SB 14-ELECTRIC/TELEPHONE COOPS: BOARD TERMS  3:38:17 PM CHAIR OLSON announced that the final order of business would be SENATE BILL NO. 14, "An Act relating to the term of office of directors of telephone or electric cooperatives." CHAIR OLSON stated SB 14 is identical to the companion bill the committee heard last week. 3:38:36 PM SENATOR FRED DYSON, Alaska State Legislature, prime sponsor of SB 14, stated SB 14 does not have any known opposition. He said that several utilities asked for an extension in board member terms from three to four years. He concluded that this change would be permissive and not mandatory. 3:39:21 PM JOSHUA BANKS, Staff, Senator Fred Dyson, Alaska State Legislature, reiterated the bill is permissive and will not make any mandatory changes to telephone or electric cooperatives. However, the proposed changes would be beneficial to electric and telephone cooperatives since new directors have a steep learning curve. This bill would also assist new directors in being more productive for members of the cooperatives. Additionally, this bill would give cooperatives more flexibility for elections. Currently, AS 10.25.160 requires cooperatives to hold elections each year with one-third of the board terms up for elections. Under SB 14, telephone and electric cooperatives can choose to hold biennial elections rather than annual elections. The terms of directors would be staggered terms. He reiterated the bill is permissive and not mandatory. Most cooperatives have bylaws that will also need to be changed to allow them to lengthen the terms of their board of directors. He reported that Chugach Electric Association, Inc. (CEA) and the Alaska Power Association (APA) have submitted letters of support. He also reported the APA represents 15 electric cooperatives throughout the state. Additionally, the International Brotherhood of Electrical Workers (IBEW) also supports SB 14, and the sponsor is not aware of any opposition to the bill. 3:42:08 PM REPRESENTATIVE SADDLER asked whether utilities other than CEA have expressed interest in these changes. MR. BANKS answered that the APA also passed a resolution in support of SB 14. He said he was not aware of other electric or telephone cooperatives who were anxious to implement the changes offered by the bill. CHAIR OLSON suggested perhaps service areas may be interested next year, especially from smaller communities that have difficulty in obtaining a full list of candidates. 3:43:19 PM REPRESENTATIVE SADDLER asked whether this bill would have any effect on recruitment abilities. MR. BANKS said he imagined it would help in recruiting new directors since it would allow new directors more time to get caught up on the technical aspects of the industries and it would not be quite as daunting a task to step in for those with little experience in electric or telephone cooperatives. 3:44:32 PM PHIL STEYER, Director, Government Relations & Corporate Communications, Chugach Electric Association, Inc. (CEA), said that CEA is supportive of the bill. He stated his comments would be akin to his testimony on the house version of the bill last week. He reiterated his support for SB 14 on behalf of the industry. 3:45:19 PM CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on SB 14. 3:45:50 PM REPRESENTATIVE SADDLER moved to report SB 14 out of committee with individual recommendations and the accompanying fiscal note. There being no objection, SB 14 was reported from the House Labor and Commerce Standing Committee.