service                 
  area  in a public  utility.  Chugach  Electric Association v                 
  City of  Anchorage, 426 P2d 1001 (1967).   This has been the                 
  law in Alaska for  28 years.  This bill  would overturn that                 
  decision for electric utilities.  They already have de facto                 
  monopoly status, because  the APUC  has not authorized  more                 
  than one provider  in a given area.  This makes sense in the                 
  vast  majority  of   cases.    But  conditions   change  and                 
  technology evolves.   What  if, in  the future,  competition                 
  makes sense to the legislature, benefits the customer and is                 
  in the public  interest?   By the way,  these decisions  are                 
  best  left  to  the  legislature,  because  inevitably  they                 
  involve  political  as well  as  regulatory questions.   How                 
  would exclusionary  jurisdiction  be reversed  to allow  the                 
  customer  these  benefits?     It  may  very   well  require                 
  significant compensation to the electric utilities for their                 
  loss of monopoly rights.  To  my knowledge there has been no                 
  legal or  economic  analysis  of  this  potentially  massive                 
  transfer of wealth.  However, if despite these concerns, you                 
  do  decide to move the bill, the Commission supports Senator                 
  Sharp's two proposed amendments, one  to Classify two vacant                 
  Commission positions as  partially exempt; and the  other to                 
  change the appointment date for commissioners from  November                 
  1 to  February  1.   We  ask  that you  consider  one  other                 
  amendment: to create an exemption to the Procurement Act for                 
  commission  hiring  of  expert  witnesses.   The  commission                 
  recommends  adding an  exemption  to  the  Procurement  Act,                 
  36.30.850 to allow it to hire its expert witnesses for cases                 
  in a timely  manner.   A new  subsection could  be added  to                 
  read:  "contracts  for  professional  services or  testimony                 
  related to  proceedings before  the Alaska  Public Utilities                 
  Commission,   including   procurement    pursuant   to    AS                 
  42.05.111(b)."  This is modelled after an existing exemption                 
  provided to the Dept of Law.  The commission has been unable                 
  to procure the professional services  of expert witnesses in                 
  a timely fashion.  The  deadlines established in proceedings                 
  do not permit the procurement process to operate  to produce                 
  a successful bidder  in time for the contractor  to properly                 
                                                                               
                                                                               
  prepare  the  case.    Other   parties  to  the  proceedings                 
  utilizing private sector procurement procedures are  able to                 
  hire  their  expert   witnesses  on  a  timely   basis,  the                 
  commission  is not.   This either  delays the  processing of                 
  cases, or forces  the commission's  witness to rush  through                 
  the preparation of  a case, thus affecting  the accuracy and                 
  credibility of the work,  as well as costing the  state more                 
  for  overtime.    He stated  that  the  commission supported                 
  Senator Sharp's two  amendments. He reported that  there are                 
  still language problems  with the section,  and he will  fax                 
  down suggested changes to the section.                                       
                                                                               
  Senator  Sharp  asked why  bureaucrats  think they  have the                 
  right to regulate. Mr.  Schroer stated that the basis  comes                 
  from lack of funds and  not having the ability to  serve the                 
  public as intended.                                                          
                                                                               
  Bob  Lohr,  Executive   Director,  Alaska  Public  Utilities                 
  Commission  stated that the intent  of the testimony was the                 
  decision ought to  be made  by the legislature,  not by  the                 
  commission   with   respect   to  whether   competition   is                 
  appropriate.  It would not be a bureaucrat's decision  under                 
  that proposal, rather it would be a legislative decision.                    
                                                                               
  Co-chair Halford stated that Co-chair Frank is interested in                 
  pursuing this  bill further,  and with  the fax  information                 
  coming from  the APUC, the bill will be  taken up at a later                 
  time.                                                                        
                                                                               
  The meeting was RECESSED at approximately 11:10 a.m.                         

Document Name Date/Time Subjects