HOUSE BILL NO. 108 An Act relating to the regulation of water and sewer utilities of political subdivisions that are not in competition with other water and sewer utilities. Representative Foster MOVED to ADOPT work draft #24- LS0455\F, Craver, 3/17/05, as the version of the bill before the Committee. There being NO OBJECTION, it was so ordered. SUZANNE CUNNINGHAM, STAFF, REPRESENTATIVE KEVIN MEYER, explained that the committee substitute includes the addition of the two previously adopted amendments creating an "F" version of the bill. She added that in reviewing the draft, it was brought to the Sponsor's attention by a representative of the Municipality of Anchorage that a technical change was needed under Section 3. On Page 2, Line 28, and on Page 3, Line 5, "appointed" should be deleted and replaced with "approved". The Anchorage charter does not allow for a member to be appointed but they are allowed to be approved. Vice-Chair Stoltze asked if approved would implicitly mean appointed and approved. Ms. Cunningham said that it would. Representative Weyhrauch attempted to clarify the statement made by Vice Chair Stoltze. Vice-Chair Stoltze commented that it was a semantics concern. Representative Holm asked what would happen if the person was not approved. Co-Chair Meyer thought that the mayor would have to make the appointment. Ms. Cunningham agreed that the mayor would have to make appointments to come before the assembly for approval to fill the spots on the board. Representative Weyhrauch thought that there would be members, some appointed and approved. Those appointed, but not approved, would not have a counting vote. Co-Chair Meyer agreed. MARK PREMO, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE MUNICIPALITY, ANCHORAGE, clarified that the powers of appointment rests with the mayor; the powers of approval or confirmation rests with the assembly. Until they are approved by the assembly, they are a non-voting member of the board. Representative Holm commented on the specifics of the board's make-up. He asked what would happen if they could not get the approval of the members on the board. Representative Kelly inquired if the Anchorage utility opted out, would those people be laid off and the expenses taken from the Regulatory Commission of Alaska (RCA). KATE GIARD, (TESTIFIED VIA TELECONFERENCE), CHAIR, REGULATORY COMMISSION OF ALASKA (RCA), ANCHORAGE, explained that when any utility becomes unregulated, their revenues come out of the pool of the revenues calculated by the RCA. The pool revenues then become smaller. There is not a direct correlation between an employee and any regular utility. All revenues would then get smaller. 1:55:54 PM Representative Kelly commented on a conflict within the Fairbanks utilities and the mess, which resulted from that. He asked about the "authority" to deal with such an oversight. Co-Chair Meyer advised that there was concern regarding the checks and balances from the Anchorage Assembly. For some folks, that was not enough insurance and consequently, the idea of an authority came into play, which would oversee rate increases. Representative Kelly requested future information regarding the process. Vice-Chair Stoltze MOVED to ADOPT the proposed changes on Pages 2 & 3, deleting "appointed" and inserting "approved". There being NO OBJECTION, the changes were adopted. Representative Foster MOVED to report CS HB 108 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 108 (FIN) was reported out of Committee with a "no recommendation" and with zero note #1 by the Department of Environmental Conservation, fiscal note #2 by the Department of Commerce, Community and Economic Development and fiscal note #3 by the Department of Law. 1:59:03 PM